Over paying Mortgages

[Aquarius1234]

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

Accidentally clicked YANBU. You Are.

Even an overpayment of a few pounds if and when you have it will reduce your overall interest. But taking it out for a longer terms means you’ve set it at an affordable level for the term of the mortgage deal regardless.

I wake up every morning in a beautiful glow of smugness due to overpaying my mortgage. How glorious it is to be one of those people.

You do realise that with inheritance normally comes losing a loved one right?

I'm overpaying my mortgage by as much as I possibly can and so in 8 years I'll be mortgage free. I'll have saved by not paying £20K in interest and in 8 years my wage can then go on buying my child a car and helping him through university and I'll OWN my house so it can never be taken away.

It's a no brainer.

I'm happy to go without luxuries for 8 years and go on the odd cheap camping trip if it means I can provide for my child when he really needs it and have a more secure future.

It's not smug - it's basic maths.

I didn't want to be mean but you said it. I mean this has got to be dumbest post I've seen.

I must be one of "those sort of people" since I overpaid the mortgage since inception and recently finished paying 7 years early. Curious to hear what "sort" I am (not high earners by any means!).

Do you even have a mortgage to overpay on?

Because with your knowledge of how this works sounds like financial disaster looming.

If you have a mortgage of £100,000 overpaying £10 a month can shave off about 1 year of interest and save you a few thousands pounds compared to if you just paid “what you agreed”.

Certainly not smug or wealthy or high wage earners, just frugal, not wasteful and not big spenders, so in overpaying every month we are now financially independent, saving ourselves £1000s in interest payments to the bank.

Cheers, me too. We can be smug together, anyone else want to join us in the smug corner

8 years early here, any advance on 8 years early?

Also "overpaying" doesn't have to mean paying hundreds more a month, or double your basic payment. Some mortgages have clauses whereby you can only overpay a set % of the outstanding balance every month.

But when we first had a mortgage we just rounded up payments. Can't remember exact figures, but say the mortgage was £456.70 a month. We just rounded it up to £500. Even that extra £40 quid a month started to make a difference.

I was thinking "thick as mince" but I like yours better 😄

I don't think @Aquarius1234 is for real..

I've knocked 10 years off my mortgage term by overpaying so that's also 10 years less interest. By the way I won't be getting a lump sum inheritance off my parents. I've got multiple siblings to share it with so I might get £2 certainly not enough to pay off my mortgage early.

I mean, it's smug (and insensitive) if you go on about it to someone who is struggling financially.

If you just do it quietly then it's - financially prudent? Depending on your other financial priorities.

So your OP should read AIBU to think overpaying a mortgage is financially prudent.

OP, if I were you I'd go have a nice chat with someone who can explain mortgages to you.

You're embarrassing yourself here.

I'm quite enjoying it! It's like attending an economics lecture only to find it's being given by a 9 year old 😃

That's just stupidity. They might as well rent - at least your landlord has to pay to fix your boiler / roof. They own nothing, they have no future security. They still have to maintain the house they own nothing of.

No, you give the bank more money over time keeping the term long as you pay more interest.
It’s very basic maths.

I think 9 is being generous

Me too. I am sure it is not in good faith but I am along for the ride nonetheless!

All aboard to moronsville!

Do you have a mortgage OP?

I would like to sign up for my big fat Mumsnet Lump Sum now, please. Will I be sent a wealthy relative in the post? I don't think the ones I currently have are going to cut it, sadly.

We made different choices to others that are benefitting our life now. Other people made different choices. Am I smug about those that thought we were stupid at the time? You bet! We put off having kids till in a strong financial place, and we live in a smaller house than the acquaintances who told us we were stupid for not buying the maximum mortgage we could get. But while they're freaking out about the interest on their £400k mortgages, we're not.

Have you got a mortgage op ? You shouldn't have been sold one as you have no financial knowledge. It is very worrying.

Overpaying your mortgage can save you thousands of pounds by reducing the amount of interest you pay. It also means you have the option to be mortgage free sooner than you would if you only paid the required monthly payments.

Everyone's financial position is different but over paying your mortgage is quite a sensible thing to do if you can afford to.