2019 Mortgage-Free Wannabes

pinknsparkly · 31 January 2019 at 4:17PM

CTricky80 wrote: »

My question is - if they do this doesn't it mean that I pay less interest as they are calculating it on a lower amount for the month?

I think that on some mortgages interest is calculated daily and on others it is monthly, but either way if you overpay does that mean that we get charged less interest overall each month?

Hi CTricky,

Yes that's exactly the case (assuming the mortgage provider charges interest daily). In fact, the Halifax mortgage adviser who set our mortgage up for us actually recommended that we set our DD up to be paid on the 1st of each month, if possible, as it would minimise the interest we paid. In the case of mortgages that charge interest monthly, you'd need your DD to be set up for before whichever date in the month they used to work out the interest owed. And likewise, the earlier in the month you can make your OPs, the more you save in interest.

pinknsparkly · 31 January 2019 at 4:21PM

#99 reporting in with a total OP of £416.55 for January.

I'm rather pleased with this, since I've not actually yet set up my planned £500/month OP. I won't be setting that up for anther few months as I'm currently concentrating on filling up my LISA for the year. These OPs were all made up solely of unexpected "bits n bobs" money that I've ended up with - such cashback payouts, interest paid on savings accounts and family paying me back for tickets I bought months ago.

CTricky80 · 31 January 2019 at 4:38PM

Thanks pinknsparkly

It seems it may be worth a call to TSB to find out how they calculate the interest and maybe change my DD date if it is daily - currently my DD comes out on 27th of each month.

But if it is charged monthly then I think it makes more sense for me to leave it where it is and make my over payments earlier in the month.

julicorn · 31 January 2019 at 5:06PM

ElmoR wrote: »

Number 125 reporting additional £650 O/P on last day of January!

Thank you for keeping us all on track and motivated:j

So that's in addition to your previous amount, so total for January £1,225, is that right?

julicorn · 31 January 2019 at 5:14PM

Pursey wrote: »

Should say, I’ve overpaid 415/6000 so far

Welcome to the challenge Pursey, you're our #5 now

julicorn · 31 January 2019 at 5:15PM

As it's the end of January, I've now deleted people who haven't claimed their number back for this year from the spreadsheets, so there are plenty of lower numbers available again. If any of you would like to switch to a lower number, just let me know

pawlala · 31 January 2019 at 5:29PM

#22 reporting total overpayments for January came to £764.04

Thanks and have a great weekend everyone!

CTricky80 · 31 January 2019 at 5:31PM

julicorn wrote: »

As it's the end of January, I've now deleted people who haven't claimed their number back for this year from the spreadsheets, so there are plenty of lower numbers available again. If any of you would like to switch to a lower number, just let me know

Yes please Julicorn could I have a lower number. Thanks

julicorn · 31 January 2019 at 5:38PM

CTricky80 wrote: »

Yes please Julicorn could I have a lower number. Thanks

Lucky #13 is all yours, if that's ok for you

Nizat · 31 January 2019 at 5:50PM

Hi MFW's,

Hope it's not too late for me to join.
I'm aiming for a target of £4000.00 for 2019

2019 Mortgage-Free Wannabes

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