Starting over double the mountain to climb!

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  • Help!!!
    Does anyone know which option I should go for? I don't want to reduce the monthly amount but not sure between option 1 and 3? Do I want to reduce the term what is the best MFW way to do it we have 4 years left on this rate?
    Overpaying by £500 or more:

    Pay off my mortgage earlier by reducing my mortgage term
      Reduce my future monthly payments
        Keep my existing payment and term as-is. (At the next natural mortgage payment change, i.e. interest rate change, my payment will be automatically recalculated).
      • Hi vicsmiles,


        I have just read your thread and well done on your overpayments so far! You're doing well and once you start chipping away at the small amount you will find that your amounts will come down quickly :)


        Re your recent post I have the same option as you and I have selected Option 1, I am not 100% sure what Option 3 means, but I figured as long as you reduce the term of your mortgage you will save money on interest
      • When we overpay, we keep the monthly payment amount the same, which reduces the term of the mortgage. But we haven't formally shortened the mortgage term, as we'd rather do that via overpayments when convenient to us.

        This MSE article might be helpful:
        http://blog.moneysavingexpert.com/2014/10/09/dont-shorten-your-mortgage-term-if-you-can-overpay/
        Old Mortgage: [STRIKE]2009:£78500 2010:£76951.71 2011:£74414.49 2012:£71961.35 2013:£67813.54 2014:£64375.16 Current: £55,480.27[/STRIKE]

        New Mortgage: 2016: £92795 Current: £87999.99
      • HI Cath thanks for stopping by. I think Option 1 is the correct one to go for I am confused by the last bit I don't want to shorten my mortgage and my monthly payments go up as we can't commit to that all the time.


        HI Timmy this is only applicable because I have overpaid by more than £500 in one go. My usual payments are smaller so it doesn't apply.


        Total overpayments today is £1500/ 4000 aim so 38% of target I am hoping to smash that before end of June 2017 which would be a whole year in the house.


        Painting and more painting planned this weekend and also some batch cooking....
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