Mortgage statement came through and it’s depressing reading

[Onedropbeat]

Bought 4 years ago and ideally need to move or extend as there’s now 4 of us in a 2 bed cottage

In the last 12 months we have paid £10200 but the amount that has come off the mortgage after interest has been applied is just £3000

Our interest rate is the best we could get at 1.79%

Earnings aren’t going to increase any time soon because of Covid so it looks like we will be stuck for years before affording to increase the mortgage borrowing

It feels hardly better off than renting at this rate and I’m sad I’m subjecting the children to share for the foreseeable future

you’re REALLY fortunate to own property

Also, if you can afford to overpay more than you are allowed to (usually 10%), we used to save into a separate savings account until the deal came to an end, and then be able to throw a few hundred (or even couple of thousand) at it at that point.

When we started paying our mortgage, interest rates were 13.5% (and went up after that), so what we actually did once they started dropping, was keep our Standing Order (as was the normal way to pay then) at the rate we had been used to be paying, and not drop it when the bank said we could. That way, we were overpaying every month automatically. Different days!