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    • kenzie123
    • By kenzie123 12th Aug 18, 7:14 PM
    • 39Posts
    • 2Thanks
    Overpayment in the first year?
    • #1
    • 12th Aug 18, 7:14 PM
    Overpayment in the first year? 12th Aug 18 at 7:14 PM

    We purchased our first property in October 2017 - we have 260k to pay back for 30 years.

    I am keen to start some overpayments as soon as possible - but we do have some home improvements to get on with as well - eg the kitchen needs modernising.

    Is it best to over pay now with the money we have saved or do the kitchen first? We don't plan on this being our final home so have a few mixed opinions on whether we should over pay in the first place.

    And - I wanted to confirm that the overpayments are definitely free of interest? I am sure they are but wanted to check!

Page 1
    • choccyface2006
    • By choccyface2006 12th Aug 18, 7:51 PM
    • 2,256 Posts
    • 1,735 Thanks
    • #2
    • 12th Aug 18, 7:51 PM
    • #2
    • 12th Aug 18, 7:51 PM
    Personally I would start the overpayment habit immediately, this is easier with some lenders (who take an increased direct debit) than others who insist on a minimum capital payment of, say, 500.

    I have been in both positions and it's so much easier to pay extra every month than wait until I have 500! Every little helps so start with a modest amount then increase it when you can.


    • Spendingqueen
    • By Spendingqueen 12th Aug 18, 8:05 PM
    • 155 Posts
    • 45 Thanks
    • #3
    • 12th Aug 18, 8:05 PM
    • #3
    • 12th Aug 18, 8:05 PM
    Yes, in 5 months we already accrued 500 interest on 1.84% the interest in the first 2 years is a lot, the quicker you overpay the better. We already knocked a year off our 12 year mortgage by overpaying.
    • julicorn
    • By julicorn 12th Aug 18, 9:34 PM
    • 355 Posts
    • 1,277 Thanks
    • #4
    • 12th Aug 18, 9:34 PM
    • #4
    • 12th Aug 18, 9:34 PM
    We started asap. This is also not our forever home, but we're treating the overpayments effectively as a way to have a larger down payment for the next home we buy.
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 189,600
    • monz
    • By monz 13th Aug 18, 1:53 PM
    • 3,377 Posts
    • 11,221 Thanks
    • #5
    • 13th Aug 18, 1:53 PM
    • #5
    • 13th Aug 18, 1:53 PM
    I just got my mortgage through and even with renovations (much needed!) I am going to be making small overpayments. If you go on Martin page about over payments 10 a month can be 800 saved in interest! So logical xx
    Debt (1/9/14) 6,702.11 Debt free (30/11/2016)
    car PCP - 1,108.94/11,848.25 mum and dad 1,650/4,000 mortgage - 83,055 o/s currently - paid 1,400.36 (35.90 overpayment)
    • Urbanshyne
    • By Urbanshyne 24th Aug 18, 6:33 PM
    • 60 Posts
    • 246 Thanks
    • #6
    • 24th Aug 18, 6:33 PM
    • #6
    • 24th Aug 18, 6:33 PM
    Hi Kenzie,

    If you're not happy with your kitchen - get a new kitchen! Overpaying can wait for a little while, surely?

    Good luck with your MFW journey.
    Neither a borrower or lender be; for loan oft loses both itself and friend.
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