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?

This. We only have a small mortgage over ten years. We pay off 10% a year and we can’t do anymore - most mortgage lenders have this in - so be careful. We are fixed for 5 years. By paying 10% our mortgage time will go to just over 6 years as total term and then we are done. Final property and house! To be honest we can clear it now but we want to travel and help our children.

Exactly! But we see them all the time so they're clearly not real people. I was just trying to understand what I'm missing - are they literally just bots trying to boost post numbers?

yeah to be honest we have about 200k In savings so we will pay off a lump of 50k this year too, and I would love to be bold enough to put it all on the mortgage but it scares me more to have no savings.

If you aren't paying £2k a month you will very quickly get those savings back though!

I would be paying off a lot more with 200k in savings!!!

That's a lot! Unless you live in the US. In which case medical fees.

No not US. Yeah I see what you mean but it would take over 4 years to save a 100k back , makes me nervous 😬

When it comes to financial calculations and comparisons to my peers (especially when I know I am doing well), I tend to ask an AI engine to do the financial modelling and peer comparison for me. I find it more effective than gloating on the internet.

How many people have £100k in savings. What costs £100k. How likely are you to need £100k within two years?

Looks like I’m the only one who has never been able to afford to overpay at all then. Wow mumsnet makes you feel poor

We have two dc, you’re more than likely not eligible for any grants for university. There is not the student loan scheme like there is in the UK. So I most probably will need money for them to attend university. If either of us lose our jobs, we will need savings even though we do have an income protection but that’s not always guaranteed.

This! All the people overpaying on low rates. £1000 against a 2% mortgage will save you £20 in interest. In a 4% ISA I'll give you £40.

So save the cash in the ISA and then use it to reduce the amount of mortgage you need when you have to remortgage at 4% or whatever. Even then the same principle can apply, but it's less clear cut. And in am emergency you have the money in the bank.

This does of course rely on you being able to not just see it as money to spend. And you may value the feeling of being mortgage free. I admit I'm tempted! And paying 4%...

We did this for just over 2 years. 1.57% fixed rate so took all the money out of the offset and put into savings and made about 3k.

Our mortgage was only over 10 years anyway, but still try and overpay a bit.

We did do the max allowed 10% per year. Now paid off. In our late 40s so very lucky.

Nothing. My Stocks and Shares ISA and pension make three times the return vs my mortgage interest rate of 3.7%. We deliberately have a really long term on the mortgage and each time we renew, we fix for a long time for security and stability. We also have savings in instant access attracting 4.5%. so still beats the mortgage rate.

The logic being we have money in about 10/15 years to pay off the mortgage but still have options and flexibility. It's growing quicker and getting us towards our goal quicker than if we overpaid.

I wish we could do something like this but it’s not an option here unfortunately

As others have said if you can get a better savings rate then put the money there for a better return then use it when the mortgage is charging a higher rate than the return you can get for it elsewhere. So no we are not overpaying our mortgage.

We do exactly this.

Save monthly into both cash and stocks and share accounts, let it grow over the year. Then do a 10% max chunk at the end of the mortgage year.

Our mortgage is currently £850/m (still on low interest rate until we remortgage in Aug). We do have enough savings elsewhere to pay the entire thing off, but that money is growing and aim to use it for earlier retirement so we'll keep it there unless for some reason we really needed to reduce our monthly outgoings and pay the mortgage off.

Are you not in the UK sorry if I missed that you weren't.

I don't overpay. I wish I could but so far I have been building a healthy saving safety net, I have also renovated my bathroom, and now, just when I think I can finally relax and start overpaying, my roof needs replacing, so its a dent in my safety net (or a loan, not sure whats the best approach yet).
Anyway. hopefully I'll be able to start overpaying next year, my intention is to overpay by £1000/month, but I'll take 500.

its ok no worries, yeah not in the uk, so not many options for good interest on savings investments.

We overpaid by as much as we could, after the 15 yr mark (promotions so more income etc) and in fact stayed on a variable rate as we were able to overpay by as much as we wanted- we cleared it down within a few t
years. Best decision ever.

This is our current mindset to be honest, if we stay variable we can pay off as and when we like.

I agree with this. I get much better return by saving as much as I possibly can into my pension.

My mortgage is £700 a month and I overpay £400 a month hoping to get it paid off in 8 years.

Nothing - I make loads more on my savings than I pay in interest so it wouldn't make sense.