2008 MFW newbies

uzubairu

Received a letter today from the Nationwide about our mortgage.
We currently pay £646 per month, and due to our overpayment last month of £500, they have reduced the payment to £599.

They give you the option of staying with the new payment figure or reducing the term of the mortgage and staying with the previous £646.

When I phoned them, they told me that the overpayments had reduced the term remaining from 22 years 8 months to 19 years 1 month. :T

Today, I've set up a regular saver account (8% gross) to pay the difference into (cash ISA used up), as the rate is higher than the mortgage interest rate of 4.79%.

We've been overpaying for 2 years and this is the first time we have received a letter like this.

It's good to see the impact of the overpayments.

We plan to pay it all off in 8 years. We currently owe £99,127.

frazzmunch

well done torbrex:j will have a beverage in your honour this evening!:beer:

bellsbells...congratulations on managing to wipe so much time off your mortgage...and thanks so much for this thread looking forward to hearing all about 'bump' when he/she puts in an appearance!

Floxxie

Hi all,

I'm posting an estimated October mortgage amount as the interest isn't added on until November 1 and it confuses me as to where I am so as of today I owe £90,367.

I'm considering two future routes:
1) As the rates have dropped, letting my payment drop and investing the remainder and
2) go interest only next year and use the extra to either let it sit in the offset pot or invest it or do a bit of both. Yes, I know it sounds crazy but I'm wondering whether it is better to have control of the mortgage rather than be in a position where we could end up struggling (no reason to think that at the moment!). Thoughts anybody?

Floxxie

waves117

torbrex wrote: »

Well its finally gone through, my last mortgage payment cleared my account yesterday (15th) and I am now mortgage free.

CONGRATULATIONS, what a feeling it must be to be MF........ Well done.
:beer:

waves117

Hi all

Just used my savings (which i accumalted whilst on a fixed rate mortgage last year) and overpayed £4,897 to reduce term of my mortgage( 6yrs). Today I received the letter from the building society stating a reduction of 1 year and 5 months.....now I only have 4years 7 months remaining so, if i keep reducing the term with overpayments i should be on course to complete mortgage in 2 years............ cant wait to get that MF feeling....

:j

ema_o

Hello
I know it is really late in the year but me & OH would love to join you all! We have just bought a house and taken out our first mortgage :eek:

First payment is due 1st November and we have already paid £100 off the mortgage :j obviously only a small amount, but at least we have gotten started!!

Goal for this year is really just to get started, probably by paying £100 per month so £300 in 2008. We have a huge amount of work to do to our house so most of what we can put aside will go on that for now, but I want to make sure we do focus on paying the mortgage off early as well!

I have a vague idea of being mortgage free in 10 years time, I think I will have to assess this once I have a clearer idea what we will be spending on the house, this averages out at overpaying £11,000 per year :eek: :eek: :eek:

We have an offset mortgage so fortunately all the money saved for work on the house is reducing our interest payments nicely :T but I have a feeling it will soon all be spent (and we will have a nice warm house - priority is getting heating and insulation sorted!)

abouttimetoo

Hi all

Just checking in with my October update. I've made my usual £400 and an extra £1000 taking it to £1400 for this month - sooooo pleased

Hope you are all doing well with your own OP's

uzubairu

uzubairu wrote: »

We (me and OH) took out a 10 Year 4.79% Fixed Rate mortgage of £113,000 with the Nationwide in July 2006.

Given that our previous mortgage was for £38,000, our new monthly payments of £646.84 are more than double.

We can overpay £500 per month without penalty, and we both use our Cash ISA allowances (to pay balance at end of the fixed rate period).

This year we want to overpay £5000 instead of £6000 (because we had new worktops fitted in the kitchen). We had initially wanted to end the year at £100K, but we decided to try a bit harder.

Here are the numbers so far:-

July 1st 2006 = £113,000.00
January 1st 2007 = £111,807.00
January 1st 2008 = £105607.02
October 1st 2008 = £100,103.78 (it was sub £100K until interest was added, hopefully this month's OP will keep it under £100K)

We've overpayed £3,400.00 so far this year.

Umu

We received a letter from Nationwide last week, stating that due to an overpayment of £500 in October (we've been overpaying for 2 years :rolleyes: ), we were entitled to a reduction in our monthly payments to £599 or a reduction in the term of the mortgage and continue paying £646.

We had initially planned to stick with the £599 payments and open a Regular Saver account paying 8% gross fixed for 12 months to pay £150 per month.

We've reviewed our finances and we have now decided to reduce the term and keep the Regular Saver account.

Our overpayments so far have reduced the remaining term from:-
22 years and 8 months to 19 years and 1 month. :T

newmoneysaver_2

I haven't posted on here for a few weeks. Our fixed rate ended at the end of Sept and we went onto the SVR for Oct - I had to reduce the mortgage to sub £120K to secure a fixed rate of 5.79%, but this involved a small loan from my lovely parents!!! :A
So, my mortgage currenlty stands at £119395.94
overpayments are showing at £5276.90, but I do owe £1700 to parents so
total overpaid during 2008 is £3576.90 :T

zavarony

Hi all,

Just want to declare my October OP, our regular £250 has now come out of the bank and so our total for the year is now £2550 which surpassed my original target and I am sooo pleased - Bellbells I will Pm you x

Well done to all of you for your OP's it doesnt matter how large or small they may seem, every penny makes a huge difference in the long run so keep up the good work.

Zav