The easiest way to overpay. Am sure lots do this already.

Current situation. 
Married, 4 small kids 9,8,6,2. Age 37
101k approx on mortgage.
Just remortgaged at a rate of 1.64% for 5 years so plan to over pay as much as poss while this rate is so low. 
I always overpay the mortgage by a little without noticing. Rather like those round up apps for saving I do it for mortgage overpayments. So I log in to my current account and say the balance is 658.55. I transfer £3.55 straight over to the mortgage. This can add up to between £30 and £60 a month and it’s not really noticed. If it were a tight month I might just round to the pound or in a good month might transfer the £8.55. 
Does anyone else do this? 
Any other overpaying without noticing tips? 
Mortgage will change from 560 to 503 in Jan but I would like to aim for paying 700pm at least. 



Comments

  • That's a good idea - Tilly Tidies i think it's called!  We (very) occasionally get pay rises so we usually put a third to savings and the rest to overpayments.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    edited 3 November 2020 at 4:10PM
    The sooner you overpay the more interest you'll save. May not be noticeable to start with. However like rolling a snowball in time it gets bigger and bigger. 
  • i dont have a mortgage yet trying to save up for deposit. I do something similar where i make sure my current account every month doesnt exceed 3k, anything about that goes to my savings in another bank that i have no idea what the pin number is for, nor how to transfer out of it lol!! So ever since i had it, i didnt pull anything out, thankfully no emergencies (i've been maintaining my 12yrs old car, and hopefully will survive another 12yrs haha!! it is my main risk)
  • caeler
    caeler Posts: 2,605
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    My old rule was something every month, so after bills paid I'd see if I had anything left and use it to over pay.  Over the years that has become a much more focused aim at overpaying and for the last 3 years I've been able to over pay the max amount my mortgage deal allows each year (10% of the original value).  To do this I've had to make it part of my budget so I've been very organised.  You'll find your way.  Read some of the diaries here they will offer up plenty of inspiration! 
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