To ask how much you overpay your mortgage?

[Changingup]

Our mortgage is 1991 per month. We have got to a point where we have a good savings amount. We want to overpay the mortgage by 1k extra per month. We would like to pay it off completely over the next 10-12 years. If you overpay how much do you overpay by?

200 quid. However the mortgage is only £400 normally 🤣

We live up north.

£60 but as above our mortgage is low and we don’t have much savings so it’s a token amount because I preferred paying a round number to the standard monthly payment.

Better than nothing to be fair, it’s still 50% extra. Are you seeing your amount reducing quicker at all?

The maximum we are contractually allowed to over pay off our mortgage is 10% per annum. So that is what we do.

Since our savings interest rate is higher than our mortgage interest rate, we save it in a savings account until the end of the mortgage year and then pay off 10% in a lump sum once a year, rather than regular small overpayments. It gives us flexibility as well if something happens and we need to divert an amount of those savings somewhere else for a time. It works for us.

We direct our overpayments to reduce the term of the mortgage and have reduced it significantly (it started as a 25y mortgage).

Our mortgage is £230, we overpay by £540.

We're currently on a fixed rate of 1.65% so making the most of that and we took it over 40yrs and need to bring the the term down. But the rate is up in the summer so we'll review it then.

I over pay by £270, my mortgage is also small £440. Trying to pay down as much as possible before November when my very low rate is finished.

As much as we can below the 10% limit. It definitely makes it cheaper overall unless you're using the money to earn more than the interest you're paying if that makes sense

£500 per month on a £500 pm mortgage.

All these lovely small mortgages, I’m jealous 😅

No set amount, it varies every month. I am self employed so my income is variable. Chipping away at it has made a big difference over the years and reduced the term by 9 years. Worth doing even if it's a tenner here and there.

Martin Lewis has an overpayment calculator which compares to savings, and if you might hit some overpayment penalty it also works that out.

Overpaying isn’t always the best option. You may get a better overall return by using the overpayment money elsewhere.

My dh pays a huge chunk in when he gets annual bonuses or share options, we don't do it monthly our mortgage is quite high after recent move and renovation

Yeah there’s nothing here where we are (not UK) that would give a better return unfortunately. And to be honest I would like it gone as soon as possible 😅

Here we go again! Has anyone ever explained what these threads are about? Thread after thread of people asking about other people's financial situations which is clearly pointless as everyone is different. They're obviously not real people but I can't work out what they're used for. There's not enough info for it to be any grown up, professional research so why? Is it just mumsnet bots just trying to push up post numbers? And why do people share their info? I'm guessing most of the responses are taking the piss as much as the OP. Maybe the responders are bots too? 🤔

We have a low mortgage as we paid a lump sum towards the house. It’s currently £369 at 2.69% ( got in just before the Truss chaos)
We pay £550. Yes we could of saved it etc but after seeing family struggle with housing i’m keen to have no mortgage and have that safety net asap. I could probably increase it but we both save elsewhere too.
The Interest is really reducing each month so i feel it’s been worth it

Check the small print. There's a penalty to overpaying too much on some policies.

Also if long term you intend to overlay it's worth looking at offset mortgages. Even if the interest rate is slightly higher and offset gives you greater flexibility as you can still access your extra money if you need to without penalty whilst reducing the amount owed more quickly than a traditional mortgage.

So if you needed £20k urgently for something you wouldn't need to remortgage (with all the additional expenses).

I think it’s nice to ask questions and gain insight into things to be honest, you don’t have to answer it’s ok. But thank you for you opinion.

Or someone is asking a question on a forum. You should get out more.

You know if you aren’t interested you can just not comment…. Plenty of threads i see and i don’t comment on. I’m not a bot just bored in the bus.

I paid mine off last month after overpaying by around £1-2000 per month. DH is self employed and spends no money on himself so I paid the standard £1,500 payment and he put all his dividends in.

We had an offset mortgage which really incentivised us to save.

It’s such a good feeling now to know it’s gone. We both work in jobs where AI will shrink the number of jobs available so are now putting that mortgage and overpayment away for possible early retirement if work dries up.

I’m 44 so hopefully get another 10 years in.

We are on a variable so I think we can overpay without penalty but I’ll double check. Interest is 3.95. We have ample savings so can access quite a lot if needed. So that’s kinda why we feel it’s time to focus on the mortgage

You aren’t wrong. It’s an utterly pointless question. People overpay different amounts on different sized mortgages. Everyone knows this. OP has no more insight now than before asking the question.

Nothing at the moment. Hard to pay the monthly as it is

We overpaid the max 10% per year. Mortgage paid off super quick. Not quite 'F.I.R.E.' but it enabled a move to the seaside and part time working for both of us at 45. Trying not to feel smug, but it's hard not to.

Literally just started and a tiny £30 a month at the moment. We have some debts to clear and when they’re done (within a year) we’ll be over paying by £250 a month. We have another 21 years left on it so if we can chip away over the years as ideally I’d like it paid in the next 16 years.