2018 Mortgage-Free Wannabes

Mortgage_Minimiser

Happy New Year everyone!

#46 reporting a first OP of the year of £1000.

This will take the mortgage below £209k.

I've worked out if I can OP £2k per month it will be gone in 6 years. I should be able to do this from the middle of this year (after the extension is done) so, my new target date is December 2023.

Going to be tough....but it's something to aim for.

Have a good day all.

MM x

Theydontmakeiteasytosave£

Hi,

Can I join please? Just signed up to the forum today to find out more about overpaying. I'm remortgaging at the moment to a mortgage that allows 10% overpayments per year. My target will be £5000 from Mar to Dec.

Can I ask a question? The mortgage I've signed up for is a 5 year fixed rate...if I do make overpayments will my set monthly payment be reduced by the lender during this 5 year fixed term because I've paid off more debt?

Thanks.

erin_transport

Morning
HNY everyone!!
Number #138 checking in with
My first O/P of 2018 is £140 of my £6000 target
Thanks

pawlala

Theydontmakeiteasytosave£ wrote: »

Can I ask a question? The mortgage I've signed up for is a 5 year fixed rate...if I do make overpayments will my set monthly payment be reduced by the lender during this 5 year fixed term because I've paid off more debt?.

Different lenders have different rules. Some will reduce the term and others will reduce the monthly repayment figures. Ask them next time you make an overpayment what their default position is.

Theydontmakeiteasytosave£

Thank you. Do you know if the saving comes back the same with both those options or does one outcome have an advantage over the other?

denzal2k4

Can I join please, first timer, target £6000.

Background:
House purchase price: £149,000 (2011)
House value now: £215,000
Mortgage at purchase: £103,000
Mortgage currently: £81,115 (£450 monthly)
Original payoff age: 52
Hopeful payoff age: 40 (!)
Current age: 33

hiddenshadow

Durban wrote: »

Please can I also join. My goal is £3000.
Many thanks

Welcome! You're #175.

hiddenshadow

Theydontmakeiteasytosave£ wrote: »

Can I ask a question? The mortgage I've signed up for is a 5 year fixed rate...if I do make overpayments will my set monthly payment be reduced by the lender during this 5 year fixed term because I've paid off more debt?

Thanks.

Most lenders default to shortening your term, e.g. if your total mortgage is 25 years, they'll shorten that to 20 years but keep your payment the same.

With ours (First Direct), we can phone up anytime and ask them to recalculate our standard payment based on the OPs we've made. The trade-off is the term stays the same.

hiddenshadow

Theydontmakeiteasytosave£ wrote: »

Thank you. Do you know if the saving comes back the same with both those options or does one outcome have an advantage over the other?

Shortening the term saves you more money than reducing the payment. (The interest amount stays the same, so having a longer term means you pay more over the long-term because it takes you longer to pay down the balance.)

hiddenshadow

denzal2k4 wrote: »

Can I join please, first timer, target £6000.

Background:
House purchase price: £149,000 (2011)
House value now: £215,000
Mortgage at purchase: £103,000
Mortgage currently: £81,115 (£450 monthly)
Original payoff age: 52
Hopeful payoff age: 40 (!)
Current age: 33

Welcome! You're #177.