And so it begins.....

4 Posts

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!
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!
3
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The overpayment calculator is very motivating I find (and addictive)!
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.
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.
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.
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.
Anyway, best of luck with it and great to have a plan in place!
OP Goal 2022 = 3.75% in OPs: £6,975 / £13,200
Emergency Fund Target: 3 months saved ✅
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.