A couple’s home is their Castle(ford)

BristolMatty
BristolMatty Posts: 12
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edited 13 December 2020 at 8:15PM in Mortgage-free wannabe
Sorry for the pun in the title, it will make sense shortly.

Myself (35M) and my wife (37F) have just purchased a new build house (Castleford by Kier Living) for £440,000. Large mortgage of £350,000 at 1.54% over 33 years (until wife is 70).

Both currently working full time, but wife is 25 weeks pregnant with our first, after several years of trying and a successful round of IVF.

As costs have gone up with the new house, and will go up further with the baby on the way, as well as a drop in income for my wife, we are not going into this with plans of overpaying thousands, just chipping away when we can.

Wife is supportive but I tend to look after the money day to day and just agree big decisions with her.

Please feel free to join us on this long slow journey which I’m sure will have plenty of ups and downs.

Comments

  • So mortgage to start with was actually £350,999 as it included the product fee, so first overpayment made last week to clear this (always planned).

    Our mortgage is with NatWest, and if I’m honest their app isn’t as good for mortgages as our previous provider. Harder to make overpayments, balance takes a few days to update, and I can’t see the interest going on daily.

    First payment took a week or so to show up, but it’s there now. Also seemed to be some rule around payments over £1,000 altering your monthly installment, is that correct? 

    We moved in at end of November, so mortgage payment bot taken until January. Was expecting this payment to be higher than usual, but their letter says the same amount for first payment and regular payments afterwards - odd!

    Anyway we had the money for a December payment in our budget, so further overpayment of £999 made on Thursday - still waiting for this to show up.

    This is likely to be the last big overpayment, expect £50’s here and there from now on! 
  • South_coast
    South_coast Posts: 4,795
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    Welcome and good luck! I'm with NatWest too, and yes that's correct about £1000 payments automatically recalculating the monthly payment. I've never used the app, I just transfer from my own internet banking via faster payments - although they're taking about 8 days to be applied at the moment (normally slightly faster than that!)
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
  • Welcome! Had the same when we remortgaged and ended up missing a mortgage payment. 
    Mortgage start date Nov 2014  - £90,545 over 25 years
    Re-mortgage Oct 2017 - 78,295 over 23 years
    Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
    Current Mortgage Outstanding Middle December 2020 - £
    47893.35 - a reduction of £42,652 in just over 6 years!  


  • Welcome and good luck! I'm with NatWest too, and yes that's correct about £1000 payments automatically recalculating the monthly payment. I've never used the app, I just transfer from my own internet banking via faster payments - although they're taking about 8 days to be applied at the moment (normally slightly faster than that!)
    Thank you. The app just takes you to a website to make a card payment. With old provider it updated your balance automatically overnight.

    Also seems odd you can overpay £999 twice and that’s fine, but £1,001 and they reduce your monthly payments! 
  • BristolMatty
    BristolMatty Posts: 12
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    edited 13 December 2020 at 9:35PM
    Welcome! Had the same when we remortgaged and ended up missing a mortgage payment. 
    Thank you! 
  • I think several mortgage providers have that rule! Pay over 1k and it reduces monthly payment and under 1k reduces term. I'm with nationwide and you get to choose the option you want when you make an OP, maybe call Natwest and ask.
    Mortgage start date Nov 2014  - £90,545 over 25 years
    Re-mortgage Oct 2017 - 78,295 over 23 years
    Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
    Current Mortgage Outstanding Middle December 2020 - £
    47893.35 - a reduction of £42,652 in just over 6 years!  


  • I think several mortgage providers have that rule! Pay over 1k and it reduces monthly payment and under 1k reduces term. I'm with nationwide and you get to choose the option you want when you make an OP, maybe call Natwest and ask.
    Yes I was with nationwide previously, and always took it off the term. Thanks, might give them a call! Or might just keep doing payments below £999 just to avoid the hassle!
  • Hi from another newbie! 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £500/ £3,600


  • savingholmes
    savingholmes Posts: 26,851
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    Good luck on your journey
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
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