Mortgages - overpayment etc.

Soldato
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Cotham, Bristol
So I have roughly £175k to pay off on a 4.09% over the next 24 years, not overpaying means about £950 a month.

I'd really quite like to reduce that term by 10 years which means over paying about £1400 every quarter. Which when paid off will save about £42k in interest compared with not overpaying

Just wondering who else overpays, by how much, how many years you're reducing your term by and how much interest it will save you?
 
I've got the option to overpay at the end of my term (Sept 2014) i think its up to 10% which I'll probably do so i can reduce my term time over all. Its kind of depressing when i got my first 'annual statement' after being in the house for 4 months that the amount i paid minus the interest equated to just over a months mortgage payment. The sooner its paid off the better in my books.
 
i try and overpay when i can, as it really does make sense and is a better way of 'saving money' than a savings account at the moment. I haven't set myself a specific amount to overpay each year yet, but given that my payments just went down by £140 a month, i guess it'd make sense to at least overpay that much per month!
 
We left our payment unchanged every time they dropped the rate. It is looking to have taken about 8 or 9 years off the term so far. We are also covered in case rates rise again as the overpayment amount would just reduce slightly.

Also we don't have to panic about where to make savings when the rate does go up.
 
I overpay by about 10k a year,

i think its common that you can borrow the money back if required at the same rate as the mortgage - so I can pull out 60k tomorrow at 2.7% (not aht aI woul) - no creaditchecks required.. nothing...
 
I'm limited to £10k overpayment PA.

I wouldn't be able to borrow the cash back but would be able to take payment holidays.

We haven't had the readies to do any overpaying yet though, weddings!
 
My mortgage is only £227 and I've started overpaying by £500 / month. Currently 16yrs left on mortgage, if I carry on it will be clear in 4 years saving ~£5k interest.

Since the mortgage is only on 2.49% I won't religiously stick to the overpayments as I get more interest on that in my current account :p But it will be nice to clear for when the interest rate does rise again....which it will at some point.

Imagine what your mortgage payments will be when the base rate hits say 5%
 
I wish.. Currently just finished year 1 of a 5 year fix at 3.69% - I could have got 2.4% variable (iirc), the difference is nearly £100 so I might have overpaid some by now.. Impossible to tell if I'm going to save money in the long term although it seems to look less and less likely, but who knows what will happen in the next 4 years so at least I have some security for now..
 
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I've just recently started overpaying my mortgage. Currentely I have a balance of about 64K which I was repaying £436 a month with 14 years (2% interest) left but now I'm overpaying buy £300 PCM which shaves about 7.5 years of the mortgage and saves me 5K in inerest.

Oddly enough I was thinking about buying a car last year (a new VW Golf) but when I thought about it a Golf would have cost me £18K and would have lost most of it's value in 7 years but in the same period I could get my Mortgage paid. For me it was a no brainier when I thought about what I should do.
 
Ours is on a terrible rate, but fixed for 5 years, we'll be remortgaging once that's up though. Partly due to us having two mortgages at once as our previous house sale fell through and took 18 months to flog..

We are overpaying but only by about 8% a month, we're capped at 10% anyway. Does mean we'll repay the entire amount in 21 years or so instead of 25 on the current deal.
 
Absolutely overpay if you can afford to - saved over £70k on interest which you'd never get by saving the same.

My fixed is up for renewal in June and am going to let it switch to variable but reduce the period and overpay as much as I possibly can. My aim is to be mortgage free in 12 years.
 
Once we have been married in June I am seriously going to sit down and look at our finances.

For the past 5 years our money has just gone into buying a house, furnishing & now £12k going towards our wedding.

Once the wedding is over with we should have a fair amount of disposable (circa £1k minimum), which I would like to sit down and play about with figures on mortgage vs savings.

Just looking at the mortgage calculator above, even overpaying by £100 a months makes an 'epic' difference to the term.
 
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