Mortgage gone by 2030

savingholmes

Well done on the OPs.

hellosupernova

Another £14 non-wage funds added to the balance. 

Overpayments for January so far:

02.01.24  £20.05
04.01.24  £ 3.00
09.01.24  £ 7.00
10.01.24  £ 7.00
      Total  £37.05

Current mortgage amount (11.01.24): £72,595

Opening balance as of 31.03.23: £79,843.71
10% overpay allowance fee free: £7,984.37
Overpayments made so far this financial year: £3,984.01 / £7,984.37 (49.9% used)
Capital cleared off balance so far this financial year: £7,248.71 / £10,000.00 (72.48%)

One of my main goals each year is to try to clear 10k off the balance by the end of the current financial year which would be a balance of £69,843.71 by 31.03.24. So I would need to clear a remaining £2,751.29 off the balance to get there.

Another goal for this financial year was to try to get to the point where less than £200 interest is being added to the balance each month. I had hoped to get there by 31.03.24 and it looks like I am there now. If my calculations are correct then last month £208.18 was added to the balance where as this month it will be £199.61. Nice.

Another target I have been thinking about is to try to get the balance down to £60,000 before we remortgage in October. It is ambitious but I think that if I can get there then when the interest rate goes back up to around 4%+ then it will be less of a blow. At that level with say 4.79% rate then the interest might jump back up to £239.50 added to the balance per month which is annoying but not that bad I guess. Hopefully interest rates lower a bit more before September.

Another thought I have been having is on the overpayments allowance. I am aware of other providers who allow for unlimited overpayments. I have thought about switching to them but I am a bit nervous to go with someone totally different as I have stayed with the same local one who has someone I can physically go and see if I have any concerns or queries. My local one has ok rates. If anyone has any providers that they use who allow unlimited overpayments then I would love to hear your thoughts on them. I would like to have the freedom to overpay without penalty when I can and the balance will start to get to the point where 10% is going to be a much smaller amount as we go on.

savingholmes

Another option to consider is to reduce the term if you are confident you could still pay if the SHTF.

That gets around some of the OP limits.

hellosupernova

savingholmes said:

Another option to consider is to reduce the term if you are confident you could still pay if the SHTF.

That gets around some of the OP limits.

Thanks savingholmes. That could be a plan. Find the sweet spot I am happy to commit to for my mandatory payment and then try to overpay as close to the 10% as I can manage. Looking at the current figures I might be able to reduce the term from 13 years to 8 years (goal was 10 years) with current interest rate deals and it would make the payment around £675 level so £100 more than I need to pay currently.

hellosupernova

More small extra overpayments totalling £15 from non-wage funds added to the balance.

Overpayments for January so far:

02.01.24  £20.05
04.01.24  £ 3.00
09.01.24  £ 7.00
10.01.24  £ 7.00
11.01.24  £ 8.00
15.01.24  £ 1.00
18.01.24  £ 6.00
      Total  £52.05

Current mortgage amount (19.01.24): £72,580

Opening balance as of 31.03.23: £79,843.71
10% overpay allowance fee free: £7,984.37
Overpayments made so far this financial year: £3,999.01 / £7,984.37 (49.9% used)
Capital cleared off balance so far this financial year: £7,263.71 / £10,000.00 (72.63%) / (£2,736.29 left to target)

Next week when I receive my wage I will be making my planned regular overpayment of £515. I am impressed how easily the small extra overpayments are adding up. I will keep chipping away and see where we are at by next week.

On a different side note, I have reduced my tea intake down to only two cups per day. I am a tea addict and easily have 8 or more cups per day. I wanted to see how it felt not to be on that much caffeine and surprisingly (or not) I have so much more energy and my mood has improved. I have had to substitute my tea times with hot squash but it is the warm comfort feeling I was missing I think. I still enjoy my tea but I think my body and bank balance are much happier now!

isadreamalie

Interesting the reminder that 10% overpayments allowance becomes less over time. Of course you could save the money you can't throw at it in a good savings account in till you come out of your fix... reducing the term I'd another method. It seems you can reduce the term even if you're inside a fix pending affordability checks 

hellosupernova

isadreamalie said:

Interesting the reminder that 10% overpayments allowance becomes less over time. Of course you could save the money you can't throw at it in a good savings account in till you come out of your fix... reducing the term I'd another method. It seems you can reduce the term even if you're inside a fix pending affordability checks 

Yes true if I reach the overpayment limit the funds I would have overpaid with will just sit with interest in my savings account so a few options there.

Archerychick

hellosupernova said:

Another £14 non-wage funds added to the balance. 

Overpayments for January so far:

02.01.24  £20.05
04.01.24  £ 3.00
09.01.24  £ 7.00
10.01.24  £ 7.00
      Total  £37.05

Current mortgage amount (11.01.24): £72,595

Opening balance as of 31.03.23: £79,843.71
10% overpay allowance fee free: £7,984.37
Overpayments made so far this financial year: £3,984.01 / £7,984.37 (49.9% used)
Capital cleared off balance so far this financial year: £7,248.71 / £10,000.00 (72.48%)

One of my main goals each year is to try to clear 10k off the balance by the end of the current financial year which would be a balance of £69,843.71 by 31.03.24. So I would need to clear a remaining £2,751.29 off the balance to get there.

Another goal for this financial year was to try to get to the point where less than £200 interest is being added to the balance each month. I had hoped to get there by 31.03.24 and it looks like I am there now. If my calculations are correct then last month £208.18 was added to the balance where as this month it will be £199.61. Nice.

Another target I have been thinking about is to try to get the balance down to £60,000 before we remortgage in October. It is ambitious but I think that if I can get there then when the interest rate goes back up to around 4%+ then it will be less of a blow. At that level with say 4.79% rate then the interest might jump back up to £239.50 added to the balance per month which is annoying but not that bad I guess. Hopefully interest rates lower a bit more before September.

Another thought I have been having is on the overpayments allowance. I am aware of other providers who allow for unlimited overpayments. I have thought about switching to them but I am a bit nervous to go with someone totally different as I have stayed with the same local one who has someone I can physically go and see if I have any concerns or queries. My local one has ok rates. If anyone has any providers that they use who allow unlimited overpayments then I would love to hear your thoughts on them. I would like to have the freedom to overpay without penalty when I can and the balance will start to get to the point where 10% is going to be a much smaller amount as we go on.

My mortgage is with First Direct, have been with them since I bought this house. They allow unlimited overpayments, it also requires me to have my current account with them. The whole application process was really straightforward and the few times I’ve needed to speak to them either about current account or when a fix has been nearing the end their service has been excellent. Really can’t fault them!

Archerychick

Your other option is to put any other funds that you’d like to overpay, but can’t because you’ve already done 19%, into a savings account.

I’m unsure what your mortgage rate is, mine if 1.49%, and even though I’m allowed to overpay more, I’ve got those funds going to no various savings accounts which is earning me more money than I’d saved by putting it into my mortgage. So that might be something to consider if it balances out on the interest rates 

savingholmes

Sounds like you have options you can explore.