The "Mortgage-free in 2025-30" club!

choccielover

Brokeattheminute is it 10% of the original value you can overpay each year? Eg if it was £50k you originally borrowed then can you pay £5k each year? Is this in any amounts or minimum ones, I.e each payment must be over £500
Why don't you overpay to the 10% then concentrate on overpaying the first mortgage till Jan 1 then switch back to overpaying the 2nd mortgage again then switch back when you hit 10% again, repeat.

Chocs

choccielover

Luckyinlife wrote: »

choccielover thanks :]
Im know what you mean tho noone talks about it in person much at all even my dad has around 12years left and £50 a month would bring it down 5 years yet he dont pay the £50 extra a month not interested really

How are you getting on ?

I think it's just one of those old fashioned taboo subjects, which is a shame because if more families talked about it then maybe more young people could learn from their family how to be more financially savvy.
I'm lucky in that my parents were reasonably open, much more so in recent years, about financial matters. In fact my dad and I regularly talk about savings rates etc and the value of overpaying.

Chocs

Luckyinlife

choccielover wrote: »

I think it's just one of those old fashioned taboo subjects, which is a shame because if more families talked about it then maybe more young people could learn from their family how to be more financially savvy.
I'm lucky in that my parents were reasonably open, much more so in recent years, about financial matters. In fact my dad and I regularly talk about savings rates etc and the value of overpaying.

Chocs

I think so as well i guess these days its just a way of life most people will go thro they whole working life paying a mortgage which is scary when you think the banks get crazy amount for lending us the money

choccielover

Luckyinlife wrote: »

I think so as well i guess these days its just a way of life most people will go thro they whole working life paying a mortgage which is scary when you think the banks get crazy amount for lending us the money

Yep, we took out our first mortgage at 20/22 and wish we had been a bit more sensible back then. We weren't silly but have nothing really to show for it, especially not a vastly reduced mortgage. We have always been sensible ish but could have been better. I guess I shouldn't complain, had our lightbulb moment whilst still young (well, early 30's if that counts.....) when I think of how much we earned back then we are literally into multiples of that now....so why don't I feel multiples richer......
I guess you live to your means
Chocs

Brokeattheminute

Hi chooci lover,no i think its just for the 2nd mortgage which would be the lower amount.Im not sure whether its the amount or on the monthly payments which would only mean i could only overpay by under £360 a yr.Id need to find out about that.Actually i think im gonna go for the 3rd option which means i can fully pay the 2nd mortgage off in 2019 then conc on the 1st mortgage after that.

LannieDuck

Hi, can I join please?

Our mortgage is £330,000, and it's a 24 year term, so March 2039. I'm very much hoping to knock at least 10 years off that, which would put me in your club!

I've started a diary here: https://forums.moneysavingexpert.com/discussion/comment/68262400#Comment_68262400

Brokeattheminute

I was wrong it is 10% of the original loan which was 21,600 not the payments per month im making so it means i can overpay by up to £150 a month so im going to see my mortgage advisor during the week and set up an overpayment of up to £100 a month.So option 2 could work for me ok.Then nxt yr i could overpay on mortgage 1 so what choccilover says could work!

choccielover

that sounds like a great plan in the making. Always worth calling and checking the detail before making decisions.

Welcome Lannieduck

Chocs

Luckyinlife

LannieDuck wrote: »

Hi, can I join please?

Our mortgage is £330,000, and it's a 24 year term, so March 2039. I'm very much hoping to knock at least 10 years off that, which would put me in your club!

I've started a diary here: https://forums.moneysavingexpert.com/discussion/comment/68262400#Comment_68262400

welcome and good luck :]

amycool

Hi everyone!

I haven't been here in a while as I've been very busy and also haven't done much in the way of money saving!

I did today (at last) get round to upgrading my ISA so 2% instead of 1% interest.

I've also overpaid £500 for April so I'm still on track to have paid off £10,000 in our first year since getting the mortgage. I'm acutely aware of the fact that one way or another I will probably be unemployed next year, so I want to pay off as much as I can whilst we have the spare money. Luckily I can overpay as little as I like so post-redundancy it'll be 3p here and 6p there.

I remember being amazed at how small my Mum's mortgage was near the end but she had no idea that you were allowed to overpay, or that it would knock so much off the total. 25 years is a long time, especially with inflation so high in the early 90s. I tell everyone about overpaying now, but most still think it's mad to spend money on debt rather than on life, even if it means having twice as much to spend later on. I've always been a saver though, so it makes sense to me. Yes, I could get hit by a bus tomorrow (unlikely actually as my walk to work isn't along a bus route ) but I probably won't, and I'll probably live past retirement age and quite like some money to be able to do things and go places.

It's nice to see how everyone is doing and to see people getting help for their mortgage-dilemmas. I'm a bit jealous of these mammoth overpayments going on!