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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

How much do you over pay on your mortgage

128 replies

Metoodear · 19/05/2018 21:22

We managed to scrape together some money and move not to for form London were we used to live

Our house was 190
We borrowed 160
It worth 280 now

We pay 800pm
we have been overpaying only £30 a month due to me not working but I have just got a pt job with nominal childcare costs so will bump the payments up to £130

Aibu to think anyovwpayment is better than none

OP posts:
irregularegular · 19/05/2018 22:33

No overpayment. Not allowed to during first period of fixed/discount rate. Normally pay off some in a lump when we remortgage.

Depends on interest rates whether it makes sense or not.

blue25 · 19/05/2018 22:35

We overpay £500 each month and sometimes a bit extra here and there

MuncheysMummy · 19/05/2018 22:37

We overpay by £100 per month,not much but all we can afford to do whilst allowing me to only work 2 days a week self employed and still actually enjoying life as we have a DS who isn’t 2 yet. It will br8 g down our term by around 5 years though so definitely worthwhile

ScreamingValenta · 19/05/2018 22:39

I've got the value of my mortgage in savings, so I could pay it off if I got made redundant. I hasten to add, my mortgage is quite small - thanks to nothing but good fortune, I bought my first house about 20 years ago in the nick of time before house prices went bonkers.

AnneElliott · 19/05/2018 22:40

About £200 per month. More in the months we don't pay council tax.

AnnabelleLecter · 19/05/2018 22:53

We overpay by £500 pm, going up to £600 because we're retiring soon and all our other savings and pensions are sorted.

clothcollector · 19/05/2018 22:57

£600 because we are horrified at how much we borrowed and want it brought down before our fixed term expires.

PickAChew · 19/05/2018 23:00

Nothing at the moment. Still tidying it up after moving in before Christmas.

Once we were settled into our last house we paid double but even that only came to what our current mortgage is. We'll probably chuck in an extra 2-3k per year once it's not needed to replace broken things.

Panda81 · 19/05/2018 23:04

Again Mumsnet is a parallel universe it would seem...

This!

I didn't even realise making overpayments on mortgages was so common. I thought most people just paid the monthly payment and that was it.

MyDcAreMarvel · 19/05/2018 23:31

It is much better to reduce the capital that to shorten the term.
Panda I think most people over pay what they can. If you use a calculator it shows how much interest you can save , it’s a real eye opener.
We are not rich , we are overpaying so much so we can pay our mortgage off in five to six years. In the mean time no luxuries except an annual weekly UK holiday for the dc. We have a national trust membership for days out.

Narkle · 20/05/2018 06:44

Only about £100 at the moment, but with one child in nursery full-time paying full fees. Once said childcare reduces, it will be a lot more. Shaved 10% off our repayment period so far.

FancyADoughnut · 20/05/2018 06:55

We overpaid by almost the same amount as the monthly premium so effectively halved the term. Paid off a 12 year mortgage in 6 years. It was hard at first but we got used to not having that money and seeing the term drop was a huge motivator.

NinaMarieP · 20/05/2018 07:00

£30 but we are capped at 10% overpayment in a year so that's the max we can do. Otherwise we would be paying a bit more.

Angrybird345 · 20/05/2018 07:07

I wonder if more people from up north overpay than down south .... I couldn’t contemplate over paying mortgage!!! Wouldn’t be possible!

RhurbabAndCustard · 20/05/2018 07:11

£200 a month. In this first year we've shaved 5 extra months off the mortgage. It's definitely worth it even a small amount makes a huge difference

RhurbabAndCustard · 20/05/2018 07:11

Oh and from the south

FASH84 · 20/05/2018 07:12

We can't as in fixed term proud and would have penalties, we do put money aside each month so when we remortgage we can throw a chunk extra on. However don't pay extra if you have any other debt as the interest rate on your mortgage is likely to be less than any other lending, a woman I work with overpays her mortgage but had to get a cat on expensive HP when her old one blew up unexpectedly and she had no cushion because she put it all on the mortgage. PIL were about to pay off theirs but decided to remortgage by 20k to pay towards a beautiful extension, kitchen and master suite. A 20k mortgage is nothing to pay off monthly and they're early fifties.

FASH84 · 20/05/2018 07:12

Car not cat!!

Helpmeplan · 20/05/2018 07:17

@NinaMarieP is that £30 10% of your monthly payment or mortgage balance? Because most lenders allow 10% of the mortgage balance, not the monthly repayment.

BarbaraofSevillle · 20/05/2018 07:20

Nothing as the interest rate is virtually nothing so it doesn't make financial sense to do so.

Any extra money is put in savings earning 3-5% or just left in our current account which pays 1.5%.

If/when things change we have a big chunk that can be sent straight to the mortgage as we can also make unlimited overpayments.

CrispyAubergine · 20/05/2018 07:23

House worth £120k (midlands)

Mortgage £52k got £47k left

Monthly payment £285 on a fixed deal at 2%....17 years left on it

We just enjoy having a small mortgage and don’t overpay any ...perhaps we should!! 😳

Bumbledumb · 20/05/2018 07:25

OP, have you already remortgaged?
When you started the mortgage the LTV was 85%, but now your LTV must be closer to 50% or less depending on how long you have been paying. You can get better rates from the mortgage providers when the LTV reaches that level.

MumofBoysx2 · 20/05/2018 07:26

Definitely yes! Pay whatever you can, when you can. We did this, paying bonuses, unexpected money etc into the mortgage as a first thought before anything else, even if things were tight, and now we're mortgage free. It's definitely worth it!

WeAreGerbil · 20/05/2018 07:36

YANBU, obviously. But why don't you just reduce the term of your mortgage

I don't because overpaying gives me the flexibility to easily drop down to the standard payment if my income drops.

jumpin26 · 20/05/2018 07:37

When we first took our mortgage out 5 years ago we over payed by about £50
In the years till now it's fluctuation from that to £100 but at the moment is only £30 due to childcare costs

We have seen a massive impact of just over paying by that small amount and in the 5 years we've managed to pay off £15k whereas we were forecast to pay off closer to £10