Overpaying is Addictive!

Capricorn_One

I remortgaged to an offset-tracker with the Newcastle (fee-free) as I wanted it to be the last time I moved lender. It's looking quite a good deal after a bumpy start.

Started in April 2007 with £79,000. I've been overpaying as much as I can afford and today it's at £70,690.

I've got an ISA of £16K, that I wish I could offset but I'm selling a low-cost endowment next month and will offset that, using £3600 of it for next year's ISA allowance.

Just thought I'd share this as I know we're all in the same boat.

I've also stopped drinking for 2008! It really helps to be able to think clearly. Not missing the beer at all.

Good luck to all of you.

Ed.

angelavdavis

Well done Capricorn, congratulations on your progress!

I am also overpaying - trying to pay the lot off in the next three years(ish!)

I wish my mortgage was below £80k - it stands at £123,000 right at the moment! Was originally £130,806 in April 07.

Good luck

setmefree2

Good Luck Cap1:money:.....I couldn't give up drinking I'm afarid:cool: though must admit I'm quite careful with what I spend now - so that limits any excesses:o

115K

Good luck - it sounds like you are doing brilliantly so far.:A

Baileys_Babe

I agree its addictive.

Use a mortgage calculator and play with the figures of how much you would have paid including interest and how much interest you have already saved.

I found it really motivating.

djbd1973

I find it can be too addictive especially if, after seeing all the suggestions on this site and applying all you can, I find that I don't have enough accessible money to be able to do all the things I would like to, and by prioritising my money distribution, I find that some initiatives are not getting the money that I would like them to - such as the overpayment of the mortgage.

It can be motivating and frustrating waiting to find that little bit extra money, and then where do you draw the line when it comes to spending on 'life' and going out, treating the wife and living.

I think I have struck a balance but every now and then I find myself wanting to stretch my finances and I have to take stock and step back - normally with a glass of red wine, of which I can't give up like you Capricorn (although I admire you for doing so) but I've cut back to a buying just one bottle a week now.

Di-Dough

You've done so well - keep up the good work:T

Shimrod

Capricorn_One wrote: »

I've got an ISA of £16K, that I wish I could offset but I'm selling a low-cost endowment next month and will offset that, using £3600 of it for next year's ISA allowance.

I know you said you didn't want to move mortgage lender again, but depending on the deal you have with the Newcastle you may want to consider Barclays/Woolwich. They allow you to offset you cash ISA against the mortgage as well. Once the mortgage is cleared, we should have a nice chunk of tax free cash which can then chase the best interest rates!

Shim

starryeyed_2

Hiya, I'm new to this site and i'm making a resolution to pay my mortgage off sooner. Can someone tell me please is it better for me to overpay on my current mortgage or switch it to The ONE account type mortgage? I'd really appreciate your advice as am so naive to all these things.
My current mortgage is for 93,000 and I pay around 600 per month. I can now afford to overpay another 500 per month on top, so want to know whats the best thing to do. thanks xxx

djbd1973

With an offset like the 'one account' the money you offset becomes savings that you can still get to whereas but the rates tend to be higher for offset accounts.

You will need to put some sums on paper i.e how long will it take with the extra £500 on top (there are some good calculators mentioned on this forum that will do this), how long do you foresee the overpayments lasting, your current interest rate compared to the offset alternatives and the costs connected to switching, and if your circumstances are likely to change i.e. new job, redundancy, baby on the way etc

FreedomGirl

Hi,

Have a look at the One account thread from a few months ago. Whilst you're looking at it, and all the other options (offsets etc), put the £500/month into a cash ISA. By my reckoning, it will be the end of Sept before you've run out of ISA capacity and will have four and half grand in the bank with which to start offsetting.

We've got one and I think it's been great for us, but financial discipline is a must-have with these offset accounts. The OH did get into the habit of saying "just put it on the One account" and I suspect we've spent quite a few thousands (if not more) which, if we'd been tied into a traditional mortgage, we wouldn't have done.

I think, once the balance gets to within the finishing line (like where we are) then it's a lot easier to keep the motivation up. An alternative is to overpay your current mortgage by £250/month, then save the rest in an ISA for the next few years...And look at the One account again when you're closer to the end ?

Well done on having such a good surplus.

HTH

FG