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SpoonKat
Posts: 17 Forumite
Hi all,
We made the first over payment to our mortgage at the weekend !!, I can see already on the online statement that the balance has reduced, I set it up by asking them to reduce the term not the direct debit amount so it looks like that is happening as the balance has gone down by the over payment amount? I do find it confusing , we can over pay by 10% of the balance outstanding each year. We are also hoping to move next year to a bigger house but still think overpaying will be the right thing to do. We are following Dave Ramsey and are debt free with a fully funded emergency fund, 15 % going into retirement and our daughter's junior isa set up and contributing to each month.
We want to be mortgage free as soon as poss , husband is 50 and i am 53 , so feel time is running out ! the term left on current mortgage is 13 years,
will keep this thread as my "diary" on mortgage free journey
good luck to everyone on this journey
We made the first over payment to our mortgage at the weekend !!, I can see already on the online statement that the balance has reduced, I set it up by asking them to reduce the term not the direct debit amount so it looks like that is happening as the balance has gone down by the over payment amount? I do find it confusing , we can over pay by 10% of the balance outstanding each year. We are also hoping to move next year to a bigger house but still think overpaying will be the right thing to do. We are following Dave Ramsey and are debt free with a fully funded emergency fund, 15 % going into retirement and our daughter's junior isa set up and contributing to each month.
We want to be mortgage free as soon as poss , husband is 50 and i am 53 , so feel time is running out ! the term left on current mortgage is 13 years,
will keep this thread as my "diary" on mortgage free journey
good luck to everyone on this journey
3
Comments
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Welcome, and happy new shiny diary! I look forward to following your progress; well done on the first OP!May 2020 opening: £181,500, 21 year term. £14k additional borrowing December 2021
Current balance: £153,493 (inc. offset in savings)
MFW #37. Aiming to pay off by December 2033
2023 OPs: £2,049.052 -
Welcome. You're off to a great start.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 20231 -
Happy New Diary!
We too are overpaying now and hoping to borrow more in the near future to buy a bigger house. As our mortgage rate is higher than anything we can get as a saving rate it seems to make sense.
3 -
Welcome and good luck with your journey to being mortgage free. Any OPs you make will reduce your balance by the amount you pay (the monthly parent takes care of the interest) and will save you paying interest in that money over the remaining term. I would really recommend having a look at the mortgage overpayment calculator to see how much you can save by overpaying and reading other diaries for inspiration and tips.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 swimming2
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Welcome and best of luck.MortgageStart Nov 2012 £310,000
Oct 2022 £143,277.74
Reduction £166,722.26
OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
2022 MFW #78 £10200/£12000
MFiT-6 #28 £21,772 /£750002 -
Welcome and good luck !Aiming to be mortgage free in 3 years June 2023.
May 2020 - £63,493
Jan 2021 - £56,145
April 2022 - £44,7501 -
Hello and good luck! Beware the mortgage OP calculator should come with a warning that you'll need a minimum of three hours spare to test out a thousand different scenarios and variables...
Save 12K in 2020 #145 - £6,900.88 / £10,000 (Aug-20)MFW 2020 #146 - original balance £147,188 (Sept-19) current balance £142,426.31
2020 OPs: £3,283.411 -
Thank you for all the welcomes, got the official letter today confirming the overpayment! yay!0
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