FinancialBliss: My mortgage free journey…

financialbliss

With making a £500 overpayment to Nationwide, I got a letter yesterday advising they have used the overpayment to reduce the mortgage term.

From February, they are advising that I have 4 year and 11 months remaining - I read that to be completing in December 2014.

The on-line details are still showing the mortgage as completing in September 2015, so it looks like my £500 overpayment has reduced the term from 09/2015 to 12/2014, but that's not the case - because I've not made a full £500 overpayment since January 2007 and all varying amounts I've overpaid since then have just been factored in to their revised completion date.

FB.

uzubairu

financialbliss wrote: »

With making a £500 overpayment to Nationwide, I got a letter yesterday advising they have used the overpayment to reduce the mortgage term.

From February, they are advising that I have 4 year and 11 months remaining - I read that to be completing in December 2014.

The on-line details are still showing the mortgage as completing in September 2015, so it looks like my £500 overpayment has reduced the term from 09/2015 to 12/2014, but that's not the case - because I've not made a full £500 overpayment since January 2007 and all varying amounts I've overpaid since then have just been factored in to their revised completion date.

FB.

You should get a letter every month now that you are making £500 overpayments regularly.

The online completion date takes ages to change.
Mine only updated 3 times last year.

poppyoscar_3

Is it your birthday today too FB? Just saw your name on the list!

Have a happy one.

PO xx

setmefree2

financialbliss

Our 2009 year end mortgage statement arrived from Nationwide today. Not really anything in there that I didn’t know about. Statement shows remaining mortgage term as 5 year and 9 months, except after our recent £500 overpayment , this has dropped to 4 years and 11 months.

Mortgage statement shows:

Opening balance: £59.500.00

Interest: £2,558.46

Payments: £13,558.50

Closing balance: £48,499.96

Our early repayment charge has dropped to just £603.92. This decreases monthly until March 2011. Our overpayment reserve now stands at £21,444.21

FB.

financialbliss

Haven't got off to a good start in 2010 have I? - missing in action / under the radar - diary on page 6 :eek::eek::eek:

Rolls sleeves up. Since we will be into February next Monday (new month, new mortgage payment ), I'm aiming to:

• Wrap up review of 2009 aims
• Set out 2010 aims
• Get back into a regular posting habit

by the evening of Sunday 31st January. Off to sort out some paperwork - may be back later...

FB.

gallygirl

We're all dropping off a bit FB, beginning of another long haul in January so a bit demotivating. Whereas the newbies are all keen as mustard so at least they're keeping the end up :T, well done to them :T

SmlSave

Hi FB

I'm looking forward to your 2009/2010 aims update

setmefree2

SmlSave wrote: »

I'm looking forward to your 2009/2010 aims update

Then you really ought to get out more

Just joking :rotfl:

financialbliss

Been working on receipts and paperwork since I last posted – back on page 3 of forum already - quite a lot of activity in this mortgage free board at present.

Got the 2010 aims drafted – need to pan out a little and get typed up.

I’ve set myself a specific year end mortgage target for 2010. Having previously done the calculations, I worked out that despite having 12 standard payments of £898.03 and 12 overpayments of £500, I’d still not hit the year end goal I’m aiming for.

So earlier this month, I contacted Nationwide to reduce the term of the mortgage slightly - the result of which our standard mortgage payment increases. I’ve gone from a standard payment of £898.03 to £929.33. Ok, at £31.30, it’s not a massive difference, but even starting from February for the remainder of the year, ie 11 x £31.30 it’s an increase of £344.30 towards the mortgage. This should get me where I want to be at year end, combined with £500 overpayments each month.

A couple of side effect of slightly shortening the term is:

• Nationwide now expect us to complete the mortgage in 4 years and 8 months or October 2014.
• Nationwide have also confirmed that we will drop onto their base mortgage rate (BMR), currently at 2.50% when we come off the fix in March 2011, but I very much doubt the BoE base rate will still be 0.5% by then.

Financial Bliss.