Thursday, 3 January 2013

Mortgage Overpayment

Hi guys. I made mortgage overpayment number 2 yesterday but I then read Frugal Queens post yesterday about her mortgage milestone and I got worried. I thought that my overpayment was against capital but some bloggers suggested that sometimes it gets applied against interest. I emailed the bank straight away to ask the question as I didn't want to make overpayment's to find out further down the line that it has been applied against the interest. I have checked my email this morning and the bank have replied promptly and confirmed it is against capital. Phew !! Panic over. I did think it was against capital but my brain has been such a sieve just lately that I thought I'd better double check. I was initially worried last month when we made the first overpayment as I thought I'd bitten off more than I could chew but it was OK and the second one went out yesterday. I may try and increase the overpayment later this year. When we first moved into the house the water company took the direct debit over 5 months , in April we start a new year so it will be taken over 10 months so my d/d will reduce by 50%. I may then put that chunk of money into the monthly mortgage overpayment. This time last year I would never have dreamt that we would be overpaying on a mortgage. It goes to show that you can achieve things even in a short space of time. TTFN x

11 comments:

  1. Brilliant! It's amazing how much interest even a small overpayment will save you over the years!

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  2. You're doing great - every bit helps with mortgage overpayments. :)

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  3. I AM ABSOLUTELY DELIGHTED FOR YOU!

    This has made my day.

    You were right to check though, these banks are slippery b*ggers.

    You should feel so proud.

    Sft x

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  4. Hey well done! It's not such a small amount you're O/P'ing either - we started off with just an extra £10 and even that made an impact down the line! Remember the two months later in the year when you'll have no Council Tax or water rates to pay as well - we always find that a nice little chunk to add to the mortgage pot as well!

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    1. Hi Robyn, I have already diarised for the water d/d to be channelled elsewehere but where we live they take council tax over 12mths d/d so can't squirrel that one away. It all helps though x

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  5. Congratulations on reaching another milestone on your mortgage payment! Well done. It always feels good to read about other people succeeding on reaching their financial goals. Bryallen is right. Try to overpay your mortgage as often and as much as you can to minimize your interest.

    Myron Coo @ Davewilliamson.net

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