The Skylarks Journey

South_coast

I wouldn't bother (I never did). The term will naturally shorten once you run out of money owed to them. I made a few large payments towards the end of mine, which triggered an automatic recalculation of the monthly payment, but their new calculations were always based on it running to the original term. At one point my monthly payment went down to £12.99 a month for 20 years 🤣! But once I paid off the remainder, they accepted defeat that the term had ended 😀

QueenJess

I don’t bother either and my term remains the same, but the monthly payment decreases. I enjoy the extra breathing space it gives me.

Someone at my work did the same thing, but stopped overpaying eventually. Their mortgage was £6 a month 😂.

powerspowers

I let the payment reduce but keep my payment the same. It works out the same interest wise and you will pay off earlier anyway. The only flaw is if you have an overpayment limit and are at risk of hitting it. 

twinklie

I was just going to say about the overpayment limit as well. 

Merlin's_Beard

If you're unlikely to hit the overpayment threshold before the fix is up in 2026 it's probably not worth worrying about - when you remortgage at the end of your fix you can decide if you want to lower the term at that point.

Firsttimebuyer2021

Well what a busy month it has been! Thats us finally settled into the new house. So where do i even begin...

I got offered a new promotion at work with an increase in salary. So i gave notice to the freelance company that i have been working with over the past while so i could take the new promotion as both would collide with hours worked. Unfortunately my anxiety took a turn between the new house, leaving one job and the promotion at the other so i delayed the training for the new promotion for now. Hopefully in a few weeks i should feel much better to start the new position. Onto finances now;

We managed to overpay a massive £15.12 into the mortgage as an overpayment. Unfortunately with all the house move i forgot April was also the car expense month so had a full service, MOT and also the road tax. Spent nearly £800 getting everything paid but that's it all sorted for the next year. 

Managed to re-finance the 2nd car from a PCP to a HP with a slightly higher payment but a much lower APR rate. This also means we get to own the car after 30 months instead of either trading in or finding the final payment. 

I also set up a new Chase bank account and savings. So far i am loving the accounts. 1% cash back might not mean much however over the course of the year could amount to something to go to the mortgage. Also moved over the majority of the savings to the 1.5% savings account instead of the 0.1% with BOS. 

We are still waiting on the council tax to create an account and start billing so saving the money in the Chase savers as we may earn some interest while waiting to hear. First energy bill was £100.24. Budgeting for around £150 a month so got an extra £49.76 in the pot for winter. I must admit this could be cut down even more. We only use Gas for the heating and showering and this came to just over £55 for the month - i must cut down my very long showers. Now limited to 2 songs and not an album  

savingholmes

Just wanted to wish you good luck on your journey. You have a healthy emergency fund.

Firsttimebuyer2021

@savingholmes Thank you very much! 

PearlRose

Congratulations on your new home. Wish you all the best on your mortgage-free journey

Firsttimebuyer2021

Just a little update for the month;

Mortgage payment went out followed by an overpayment so currently dropped below the £157k. 

Made over £60 from Chase so far and got another 3 referrals to go however they are in the waiting room for Chase. 

Applied for a new job and was meant to hear back at the end of June…Got an email last week offering me the position! Just waiting on the start date which also comes with a much better salary 🎉