Mortgage gone by 2030

hellosupernova

isadreamalie said:

Great to hear

I've been saving this year rather than overpaying to take advantage of the rates. I was rather slow to go to over to saving as overpaying was so addictive (part of the reason was when my mortgage rate went up with my new fix I was desperate to bring my monthly payments down to where they were again!)

Anyway I've saved 10k in an easy access isa paying 4.2% which matures in August. Current thinking is to take 5k from that and throw at the mortgage which will reduce my payments by around £28 to about £532 a month!

This is exciting as the less my payments are the more I can save and spend... looking to fly business class in future haha.  I will save the rest in whatever decent isa I can find and build it up to at least 10k again...

Current mortgage balance without overpaying the last year is just under 98k

That sounds like a good plan. I am currently debating on what overpayment to make monthly going forward and then I will be saving the rest to also take advantage of any savings interest. Well done so far. You are below £100k now so that must feel good!

isadreamalie

hellosupernova said:

isadreamalie said:

Great to hear

I've been saving this year rather than overpaying to take advantage of the rates. I was rather slow to go to over to saving as overpaying was so addictive (part of the reason was when my mortgage rate went up with my new fix I was desperate to bring my monthly payments down to where they were again!)

Anyway I've saved 10k in an easy access isa paying 4.2% which matures in August. Current thinking is to take 5k from that and throw at the mortgage which will reduce my payments by around £28 to about £532 a month!

This is exciting as the less my payments are the more I can save and spend... looking to fly business class in future haha.  I will save the rest in whatever decent isa I can find and build it up to at least 10k again...

Current mortgage balance without overpaying the last year is just under 98k

That sounds like a good plan. I am currently debating on what overpayment to make monthly going forward and then I will be saving the rest to also take advantage of any savings interest. Well done so far. You are below £100k now so that must feel good!

Thanks
Yes I really went for those overpayment over the last few years... at times it got obsessive and I didn't allow an emergency fund although I'm I'm a steady well paid job so I could always use the credit option if necessary 
Still it feels better now knowing I have that cushioning of savings.
Under 100k was a huge milestone. Now it's less about the debt and more getting it under 500pcm

Once I got it under 100k I also realised good as it is that it doesn't suddenly make your life amazing... money is just money to a degree. 

minimad125

Hi guys, I hope you are still on course to becoming Mortgage free. 
For my part, My Mortgage provider has just changed how they apply overpayments which annoyed me a little.
Instead of just adding the ad hoc overpayment to the balance, they are offering 2 choices, either reduce the term or reduce the statutory payments on top up payments. I currently pay a fixed £100 overpayment as part of the normal mortgage so I think it only affects the on top payments.
Although a nice thing to do, reducing the term, when it comes to re-mortgaging, and at todays rates, I would be paying more or less the same amount.
Current balance - £42150.00
Overpayments since April - £328.85 
Previous term left - 8yrs 2 months
New term left - 7yrs 7 months

minimad125

hellosupernova said:

isadreamalie said:

Great to hear

I've been saving this year rather than overpaying to take advantage of the rates. I was rather slow to go to over to saving as overpaying was so addictive (part of the reason was when my mortgage rate went up with my new fix I was desperate to bring my monthly payments down to where they were again!)

Anyway I've saved 10k in an easy access isa paying 4.2% which matures in August. Current thinking is to take 5k from that and throw at the mortgage which will reduce my payments by around £28 to about £532 a month!

This is exciting as the less my payments are the more I can save and spend... looking to fly business class in future haha.  I will save the rest in whatever decent isa I can find and build it up to at least 10k again...

Current mortgage balance without overpaying the last year is just under 98k

That sounds like a good plan. I am currently debating on what overpayment to make monthly going forward and then I will be saving the rest to also take advantage of any savings interest. Well done so far. You are below £100k now so that must feel good!

Congrats on getting under the 100k mark, always a nice feeling you can start to see fruits of your labour.
With you thinking of throwing 5k at the mortgage, I hope there isn't any penalties for adding that large amount? 

hellosupernova

End of Financial Year Update

Very delayed update but better late than never.

New mortgage statement shows the following:

Closing balance as of 31.03.24:  £69,198.76

Closing balance as of 31.03.25:  £58,969.71

Difference between these opening balances is £10,229.05 capital cleared off.

So in the financial year I made £5,857.11 total overpayments.

Worked out my new 10% overpay allowance fee free is: £5,896.97

Total payments made towards the mortgage:  £12,605.73
Total interest:  £2,376.68

Rate       From                            To
3.35%    1 April 2024                  1 October 2024
4.13%    2 October 2024            31 March 2025

As mentioned in my earlier post, I have achieved my target of clearing £10k capital in the financial year.

I have also received a letter recently stating that my mandatory payment has reduced to £556.24 due to my regular overpayments. Previously it was £577.52 since my current fix started last October.

I have decided to keep the regular overpayment at £250 and I will add extra mini ones as and when I can. I am now focusing on building up more savings that I can use at the end of the current fix to pay off a lump sum from the remaining balance. Possibly the full balance but we will see. The only annoying thing is that the savings interest rates keep coming down. So I will need to keep reviewing the situation. The capital cleared each month remains at the £600 level so I am happy with this as it keeps me on track but I am free to do things and spend money for a decent lifestyle as well.

hellosupernova

minimad125 said:

Hi guys, I hope you are still on course to becoming Mortgage free. 
For my part, My Mortgage provider has just changed how they apply overpayments which annoyed me a little.
Instead of just adding the ad hoc overpayment to the balance, they are offering 2 choices, either reduce the term or reduce the statutory payments on top up payments. I currently pay a fixed £100 overpayment as part of the normal mortgage so I think it only affects the on top payments.
Although a nice thing to do, reducing the term, when it comes to re-mortgaging, and at todays rates, I would be paying more or less the same amount.
Current balance - £42150.00
Overpayments since April - £328.85 
Previous term left - 8yrs 2 months
New term left - 7yrs 7 months

That is very annoying. I suppose you could put the ad hoc overpayments you would have made into a fixed savings or somewhere to gain interest and it can stay there as if it was in the mortgage and you would not have access to it again? Then maybe it can be used as a lump sum further down the line or just before your next fix starts. I know that some providers let you throw down a lump sum after a fix ends and then you start the new fix with the reduced balance from it.

hellosupernova

April Update

Total overpayments for April 25:                     £370.71
 
Mandatory payment 30.04.25:                        £577.52

Interest added 01.05.25:                                 £199.53

Balance after interest added 01.05.25:           £58,221.01

Overpayments made so far in May 25:           £1.01

Current mortgage amount (23.05.25):             £58,220.00

Mortgage balance approx this time last year (23.05.24): £68,017 (£9,797 less)

Opening balance as of 01.04.25: £58,969.71
10% overpay allowance fee free: £5,896.97
Overpayments made so far this financial year: £371.72 / £5,896.97 (6.3% used) / (£5,525.25 left of allowance)
Capital cleared off balance so far this financial year: £749.71
Current term left on mortgage (23.05.25): 10 years 10 months 

I am still here and plodding along. I am thinking about more ways I can reduce the bills and make the money I have go further.

minimad125

hellosupernova said:

minimad125 said:

Hi guys, I hope you are still on course to becoming Mortgage free. 
For my part, My Mortgage provider has just changed how they apply overpayments which annoyed me a little.
Instead of just adding the ad hoc overpayment to the balance, they are offering 2 choices, either reduce the term or reduce the statutory payments on top up payments. I currently pay a fixed £100 overpayment as part of the normal mortgage so I think it only affects the on top payments.
Although a nice thing to do, reducing the term, when it comes to re-mortgaging, and at todays rates, I would be paying more or less the same amount.
Current balance - £42150.00
Overpayments since April - £328.85 
Previous term left - 8yrs 2 months
New term left - 7yrs 7 months

That is very annoying. I suppose you could put the ad hoc overpayments you would have made into a fixed savings or somewhere to gain interest and it can stay there as if it was in the mortgage and you would not have access to it again? Then maybe it can be used as a lump sum further down the line or just before your next fix starts. I know that some providers let you throw down a lump sum after a fix ends and then you start the new fix with the reduced balance from it.

Hiya, and glad your still doing well. 
Fortunately, I will have 10k for such an occasion come end of June 25 (used some to place in a fixed bond so topping back up). this could be used against the remaining balance at the end of the fixed period. I guess it depends on the rates at the time eh. I could raid my investments to clear it altogether.
I did have a conversation with the customer service Lady and she said it could delayed for 5 days to allow the lump sum to be added but would have to be on the variable rate for those days. in the grand scheme of things, this would be acceptable and so yes, could throw it on then.
I can see why they did it to be fair, the monthly payment would have gone down by at least £60 so reducing my term pushes me back to more or less my standard payment amount. 
well, I will keep going and work out the best route. 

Mandatory payment 01.05.25:                        £496.82

Interest added 01.05.25:                                 £57.28

Balance after interest added 01.05.25:           £42812.28

Overpayments made so far in May 25:           £165.46

Current mortgage amount (23.05.25):             £42150.00

Copied your layout

hellosupernova

May Update

Total overpayments for May 25:                     £272.26
 
Mandatory payment 31.05.25:                        £553.66

Interest added 31.05.25:                                 £203.91

Balance after interest added 31.05.25:           £57,600.25

(Then I added £1.25 extra overpayment to make the balance £57,599)

Overpayments made so far in June 25:           £255.00

Current mortgage amount (27.06.25):             £57,344

Mortgage balance approx this time last year (26.06.24): £66,418 (£9,074 less)

Opening balance as of 01.04.25: £58,969.71
10% overpay allowance fee free: £5,896.97
Overpayments made so far this financial year: £897.97 / £5,896.97 (15.23% used) / (£4,999.00 left of allowance)
Capital cleared off balance so far this financial year: £1,625.71
Current term left on mortgage (27.06.25): 10 years 9 months 

My mandatory payment has been reduced down to £553.66 instead of £577.52. They seemed a bit late to pick this up but not complaining. It's always good to have less to pay on your mortgage if you ever have difficulties in life. I am keeping my overpayment figure the same as of right now as I am still on track and I am clearing around £600 capital each month.

minimad125

Hi there, hope the Mortgage grind is still ongoing
You mentioned about the overpayment balance being available to you, Just checked mine and it seems I can overpay £8081 this year if I wanted to without any ERC's.
July balance - £40995.00
Full Term - 7 years 4 months left
Fixed term - 21 months left at 1.63%