First time Buyers - When to start overpaying?

MrJamez

Hello all,

Myself and the girlfriend (both 24 years old) have just purchased a property as first time buyers and one of the things we have both agreed is that we want to overpay on our 25 year mortgage.

On the assumption no extra fees are involved.. Do you think we are wise doing this straight away when we move in? Or should we settle in first and then go from there? We have a 2 year fixed mortgage and our mortgage is 23% of our total income so we will have a bit of disposable income between ourselves.

Thanks in advance.

Competsoph

Following as similar position! 

Trina90

We were the same age as you 5 years ago when we moved into our first home, with a 30 year mortgage, and started overpaying in the first year. We didn't overpay regularly. We saved the money until we had reached the maximum 10% and then did a large overpayment in one go - so in the mean time we had the money to use for anything else in case something cropped up. 

julicorn

We started overpaying a few months after we moved in (pretty much as soon as we properly realised that was even an option). What is it that's making you want to wait? If you've got a decent emergency fund and are on top of other financial goals (including pensions, specific home improvements, investments - whatever applies to you), then I see no particular reason to wait. 

TwentySomethingGirl

Personally, when we first moved into our place we didn't overpay for the first year or so. Mostly so we had money for furnishings/decorating/flooring/garden furniture/anything else that crops up, but also so we got a handle on what the bills would be like and to save an emergency fund as the purchase pretty much wiped it out. 

ruby_eskimo

TwentySomethingGirl said:

Personally, when we first moved into our place we didn't overpay for the first year or so. Mostly so we had money for furnishings/decorating/flooring/garden furniture/anything else that crops up, but also so we got a handle on what the bills would be like and to save an emergency fund as the purchase pretty much wiped it out. 

We did a similar thing - we've been here 3 years and spent that time saving up to make improvements to the house, furnish and decorate it.  Now we've done all that we wanted bar the odd thing here and there, we're now starting to make over payments of at least £100 a month.  Each time you make a payment you're reducing the interest a tiny bit so I would make regular payments rather than saving and then making a larger payment.  We're on a 5 year fix with a 35 year term and a ridiculous interest rate so I'm waiting until we remortgage in 2 years to see the biggest change and then focus a bit more on over paying.

joedenise

If you can afford it and there isn't a problem with overpayments then start immediately.  Every overpayment makes a difference!