2021 Mortgage-Free Wannabes

powerspowers

#76 with an extra £2000 for December bringing monthly total to £2285 and most likely the last OP of 2021- thanks Julicorn, have a nice Christmas (with either plenty of spreadsheets or none at all, depending on how you see a relaxing Christmas 😂) and see you next year 🎄

anonymous112433

I overpaid my full free allowance for the year earlier this week. Current outstanding balance 63.8k approx and 13 yrs 9 months remaining.

I can overpay more but would be charged 3%. Given the numbers it makes sense to overpay for me, because even if I pay for example 8k more, that would be a £240 fee and that outweights the interest I would save.

Unless I'm missing something, do you guys agree with me that I should overpay and pay the fee?

Using the MSE calculator I get:

"Overpaying would save you £1,273 in interest alone, and mean you pay the debt off in full 1 year & 8 months earlier.

---

Normally you repay £442 per month. If you overpay a lump sum of £8,000, you'd be mortgage free 1 year and 8 months earlier. Your total payment over this period would be £67,705."

So basic maths, £1273-£240=£1033.

SusieT

anonymous112433 said:

I overpaid my full free allowance for the year earlier this week. Current outstanding balance 63.8k approx and 13 yrs 9 months remaining.

I can overpay more but would be charged 3%. Given the numbers it makes sense to overpay for me, because even if I pay for example 8k more, that would be a £240 fee and that outweights the interest I would save.

Unless I'm missing something, do you guys agree with me that I should overpay and pay the fee?

Using the MSE calculator I get:

"Overpaying would save you £1,273 in interest alone, and mean you pay the debt off in full 1 year & 8 months earlier.

---

Normally you repay £442 per month. If you overpay a lump sum of £8,000, you'd be mortgage free 1 year and 8 months earlier. Your total payment over this period would be £67,705."

So basic maths, £1273-£240=£1033.

I am not on this thread because I can only do 1 overpayment a year to a maximum value, over that I get a penalty. I have also worked it out and even with the penalty it is well worth me paying more if I can save it as it will save a lot more interest over the term of the mortgage.

Jessy103

Hi all 🙂

No. 12 with another overpayment of £200, so a total of £304.55 for December.

Thanks

Have a lovely Christmas x

anonymous112433

So after careful consideration I decided to go ahead and make an additional overpayment and accept the overpayment fee of 3%. I haven't had the letter yet and unfortunately with Nationwide it doesn't update on the app, but I think I have in the region of 12 yrs 3 months to pay off the outstanding balance of £55988.

My original mortgage of £105k was for 25 years ending in 2041.

miss_undastood

We have paid a small ERC before too as it helped us to get into a lower LTV bracket which would save more money in the long run. 

It’s whatever is best for you. Although mortgage rates are low savings rates are equally low so we are hammering our mortgage so when rates rise we feel less exposed. It also means we should have more free cash for things like bathrooms and kitchens when the time comes 

OhtobeMortgageFree

#59 - a final overpayment of the year taking me to £10k! I am so chuffed that we've been able to overpay by as much as this across the year. We've worked hard and sacrificed and by next month should finally see ourselves under the magical £100k total as well. 🙌🏻
Thanks for all the updates across the year and all the support of the boards. ☺️

f0xh0les

Congratulations on (almost) making it into single figures !!

Filo25

#68 with a final £1,000 overpayment today, taking it to £7,050 for the year

Thanks Julicorn!

Qtipps44

#61 hi lots of changes here. Finished the year with final £3592.85 payment in December.

Part of my mortgage is variable rate so paid it off that as no early repayment charge. I’ve got a long term saving plan maturing in march 2020 so will manage with less savings until then. Reducing our expenditure has become a priority due to DH now being unable to work. We’ve lived very frugally during Covid times and working from home means I have been able to work full time. With saving plan maturing and things hopefully opening up more next year will be interesting.

2022 plans pay 10% of fixed rate part of mortgage from savings in jan and then dribs and drabs throughout year focus on building savings and having fun. 2023 fixed rate part ends and i’m Aiming to pay it off from savings. Who knows what will happen we’ve had some curved balls this year which have changed our outlook and future as a family. Wish us luck.

thanks for updating.