Fighting the mortgage interest

Numbercruncher_mfw

Hello and welcome to my thread,

I'm a long time lurker on these forums and thought it was finally time to start a thread of my own. We bought our home a couple of years ago and have overpaid around £2k so far although these overpayments have been quite sporadic and my aim is to make it a regular thing. We are still quite young and I want to balance enjoying our youth with making sensible financial decisions. The initial aim is to overpay each month by the amount of interest our mortgage accrues, this means that the full value of our monthly payment will come off the balance. 

The stats:

Mortgage Balance: £145k

Interest Rate: 2.04%
Monthly Mortgage: £590
Monthly Interest: Around £250

So that's it, the aim is to overpay by £250 a month. Come along and join me on my journey 

Schoolworker

If you are able to pay off the interest each month then you will see a big difference but note that the interest will reduce as time goes by.
I usually try to overpay £100 each month or less if things crop up but you are still wanting to have a bit of a life  since it's a marathon and not a sprint. Good luck. 

regularsaver

I couldnt agree more with Schoolworker, that will make a massive difference paying that kind of percentage off every month. 

I am currently overpaying my own monthly mortgage cost by approve 29% and its a great feeling to see it going down every time and gets highly addictive. Have you used any mortgage calculators to understand how many yours and pounds paying off what you are aiming to will save you over the course of your mortgage?

Like you have said it is a balancing act between living and making overpayments and its important to enjoy life as we only get one. It is as said a marathon and not a sprint. Good luck. 

Numbercruncher_mfw

Hello to you both. Yes I've become addicted to the money overpayment calculator regularsaver - with £250 a month overpaid I can knock nearly 10 years off the mortgage and £16k in interest saved. I originally considered ploughing £800 a month as a mortgage overpayment which would see us clear the mortgage within 10 years but as you say it's a marathon not a sprint and we need treats along the way. 

One of our aims with overpaying is to get the monthly mortgage as as low as possible so we have the freedom in our work lives to pursue any jobs/work patterns we want without finance being the main driver. 

longway2go

I really like the name of your thread. Just wanted to pop on and wish you luck. 

LeighofMar

One of our aims with overpaying is to get the monthly mortgage as as low as possible so we have the freedom in our work lives to pursue any jobs/work patterns we want without finance being the main driver. 

This to me is the true definition of freedom. Best wishes. 

Numbercruncher_mfw

longway2go said:

I really like the name of your thread. Just wanted to pop on and wish you luck. 

Thank you. It looks like your own mfw journey is going well. I like the quote in your signature "Our mortgage is never going to be as high as it is today" that's a great way of looking at it. 

Numbercruncher_mfw

LeighofMar said:

One of our aims with overpaying is to get the monthly mortgage as as low as possible so we have the freedom in our work lives to pursue any jobs/work patterns we want without finance being the main driver. 

This to me is the true definition of freedom. Best wishes. 

Thanks. I'd definitely prefer to have a modest house and feel financially free than have a bigger mortgage and feel tied.

jenni_fer

Welcome and good luck! Sounds like a really sensible target, warning....it's addictive!

savingholmes

Well done for having a plan that's the first step in the journey.

longway2go

Numbercruncher_mfw said:

longway2go said:

I really like the name of your thread. Just wanted to pop on and wish you luck. 

Thank you. It looks like your own mfw journey is going well. I like the quote in your signature "Our mortgage is never going to be as high as it is today" that's a great way of looking at it. 

Thank you. We can smash this 😊