And so it begins.....

Spender2saver

Hi everyone, 

So I stumbled upon this forum a couple of months back. Spent A LOT of time reading peoples journey's and thought I would do the same. Mainly to track how I'm getting on but also to talk to like minded people as I don't really have anyone else to discuss these things with. Mentioned over paying and reducing my mortgage term to a couple of different people and they think I'm crazy.

A brief bit about me, myself and my OH bought our first house in Jan 2020. After the first few months when we were all settled in and bills were undercontrol I wanted to start over paying. My OH wasn't too sure so I showed him the overpayment calculator and he soon changed his mind. 
So Jan 2020 mortgage started at £235,957
As off yesterday it was £225,810
Have made a pretty good dent I feel. Our 2 year fix is up at the end of the year so we are about to start the process of looking into a new deal. 
Think that is about it for now,  o and i saw so many people giving a warning about how addictive this gets, they were certainly right. I well and truely have the overpayment bug! 

Sunday88

Welcome! I've only just started documenting my diary too and finding it very motivating 

smetf

Welcome, I've just started my diary too. Good to have a place to record thoughts and progress and not bore the people around you I decided. 
The overpayment calculator is very motivating I find (and addictive)!

Thriftmaster1973

My sister said all the "how can you possibly pay your mortgage early" & "your crazy".

Ignore these people, you'll find many are actually jealous of the fact that you being in the mortgage free wannabe mindset, actually shows that you are in full control of your money and finances.

jimjames

Thriftmaster1973 said:

Ignore these people, you'll find many are actually jealous of the fact that you being in the mortgage free wannabe mindset, actually shows that you are in full control of your money and finances.

I wouldn't necessarily ignore them depending on the reasons they're giving. If it's that you can't do it or pointless then yes probably good to ignore. But if it's suggesting that there are other ways to achieve it such as investing the overpayments to give a better return than paying mortgage then it may be worth considering depending on your situation.

In terms of renewing your fixed rate, have a check of your existing provider first to see what they offer. Depending on which one it is you may be able to switch before the rate expires which could be beneficial if the new rate is better and it should be free to switch unless the new rate comes with a fee. If you move providers you may need to get surveys etc done.

Thriftmaster1973

I'd bet 99% they are saying it because they are jealous. Would I be correct OP?

Spender2saver

@sunday88 I have just bookmarked your thread, looking forward to reading  

So most of the responses I get are people saying why would you want to lower your term just pay the repayments, the mortgage still gets paid. 
We took out a 35 year mortgage and moved in the day before my OH 30th. I just don't want to be paying this off for 35 years! Especially now I've used the overpayment calculator and I've seen how much interest can be saved!! 
We couldn't get a great rate 2 years ago as my OH doesn't have a great credit history. I belive We have another 2 years until the "bad marks" are no longer showing on there. 

@jimjames thanks for the advise at looking at our current provider first. Didn't even think about potential extra costs if going to a new provider.
Still trying to learn as we go. 

Spender2saver

First sort of update- still trying to find the right balance in spending/saving/overpayment
Our savings were pretty much wiped out due to actually buying the house and moving.  
At the moment I am trying to build up an emergency fund it currently stands at £2k.
Working from home has definitely helped with spending as I'm not just popping to the shops in my lunch break to escape the office. And not commuting every day cuts down on fuel so all good, just not sure how long this will go on for until we are asked to go back in full time.  

rugbymadfamily

Hello! Am also relatively new to this, I joined the forum in about Sept last year. I would advise that you pass OPs and get your savings built up a bit first (general advice is to have 3 months emergency funds that could cover all costs, mortgage / bills / food etc). Then can get on with OPs. That’s certainly what we have done and although it meant we didn’t make OPs for a few months whilst we built the fund up, it’s so comforting to know there is a buffer there.

Anyway, best of luck with it and great to have a plan in place!

Thriftmaster1973

@Spender2saver

Don't lower the term and tell your mortgage provider to leave the normal monthly payment "as is".

Lowering the term will compel you to pay the higher monthly payment month in month out, whereas if you had to fund an emergency eg broken washing machine, you will be able to shelve the overpayment whilst you focus funds on the emergency.

Spender2saver

Thriftmaster1973 said:

@Spender2saver

Don't lower the term and tell your mortgage provider to leave the normal monthly payment "as is".

Lowering the term will compel you to pay the higher monthly payment month in month out, whereas if you had to fund an emergency eg broken washing machine, you will be able to shelve the overpayment whilst you focus funds on the emergency.

Thank you for this, never thought of it this way