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  • FIRST POST
    • pavlovs_dog
    • By pavlovs_dog 27th Dec 18, 2:51 PM
    • 9,834Posts
    • 24,109Thanks
    pavlovs_dog
    1% challenge 2019
    • #1
    • 27th Dec 18, 2:51 PM
    1% challenge 2019 27th Dec 18 at 2:51 PM
    When faced with a debt that ends in several 000s, overpayments can feel like a drop in the ocean.

    Maybe you've been OPing for a while and feel like there is little left to squeeze out of your budget. Maybe you've lost your mojo with OPing and need a new challenge. Perhaps you feel intimidated by how much others OP on the annual or MFi3 challenges, or are unable to commit to fixed monthly payments.

    1% of your mortgage balance is a far less daunting sum to aim towards whilst still chipping away at your debt. It turns the mortgage marathon into more of a sprint and helps make the impossible feel more achievable.

    To calculate 1%, simply divide your mortgage balance by 100 then post your target below. Don't forget to come back and share the little things you are doing to help you hit your target.

    1% for us is £735. Let the challenge commence!
    know thyself

    Nid wy'n gofyn bywyd moethus...
Page 1
    • DD265
    • By DD265 27th Dec 18, 4:35 PM
    • 1,848 Posts
    • 4,423 Thanks
    DD265
    • #2
    • 27th Dec 18, 4:35 PM
    • #2
    • 27th Dec 18, 4:35 PM
    I'd like to join in! It'll be our first year as home owners, and 1% feels a lot more affordable than 10%

    1% for us is £1500.
    • iamsalt
    • By iamsalt 27th Dec 18, 4:49 PM
    • 288 Posts
    • 5,571 Thanks
    iamsalt
    • #3
    • 27th Dec 18, 4:49 PM
    • #3
    • 27th Dec 18, 4:49 PM
    Hello, thanks for starting this, i quite fancy this challenge. I am definitely in awe of sone of the o/p that people make. Mine have been in the £18-£68 bracket each month when i can find savings elsewhere.

    My 1% is £1687 for 2019. I had been using my refunds from delay repay on my commute and while its been useful to help with o/p I would rather be home on time!
    £175,999 starting Oct 17 (likely to be £200,000 in April 2019) current £168750 original end date October 2041 current end date Aug 2041 I would love the end date to be 2027 but will aim first for 2037.
    1% target £1687 for 2019 so far £67.48 paid
    • pavlovs_dog
    • By pavlovs_dog 29th Dec 18, 9:09 AM
    • 9,834 Posts
    • 24,109 Thanks
    pavlovs_dog
    • #4
    • 29th Dec 18, 9:09 AM
    • #4
    • 29th Dec 18, 9:09 AM
    I'm out of the starting blocks. £31 OP'd

    £5 on a Christmas scratch card
    £25.55 from Prolific surveys
    45p TT

    £704 to go
    know thyself

    Nid wy'n gofyn bywyd moethus...
    • Moneyfordreams
    • By Moneyfordreams 30th Dec 18, 4:42 PM
    • 1,515 Posts
    • 7,150 Thanks
    Moneyfordreams
    • #5
    • 30th Dec 18, 4:42 PM
    • #5
    • 30th Dec 18, 4:42 PM
    I think I will join this. 1% of my total debt is £1280. We moved house in May 2018 and the cost of renovations is running away with us. mostly funded on 0% cc. (currently around£14000 )
    By summer my aim is to reduced cc by half . The latter half of 2019 will be bathroom, kitchen and drain renvovations i hope. Therefore not a great deal left to OP.
    We also have a big holiday in March for my OH 60th and need to save for my 50th March 2020

    1% may be small but with all else going on it's a stretch. I also need to pay off the only cc with interest 1st
    Mortgage restart June 2018 £119950
    Re mortgage August 19 £110470, HSBC £3500cc, Hfx £6700, NW £5750 M&S £1200, car £5500.
    CC 17150 , it's coming down
    • sleepysleeperson
    • By sleepysleeperson 30th Dec 18, 5:53 PM
    • 13 Posts
    • 14 Thanks
    sleepysleeperson
    • #6
    • 30th Dec 18, 5:53 PM
    • #6
    • 30th Dec 18, 5:53 PM
    Can I join?

    1% is £1,030 so very achieveable
    My Targets
    Pension - £600/£200k
    Mortgage - £150/£103k
    • beanielou
    • By beanielou 30th Dec 18, 8:26 PM
    • 67,404 Posts
    • 305,591 Thanks
    beanielou
    • #7
    • 30th Dec 18, 8:26 PM
    • #7
    • 30th Dec 18, 8:26 PM
    Wishing you all luck with this
    Lou~ Debt free Wanabe No 55 DF 03/03/14. MFW. 16 months to mortgage freedom.
    **Credit card debt free 30/06/10~**
    **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • Couldsavemore
    • By Couldsavemore 31st Dec 18, 4:32 AM
    • 100 Posts
    • 426 Thanks
    Couldsavemore
    • #8
    • 31st Dec 18, 4:32 AM
    • #8
    • 31st Dec 18, 4:32 AM
    Ohh hello!

    Can I join in too...

    I've already started with the OP's but like you said it does feel like a drop in the ocean at times.

    I'll have a look in the morning to get an accurate 1% using the letter I got as a result of last months OP... i'm a bit of a nerd I luke to see the length of the term shorten quickly.
    Mortgage overpayment target is £1200
    Total paid 1413


    SPC #80... Still adding that loose change.
    2019 mortgagr free #48 Target £2400 paid £:645beer:
    • MoneyMission
    • By MoneyMission 31st Dec 18, 11:20 AM
    • 642 Posts
    • 3,237 Thanks
    MoneyMission
    • #9
    • 31st Dec 18, 11:20 AM
    • #9
    • 31st Dec 18, 11:20 AM
    Sign me up!

    Was going great guns on OP's over last couple of years. Then we collectively decided on a big holiday for 2019 so we exchanged OP's for savings to pay for it. Ready to attack the mortgage again but I'm having a midlife change of career and am starting a new job on 17th January to kick start the new direction. This means a drop in my salary but I'm still confident we can find 1%, £2,420, to OP.

    Have subscribed!
    MFW Challenge 2019 - £2,420 / £2,420 - 100%
    • Rachib
    • By Rachib 31st Dec 18, 4:33 PM
    • 30 Posts
    • 56 Thanks
    Rachib
    I'd like to join
    This is just the challenge for me!

    This year I have remortgaged my house partly as the fixed deal was up but also to buy out the help to buy loan that was against my property .
    This has resulted in my mortgage payments going up by about a third, So overpayments have been lower that my initial mortgage.

    1% seems achievable, which is £1,530
    • Hazelnutty
    • By Hazelnutty 1st Jan 19, 11:48 AM
    • 245 Posts
    • 1,214 Thanks
    Hazelnutty
    1% is £1500 for me and more than my 2019 target of £1200 but I'm going to sign up as it's good to stretch!
    Choose kind
    MFW 2019 #103
    • twinklie
    • By twinklie 1st Jan 19, 12:04 PM
    • 4,275 Posts
    • 11,204 Thanks
    twinklie
    This is a year early for me because I want to clear my debts first. However I’m going to follow for motivation. I love the idea.
    Daily mortgage interest Nov'19 - £15.77 Reduction in daily interest - £0.68
    % of house owned/% of mortgage paid off.
    Nov'19 - 14.2%/4.2%
    MFiT-T5 #13 MFW 2031/currently 2037
    New aim - to be debt free by the end of 2020. % remaining Nov'19- 62.2%
    • Couldsavemore
    • By Couldsavemore 1st Jan 19, 2:12 PM
    • 100 Posts
    • 426 Thanks
    Couldsavemore
    Afternoon...

    I've made my first OP of the year..

    1% is £497

    Op made £282.. or ... 0.57%

    Oh well its a start!
    Fingers crossed that january is a cheaper month!
    Mortgage overpayment target is £1200
    Total paid 1413


    SPC #80... Still adding that loose change.
    2019 mortgagr free #48 Target £2400 paid £:645beer:
    • julicorn
    • By julicorn 1st Jan 19, 3:28 PM
    • 846 Posts
    • 3,457 Thanks
    julicorn
    I think this challenge is a great idea - starting with a more manageable amount like 1% can really show you what difference overpayments can make in the long run!

    Just wanted to add that all of you are of course also welcome to join us in the 2019 MFW challenge thread if you like. I know the figures some people there are aiming for are higher than most can afford, but there's also plenty of people aiming for overpayments between £500 and £2k, so you're definitely not alone.

    Either way, all the best for 2019!
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £157,700
    • DD265
    • By DD265 4th Jan 19, 2:25 PM
    • 1,848 Posts
    • 4,423 Thanks
    DD265
    We haven't got our mortgage yet, hoping to complete at the end of the month, but I've just put 1% of my 1% into a savings pot called 'Mortgage 1%'.

    It's only £15 that I've transferred, but this month is gonna be tight. YNAB tells me that if I put £15 a month into the pot, I'll reach my £1500 goal in 99 months - I think I'll try and speed that up a bit.

    I do have a question: lets say the mortgage kicks in and we have £100 of over payments set aside already. Are we best paying that off immediately, or doing a lump sum at the end of the 1st year? The interest is calculated daily and applied monthly so I'm guessing we're best making the over payments each time we have the funds available.
    Credit Cards 2019 - £6600/£8000 paid off - 82.5%
    • Zola.
    • By Zola. 4th Jan 19, 3:02 PM
    • 1,537 Posts
    • 727 Thanks
    Zola.
    1% for us is £1,128. I did my first overpayment in almost a year a few days ago (£1,100).

    I have also upped our mortgage repayment each month by £25, so I will have 1% done at the start of February

    I will shoot for 2%!
    • pavlovs_dog
    • By pavlovs_dog 4th Jan 19, 3:24 PM
    • 9,834 Posts
    • 24,109 Thanks
    pavlovs_dog
    lets say the mortgage kicks in and we have £100 of over payments set aside already. Are we best paying that off immediately, or doing a lump sum at the end of the 1st year? The interest is calculated daily and applied monthly so I'm guessing we're best making the over payments each time we have the funds available.
    Originally posted by DD265
    Personally I'd hang on to that £100 for a few weeks as there are always so many unforeseen expenses with a new house. Depending on how much leeway you have in your budget, these can prove difficult to absorb. Do you have an emergency fund? If not I would prioritise that over OPing.

    If interested is calculated daily, I'd OP straight away. This means that savings on interest begins straight away and there is no temptation to fritter away spare money. I'm fortunate that our mortgage allows unlimited OPs and I can transfer money electronically so it is quick and easy to do. Not all providers make it that easy to OP, and you may have a cap on the sum you can OP each year. In these scenarios, you may prefer to make lump sum overpayments instead of ad hoc payments.
    know thyself

    Nid wy'n gofyn bywyd moethus...
    • Moneyfordreams
    • By Moneyfordreams 4th Jan 19, 8:06 PM
    • 1,515 Posts
    • 7,150 Thanks
    Moneyfordreams
    £4.99 paid today... I did say I would be slow early in the year it rounds me down to the nearest Zero
    Mortgage restart June 2018 £119950
    Re mortgage August 19 £110470, HSBC £3500cc, Hfx £6700, NW £5750 M&S £1200, car £5500.
    CC 17150 , it's coming down
    • DD265
    • By DD265 4th Jan 19, 8:08 PM
    • 1,848 Posts
    • 4,423 Thanks
    DD265
    Personally I'd hang on to that £100 for a few weeks as there are always so many unforeseen expenses with a new house. Depending on how much leeway you have in your budget, these can prove difficult to absorb. Do you have an emergency fund? If not I would prioritise that over OPing.

    If interested is calculated daily, I'd OP straight away. This means that savings on interest begins straight away and there is no temptation to fritter away spare money. I'm fortunate that our mortgage allows unlimited OPs and I can transfer money electronically so it is quick and easy to do. Not all providers make it that easy to OP, and you may have a cap on the sum you can OP each year. In these scenarios, you may prefer to make lump sum overpayments instead of ad hoc payments.
    Originally posted by pavlovs_dog
    We do have an emergency fund, but I'm not sure whether it'll take a beating and have no idea what our bills are going to come to so like you say it's probably smartest to wait. It won't be a setback in the grand scheme of things though I know that those small amounts will quickly add up once they become regular. We also have some 0% credit cards to pay off and various savings goals, let the balancing act commence!

    Our over payments are capped at 10% of the original mortgage capital amount (so £15k) per year. I expect it to be several years before we can consider pushing for 10% in a lump sum, but would still like to do 1% this first year.
    Credit Cards 2019 - £6600/£8000 paid off - 82.5%
    • pavlovs_dog
    • By pavlovs_dog 6th Jan 19, 1:29 PM
    • 9,834 Posts
    • 24,109 Thanks
    pavlovs_dog
    £15.08 paid today (interest on current account balances)

    £688.92 to go
    know thyself

    Nid wy'n gofyn bywyd moethus...
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