Fighting the mortgage interest

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  :)
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Comments

  • 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. 
    MFW - #133 - 2020 Challenge - £1230.67 / £1159
    MFW - #133 - 2021 Challenge - £1328 / £1270
    MFW #56 - 2022 Challenge - £325.35 / £1296
    Mortgage began Jan 2019 - £115,900
    Mortgage Currently            - £105,160
  • 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
    longway2go Posts: 1,006
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    I really like the name of your thread. Just wanted to pop on and wish you 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, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
  • LeighofMar
    LeighofMar Posts: 672
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    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. 
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • 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. 
  • jenni_fer
    jenni_fer Posts: 529
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    Welcome and good luck! Sounds like a really sensible target, warning....it's addictive!
  • savingholmes
    savingholmes Posts: 26,851
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    Well done for having a plan that's the first step in the journey.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • longway2go
    longway2go Posts: 1,006
    First Post Name Dropper First Anniversary
    Forumite
    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 😊
    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, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
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