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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:
PickAChew · 05/04/2023 14:22

Far from smug. We don't want to still have a large mortgage in our 60s, or even in 4 years when our 2.9% fix runs out.

And not sure where you think we'll be getting a lump sum, from. Our pensions are worth diddly squat and my parents are far from loaded and I can't say I'm looking forward to them dying, tbh.

PoppyFleur · 05/04/2023 14:23

Such an excellent grasp of money management. Is that you Liz Truss?

SquashPenguin · 05/04/2023 14:23

How to say you don’t understand how mortgages work without actually saying it.

redskylight · 05/04/2023 14:24

Aquarius1234 · 05/04/2023 14:19

Most people don't over pay. Unless they are on a high salary and are those sort of people.

Or they deliberately choose to buy a smaller house than they might have liked exactly so they can overpay (enabling them to take payment holidays when they have small children and large childcare costs)? Which is what we did.

I would have called it financial planning rather than "being smug".
And also liking being able to eat when on maternity pay.

MereDintofPandiculation · 05/04/2023 14:24

Aquarius1234 · 05/04/2023 14:17

Example interest goes up to 3.9 soon. ?.why would it go down just by some small payments.

Show quote history

The calculation is more complicated, but in simple terms, 3.9% of a large sum is more than 3.9% of a slightly smaller sum.

Original poster
Aquarius1234 · 05/04/2023 14:24

MoongazyHare · 05/04/2023 14:21

I know. I was about to try and explain but I don’t think OP is listening.

Show quote history

?? I really don't want to be paying more each month in a few months.
So I doubt I would want to then over pay?

OP posts:
Toottooot · 05/04/2023 14:24

Aquarius1234 · 05/04/2023 14:19

Most people don't over pay. Unless they are on a high salary and are those sort of people.

What sort of people? Enlighten us hun.

Tinkerbyebye · 05/04/2023 14:24

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

@Aquarius1234

donyou actually understand how mortgages work? If you overpay you are paying the bank less interest, so therefore less money, not more

MoongazyHare · 05/04/2023 14:25

Aquarius1234 · 05/04/2023 14:21

I think people worry too much about over paying on mumsnet.
Just pay what you agreed to.

Mortgage payments vary, though; it’s dynamic, responding to interest rate changes, so payments don’t stay the same for the life of the mortgage - some are variable, some have fixed periods, but I’m not aware of any mortgages in the UK which last for the full term, though I know this is the case in eg the US.

Forgive me, though, if I don’t take your financial advice, OP - I don’t think it’s likely to be very reliable.

Agreeable · 05/04/2023 14:25

Thick as Pig shite

Toottooot · 05/04/2023 14:26

Agreeable · 05/04/2023 14:25

Thick as Pig shite

🙌🏻🙌🏻

FuckoffeeBeforeCoffee · 05/04/2023 14:26

Do you even understand what you're on about, OP?

Dreamstate · 05/04/2023 14:27

I overpay my mortgage, not to be smug but to quickly get to a level of financial freedom that comes with owning your home outright. A freedom to choose how much I work, no longer be a wage slave because all I need to earn is enough to cover my bills and anything like holidays. Its not smug to want to get that point quickly, its a weight off your shoulders.

ExplodingCarrots · 05/04/2023 14:27

Oh dear . This is the only negative thing about overpaying your mortgage and paying it off early ...the green eyed monsters.

We over pay in a lump sum every year . DHs industry will probably become quite fragile in the near future so our main priority is to make sure our house of safe. I can't grasp why anyone wouldn't want to get rid of it sooner if they could ? Of course you would save money !

We will be mortgage free when we're 38/39. Smug ? Defo not . Relieved ? Absolutely!

We're making sacrifices now but will reep the benefits when we go into our 40s .

My work colleague told me that when she told her friends and family she was mortgage free finally most of them reacted negatively. She's 66 ffs !

MoongazyHare · 05/04/2023 14:27

SquareRootOfAllEvil · 05/04/2023 14:22

I overpay because I kept my payments the same when the interest rate dropped. Should hopefully mean that the payments don’t go up when I need to remortgage - but I may or may not be overpaying then. Assumed most people would do similar tbh.

Yep, this is how we’ve done it, too.

Emigratingimmigrant · 05/04/2023 14:29

Agreeable · 05/04/2023 14:25

Thick as Pig shite

More likely a bad day and fancies a bun fight

Isyesterdaytomorrowtoday · 05/04/2023 14:29

Interesting topic to start a thread on when you don’t seem to understand either mortgages or how compound interest works OP

BMW6 · 05/04/2023 14:29

OP by paying off our mortgage over 9 years instead of the 15 years originally set, we saved roughly £20k.

That's 20k in our bank account, to spend on other stuff as we please.

In what universe is that not a desirable outcome?

Oh and our household income was around 30k pa, so not big bucks!

Itsrainingatlast · 05/04/2023 14:30

I am one of ‘those people’.
I overpaid on my mortgage and then I inherited a lump sum and paid off my mortgage entirely.

However, I would far rather still have my lovely Dad alive and still be paying my mortgage.

Charmatt · 05/04/2023 14:30

Why are people who overpay smug?
The only time anyone has ever known that we overpaid was when they assumed we must still have a mortgage and asked us how much we paid.
We won't be getting a lump any time soon and my OH is being made redundant next month, so I think we were right to do what we did when we could. You never know when your circumstances might change and if you can afford to overpay, it soon becomes normal to do so.
You sound very naïve about money and finances, OP. I hope things work out for you.

brogueish · 05/04/2023 14:31

You don’t have to over pay when you get a mortgage, OP.

We choose to because it’ll save us thousands of pounds of interest and we can. Sorry if that makes me sound smug. I do appreciate not everyone is in the same position and I expect it probably feels very unfair.
It would be silly not to, if you can.

Nevermind31 · 05/04/2023 14:31

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

Are you for real? You are obvygivi g the bank less money as you are paying less interest…
what lump sum will you get in 20 years time?

GCAcademic · 05/04/2023 14:31

Oh, come on people, it's a troll. No one is thick enough to think that overpaying your mortgage means giving the bank more money.

Morningcoffeeview · 05/04/2023 14:31

Aquarius1234 · 05/04/2023 14:11

Your just giving the bank more money.

You’re not into economics are you 😂

Softmore · 05/04/2023 14:32

Where are you based, OP?

If you're in Yorkshire, I can be at yours within the hour because I would absolutely love to join you for several pints or lines or joints of whatever the hell you're drinking or snorting or smoking today.