eye-watering mortgage and 23 years left

bricoleur

Thanks, so I've joined the 1% 2020 challenge and came up with a total over-payment target for 2020: £2020 (which is a bit less than 1%, but it sounds fun and achievable). Signature updated. 

bricoleur

It's Friday, which means it's ad-hoc mortgage overpayment day.

My Barclays app says the current balance is £203,116.95, so I'm paying £16.95 to round it down to £203,100. Thanks @Moneyminded and @mirko for the suggestion! I've just discovered that I can overpay using my mobile app (Note to self: ignore the ERC warning... I swear Barclays does it on purpose so that they discourage people to overpay). Signature updated. 

Have a fabulous weekend everyone! 

jenni_fer

It sounds like you are off to a great start bricoleur! I have to say I'm a little jealous of being able to see the mortgage balance on your bank app, that must really help to concentrate the mind!

Sistergold

bricoleur said:

Thread title says it all. My London mortgage is higher than £200K, way too high considering the circumstances. I'm a single parent in my early 40s and I don't want to pay a mortgage until almost retirement age.  The positives: my income is OK, job is secure-ish, I have no loans/credit card debt, and I'm no longer paying childcare. Mortgage repayments are £902 but I rounded up the amount to £1000, and I've been paying that for the past couple of years. I'm also good about paying bills on time, I have some savings, and I'm contributing a decent % to pension. However, I spend too much on groceries, fun, holidays, clothes, and so on. The plan going forward is to be more careful with spending, and start making frequent over-payments to the mortgage, on top of the £100. Also possibly increase the regular over-payments when I get a pay rise next, although I plan to increase pension contributions too, so need to be careful on that. Some short term to dos: 

1. As much as possible, packed lunch to work and no more take away coffees. 
2. Overpay mortgage by a minimum of £5 each week and gradually increase OP amount. I need to figure out how I can do this, I've never made ad-hoc overpayments. Not ready to increase the regular direct debit yet. 
3. Review all bills, switch providers, cut some services? (Already started with some bank account switches, I made £175 from HSBC and in the process of switching to TSB for another £100. Sadly that money won't be going to over-payments as it's already earmarked for something else). 
4. Cheaper holidays. Last year we went on an inexpensive adventure/camping holiday in France and we had a fabulous time (OK, fabulous apart from the coach ride).

Any other ideas / nudging are welcome. Thank you. 
S

PS. Just checked Barclays, the current mortgage balance is £204,147.34. Ugh. 

Hey there.
 Well done for being able to get a mortgage, being single and in London. I am in a similar situation, but maybe a bit “worse off” than you. I am in my late 40s, single, finally got my mortgage mid 2019, 23 year term so I will pay into my 70s! Mortgage amount at start £487500🥺. I am a new mortgage free wannabe. Made a one off overpayment of £500 and Have added £277 overpayment through my mortgage provider so it goes out with my mortgage direct debit payments and hopefully I won’t miss it. Will also make other overpayments if funds permit! So I would normally need to pay £2202 per month but am paying £2480 with OP. I am hoping to pay it all off in half the time but even if I reduce it by some years I don’t mind. 

After divorce I had to rent in London for some time (3 years) and I hated the idea of “flushing” this money down the toilet as that’s how it felt paying rent. 

Of this £2202, about £800 is the interest component which I look at as my “rent” to make me feel better and as I was paying £1750 rent for a 3 bedroom flat while trying to save for deposit I just feel this exorbitant mortgage is still okay as my rent( which I equate to the interest charged) so to speak has reduced. In as much as the interest is less than my old rent I still want to reduce it and so have started to overpay this April. 

I have now become part of the forum so as not to feel alone in this quest. 

Good luck