@TheJCFiles I have, for my mortgage I can pay up to 10% overpayment of the outstanding balance without a charge. Doesn't matter on how I do this. I did think about trying this, but to be honest I find it easier to do one lump per month. Then when it's gone it's gone. You make a really valid point though and I will look into how much of a difference it makes to see if it's worthwhile. Appreciate the comment 🙏
Also I wished we overpaid from the beginning but we didnt realise that these low rates were not the norm. Oh well, at least we are on the ladder and have a mortage end date, so much better that renting IMHO.
@@doitallez6518 it's always harder overpaying when you first get your house as that's when you're most stretched. Best thing to do is not dwell on 'what could have been' too much and just focus on what you can start doing today. Sounds like you've put yourself in a strong position though 😊
Mate ur 5 years younger then me but u've taught me so much... Will note everything u said but at same time on a ten percent deposit they seem to be offering 1,200 on the monthly payments back to the bank... Things r going up but I cant risk leaving it longer tbh
@@jonathanlake3366 thank you for the kind words 👊 yeah, rates are going crazy. I can't predict the future and I hope that rates do come down slightly. But the overall trend is always up. In my opinion that's why I locked in as soon as I could. Get a place paid off that you can call you're own, doesn't matter on size. Then you always have a somewhere safe to call home. This is my view anyway. Best of luck with everything. Thanks for commenting 🙏
I was going to overpay mine and round it to £1000, but the interest on savings in my bank account is higher for now so its pointless. Once my savings goes below ill start overpaying
@@LawrenceTimme in my opinion it's always good if you can. Your strategy definitely is a solid one mathematically. I find it hard sometimes to not then use this pot for something else, so this is why a small overpayment is good as it 'locks' away that money. Of course this is just my view, and I know you can always take equity out. The only caveat is the overpayment limit, for me this is 10% per year, so as the balance decreases I may not be able to overpay large lump sums in future without penalties. Great point well explained, appreciate the comment 🙏
Thanks for sharing your experience. I’m in a similar boat to you but luckily I have a couple years before I remortgage. I’m curious, which part of the UK do you live in? That seems like a very reasonable price for a house haha
@@TheRubenator05 let's hope the rates come down in time for you to remortgage. South west, along the M4 corridor. So a decent location but by no means London!
Look into investing rather than overpaying. Youll be surprised how even the cheapest global funds will be growing your money at a rate that far outstripes the debt reduction on your mortgage especially for a small 6 figure one like yours.
@@fonzoo Yes I agree right now the difference is pretty big. I'm trying to do a mix however. I like that an overpayment is 'locked' away. I know in reality it isn't, but for me there is an element of 'it just feels good'. On a pure mathematics basis though, right now you are correct and appreciate your comment 👍
This is effectively a leveraged position in the stock market. If someone was mortgage free would you suggest they remortgage and put it in the stock market? Harder argument to make.
@Morgzy great point. It's all down to personal preference and risk appetite. Almost the 'guaranteed' return of overpayment/no mortgage Vs risk of stock market. It's all an individual decision ultimately, but a good thing to highlight 👍
Mortgage rates right now is 6-7%. Just not worth it.. houses cost on average £300k. That’s £18-£20k a year in interest alone. Rent is significantly cheaper
@@Flowerlifts111 they are significantly higher for sure. No one can predict the market, but the historic trend suggests that both mortgage and rents will continue to rise. In the long term anyway. Yes there could be a slight dip, and hopefully for FTB the rates will ease in the coming years. But, in my opinion, once you have enough saved and a house is affordable within your budget you should buy one. I do understand the dilemma now though. Appreciate the comments. 👍
I really wish I took the 10 year mortgage 4 years ago. My current interest rate is 1.38% ! No brainer as we have no intention of moving. We remortgage next October when we will know our fate. Your car mistake pales into comparison, right? Lol
@@doitallez6518 if only we were able to see into the future! 1.38% sounds like a dream... At least you're on the ladder and can continue paying it down 👍 Haha indeed! I'm glad I got that mistake out the way early.
This was a really informative video. Thanks for sharing and being so transparent!
@@hannahnotanna appreciate the feedback and kind words. Glad you found it useful. All the best 🙏
This was very insightful for someone like me who does toy around with the idea of buying in the future
@@danielwest8586 glad you found it useful. Let's hope rates come down in future so when you're looking to buy it's a little cheaper 🙏 all the best.
Have you looked at making the overpayment payments daily if possible? I think you save even more interest but some mortgages don't allow that
@TheJCFiles I have, for my mortgage I can pay up to 10% overpayment of the outstanding balance without a charge. Doesn't matter on how I do this.
I did think about trying this, but to be honest I find it easier to do one lump per month. Then when it's gone it's gone.
You make a really valid point though and I will look into how much of a difference it makes to see if it's worthwhile. Appreciate the comment 🙏
Also I wished we overpaid from the beginning but we didnt realise that these low rates were not the norm. Oh well, at least we are on the ladder and have a mortage end date, so much better that renting IMHO.
@@doitallez6518 it's always harder overpaying when you first get your house as that's when you're most stretched.
Best thing to do is not dwell on 'what could have been' too much and just focus on what you can start doing today. Sounds like you've put yourself in a strong position though 😊
Mate ur 5 years younger then me but u've taught me so much... Will note everything u said but at same time on a ten percent deposit they seem to be offering 1,200 on the monthly payments back to the bank... Things r going up but I cant risk leaving it longer tbh
@@jonathanlake3366 thank you for the kind words 👊 yeah, rates are going crazy. I can't predict the future and I hope that rates do come down slightly. But the overall trend is always up. In my opinion that's why I locked in as soon as I could. Get a place paid off that you can call you're own, doesn't matter on size. Then you always have a somewhere safe to call home.
This is my view anyway. Best of luck with everything. Thanks for commenting 🙏
@CourtneyJonesFinancial thanks man true inspiration
I was going to overpay mine and round it to £1000, but the interest on savings in my bank account is higher for now so its pointless. Once my savings goes below ill start overpaying
@@LawrenceTimme in my opinion it's always good if you can. Your strategy definitely is a solid one mathematically.
I find it hard sometimes to not then use this pot for something else, so this is why a small overpayment is good as it 'locks' away that money. Of course this is just my view, and I know you can always take equity out.
The only caveat is the overpayment limit, for me this is 10% per year, so as the balance decreases I may not be able to overpay large lump sums in future without penalties.
Great point well explained, appreciate the comment 🙏
Currently on 1.6% which ends in Feb. Thankfully I've been overpaying.
@@MsCallmechar enjoy that! Amazing rate and great work on the overpayments 🙏
Trying to pay off my mortgage also 👍🏻👍🏻
Thanks for sharing your experience. I’m in a similar boat to you but luckily I have a couple years before I remortgage. I’m curious, which part of the UK do you live in? That seems like a very reasonable price for a house haha
@@TheRubenator05 let's hope the rates come down in time for you to remortgage. South west, along the M4 corridor. So a decent location but by no means London!
Great idea ...until you own it outright, it's ESSENTIALLY a liability, a debt, so pay it off ASAP!!!
Look into investing rather than overpaying. Youll be surprised how even the cheapest global funds will be growing your money at a rate that far outstripes the debt reduction on your mortgage especially for a small 6 figure one like yours.
@@fonzoo Yes I agree right now the difference is pretty big. I'm trying to do a mix however. I like that an overpayment is 'locked' away. I know in reality it isn't, but for me there is an element of 'it just feels good'.
On a pure mathematics basis though, right now you are correct and appreciate your comment 👍
This is effectively a leveraged position in the stock market. If someone was mortgage free would you suggest they remortgage and put it in the stock market? Harder argument to make.
@Morgzy great point. It's all down to personal preference and risk appetite. Almost the 'guaranteed' return of overpayment/no mortgage Vs risk of stock market.
It's all an individual decision ultimately, but a good thing to highlight 👍
Mortgage rates right now is 6-7%. Just not worth it.. houses cost on average £300k. That’s £18-£20k a year in interest alone. Rent is significantly cheaper
@@Flowerlifts111 they are significantly higher for sure.
No one can predict the market, but the historic trend suggests that both mortgage and rents will continue to rise. In the long term anyway. Yes there could be a slight dip, and hopefully for FTB the rates will ease in the coming years.
But, in my opinion, once you have enough saved and a house is affordable within your budget you should buy one.
I do understand the dilemma now though. Appreciate the comments. 👍
Where are you getting 6-7% from ? 😂😂 I don't know anyone paying more than 5%
Like looking in a mirror
I really wish I took the 10 year mortgage 4 years ago. My current interest rate is 1.38% ! No brainer as we have no intention of moving.
We remortgage next October when we will know our fate. Your car mistake pales into comparison, right? Lol
@@doitallez6518 if only we were able to see into the future! 1.38% sounds like a dream... At least you're on the ladder and can continue paying it down 👍
Haha indeed! I'm glad I got that mistake out the way early.