Free Me!


I've recently got a mortgage of £109,350 in Dec 2012. The mortgage is over 35 years (I did this to add flexability if things went wrong but was planning on at least overpaying to the 25 year mark anyway).

I am in a 5 year fixed rate deal at 4.79% - which I realise isn't the best - but was by far the best option offered at the time (I could only get a mortgage from my bank due to recently becoming self-employed). I can make 10% off my mortgage balance per year.

In any case, I've decided to become mortgage free - so I've made an overpayment of £1,800 this morning. I have it set up on online banking so I can make payment as-and-when.

According to my mortgage calculator it has saved me 7484 in interest and shaved 18 months off of my mortgage which brings it in-effect to a grand total of 17155.76 saved if I stayed at this interest rate for the whole 35 years and never overpaid.

I aim to try and have it paid off in around 10 years, but will come up with a more accurate time once I start overpaying for a number of months.

I realise that due to it be 35 years, and the interest rate not being the lowest - it means I'm saving pretty hefty amounts by overpaying - so I think that will spur me on. If I can get near the 10% which is allowed to overpay then that'll be a big achievement - and that's what I am aiming for the first year.


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