Just started mortgage and hence mortgage free journey

datlex

My mortgage was issued on Thursday. First payment will be £520.77, assuming information on the app is correct, regular payment £498.47 for next 5 years. Regular mortgage payments obviously set up as a direct debit. Have just set up the mortgage company as a payee using instructions on their website and made a token £10 payment to check has been set up right. Had a quick look at the overpayment calculator and just £10 a week will take 2 years off my mortgage. Aiming to have this mortgage as short a time as possible :-)

julicorn

Happy new diary datlex! Looking forward to seeing how you get on - it's crazy what difference even a relatively small overpayment can make over the years, isn't it?

datlex

Thanks. Yes it is. I am planning on putting any unspent budgeted spends to the mortgage. e.g. on Thursday we were decorating so did not go out on budget night out- that's now been paid to mortgage. Any unspent at end of pay period will also go to it. I can over pay up to 10% so £8000 without penalty this year. (I believe that's fairly standard).

Youthgonewild

Happy new diary datlex! Looking forward to reading. How long is your term?

datlex

Youthgonewild wrote: »

Happy new diary datlex! Looking forward to reading. How long is your term?

It's 18 years. I've already over paid £45 had first payment go out.

datlex

Slowly plodding away at the over payments. £10 at the moment set to go automatically every week. I am saving for things- £20 a week into 2 different savings pots- initially to get garden cleared (over grown and some rubbish, so will need a skip at least) and furniture for second bedroom. Once I have saved enough for one of these, I will be up my overpayments to £30 a week.

Retter

Your situation sounds similar to mine (18 months ago) with balance and regular payment amounts. I have taken £18k off since then. It gets very addictive. I keep motivated by telling myself I can overpay less and less (penalty free) each year which means life should get easier as the years roll on.

Good luck!

MichaelDH

Welcome!

Hope you are enjoying your new home!

It's really easy to fall in to the trap of thinking small OP's won't make much of a difference to your mortgage but a few pounds here and there soon add up, some don't get disheartened if there's some month when you can't OP as much as you would like to

A_Frayed_Knot

Welcome to you and your shiney new diary.

Same term time as mine when I took out my mortgage, but you have a huge head start, as it was roughly 2 1/2 years before I started my addiction of the financial kind . . . here come the zero's.

Good Luck, you sound as if you have a plan, good start

datlex

Still continuing to pay off my £10 a week. Today I noticed that the balance ended was £78,551.78 so made that small payment of £1.78 to make it a round figure.

Couldsavemore

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Still continuing to pay off my £10 a week. Today I noticed that the balance ended was £78,551.78 so made that small payment of £1.78 to make it a round figure.

QUOTE]

I like looking at how the length remaining is shortening.

I've never thought of small weekly payments... i have been paying a bit at the end of the month. I might give this a try, a few extra fivers would help