2019 Mortgage-Free Wannabes

weenemo

#76 with the regular OP of £550 today
Just been in touch with mortgage provider. We're on a 10 year fix and are now realising we could probably have managed with less fixed term than that but I like knowing how much I've to pay each month and not faff about remortgaging (the original mortgage was a pain enough).

Anyway, as we can only reduce the term so much as we're on a fixed, we enquired about reducing the payment (as neither of these had been done when we got the summary in).
So, we've halved our minimum payment, which means we can continue to front load the mortgage without the risk of accidentally paying it off and paying the fee for it. Without this, we'd have had to stop overpaying at about 4 years and pay the £410 from then on. Now we can continue to overpay and if we need to can stop overpaying and will only have £207 to pay per month.
We do intend to continue paying what we have been, but gives us wriggle room in case of life changes, which we didn't think we'd have on a long term fix.
Quite chuffed. I hope that makes sense, took me a while to get my head around.

Lomcevak

weenemo wrote: »

We do intend to continue paying what we have been, but gives us wriggle room in case of life changes, which we didn't think we'd have on a long term fix.

Yeah, we've done the same thing - as the OPs have built up we've kept the mortgage term constant, which means the monthly payment drops with each annual statement. We've then increased the OP so our total outgoings are the same each month. If life changed, we'd stop the OPs.

Formally we still have 11 years to run on the mortgage, but OPs have made the monthly mortgage payment has come down from almost £1300 a month to well under £200, which is some nice flexibility.

Suffolk_lass

weenemo wrote: »

We do intend to continue paying what we have been, but gives us wriggle room in case of life changes, which we didn't think we'd have on a long term fix.

Lomcevak wrote: »

Yeah, we've done the same thing - as the OPs have built up we've kept the mortgage term constant, which means the monthly payment drops with each annual statement. We've then increased the OP so our total outgoings are the same each month. If life changed, we'd stop the OPs.

Formally we still have 11 years to run on the mortgage, but OPs have made the monthly mortgage payment has come down from almost £1300 a month to well under £200, which is some nice flexibility.

Ours is similar - we are on a base rate tracker (0.49% above the BOEBR) which we ported to this house as the BOEBR was falling, almost 15 years ago. It has been interest only since DH lost his last engineering contract and decided to become a teacher. The "payment" is now £32.02 but we have an agreement to pay £500 a month at the moment as the DD - so that is the guaranteed capital repayment and interest (and we can make unlimited OPs) but an early redemption of £75 and an admin fee mean we are still considering when we end it. DH finishes work soon and our income will plummet so that might drive it. Then again we may let it run.

weenemo

It's reassuring to hear others have done the same, as I've only really heard of people reducing the term and that seemed to be what everyone else was asking their mortgage provider to do. We will still pay off early so didn't see the benefit of reducing the overall term but can see a huge advantage to reducing the payment but continuing to pay what we do now at present. Makes front loading therefore reducing interest paid within a long term fixed better for us in long term.
I feel like it gives me greater incentive to find the funds to push into the mortgage.

lindez

Good afternoon all
#44 with a small £10.00 over payment total for July now stands at £1,031.00
Thank you Julicorn

NewMoneySaver13

Hi Julicorn,


MFW No.12 reporting in with a £300 OP for the month of July.


Thanks

Rainbowsky

Morning all
#34 signing in with another small OP for July of £37.80 making a total so far for July of £387.80.

Many thanks and well done everybody :T

MrsMouse

#47 checking in with an OP of £45.14. OP total for 2019 is now £587.73

chocoholic_chick

No 112 checking in with payments of £999 in June and July (forgot to update in June)




Thanks!

frugal_lass

#19 checking in with £169 for July

Thank you Julicorn