How much do you over pay on your mortgage

[Metoodear]

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

ourkidmolly depends how you view frugally. We put 'spare' money into our mortgage. Now it's paid off if one of us was to be made redundant or could not work due to ill health we don't have to worry about meeting the bills. To us that isn't clapping ourselves on the back, more thinking 'thank god we can manage' everytime redundancy is mentioned at work.

Clapping yourself on the back, or enjoying the freedom to work fewer hours...

What annoys me about the finance threads like these is that people get torn to shreds for daring to have some spare money.
Then cue a load of posters saying but of course we live frugallly, never have heating on, have shit cars, no holidays etc that's how we can afford it. Having to justify it so as not to offend anyone.
And the moaners come back smugly with "Not worth scrimping for a crap life now!"

I for one love to read finance posts and sometimes take something useful from them.
So what if someone else can afford a holiday, nice car and overpay? Good for them that they are able to.

I know this was way back in the thread but:

had to get a cat on expensive HP when her old one blew up unexpectedly

post of the day for me

@AnnabelleLecter
I'm not a moaner or smug. If you read my post, it was offering a different opinion on what to do with spare cash. Fantastic if someone has to cash to splash.

We don't live frugally such...i just said no holidays abroad that cost thousands. We prefer self catering in this country which costs a fraction but we eat out every day and do trips etc. We also own both cars as l prefer to not have a car loan... so they're not fancy mercs or anything but they do the job.
We have a takeaway every week and lunch out every weekend. My dc get to go to swimming lessons and get plenty of nice treats. But we don't drink or smoke or fritter money on fancy new kitchens or furniture.
I guess it's a balance. I know we are fortunate just now but as previous peole have said redundancy or illness could change all that which is why we plough as much as we like into reducing the debt. Equally I only work part time so its not something we sacrifice tons for either

I paid as much as I could (whilst still having a comfy life) and paid off the house last year (I'm 28). I could have had amazing holidays with the kids etc, but it was absolutely worth having an average lifestyle for a few years so I could get the house secured and not have to worry.

It is worth running the possible overpayments through this calculator :

www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

We've just cleared our mortgage after 6 years of overpaying. We're in our late 30s. It's a relief to have the financial security now and we're lucky to have a good income that we haven't had to be really frugal to do it - we've still had holidays and meals out (but we do have a small home and family, and no car or Sky). We've tended to put DH's bonuses all into overpayments, plus saving excess income through the year. Financially it might not necessarily make the most sense - if it was just me I would probably let the mortgage run as rates are still relatively low, and invest the money at higher rates instead. For many people it will make more sense to put more money into a pension (but we have maxed ours out as DH's is capped relatively low). But DH is more risk averse and he hates any sort of debt. Our house is quite small with low running costs, and we don't have any plans to trade up for the sake of it, so it does make sense from that side of things.

I agree that people shouldn't have to apologise for having spare money. I find it useful to hear what other people do in terms of their finances, particularly whether they put spare money into pension, savings or mortgage.

We overpay by 300 a month, almost doubling our mortgage payment.

But yes, I do overpay by about £180 a month. We remortgaged and reduced the term but asked for the repayments to be kept the same.

The payments go up when you reduce the term?

We live very frugally though

@vanillalemon

Your husband has maxed out his pension by his late thirties? I thought the cap was a million pounds.

We have a 30 year mortgage but are hoping to pay it off in 15. We overpay by £1000 a month. That will increase with salaries. We still have holidays and are doing stuff to the house but pensions being what they are, we need some kind of forward planning

Late 20s, we are in our 4th year of 25. Remortgaging next year and will continue to maintain our current payments and begin overpaying. This should shave about 10 years off the mortgage 👍🏻

We pay around £37 extra a month as just rounded up the monthly payment. Doesn't seem a lot compared to some on this thread, but it'll knock three years off the term if we continue doing so.

DH has just got a new job which will see a significant pay increase once he is qualified so hoping to add another £100 in a year or so.

It wasn't your post *ourkidmolly
Or many of the other interesting points.
Reading your post about trading up instead of paying your mortgage off is what we have done until recently so in total agreement there. Which is my point exactly that I like learning how others manage their finances whatever situation that is and listening to a range of views that people should be able to post without fear of upsetting others.

Long term plan is to just pay half of net monthly bonus off mortgage and wang the other half in savings. Pension is deducted through work, but I am trying to save enough to buy a rental or two to use as a pension when we get older. Another 30 years on the treadmill for us though.

Before kids and private school we overpaid, but then we moved, and got a bigger mortgage, and we over-payed a bit more on that one, but then we moved again and got a bigger mortgage, and then we moved again and got an even bigger mortgage. Overpaying helps a bit, but then circumstances change, kids come along, you move to a bigger house. It only really works, if you stay where you are. Our last house was a lot, and we borrowed a huge amount. We have only been paying off what's required ever since, with kids school fees, and university top ups, but, our house is now worth a goodly amount. It is due to paid off by the time we retire, but even then I suspect we will still have the kids at home. Such is life.

ourkidmolly No, not the lifetime allowance, but he hits the annual allowance as it's reduced for earnings over a certain amount.

Annabelle it's just the assumption that all people do this and are on the position to.

Mortgage is £700 we pay £1050....makes an enormous difference to the term length to overpay in the early days, less of an impact in the later years. Trying to get mortgage free for DS/DD finishing school so we can afford uni when it comes.

I do understand it, but it certainly doesn’t make sense if you have any other debts and you’ve got a low interest rate on your mortgage. Mine is 2.1% and I’ve got card debts etc that are higher than that. But once those are clear I’d definitely consider it. That said I do wonder if I’d rather have savings (assuming that eventually savings rates will go up). Money into the mortgage disappears effectively.

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

Flexibility.

I overpay £200/month but if I need that cash I don’t HAVE to make the overpayment.