Expl0rer's mortgage journey

I bought the house in 2015. The original mortgage value was £172K.

Now I'm down to £143K :) The interest rate is currently just under 2%.

I've made both OP's and underpayments (when I needed extra funds to complete a project); now I'm a bit over £2000 in OP's and I hope to be able to OP more or less regularly. When I make an OP, it reduces my monthly payments, which I find more appealing than reducing the term, as it gives me an instant relief, as opposed to shortening the term by a few weeks in some distant 20+ years future.

I haven't thought about setting specific goals as things have been changing so quickly in my financial situation (in a general positive direction) that I don't know where I will be in a few months from now. I've had to make a lot of expenses (renovation, education...), but now with most of those out of the way, regular OP's seem realistic.

At the same time, I'm putting money into a S&S ISA fund, which I expect to return ~9% per annum on average. It makes more economical sense to put money into that than mortgage OP's, but the OP's are guaranteed to be 'profitable' and there is the psychological factor of reducing my debt; moreover I can still take out of my OP reserve by agreeing underpayments. So I'm trying to balance the OP's and saving into the fund.
MFW 2015: £172K; Oct 2019: £143K

Replies

  • beanieloubeanielou Forumite
    77.8K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
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    Happy shiny new diary :)
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
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    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
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    ***Keep plodding***
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  • longway2golongway2go Forumite
    909 Posts
    Part of the Furniture 500 Posts Name Dropper
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    Welcome and good luck
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823🙂
    EF 0/12,000 (0%)😕

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • expl0rerexpl0rer Forumite
    108 Posts
    Fourth Anniversary 10 Posts
    Thanks for the welcome :T

    My last OP of £500 has shown in the statement. Knocked £2.50 off my monthly payments, which doesn't sound like much, but these add up and over the remaining term of the mortgage it will have saved me a bit over £100 at the current interest rate if my calculations are correct.

    This year to date I've OP'd by £1500, which has reduced my monthly payments by £7.47 and saved me ~£300 in interest :j
    MFW 2015: £172K; Oct 2019: £143K
  • LeighofMarLeighofMar Forumite
    459 Posts
    100 Posts Second Anniversary Name Dropper
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    Welcome. Best wishes on your overpayment journey.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of July 2021 - $28,550.00
    Hope to be mortgage-free by 2023 
  • CosmoCatCosmoCat Forumite
    681 Posts
    Part of the Furniture 500 Posts Combo Breaker
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    Welcome to this great journey, I know you'll love it here.
    MFW Newbie - #17. (#116 in 2019)
    New Mortgage at Nov 19 - £273 499
    Current Balance - £268 225
    Want to cut down 26 year mortgage by 9 years!
    New MF date 2036 :dance:
  • edited 30 November 2019 at 11:30AM
    expl0rerexpl0rer Forumite
    108 Posts
    Fourth Anniversary 10 Posts
    edited 30 November 2019 at 11:30AM
    Haven't been around here much, so a brief update:

    Made another OP of £500 this month. Can't see what my balance is without the November interest until the next direct debit comes off, which should be in a few days.

    I feel I may shift the balance in favour of paying into my S&S ISA as long-term it makes 9%, while the mortgage is just under 2%.

    I'm going away to Central America for 3 months in a bit more than a week, which I'm looking forward to very much :) and that probably means a longer break from the forum and OP's, but since I'm going to combine it with some work (helping friends who live there), money-wise it shouldn't cost me more than being here. I intend on making regular payments into the ISA though.

    The other day, I got an email from MSE (?) saying that I'm paying too much for my utilities and showing better offers. I'd love to switch, but those new, cheap suppliers have confusing billing systems whereby they charge you upfront based on an estimate, which is based on the info you provided them with. And it showed I'd actually have a higher monthly payments than I do with my current supplier (the usage stats I gave them were highly inaccurate I they were based on just 2 months, as I switched 2 months ago). Which I understand would be corrected later on, but still it's somewhat off-putting.
    I'll come back to it when I'm back from my travels.
    MFW 2015: £172K; Oct 2019: £143K
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