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.

You pay for your house many times over with a mortgage. The sooner you pay it off, the more money you'll have in the longer run.

I usually bring home about 3.7 to 4k a month, my rent is 600 and I don’t think I have plenty of money left over 😁. I know that is a me problem though, enjoyed spending too much 🤣

You don't want to be going into debt (dipping into your overdraft) to pay more off your mortgage, the debt is almost certainly costing you more than the interest on that amount on your mortgage. The mortgage will be your cheapest debt by far usually. And use your savings before your overdraft, again you are losing more on the debt than you are gaining on the savings.

Check what rate the overdraft is at, I was a bit shocked when I saw how much my approved overdraft would cost if I used it, I assumed it would be a pretty low rate, it wasn't!

So you’re still saving, and overpaying the mortgage, but you’d like more spending money? Can you compromise at all and save for a holiday? If I had a car that works I probably would t be getting a ‘nicer’ car over paying my mortgage off faster

But what you do have each month is greater equity in your home. Believe me, this is worth its weight in gold! For example, should you wish to move house and upsize, you’ll get a much better mortgage rate with a bigger deposit.

There can be a balance, but I’d definitely
prioritise the mortgage over a new car if I didn’t actually need one.

But, how are your savings? Do you have enough or would it be better to add to those a bit before overpaying the mortgage? How are your pensions?

Doesn't matter if overpaying is the right thing to do, it's the fact that your DH is doing something without your approval. You need to agree. If he won't then spend what you want, it might make him realise he's being unreasonable

I’m with your husband on this.We’ve been doing the same and will have our mortgage paid off by this time next year.If you can afford to do it my advice would be to.

If you aren't seriously counting pennies at the end of the month with the overpayments then I'm 100% with your husband

It's something I will be doing in the next few years too if finances allow

Can you point out to him @Redratefree that 20% is a limit, not a target?

You have a say too! It is your home, your life and your right to enjoyment of your marriage jointly funded together.
Could you ask him to agree to a cap of say, £500 or 10% or something like that? If he dithers or counters, offer a budget for Xmas and booked holidays. Make a 'no buy for adults' rule. I am sure there is a midway here somewhere.

This is where you lost me. Overpayments save a massive amount of interest costs in the long run. Financially, it's a very smart thing to do. Our last mortgage was paid off in 15 years, and we were then able to start investing with the money that had been going to the mortgage.

If you just want to upgrade your car and buy new clothes, you can afford to make the overpayments.

Maybe ask if if will do the over payment and the end of the month with whatever you have left. That why of you need to spend more you have it. Then whatever you don’t spend that month it can all go on the over payment?

Overpaying your mortgage can be a very savvy financial move but check there aren't penalties attached.

Doing an income and outgoings list is an eye opener. I'm tight with money but am still shocked when I track myself for a month.

I'm with your DH. We overpaid our mortgage and shaved around 13 years off it, plus many thousands of pounds in interest.

It made life infinitely less stressful when I was unexpectedly made redundant about a year later.

We always overpaid the mortgage but not by as much as your DH is relative to income
We put more into our pensions and had good holidays with our children which I am so glad we did now they are in their early 20 s
It’s all about balance
And it is important that you agree your financial goals

I can assure you that in 25 or less years, tou won’t think this, you will be glad of a secure paid for roof and financial freedom.

If you can afford it, it's really sensible. I paid my mortgage off at 40 by overpaying as much as I could. Total mortgage term ended up being around 15 years rather than 25.

What would you use the extra money for if you weren't overpaying? If you are struggling to buy school uniforms, you obviously should reduce the overpayment a bit. But, if it's to get you're nail done or buy posh candles if would be a bit daft.

Whatever you decide it needs to be a joint decision that you’re both comfortable with.

We had this exact conversation.

Money paid off now is worth such a lot. It’s like the money you put in your pension- worth much more than you put in.

I felt much better about it when I felt there was a purpose- getting the mortgage paid off before DC went to uni, so we paid their uni fees instead of the mortgage for example.

But given the choice of spending £10 on a meal in a cafe or magically making it worth twice that by paying off your mortgage, I’d go with the latter.

You say you have very, very little left each month.
Meaning you have some left, even with the overpayment.
Why not buy the clothes you want (within reason) and he might overpay a little less.
If you have ££ left at the end of the month, it makes sense to me to use that as mortgage overpayment, especially if your interest rate is on the higher side.

He is long term planning, you are after short term dopamine hits. My marriage is similar and it has driven me mildly insane for years. Except that now we are in our early 50s, mortgage nearly paid off, pensions planned, kids school/uni years funded and looking to retire imminently.

I come from a comfortably off family and have never had to struggle. He comes from parental bankruptcy and house loss. He has financial fear in a way that I will never be able to fully understand.

How bad are your current car and clothes?

At 7%, every £10 you pay back saves you £11 more.

This is a really useful short video comparing the pros and cons of overpayments. Generally it's a good idea, but it depends on a few things that are worth taking into account.