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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Over paying Mortgages

464 replies

Aquarius1234 · 05/04/2023 14:06

AIBU to find those that over pay their mortgages smug?
Moat people can just about afford or want to pay the standard monthly payments. Let alone want to use any more money/ savings on it !!
Why worry about paying off when in 20 years your probably get some form of lump sum anyway

OP posts:
Original poster
Aquarius1234 · 05/04/2023 14:09

Oh and now what with the general cost of living your never going to have small outgoings!
Your probably going to spend more on energy and other bills!

OP posts:
Moreorlessmentallystable · 05/04/2023 14:09

Because you will pay less interest? And because people can do with their muney as they please? Actually think overpaying the mortgage is far from smug or show off...a lot less than buying designer labels or extravagant holidays anyway, but again anyone has the right to spend their money as they want.

NeedANewPhone1 · 05/04/2023 14:10

What lump sum?

Original poster
Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

OP posts:
MoongazyHare · 05/04/2023 14:11

It depends entirely on their situation. If they have no other borrowing then overpaying reduces the amount of interest paid overall, and the term of the mortgage. If you can afford all your other outgoings, and add to savings, then it’s a good idea to make the leftover money work harder for you by overpaying, rather than keeping it in cash, if it won’t earn much in interest.

If it causes you to struggle, through, I don’t agree with depriving yourself of a decent life now in order to overpay unless there’s an event on the horizon which means your ability to pay the mortgage in the longer term is in doubt.

Albiboba · 05/04/2023 14:12

Yeah you’re being ridiculous. What a stupid comment.

Why worry about paying off when in 20 years your probably get some form of lump sum anyway
What are you even talking about?
Might as well say why bother paying it off since you’ve a tiny chance you might get hit by a bus instead.

WeWereInParis · 05/04/2023 14:12

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

Well that's just silly. You will give them less overall if you overpay, and if you don't understand this then I get why you don't see the point it in.

TomatoSandwiches · 05/04/2023 14:12

No one is guaranteed a lump sum in 20 years and it makes complete financial sense to reduce the amount of interest you pay on your mortgage if you can.
I don't know why being financially literate makes someone smug though.

Pleasecreateausername13 · 05/04/2023 14:12

I’ve always been told if you can afford it then it’s the best thing to do as you can shave a good 5-7 years off your mortgage even by payment the bare minimum.

Not sure what’s smug about that?

Albiboba · 05/04/2023 14:12

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

You’re giving them less money. Maybe you need to revisit key stage 2 maths to learn about how interest works.

RJnomore1 · 05/04/2023 14:12

Right now you need to check if your better off overpaying or saving anyway. It’s no longer automatically a good way to save money in the long run. Depends when you took your mortgage out and what rate you’re on eh.

MoongazyHare · 05/04/2023 14:12

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

No you aren’t - you reduce the amount of interest you pay overall, so you end up keeping more of your own money!

BashirWithTheGoodBeard · 05/04/2023 14:13

Who are we getting these lump sums off?

Original poster
Aquarius1234 · 05/04/2023 14:13

I know a few people that haven't paid a penny off their mortgage in 35 years..
Yes indeed. Crazy but maybe not.

OP posts:
Aintnosupermum · 05/04/2023 14:13

It’s not smug. This is a forum where you have people asking questions to help them make better choices.

Its not all about you.

Mummy2mybear · 05/04/2023 14:13

Not smug no people who overpay are sensible in my opinion.

neverknowinglyunreasonable · 05/04/2023 14:13

I only pay the interest on my mortgage to show how humble I am.

JauntyJinty · 05/04/2023 14:13

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

But by doing so you are charged less interest and pay it off sooner. So in the long run you pay them less

This thread just seems like a disjoined rant about the cost of living! The rant is justified but I'm not sure why your main target is people who are over paying their mortgages?!

Hiddendoor · 05/04/2023 14:14

I'm looking forward to getting my lump sum. It's in the same place as the trust fund the Derry Girls had.

GertrudePerkinsPaperyThing · 05/04/2023 14:14

Why would we get a lump sum in 20 years?

I agree that many of the post from those with disposable income/ can afford to overpay/ save large amounts can stick in the craw a bit on here. But it is a sensible thing to do if you can.

Hungrycaterpillarsmummy · 05/04/2023 14:14

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

Not in the long rung, you give them less than not overpaying since it reduces the interest you pay.

Original poster
Aquarius1234 · 05/04/2023 14:14

BashirWithTheGoodBeard · 05/04/2023 14:13

Who are we getting these lump sums off?

The usual mumsnet people getting so much inheritance..

OP posts:
sillysmiles · 05/04/2023 14:14

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

You are giving the bank more money in the short term, which means that the duration of your mortgage is shortened, which means the overall cost of your mortgage is reduced.

Heinzbakedbeans · 05/04/2023 14:15

I'm only going to get a lump sum if I pay into a pension. I won't get an inheritance, DP might or he might not. We might separate.

I only bought at 40 and I don't want to be paying a mortgage when I'm in my 60s. I can forgo some stuff and instead pay that into my mortgage/pension. That doesn't make me smug, it just makes me fortunate that I have some spare income.

Startuplife · 05/04/2023 14:15

Because by paying off an extra £200 a month, we’ll save ourselves roughly £47k in interest. I’m not smug about it, I can’t imagine anyone except DP and I know we do it.