2021 Mortgage-Free Wannabes

Chili81

#10 here with and OP of £1000. Total for Jan is £1550. Not likely to keep that amount up in other months but at least we'll start the year strong. Thanks julicorn. 

Sandyra

#32 I'm back 😅 Another £100 OP. Jan Total so far £537.24. Thanks julicorn

skippie

Belated happy New Year Julicorn.

Please can I redoing think I’m number 144. £10k this year if possible.

julicorn

skippie said:

Belated happy New Year Julicorn.

Please can I redoing think I’m number 144. £10k this year if possible.

Hi there, welcome back! I've given you a new number, 116

julicorn

ldee2111 said:

I have a question about overpaying on our mortgage. Hoping someone good with numbers can help out. 

We have 100,500 left on our mortgage. It is due to end in August 2036. The interest rate is 2.79% (we’re 1 year into a 10 year deal).

We can pay 10% of the original mortgage loan per year without fees. The charge for every overpayment over the 10% is 7% .

We have now reached the maximum for this financial year but is it worth continuing to overpay even if it incurs a fee of 7%? 

That's a really high penalty, and you'd be losing quite a lot of money every time you overpay. Don't do it. 
I'd generally say just save your money in a savings account or maybe even premium bonds, and overpay your maximum at the start of each year (or whenever your overpayment limit period resets). You're in a relatively unusual situation with a fix that long, and might even be better off investing any extra you're able to save beyond the annual 10%. 

(Disclaimer: historically, investing has achieved higher returns than overpaying your mortgage ever would, but this is of course a board where people have the aim of paying down their mortgage regardless, often for other reasons than just aiming for the highest returns possible)

jennystarpepper

#16 New total £200.20, Please.

Many thanks. 

OhtobeMortgageFree

#59 - I've just overpaid another £165, taking me to £630 for January right now.
Making a strong start. Here's hoping I can continue whenever we come out of lockdown! 🤞🏻
Thanks for updating as always!

OhtobeMortgageFree

OhtobeMortgageFree said:

#59 - I've just overpaid another £165, taking me to £630 for January right now.
Making a strong start. Here's hoping I can continue whenever we come out of lockdown! 🤞🏻
Thanks for updating as always!

Nope. Apparently I can't add up! 🤦🏼‍♀️ £570 for January!

frankersBri

Another little OP of £7.34 taking my January total to £167

Sandyra

#32 Another £130 OP. Jan Total so far £667.24. Thanks julicorn