Project 2018

Ms-Bristol

Kittenkirst wrote: »

Fantastic work so far MsB!

I'm yet to start my mortgage (buying a new build which should be ready in Sept time, awaiting mortgage confirmation), but am avidly reading this board and trying to get into good habits!

Reading threads like you've started are really inspiring. I shall be subscribing and cheering you along :T

Good luck with your journey. It's good that you are thinking about it before you even buy the house.

Buying a new house was an important part of the overpaying plan! Buying an older house costs more money in the first place because lots of people don't like new-builds (so you get more house for your money) and the house doesn't need to be repaired all the time - so it's a double-bonus. All that money saved can go into the mortgage.

Another tip - the builder may offer a load of options for your new home. This stuff is very poor value. Get the standard stuff for your house and then switch it later (if required). The upgraded stuff can be purchased for less than the cost of the upgrade and you can sell the nearly new standard items. Whatever you do (hopefully not too late for you) don't buy the built-in speakers and iPod docking gadgets which could add thousands to your mortgage but won't add much (if any) value to your house.

chelseablue

Ms-Bristol wrote: »

It is not really a secret - you just have to shovel all spare funds into the mortgage! If the bank let you borrow that much money, you'll have an income to pay much more if you are prepared to be a bit frugal.

I started by putting all my savings into the mortgage (no point earning tiny amount of interest when the debt was costing over 6% a year). Then I set up an overpayment each month, which I increased over time. Then it starts to snowball because the bank reduce the monthly payments to retain the length of the term. When the payments are lowered, the overpayments can be increased without paying any more per month.

There is lots on here about saving money and I have done all that good stuff (pay-as-you-go phone, no Sky TV, own an old car, etc, etc.) It gets quite addictive! I have averaged £800 a month overpayments but this month I paid £2000 into my savings account at the start of the month which will go towards the 10% overpayment in July.

Thank you


Just switched energy supplier so should be £35 a month better off from that.


Sky is next to renegotiate with, contract is up in a couple of months so going to ring and say we want to leave and see what they offer.


Unfortunately our mortgage provider doesn't lower the usual monthly payment until the fixed rate is up, so 2 years to go

smallholdingsister

Welcome and good luck.
Impressive mortgage-killing so far.

Luckyinlife

well done :] impressive maxing out is best way to get it down 10% of 200k is a lot at 20k a year but as you say if you can borrow 200k you can think about overpaying a little

hope you hit your target good luck :]

mrsp1987

Ms-Bristol wrote: »

The next milestone is July when the new year starts for the 10%. I'll be in a position to pay the entire 10% on the first day so I'll then save about £60 a month (which will go into the pot!) from then on.

I was having a chat with my dad yesterday and he was asking about my 10% cap as well. For me it runs from January to December rather than the anniversary of the loan, which I find simpler.
He asked if I could pay 10% in October and then 10% again in January which got me thinking.
I'm also limited by only being able to make a minimum repayment of £500 at a time and my aim is to save up £500 and then make a payment. So, what I might do is find out how much I've got of my 10% left in the middle of December and then make a lump sum from some of my savings. It might not be up to the full amount but maybe knock another 2/3K off it.

Lexi-lu

Hello MsB :hello:

Good Luck on your MF journey. We are in a similar position and can only make limited overpayments until our fixed deal ends in March 2018 so will be saving to make a large overpayment then.

LL

Ms-Bristol

Lexi-lu wrote: »

Hello MsB :hello:

Good Luck on your MF journey. We are in a similar position and can only make limited overpayments until our fixed deal ends in March 2018 so will be saving to make a large overpayment then.

LL

Good plan!

Ms-Bristol

mrsp1987 wrote: »

So, what I might do is find out how much I've got of my 10% left in the middle of December and then make a lump sum from some of my savings. It might not be up to the full amount but maybe knock another 2/3K off it.

I have done this in the past - found out how much I could pay mid-year which my bank provided. Now I call them at the start of July and get the figure which they snapshot on 1st July. Then when I pay that figure and the fun begins!

Because it is more than three times my monthly repayment amount, it is classed as a part-redemption rather than an overpayment. The significance of this is that the bank's system then applies an early redemption penalty despite the fact that I am within my 10% allowance.

So I ring them and have to explain the call centre staff (who generally don't understand what I am talking about) that they have made an error. Then I get a text message and a letter in the post explaining they are investigating my complaint. Finally after about a week, they correct the error reduce the balance and refund the additional interest I have paid.

This has happened to me at least four times now. I put this down to this sort of overpaying being unusual and the bank's chronic underinvestment in their online systems and staff training.

Don't be put off though - common sense will prevail!

User1489

Lexi-lu wrote: »

Hello MsB :hello:

Good Luck on your MF journey. We are in a similar position and can only make limited overpayments until our fixed deal ends in March 2018 so will be saving to make a large overpayment then.

LL

what account/rate are you using for your offset - i will hit this situation in q4 2017

Ms-Bristol

I had a statement the other day and the balance is now c. £90,300.

I have £6200 in the pot for July by which time the balance will be around £89,600 so I need to put away about £1400 a month for the next two months in order to be able to pay off 10% in July.

I have other funds earmarked for the mortgage but they are locked away and will be used in 2018 when the fixed rate ends to help clear the remaining balance.