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  • FIRST POST
    • SkintTeacher
    • By SkintTeacher 6th Jan 18, 10:42 PM
    • 333Posts
    • 1,902Thanks
    SkintTeacher
    2018 - time to overpay
    • #1
    • 6th Jan 18, 10:42 PM
    2018 - time to overpay 6th Jan 18 at 10:42 PM
    Happy 2018 everybody!
    2017 was an exciting year for me - I got rid of my debt and started to save regularly for both myself and my son. I completely overhauled how I spend money and my free time.
    I now have a good amount saved, a 'buffer' each month and I'm starting to look at more long-term plans. Hence... 2018 is the year I'm going to start paying off my mortgage. I'm allowed to overpay, with no penalties,up to £800 a month. I'm planning to do £200 a month, as this is how much I know I have spare.
    My LTV recently hit 50%, but I still have £70,000 to pay which seems such a lot of money!
    If anything, though, the last year taught me that small steps really add up. So here's to 2018 and (eventual) mortgage freedom!!!
Page 1
    • pete-20-11
    • By pete-20-11 6th Jan 18, 10:47 PM
    • 189 Posts
    • 133 Thanks
    pete-20-11
    • #2
    • 6th Jan 18, 10:47 PM
    • #2
    • 6th Jan 18, 10:47 PM
    I!!!8217;ve just hit 50% LTV too. Overpaid around £3,500 last year and hope to continue doing the same.
    • Kittenkirst
    • By Kittenkirst 7th Jan 18, 8:37 AM
    • 1,899 Posts
    • 10,199 Thanks
    Kittenkirst
    • #3
    • 7th Jan 18, 8:37 AM
    • #3
    • 7th Jan 18, 8:37 AM
    Happy 2018 Skintteacher- £200 is is a great amount to overpay monthly!

    We started by trying for £75 a month OP but have averaged £190 per month since buying our place 15 months ago- I love playing with the Overpayments calculator to motivate us

    Have you calculated how many years you!!!8217;ll take off your term by overpaying?
    2018 MFW #20 - OP £1799.61/ £3000 60%
    Mar: £218 Apr: £528.91 May: £361.07

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • SkintTeacher
    • By SkintTeacher 7th Jan 18, 4:17 PM
    • 333 Posts
    • 1,902 Thanks
    SkintTeacher
    • #4
    • 7th Jan 18, 4:17 PM
    • #4
    • 7th Jan 18, 4:17 PM
    Nope - Kittenkirst that is definitely something I will be doing to motivate myself!
    • sofarbehind
    • By sofarbehind 7th Jan 18, 4:24 PM
    • 288 Posts
    • 1,228 Thanks
    sofarbehind
    • #5
    • 7th Jan 18, 4:24 PM
    • #5
    • 7th Jan 18, 4:24 PM
    Hello!

    You are much further in that I am, 50% LTV is where I would like to be in 4.5 years. I will watch your progress with interest, good luck.

    I second how useful and motivating the calculator is.
    Save 12k in 2015, Number #052 (19.4k)
    Save 12k in 2016, Number #031 (15.1)
    Save 12k in 2018, £3500 / £10k target

    Mortgage overpayments 2018: £1388
    Huge mortgage £138K
    • SkintTeacher
    • By SkintTeacher 8th Jan 18, 7:37 PM
    • 333 Posts
    • 1,902 Thanks
    SkintTeacher
    • #6
    • 8th Jan 18, 7:37 PM
    • #6
    • 8th Jan 18, 7:37 PM
    checked out the calculator - wow!
    We could knock 6 and a half years off (in other words, be mortgage free in 11 1/2 years) if we over pay this much, although of course that depends on interest rates etc. Very motivating!!!
    • beanielou
    • By beanielou 8th Jan 18, 10:07 PM
    • 55,063 Posts
    • 220,032 Thanks
    beanielou
    • #7
    • 8th Jan 18, 10:07 PM
    • #7
    • 8th Jan 18, 10:07 PM
    Hope that your journey goes well.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **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.
    • Lauralou79
    • By Lauralou79 9th Jan 18, 7:50 AM
    • 205 Posts
    • 194 Thanks
    Lauralou79
    • #8
    • 9th Jan 18, 7:50 AM
    • #8
    • 9th Jan 18, 7:50 AM
    Luckily our mortgage is under 50% LTV. We are only 6 months in on a 25 year term. I want to pay off at least 5 years possibly up to ten years early ( that!!!8217;s the dream)
    Our house needs or will need work in the next few years; mainly decorative so we are continuing to save to pay for this too.
    Starting off with a £100 monthly overpayment on a 2.12% interest rate and normal payments are £369. Only a small amount but I!!!8217;ll look at it all again in 6 months and hopefully can increase the overpayment further. It!!!8217;s a fine line between overpaying, saving and still enjoying life which is important to me too. We!!!8217;ve no other debt though so hopefully it all can be done!
    • Rolandtheroadie
    • By Rolandtheroadie 9th Jan 18, 7:55 AM
    • 4,841 Posts
    • 4,242 Thanks
    Rolandtheroadie
    • #9
    • 9th Jan 18, 7:55 AM
    • #9
    • 9th Jan 18, 7:55 AM
    I've been overpaying by £200 per month for around 3 years now.
    13 years 1 month to go, currently looking at new mortgage deals as our fixed rate is coming to an end.
    What I'm going to do is cut my term to 8 years. The payments will be around £60 cheaper than the total I pay just now.
    Overpay the new mortgage by £100 to begin with, the plan is to be MF by 50 at the latest, or 6 years from now.
    • enjoyyourshoes
    • By enjoyyourshoes 9th Jan 18, 8:01 AM
    • 1,061 Posts
    • 1,302 Thanks
    enjoyyourshoes
    Have you set up a SO ?

    If not do so as you soon acclimatise to the reduced amount in a/c each month.
    Debt is a symptom, solve the problem.
    • Lauralou79
    • By Lauralou79 9th Jan 18, 9:22 AM
    • 205 Posts
    • 194 Thanks
    Lauralou79
    We!!!8217;ve set up a monthly overpayment yes.
    • greent
    • By greent 9th Jan 18, 1:26 PM
    • 7,081 Posts
    • 72,161 Thanks
    greent
    Welcome, SkintTeacher - happy shiny new diary!
    x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • edinburgher
    • By edinburgher 9th Jan 18, 1:48 PM
    • 11,148 Posts
    • 59,856 Thanks
    edinburgher
    50% LTV? Live the dream, 15 years 'til we get there

    Best of luck on your journey, it sounds like you have a great foundation.
    • SkintTeacher
    • By SkintTeacher 9th Jan 18, 1:57 PM
    • 333 Posts
    • 1,902 Thanks
    SkintTeacher
    I haven't set up a SO - but I have been transferring that amount to my OH for the years he's been a stay at home dad, so I know I have it to spare and I'm always online so can easily transfer the money across !!!55357;!!!56833;
    • originalmiscellany
    • By originalmiscellany 9th Jan 18, 2:10 PM
    • 1,608 Posts
    • 3,883 Thanks
    originalmiscellany
    Great thread here - keep going Skint Teacher - we're all on this journey together - and it's encouraging to see you being so positive and upbeat!
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
    • SkintTeacher
    • By SkintTeacher 15th Jan 18, 7:56 PM
    • 333 Posts
    • 1,902 Thanks
    SkintTeacher
    Had a funny conversation with OH the other day, I causally mentioned how much money I have to last the month and he was really shocked at how little it is. I explained that once I've paid all the bills, put aside grocery money, put savings in ISA, regular saver and son's saving account and over paid the mortgage I have exactly £50 per weekend to play with. I allow myself to spend this as frivolously as I like but mainly use it for little family outings.
    My hobbies are all pre paid (gym, swim, running club) and I don't need anything (I buy 90% of my clothes and shoes from charity shops) so I find it suffices.
    I will always remember my Dad's advice which was ' pay yourself first ' - I had to get to my mid thirties to understand the wisdom in it though!
    What do you all think of my strategy? Could you manage on £50 a week? It has to be said that I walk or cycle to work and always take a packed lunch, have mint tea bags and a refill water cup so I never normally spend anything between Monday and Friday which is a real blessing.
    • Blibble
    • By Blibble 15th Jan 18, 8:03 PM
    • 449 Posts
    • 787 Thanks
    Blibble
    I budget for £20 a week.



    Doesn't mean I stick to it though

    It should be what you can afford, though, and should be different for everyone. The nice thing is that you have no guilt spending it, and if you happen to not spend it all you can roll it over / OP it. Sounds goof to me.
    Wedding fund - £2390.92 (£1912.07)
    OP fund - £1591.49 (£163.67)
    Emergency fund - £0.00 Oops!
    • beanielou
    • By beanielou 22nd Jan 18, 8:12 AM
    • 55,063 Posts
    • 220,032 Thanks
    beanielou
    50 quid a week would be pure luxury for me
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **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.
    • AnotherJoe
    • By AnotherJoe 22nd Jan 18, 9:06 AM
    • 9,608 Posts
    • 10,687 Thanks
    AnotherJoe
    Happy 2018 everybody!
    2017 was an exciting year for me - I got rid of my debt and started to save regularly for both myself and my son. I completely overhauled how I spend money and my free time.
    I now have a good amount saved, a 'buffer' each month and I'm starting to look at more long-term plans. Hence... 2018 is the year I'm going to start paying off my mortgage. I'm allowed to overpay, with no penalties,up to £800 a month. I'm planning to do £200 a month, as this is how much I know I have spare.
    My LTV recently hit 50%, but I still have £70,000 to pay which seems such a lot of money!
    If anything, though, the last year taught me that small steps really add up. So here's to 2018 and (eventual) mortgage freedom!!!
    Originally posted by SkintTeacher
    If you are genuinely looking long term you should also take your pension into consideration, far too many people (especially in this forum) focus on overpayment and miss out by having a significantly poorer pension than they could have because they leave that till last and donít give it enough time to grow.

    At present for example with your interest rate and current inflation, your mortage is falling in value every year anyway, and paying it off earlier than you need to is counterproductive compared to losing out in say 20 years of growth ina pension. Iíve no doubt there are high rate taxpayers in this forum who literally will lose out on tens of thousands of pounds due to this obsession with overpayment without looking at the bigger financial picture.
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