DH keeps making mortgage overpyamentd ton reduce the term

[Redratefree]

We have a take home of £4k and a £1.9k mortgage. DH keeps making overpayments to the term of the mortgage, it was 27 years but it's been reduced to 25.25 years due to overpayments. However, I want him to reduce our monthly payments as this will give us more breathing space. He disagrees and wants to continue to reduce the term because it offers more flexibility when remortgaging. I received 2 emails from the bank this weekend for 2 overpayments of £500 and then one for £50, as soon as he gets paid he'll make an overpayment.

No, your husband is right.

Unless you're driving a car that's dangerous and wearing rags of course.

Have you worked out how much you'll save over the life of the mortgage with these overpayments? Martin Lewis has a calculator that does it for you. The savings can be huge even from small monthly overpayments.

Your DH sounds sensible. Surprised your criticising his actions to secure your family tbh.

Regardless of what is sensible or not I think it’s unfair for one person in a couple to make financial decisions that the other person may not be on board with.

Do you have dc?

My take-home is less than half yours and I have to pay my mortgage out of that. I have 2dc and still have made some decent overpayments on my mortgage, reducing the term from 30 years to 20 in the last 12 years.

You have £2k to spend on bills and food excluding your mortgage. If you don't have dc then taking out a new mortgage with kids can be trickier as most banks will reduce the affordability when factoring in dc. If you are looking to switch deals with the same lender it doesn't matter.

There is HUGE benefits in overpaying. Reducing your term can save tens of thousands of pounds in interest. It's fairly normal for things to be a bit tight when you first take out a mortgage, have kids etc, but I might be questioning his rationale if things are too tight.

Or increase your income OP so you can buy extras that you want.

I want him to reduce our monthly payments as this will give us more breathing space. He disagrees and wants to continue to reduce the term

So many posts are missing the point imo.

It's not a debate about what's best, overpaying or not. It's the fact that the op's dh seems to think his word is law.

Op, you have a bigger problem than just the mortgage. Does your dh often bulldoze over your opinion? If my dh spent OUR money in this way without joint agreement i'd be furious.

I agree with your husband

This! There is a compromise to be had. Arrange a time when you can sit down together peacefully and discuss finances. Neither of you is wrong

Yes I overpay, currently only by 205 a month but I take the view it all adds up and speeds up the point at which I’ll be mortgage free and thus have money for fancy cars and clothes, if that’s what I fancy 🤷🏻‍♀️

Your payments are already 50% of your take home pay which is already tight.

We nice to spend money on some nicer things,,, a nicer car, nicer clothes.

If you were struggling to buy food or dipping into your overdraft, then I'd probably agree with you but overpaying the mortgage is more sensible than buying nice clothes.

Team DH here.

Why? Obviously you're saving a bit on interest and taking a couple of years off your term, but if you've got to struggle for twenty years, is it worth it?

Surely there's a compromise?

He is being sensible and I wish I had his resolve but there can be a balance. Can you discuss perhaps a percentage based overpayment? for instance say someone did overtime and got an additional £500 - 50% goes on overpayment, 30% short term savings and 20% intentional treats (as opposed to frittering)? Or like that on any unaccounted for remaining money? As a percentage of your outgoings that’s a huge mortgage so I can definitely see his desire to reduce it…

I do think you should be included in the decisions and financial goals. And I’ve read too many posts on here about women having holes in their shoes during maternity leave because they ‘aren’t earning’ while their partner swans out in a suit to make any assumptions. But in general - he is doing something pretty amazing for your joint future.

Saying you want nicer clothes isn’t much of an argument tbh. But maybe there’s a balance to be struck? Go through the budget with a fine tooth comb together. Maybe he could pay off a little less, you could feel less stressed about money?

I’m team DH. he’s protecting your future. I overpaid my mortgage to reduce the term and was mortgage free 16 years early! IMHO nice clothes and cars can wait, an ethos I still follow as I buy Vinted and my car is 14 years old! 🤣🤣

If things are tight but possible stick with it, you’ll be so grateful when the mortgage is done.

Depending on your currnt deal, when you remortgage your payments may well end up going up. By chioping away at the capital through overpayments, you'll be in a better position when it comes to re-mortgaging.

Our current interest rate is 3.64%. Our 'basic' payment is £1360 per month. Looking at the current deals, we'll be lucky to get less than 3.9% and the basic pyment witll go up. Trying to make the biggest dent in your capital (without incurring charges) is sensible future-planning.

I'm all for overpaying but I'd be inclined to save in a high interest account and overpay the mortgage from that periodically when you're sure you can do without the money. You're stuffed if you need cash for something unexpected and he's put all the spare disposable income to the mortgage.
Are you using your ISA allowance?

If your mortgage wasn’t almost half of your take home income I’d say he wasn’t BU but given it is, I’d say he is

Your husband is right because when you come to remortgage in a few years time, you'll have a shorter term. I would look at reducing your expenses, swapping to better deals and increasing your income.

I am with you here, while its good to be sensible you need to have some fun too.
Also, it should be a joing decision if finances are joint

It's waaay more financially better to pay bits little and often as interest is calculated daily

I am NOT with your DH i am on team @Redratefree!!!

Assuming no kids
50% of take home on base mortgage...
He's overpaying by another £500
Basic running costs (bills insurance etc.) are about £500, food is £500 then you have travel / car, clothes, house maintenance birthday/Christmas....

Theres no savings, no holidays and very little fun...

Add in a kid and it must be very tight

Sounds awful OP I'd hate this...
Do you actually have any savings? Id take the equivalen money from the account on the 1st for "savings" so he cant overpay the mortgage.

To placate him you should look at making fortnightly mortgage payments

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=www.experian.com/blogs/ask-experian/why-paying-your-mortgage-twice-a-month-can-save-you-serious-money/&ved=2ahUKEwiy15r7zpGPAxWtXUEAHXrjJ2UQFnoECEUQAQ&sqi=2&usg=AOvVaw1cjBRb8n6VPW62H11E2YZH

Theres a middle ground on the overpayment... £100/200 maybe not ahats currently happening.
Is he anxious about money?

I would overpay. But £500, £500 and £50 in one weekend is too much if you only have £4k take home and a £1.9k mortgage already!

Our other bills after mortgage ie car/ bills/ utilities/ food/ life are around £1.5k a month. You need to work out what yours are. Then a bit left for other things and savings

I would probably suggest overpaying by £100 each month so it’s rounded to £2k mortgage. Then look at every 6-12 months of you can make an extra payment

I would overpay. But £500, £500 and £50 in one weekend is too much if you only have £4k take home and a £1.9k mortgage already!

Our other bills after mortgage ie car/ bills/ utilities/ food/ life are around £1.5k a month. You need to work out what yours are. Then a bit left for other things and savings

I would probably suggest overpaying by £100 each month so it’s rounded to £2k mortgage. Then look at every 6-12 months of you can make an extra payment