📢WE WROTE A BOOK 📢. Order Our NEW Book, Financial Joy, on Amazon today - geni.us/financialjoy. It's a 10-week plan to help you Banish Debt, Grow Your Money and Unlock Financial Freedom. It's published by Hachette UK + Quercus. One VERY IMPORTANT point to add to this video is that where you choose to live matters. We chose to live just outside London, and as such bought a house without a huge mortgage (relative to London prices) on it. This was a deliberate decision as we could have afforded living in a major City like London but chose not to. Hopefully, those who are still to buy a property will find this point useful. LESS DEBT = LESS TIME TO FREEDOM :) . *MORTGAGE OVERPAY CALCULATOR UPDATED FOR 2022* - thehumblepenny.com/MortgageCalculator Plus the *INSTRUCTIONS for using the Mortgage Payoff Calculator* is here - thehumblepenny.com/early-mortgage-payoff-calculator *FINAL POINT - You can get mortgages WITHOUT Early Repayment Charges (ERC)!* This is one way to pay more than 10% (if you can afford it). I know for certain that providers such as Nationwide offer this. This is not Financial Advice 😀. Please use a broker and make the decision based on your personal circumstances.
The Humble Penny great video. Say you had a side hustle and made £200 a month which you wanted to put to your mortgage. Would you first have to pay income tax on that side hustle or is there some tax benefit to overpaying mortgage whereby you do not have to pay tax (or reduced amount) in this money if it’s going to overpayments
It really depends on the type of income. The general rule is that you pay tax on side hustles but at varying rates depending on the type of income e.g. Salary, dividends, interest, profits, etc. However, the one thing (that most people can rate to) that you don't pay tax on is renting a room to a lodger if you make £7,500 per year or less.
i worked all the way through Covid as a Lorry Driver in the UK and i couldnt travel anywhere on Holiday, and i have now payed off my Morgage, thankyou for your inspiration both.
Great video. Im 54 and have moved into my garage (workshop has been converted to a small flat) and Im renting rooms in my house out so I can get my mortgage paid off fast using the rental income. I have bought it down from 16 years to 5 and cant wait to be mortgage free.
Please, and I'm sure you do, treat your tenants fairly and with absolute kindness. Fix something when it needs fixing. You can even go so far as to throw a barbeque for them every summer to say thank you. You're living 'on top of each other' so it's good to live in friendship and remember that they're paying your way.
Me and my husband are hoping to be mortgage free at this stage at around 40-41 years old. We’re both 30-31 now. I wish I had found you and this incredible advice 5 years ago! But no time like the present, thank you so much for making this information accessible
Thanks to this guy, I now only have 8 years left to pay, I cannot thank this man enough, he first came by his stuff during lockdown, but what this has done for me is crazy, I now have my job and 3 side hustles which are not stressful, all stewarding work which allows me to watch football sometimes and get paid for it. UA-cam does have gems if you want to find them, and the best part all this education is for free. Thank you.
There really are few and far between, which is why I summoned up the courage to start my own personal finance channel. I love their content, so helpful, clear and easy to digest!
Questions 1. Can I pay one lump sum of 10% . of my mortgage. 2. What is the difference between monthly payment and one-off payment a year. I'm waiting for your reply. Thanks
I am currently binging all your videos! My fiance and I haven't bought a house yet but I am already planning on how we will make overpayments! FI, here we come!
This was exactly what i did eg cancel gym membership and do jogging or walking instead, cancel cable tv, Netflix etc, chose a cheaper mobile phone package, upgrade on SIM only n use same phone for over 10 years, chose to buy my food from cheaper supermarkets, i buy my clothes from charity shops etc etc, and I'm mortgage free for over 10 years now, no worries about interest rates go up or down.
Bro your channel is amazing! so glad I stumbled upon it. What you teach needs to be part of the national curriculum in schools! This is real life education!!
Good stuff. I've literally just got my first mortgage. My payments are relatively low and very manageable. Doing some quick calculations and I'm certain I can take several years off already! God bless bro
Love Ken’s enthusiasm in this video. You can see he is really passionate about FI. I am at the very beggining of my FI journey and Humble Penny has been a game changer for me!
Hey Leanne Thanks a lot for watching! 😊. You're at the start of an exciting journey and I'm super pleased to hear that FI is something you want to explore. I tell everyone I meet that it's an aspirational journey and one that becomes more REAL as time passes. Do please invite friends to check out the channel. Much appreciated 😁
Great video. We followed quite a bit of this advice...bought our house in 2006 and paid it off in 2018...12 years by overpaying as well as doing well with stocks and shares separately in an ISA. The goal was to pay it off before 40 and did it at 38 in the end 🙂. The savings are huge but it’s amazing not having a mortgage every month again.
Hi @The Humble Penny - It's been strange actually as we've been quite 'aimless' every since paying off the mortgage which just shows how important it is to have clear goals. We recently changed our goal to be able to be in a position to retire at 55 should we wish to. It's not to say we have to but what's great about it is that neither of us will ever lie awake scared of being made redundant and having to find something in later life. Also, my uncle had a really great way to look at life....his view was: The first 25 years of your life is about learning and studying, the second 25 years is about working, and the last 25 years you should enjoy...if you get more than 25 at the end, it’s a bonus...if you get less, at least you still made the right decision to stop earlier. Whilst i wont stop at 50, the mindset behind his advice was really nice and motivating.
A lot of people don't realise it but if you want to become wealthy you actually have to have as much positive debt as possible, paying off your mortgage early isn't always the smartest option, Because even if you leverage your money reasonably well you could achieve 20% returns in a rental portfolio, whereas your personal mortgage is only 5% interest so it actually becomes economical to be in debt.
Our Goal is to pay off our mortgage within the same time frame. Currently it feels like mission impossible, but you guys have given us some hope! Thank you for the amazing content, keeo up the amazing work.
Great video so I've subscribed, I have just recently taken out a mortgage at the age of 56, I have it over 13yrs but I over pay a further £1200, should have it done in 6.5years😁
Overpayments is my strategy going forward. This only struck me when needing to remortgage this year. A second job will help me get the thing down. I'm by myself but I'm going to do this. Love your videos, thank you!
@@TheHumblePenny I will. I'd love my mortgage cleared in 10 years. My mindset has shifted enormously this year. Need better secondary income for sure, occasional bar work isn't it.
Great vid. Prompted me and my other half to take out a joint mortgage which starts in December. A 5 year mortgage with Nationwide which allows overpayments without penalties. We aim to be mortgage free in 24 months.
Very timely now - I was always highly motivated to clear off as much of my mortgage as possible but all the so called finance experts were saying don't prioritise mortgage, it's low interest, invest in other things etc. Well I am glad I played it safe now. You can't put a price on peace of mind about having a secure home.
This isn't heard enough Ken! 2 young kids means we have paused overpayments for now but once nursery bills have gone we'll be back on it! Great job. Can't get enough of seeing those numbers.
Hey Ben I TOTALLY get you when it comes to kids. Things are just a lot harder! However, it should serve as motivation to keep going. Make it your WHY! 😀
Great content as always. Love your channel. Thanks for the help! Myself and my wife are on course to pay off our 25 year mortgage is less than 12 years, and before age 45. Two years into the mortgage we refinanced to a 15 year mortgage at a great fixed rate and are hitting the principal hard. Saving and investing for your future is so much more rewarding than mindlessly spending. Once you realise you don’t need any of the stuff you stop wanting it! Gives you more time for the important things in life. We’ve never been happier! 🙌
Hey Tayla, thanks so much! 😀. It means a lot to hear that because I grew up very shy and lacked confidence with articulating my ideas. UA-cam is helping me to communicate better by making these videos :). By the way, love you singing!
@@TheHumblePenny aw I love that!!!! You make it easy to understand and connect. Please don’t stop, you’re making a big difference to other peoples lives with this side hustle! ;) I’ve watched loads, and have subscribed. Thank you!
Great content. I’ve cut two years from my mortgage over last five years simply by cutting the term at the points my fixed rates ended. I simply view this as like a form of overpaying, knowing I could be paying a less each month if I stuck to the original 30 years. Now on course to be mortgage free at 49 instead of 51 (we got a 30 year mortgage both at the age of 22) I will begin increasing the monthly amounts with the overall goal of being free by 45.
KEN , I have a better idea to create wealth. Don't over pay on your "mortgage"(ps i say mortgage but strictly you don't have a mortgage the bank does). In fact don't pay any off the principle sum at all, pay interest only and keep the repayments low.Invest the extra money in other properties. Eg we bought another property in 1995 ,it was £45,000 we put up 10% deposit (£5,000) , paying interest only. Its now worth £420,000. We can now sell it and the massive profit will pay off our original mortgage with loads over, a better idea I think than over paying to create wealth . This doesnt include the rent on the property, which covered the interest payments on both houses. Now instead of having one house paid off we a re millionaires
12:20 The account of your Dad still bearing the burden of a mortgage into retirement. This held a lot of personal resonance for me as exactly the same family dynamic. The feeling of sadness when you think how hard your parents have worked all their lives and it's still hanging over them when they finally retire. Still climbing the mountain rather than free-wheeling down the other side into a comfortable retirement.
YES!! And I bet there are many people who share this same experience. 'Cos what ends up happening is that it become a a problem shared by other family members. Unintended consequences.
Good job paying it off , also some mortgage providers allow unlimited overpayments (no 10% threshold) such as first direct , also can save overpaying weekly than monthly as the interest is calculated daily , great vid mate
I am so glad to find you. Brilliant UK based content. We are older (50.s) our goals were to pay off our mortgage, have an emergency fund, educate the kids to FI, minimise our needs & have enough to pay annual bills. Currently doing better than expected after the first year. 3 years off mortgage, 8 to go, annual bills & emergency fund covered, kids enrolled to mum school of money 😊 and plans for side hustles formulating (you are a big help there) . Going forward...get hubbie doing a job he's happier in, converting our garage and smashing that mortgage ❤
I began my mortgage in 2010. I went to see a mortgage advisor in 2012 and changed my mortgage to another 10 years. Then in 2013 I began my overpayments. I did target setting in 2016 and 2017. I paid it off in June 2017.
I just paid off my house in total this week! I am 30 years old, my wife and I bought our terrace house 3 years ago, rented it out immediately and paying it off had become the obession! good luck to everyone. it can be done.
I bought a semi detached 3 bedroom bungalow in 2010 with a mortgage. It was a 25 year mortgage and in 2012 I changed it to 10 years. In 2013 I began overpaying it. In later years I wished to owe 25,000 pounds in the start of 2016 and be down to 10,000 pounds in the start of 2017. I paid it off in June 2017.
Great video and really helpful, im from across the water and going to use all you have said. Im 3 years into a 30 year mortgage and 33 years old. My new goal now seeing this is to clear my mortage by 40 so gives me 7 years to reach this lifegoal and even more now that im expecting twins 😁. Keep up the great work really helps us.
Hey! Great to read your message and see that You'll apply the ideas across the pond 😀. Having it as a goal is really the beginning. Don't forget to grab the *Mortgage Payoff Calculator* and the *Instruction* links in the video notes.
Seeing the rose petals floating across the screen put a smile on my face😁👍🏾... seriously though, this was really good information, thank you Mary and Ken 🙏🏾.
This is great advice, thank you so much! I'm a solo homeowner and I think I can pay off my mortgage in 15 years - would be half that if I had a partner! I have 340,000 left to go on a new salary of 105,000 - you'd think that salary would make it easy but it doesn't! Will use these tips and see how I get on. If UA-cam still exists in 15 years, please remind me to stop by for an update 😄
Me too, I have just over 300k left over 2 properties. 6 figure income, saving half salary to make overpayments. Aiming to clear them in the next 5 years.
Hello and thank you I'm from Baltimore Maryland in the US . I've so enjoyed the teaching I'm in my 50 so I feel behind the 8 ball however I'm still going to try this. So again tks for sharing ❤❤
Great video - plain English and easy to understand thank you. My one question - you say you started overpayments immediately, but many mortgage agreements with fixed interest rates for 2,3 years etc. do not permit overpayments. Is it better to re-mortgage to a low fixed rate or accept the higher rate and overpay?
Thanks for the video. We are actually thinking of leaving London and could be mortgage free, weighing this up against staying in my job (fairly well paid) and making overpayments against going (might have to leave job due to commuting time). We have two mortgages on the house due to a refurb plus nursery fees so has felt quite stressful.
Congratulations & thanks for breaking this down! Recently moved to my families forever house, same numbers in your example, and didn't realise how big an impact an extra few hundred pounds could make each month. Will download the spreadsheet & give it a try. New channel subscriber! Cheers from Scotland!
Originally started to comment complaining about this video. Then decided to check a mortgage overpayment calculator and have to say if i put my self in his shoes and paid the £400pcm i have for investment/saving i would pay off the same in just over 8 years and save £39k in interest payments.
Soooo good to see a UK based channel for financial knowledge. This video is so timely for me as I am now starting a house buying journey in middle age and I'd like to pay it off early. I like that you do the breakdown and the calculations for different overpayment amounts too. Very good content. You gained yourself a new sub today for sure. Please keep doing these you are doing a great job. Blessings
@@TheHumblePenny Thanks to you and others willing to share information and educate, I have been preparing for this thoroughly. Hopefully this next phase of my journey will be as successful as paying of debt as a single parent and raising two decent humans has been. I am excited!
So let say I don’t make early over payments and save that money, and pay at the end of the year. Example I save up the £100 each month or I get extra money from a side hustle and make a payment lump sum of £3k each year. What impact will that make towards agreement in principle?
Love this video- you’ve inspired me ! I’m itching to get started on the side hustles and can’t wait to use the mortgage calculator! Making it my mission to be mortgage free in 5 years! You’re fab!
I've recently purchased my first house and I'm looking to pay it off as fast as possible, this video was very informative and certainly gave me some things to think about. I'm lucky to be in a job that is offering overtime all the time (worth an extra £15k gross per year) so I'm certainly hoping to be able to pay it off within 10 years (then maybe invest in a second house as a buy-to-let).
Over payments is the key then and paying what you can save every year!! Right I’m on to the bank tomorrow. Only got a mortgage out 3 months ago, and already had a goal, but didn’t think about middle of the month repayments really makes sense. Many thanks bro this video was amazing and so inspiring
Torn between investing and overpaying the mortgage. Settled with investing £150 pcm and overpaying the mortgage by 10% pcm. Fab video. Thanks so much 🙂 Sue
Hi Susan, Great approach!! 😀 Your challenge is one that A LOT of people have. The key there is to choose a path and follow it and tweak as one goes along. Buying shares/funds and paying off the mortgage are both different forms of investing.
Kenzy Christy my advice would be to NOT invest in single shares (ie 50 shares in Barclays or Apple, etc) as the share prices can be very volatile. Look in to something like mutual funds/ index funds that track the market. I use Vanguard, they’re very informative and also have lots of information so you can look at past performance of a fund before you invest in it.
I am 28 and have been looking to get a mortgadge and didn't know much about it, But watching this has helped me get a clearer picture! You have explained it in very simple terms that anyone can understand and I really appreciate it!! keep on doing what you are doing, great stuff!! Defo subscribed and liked!!
I got a $141,000/30 year loan on a $320,000 house at 4.375%. If i didnt over pay id be paying almost $7,000 a year just in interest. Since day 1 ive been ovwr paying my 700.00 mortgage and paying an extra 2,000.00 each month. 21 months later and my 141,000 is now 95,000 principle left to pay. Im on track to pay off my whole house in a total of 5.5 years.
I really enjoyed this video. My family was a victim (so they thought) to mortgage fraud in the US. We fought back (pro se/no lawyer) and were settled from 235,000 on paper to 85,000. Now I am eager to payoff in 5 years. I would love hear more from you on stocks as well...I totally subscribed after my first visit...
I started off working towards being debt free, then I built a healthy investment portfolio now I am working towards a fat deposit for my 1st property and the very last step will be paying off the mortgage in shortest possible time. Seeing my nett worth inch up month after month is the most satisfying thing for me ( to think that 1ce upon a time I used to get a thrill from buying designer handbags🤣). Anyway, great channel, I enjoy listening and learning from how different people pursue their journeys to FI.
This was a really helpful video, thank you :) I chose to buy outside London too - I now combine working from home with a long commute, which I enjoy, firstly, I work on the train and count it towards my working hours :) secondly I am on the way to owning my own affordable home, I am also making overpayments - thanks to your explanation I’m just about to increase these overpayments a bit each month 🙂
Before overpaying your mortgage, check that your lender allows you to overpay it penalty-free, and if there are any limits as to how much you can overpay.
Fantastic video. U made up my mind whether to Spend £15k on a new car or put money into my mortgage! i have 33 years left on my mortgage with interest at 2.25%. It feels like I am getting nowhere with the interest the bank charges.
Thank you for this video. My husband and I are currently doing everything you said to pay off our mortgage. Hopefully it will be paid off in less than 10 years.
2.98% is quite high for a mortgage rate, mine is 1.49%. At that rate I get more return on fairly straight forward investments. Whilst I'm still overpaying my mortgage, it's not always the best way to over pay things.
I really liked your motivating and empowering speech. You are right, if people just focused on good financial planning, they will reap the benefits further down the line. It's definitely worth it.
The point at the end about whether to pay the mortgage off is the key bit be financially liberated. Short term pain for long term gain. The concept of essentially cutting your cost, selling your stuff and doing more than 1 job pay your mortgage off isn’t rocket science. It comes down to whether you want to live for the moment or live for the future.
Hi ken, great video. Breath of fresh air for the UK personal finance community as most videos centre on US strategy and regulation. I’ve subscribed. Might be worth mentioning to people, when they remortgage to consider if the product has an Early Redemption Charge which could be triggered through overpaying :)
Thank you so much for sharing your knowledge, experience, geekiness😂😂 The glow is your eyes and smile, is evidence that being Mortgage free has a made a huge difference to your life. This was so inspiring! Thank you! ,
Me and the wife paid off our mortgage in 7 years this June. The freedom of not having the bank on our back coming into this winter is priceless. Another tip is check if lower over payments register towards your 10% annually. We found that our bank didn’t register an overpayment if it was under three times the monthly amount which allowed us to overpay more without getting charged.
I don't get it... If I can't overpay more than 10% in a year, and my mortgage is 320k, then it's not more than 32k a year IE 2.6k a month. If my monthly payment is 2k, then 3 time less than that is £633. How is paying this monthly as extra more than 10% in a year? Have i totally got it wrong?
@@joannazian7699 Basically he just told you. If the lender allows them to pay less than 1/3 of their mortgage monthly towards over payment without counting towards the 10% then they can essentially pay more than 10%. example: Monthly Mortgage payments = 900 Mortgage left to pay: 80k Over Payment allowed this year: 10% of Mortgage left to pay (80k) = 8k max over payment for the year. If the bank says you can pay less than 1 third of your monthly mortgage towards over payment without it counting towards the 10% then you could pay 299.99 each month plus a final 8k. 299.99 x 12 + 8000 = 11,599.88
This is useful. For future videos I would recommend you have a quick 30sec-1minute summary where you replay all points. You can have the points on a board as you do it, to cater to learners like me that are visual. Thanks.
Would also like to see an Opportunity Cost analysis of paying off the mortgage early (at 3% interest) vs investing those same overpayments at a mild rate of 7% return over the 25 years.
No I totally agree with you it is EXCITING saving on all that interest and all them years it’s amazing!!!!!! Being mortgage free is the best idea over savings. I can start saving after that point! 42 is my Happy year if everything flows!!!!!! It’s actually mental how much that £100 changes but the mortgage advisors never really tell you none of this (Annoying). Great video has driven me even more. The thing about life is things crop up or overtime can drop but for now I’m super focused. I didn’t do what you did at 28 I paid a low amount to free up more money to live but at 33 I locked into the idea 💡 man I want this done before children I went from paying like £700 a month to £1000 sacrificed holidays etc but I shaved off so so many years. I keep thinking but when it’s done then we will see the holidays il go on. Having a bigger bulk left over after the bills is a big peace of mind not being forced to do extra overtime every week to survive. Freedom is the best thing in life and with that I’m sure everything will flow and improve too. Loved the video and the passion in your voice wish I’d started over paying on day one but I’m just glad I am now and have been. To one day get paided and a £1000 is not going out of my salary wow!!!!! I can save it towards a pension, spend it and be lavish pay for things easier it gives you so many options!!!! I need to stay focused and graft
The Humble Penny I bet you’ve watched your share of Dave Ramsey videos too 😀 Looking back I’m mad for not discovering FI earlier. Something is fundamentally wrong when “everybody” accepts living paycheck to paycheck.
@@TheHumblePenny we just got a mortgage in September so we are just at the beginning. Thanks so much as we didn’t know what to do with the extra pennies we have. We don’t have the tv packages either which have been great. Saving a lot of money
We're just starting work on clearing debt. But I have much bigger goals than that! It has taken me years to get my husband to want to turn everything around, unfortunately he's waited till a crisis to get there, but at least we're tackling the debt together now. Our 5 year fixed term ended (30 year agreement) so we've renewed to another 5 year fixed, (at 25 years) but with better overpayment options. We'll have cleared our debt and will be working on 3-6 months running costs behind us by the fixed term end on the new plan, so my plan is to find a new deal then so we can throw everything we can at it. I've crunched the numbers, but my husband doesn't really believe we can do it, so I've had to be extra generous with my time frames in order to keep him with me on this. He's managed to transfer his credit card debt to low or zero offers over the past few years, so we're not working with massive interest rates. I'm just keeping everything crossed that when he starts seeing the debt snowball he'll be more committed. It's so refreshing to hear uk based advice on this! Thank you for your time.
I paid mine off in 5 yrs ,a 1 ,bed flat I got made redundant and paid last bit. With that But eventually moved but kept flat and rented it out . It is now part of our pensions income but the government have introduced too many regulations so agency charges too much.
Great work. I was on track to pay off the mortgage in 10-11y but then need to move so have gone back up 🙈Overpaying made it possible to move and have a low LTV!! Will attack this mortgage again!
That is a great idea and something I had not taught of was to switch banks during the repayment. Currently I am on a high interest mortgage because I lived in the UK for years and moved back to Ireland it was a struggle to get a mortgage but I am paying back extra but now in a year I am going to go back to the bank and look for a lower interest and take a big chunk of interest off. Brilliant, that suggestion is really a game changer. Thank you.
I have been saying this for years, however my Mrs is like.....no.... I have been paying £20 a month and knocked off 2 years.... problem is unless your on good money its hard to over pay.
You might be surprised at what you're overpaying in monthly expenses. Re-watch this video. My husband and I made very, very little for the first 8 years of our marriage but we still saved. Seven examples: 1. We had one car (the first 8 years together while living in the middle of nowhere). 2. We did and still do make a pot of vegetable soup or similar for lunches and some dinners - serve with a nice sourdough bread; it's worth the extra £. 3. Tech Stuff: We don't own a tv and lots of tech gadgets. We had only one land line and one mobile until recently. Now two mobiles and no land line. 4. For 5 years we only took our holidays around the country and by camping. Discovered great places and the campsite facilities were always nice. 6. I purchased most of my clothes at charity shops and altered several on a sewing machine. 7. We use credit cards to build a good record and PAY THEM OFF MONTHLY. Summation: The minute we had extra income at any time, we'd put it in the bank. Good luck - you can do it!
I stopped smoking transferred the money of a packet of cigarettes everyday into the mortgage account. The difference is incredible. Just keep chipping away at people.
Recently discovered your channel and I love it! I've considered overpayments but never looked into it... but now I have and I'm amazed how how much we can save in interest and the reduction of how long it'd take to pay off. Thank you! 😀😀
I live in the midlands and have a pretty small mortgage. I’m About two years into 25 yr mortgage and I’ve recently started overpaying by standing order with the intention of increasing that every quarter once I’m no longer feeling the pain on that overpayment.
Inspiring video on the very real possibilities of paying off one's mortgage in a shorter term; doing small things which result in a huge shift. Something I think many do not consider. A house is often our largest purchase and we almost periodically pay out this huge monthly outgoing to the lender in rote manner, at their request, without thinking creatively. I've subscribed!
Im not sure how you can overpy twice in a month. When you set up an overpayment, it will only take it out once a month. Also, you have to be careful not to go over your limit to avoid receiving a penalty.
📢WE WROTE A BOOK 📢. Order Our NEW Book, Financial Joy, on Amazon today - geni.us/financialjoy. It's a 10-week plan to help you Banish Debt, Grow Your Money and Unlock Financial Freedom. It's published by Hachette UK + Quercus.
One VERY IMPORTANT point to add to this video is that where you choose to live matters. We chose to live just outside London, and as such bought a house without a huge mortgage (relative to London prices) on it. This was a deliberate decision as we could have afforded living in a major City like London but chose not to. Hopefully, those who are still to buy a property will find this point useful. LESS DEBT = LESS TIME TO FREEDOM :) . *MORTGAGE OVERPAY CALCULATOR UPDATED FOR 2022* - thehumblepenny.com/MortgageCalculator
Plus the *INSTRUCTIONS for using the Mortgage Payoff Calculator* is here - thehumblepenny.com/early-mortgage-payoff-calculator
*FINAL POINT - You can get mortgages WITHOUT Early Repayment Charges (ERC)!* This is one way to pay more than 10% (if you can afford it). I know for certain that providers such as Nationwide offer this. This is not Financial Advice 😀. Please use a broker and make the decision based on your personal circumstances.
Hey John, thank you!
Absolutely! Yes some banks do exactly for that reason.
The Humble Penny great video. Say you had a side hustle and made £200 a month which you wanted to put to your mortgage. Would you first have to pay income tax on that side hustle or is there some tax benefit to overpaying mortgage whereby you do not have to pay tax (or reduced amount) in this money if it’s going to overpayments
It really depends on the type of income. The general rule is that you pay tax on side hustles but at varying rates depending on the type of income e.g. Salary, dividends, interest, profits, etc.
However, the one thing (that most people can rate to) that you don't pay tax on is renting a room to a lodger if you make £7,500 per year or less.
Hi mr penny 😊 I’ve watched some American videos that talk about creating family banks. Have you heard of that and is it possible in the UK?
Hi Candy Cat,
I haven't come across those here. Thanks for checking out the channel 😀
Great video. I took out a 25 year mortgage in 2009 and made overpayments. It will be paid off by next year. FREEEEEDOM!!!!!!!!!!!
That is EPIC! 🙌🏾😊
Can you keep us updated, please.
Happy New Year too you!
Did u get charged for making overpayments ?
The Power of Zen awesomeness ‼️
i worked all the way through Covid as a Lorry Driver in the UK and i couldnt travel anywhere on Holiday, and i have now payed off my Morgage, thankyou for your inspiration both.
Great video. Im 54 and have moved into my garage (workshop has been converted to a small flat) and Im renting rooms in my house out so I can get my mortgage paid off fast using the rental income. I have bought it down from 16 years to 5 and cant wait to be mortgage free.
Paula, very smart move!!! 😀
Please, and I'm sure you do, treat your tenants fairly and with absolute kindness. Fix something when it needs fixing. You can even go so far as to throw a barbeque for them every summer to say thank you. You're living 'on top of each other' so it's good to live in friendship and remember that they're paying your way.
@@scotsam7590 mind your business
Excellent!
That's a fab idea! Well done
Thanks for the advice, I took out my 30year mortgage 23years ago but decided to take you’re advice and pay it off in the next 7years 😂
😂🤣🤣
😂
Perfect timing!
Me and my husband are hoping to be mortgage free at this stage at around 40-41 years old. We’re both 30-31 now. I wish I had found you and this incredible advice 5 years ago! But no time like the present, thank you so much for making this information accessible
Laura, you're so welcome. Great point too!
Thanks to this guy, I now only have 8 years left to pay, I cannot thank this man enough, he first came by his stuff during lockdown, but what this has done for me is crazy, I now have my job and 3 side hustles which are not stressful, all stewarding work which allows me to watch football sometimes and get paid for it. UA-cam does have gems if you want to find them, and the best part all this education is for free. Thank you.
Just received a recommendation of this channel now! So refreshing to see a UK based( and not US as usual) information on this. Subscribed 👍🏽
Welcome aboard, Chinonye 😊. Glad you're getting value from the content. Also interesting to see UA-cam recommending our channel.
Just came across this channel. Good to see a UK channel on this topic.
We appreciate you watching 😊
There really are few and far between, which is why I summoned up the courage to start my own personal finance channel. I love their content, so helpful, clear and easy to digest!
UK channels typically has a lot less drama then e.g. American channels. Regards from a Dane :)
Tolu Frimpong Frimpong your Ghanaian and you talk finance. Your my girl, I’m subscribing now xx
About time. tired of hearing Americans blabbing all over UA-cam. Salute
Questions 1.
Can I pay one lump sum of 10% . of my mortgage.
2. What is the difference between monthly payment and one-off payment a year.
I'm waiting for your reply. Thanks
Congratulations! I'm 37 and given myself 7 years to pay off the mortgage on my property and this video is really helpful!
Go go go! 😉
I am currently binging all your videos! My fiance and I haven't bought a house yet but I am already planning on how we will make overpayments! FI, here we come!
Smart plan! 😉. Thanks for binging 💛
This was exactly what i did eg cancel gym membership and do jogging or walking instead, cancel cable tv, Netflix etc, chose a cheaper mobile phone package, upgrade on SIM only n use same phone for over 10 years, chose to buy my food from cheaper supermarkets, i buy my clothes from charity shops etc etc, and I'm mortgage free for over 10 years now, no worries about interest rates go up or down.
Great to see a UK channel doing this. Inspired me to set up my own too- we definitely need more in the UK. Great content as always!
👊🏼
Bro your channel is amazing! so glad I stumbled upon it. What you teach needs to be part of the national curriculum in schools! This is real life education!!
Thanks a lot!! 😊🙏🏽
Good stuff. I've literally just got my first mortgage. My payments are relatively low and very manageable. Doing some quick calculations and I'm certain I can take several years off already! God bless bro
Steve, AWESOME stuff!! 😀. Thanks for stopping by and God bless!
I live on the streets and rent my 3 bedroom house out. Unfortunately the tennants are witholding rent. Now im in trouble 😐
Love Ken’s enthusiasm in this video. You can see he is really passionate about FI. I am at the very beggining of my FI journey and Humble Penny has been a game changer for me!
Hey Leanne
Thanks a lot for watching! 😊. You're at the start of an exciting journey and I'm super pleased to hear that FI is something you want to explore. I tell everyone I meet that it's an aspirational journey and one that becomes more REAL as time passes. Do please invite friends to check out the channel. Much appreciated 😁
Great video. We followed quite a bit of this advice...bought our house in 2006 and paid it off in 2018...12 years by overpaying as well as doing well with stocks and shares separately in an ISA. The goal was to pay it off before 40 and did it at 38 in the end 🙂. The savings are huge but it’s amazing not having a mortgage every month again.
Hi Oliver
That's phenomenal! I love the goal of doing it before 40. What is your goal now?
Hi @The Humble Penny - It's been strange actually as we've been quite 'aimless' every since paying off the mortgage which just shows how important it is to have clear goals. We recently changed our goal to be able to be in a position to retire at 55 should we wish to. It's not to say we have to but what's great about it is that neither of us will ever lie awake scared of being made redundant and having to find something in later life. Also, my uncle had a really great way to look at life....his view was: The first 25 years of your life is about learning and studying, the second 25 years is about working, and the last 25 years you should enjoy...if you get more than 25 at the end, it’s a bonus...if you get less, at least you still made the right decision to stop earlier. Whilst i wont stop at 50, the mindset behind his advice was really nice and motivating.
Thanks for having a UK person talking about this topic. I've about had enough of those Americans blabbing all over UA-cam.
You're most welcome :). Are you working towards becoming mortgage free?
A lot of people don't realise it but if you want to become wealthy you actually have to have as much positive debt as possible, paying off your mortgage early isn't always the smartest option, Because even if you leverage your money reasonably well you could achieve 20% returns in a rental portfolio, whereas your personal mortgage is only 5% interest so it actually becomes economical to be in debt.
Our Goal is to pay off our mortgage within the same time frame. Currently it feels like mission impossible, but you guys have given us some hope! Thank you for the amazing content, keeo up the amazing work.
Much appreciated! 😀
Great video so I've subscribed, I have just recently taken out a mortgage at the age of 56, I have it over 13yrs but I over pay a further £1200, should have it done in 6.5years😁
Hi Mark
6.5 years would be amazing! Sounds like the kind of result you'd get with that level of overpayments.
Overpayments is my strategy going forward. This only struck me when needing to remortgage this year. A second job will help me get the thing down. I'm by myself but I'm going to do this.
Love your videos, thank you!
Go for it 💪🏾. Keep us updated.
@@TheHumblePenny I will. I'd love my mortgage cleared in 10 years. My mindset has shifted enormously this year. Need better secondary income for sure, occasional bar work isn't it.
I took a 250k mortgage over 30 years 8 years ago and I should pay it off in next 2 years
💥👍🏼👍🏼
How have you made that possible?
@@staffysmile3325
By giving over payments a month and always shopping around for the best mortgage rate when fixing for 2 year period
Good on you. Ramadan Mubarak
Could I ask how much you would overpay each month?
Great to have come across your channel, inspired me to phone my provider, they dropped my interest rate by 2%, saving me £50 a month alone!
Great vid. Prompted me and my other half to take out a joint mortgage which starts in December. A 5 year mortgage with Nationwide which allows overpayments without penalties. We aim to be mortgage free in 24 months.
Wonderful!! Good to see you making the move and being proactive to find a lender that does not hold you back! 😀
Wow !
One of the most inspirational videos I’ve seen on UA-cam. I can’t thank you enough for this video up.
You're most welcome, Patience 😊
Very timely now - I was always highly motivated to clear off as much of my mortgage as possible but all the so called finance experts were saying don't prioritise mortgage, it's low interest, invest in other things etc. Well I am glad I played it safe now. You can't put a price on peace of mind about having a secure home.
This isn't heard enough Ken! 2 young kids means we have paused overpayments for now but once nursery bills have gone we'll be back on it! Great job. Can't get enough of seeing those numbers.
Hey Ben
I TOTALLY get you when it comes to kids. Things are just a lot harder! However, it should serve as motivation to keep going. Make it your WHY! 😀
Nissan Leaf out on the front too, this brother be saving all over the place
😂🤫
We've been overpaying for 5 years. We're on 5 year fixed as well. We can do more and im looking at side hustles. Thanks for this. 😊
You're welcome, Jackie! 😀
@Jackie AQ Don't just think of side hustles!! Create your own business!! Being in full control of your own money. That's true financial freedom
I paid off all my bills, by paying them more and quicker, cheers for the pearl of wisdom, mastermind will be calling soon.
Much appreciated, Andrew 😀. I wish you well.
Great content as always. Love your channel. Thanks for the help!
Myself and my wife are on course to pay off our 25 year mortgage is less than 12 years, and before age 45. Two years into the mortgage we refinanced to a 15 year mortgage at a great fixed rate and are hitting the principal hard. Saving and investing for your future is so much more rewarding than mindlessly spending. Once you realise you don’t need any of the stuff you stop wanting it! Gives you more time for the important things in life. We’ve never been happier! 🙌
💯. Huge congrats to you and your wife 😀. Thanks for watching and supporting our channel
You are BRILLIANT at speaking and explaining! What a gift! Haha loved this! So inspiring!
Hey Tayla, thanks so much! 😀. It means a lot to hear that because I grew up very shy and lacked confidence with articulating my ideas. UA-cam is helping me to communicate better by making these videos :). By the way, love you singing!
@@TheHumblePenny aw I love that!!!! You make it easy to understand and connect. Please don’t stop, you’re making a big difference to other peoples lives with this side hustle! ;) I’ve watched loads, and have subscribed. Thank you!
😊💛
Great content. I’ve cut two years from my mortgage over last five years simply by cutting the term at the points my fixed rates ended. I simply view this as like a form of overpaying, knowing I could be paying a less each month if I stuck to the original 30 years. Now on course to be mortgage free at 49 instead of 51 (we got a 30 year mortgage both at the age of 22) I will begin increasing the monthly amounts with the overall goal of being free by 45.
Good work!
KEN , I have a better idea to create wealth. Don't over pay on your "mortgage"(ps i say mortgage but strictly you don't have a mortgage the bank does). In fact don't pay any off the principle sum at all, pay interest only and keep the repayments low.Invest the extra money in other properties.
Eg we bought another property in 1995 ,it was £45,000 we put up 10% deposit (£5,000) , paying interest only. Its now worth £420,000. We can now sell it and the massive profit will pay off our original mortgage with loads over, a better idea I think than over paying to create wealth . This doesnt include the rent on the property, which covered the interest payments on both houses.
Now instead of having one house paid off we a re millionaires
This is 2021 not 1995 mate. Move along, you older generations had it easier in your days when houses were cheap.
12:20 The account of your Dad still bearing the burden of a mortgage into retirement. This held a lot of personal resonance for me as exactly the same family dynamic. The feeling of sadness when you think how hard your parents have worked all their lives and it's still hanging over them when they finally retire. Still climbing the mountain rather than free-wheeling down the other side into a comfortable retirement.
YES!! And I bet there are many people who share this same experience. 'Cos what ends up happening is that it become a a problem shared by other family members. Unintended consequences.
This resonates so mum, I want to share the video with my mum
@@magneticaims please do ;)
Good job paying it off , also some mortgage providers allow unlimited overpayments (no 10% threshold) such as first direct , also can save overpaying weekly than monthly as the interest is calculated daily , great vid mate
Thanks for sharing that info re First Direct.
I am so glad to find you. Brilliant UK based content.
We are older (50.s) our goals were to pay off our mortgage, have an emergency fund, educate the kids to FI, minimise our needs & have enough to pay annual bills.
Currently doing better than expected after the first year. 3 years off mortgage, 8 to go, annual bills & emergency fund covered, kids enrolled to mum school of money 😊 and plans for side hustles formulating (you are a big help there) . Going forward...get hubbie doing a job he's happier in, converting our garage and smashing that mortgage ❤
Jane 💪🏾💪🏾👏🏽👏🏽😁. LOVE your progress!! So happy to read this. AWESOME start to 2020.
I began my mortgage in 2010. I went to see a mortgage advisor in 2012 and changed my mortgage to another 10 years. Then in 2013 I began my overpayments. I did target setting in 2016 and 2017. I paid it off in June 2017.
Incredible! 😀 How's that helping you in 2020?
@@TheHumblePenny It means I don't have a large expense each month. Therefore I now have a private pension and two regular saving accounts.
I just paid off my house in total this week! I am 30 years old, my wife and I bought our terrace house 3 years ago, rented it out immediately and paying it off had become the obession! good luck to everyone. it can be done.
@E B I work on boats, so no rent or bills
I bought a semi detached 3 bedroom bungalow in 2010 with a mortgage. It was a 25 year mortgage and in 2012 I changed it to 10 years. In 2013 I began overpaying it. In later years I wished to owe 25,000 pounds in the start of 2016 and be down to 10,000 pounds in the start of 2017. I paid it off in June 2017.
Great video and really helpful, im from across the water and going to use all you have said. Im 3 years into a 30 year mortgage and 33 years old. My new goal now seeing this is to clear my mortage by 40 so gives me 7 years to reach this lifegoal and even more now that im expecting twins 😁. Keep up the great work really helps us.
Hey! Great to read your message and see that You'll apply the ideas across the pond 😀. Having it as a goal is really the beginning. Don't forget to grab the *Mortgage Payoff Calculator* and the *Instruction* links in the video notes.
Seeing the rose petals floating across the screen put a smile on my face😁👍🏾... seriously though, this was really good information, thank you Mary and Ken 🙏🏾.
Thank you so much 😀. We had a lot of fun making this video and figuring out how to make such a dry topic interesting.
This is great advice, thank you so much! I'm a solo homeowner and I think I can pay off my mortgage in 15 years - would be half that if I had a partner! I have 340,000 left to go on a new salary of 105,000 - you'd think that salary would make it easy but it doesn't! Will use these tips and see how I get on. If UA-cam still exists in 15 years, please remind me to stop by for an update 😄
You'll most likely do it before 15 😀. Keep going 💪🏾
Me too, I have just over 300k left over 2 properties.
6 figure income, saving half salary to make overpayments. Aiming to clear them in the next 5 years.
Hello and thank you I'm from Baltimore Maryland in the US . I've so enjoyed the teaching I'm in my 50 so I feel behind the 8 ball however I'm still going to try this. So again tks for sharing ❤❤
Hey Jeannetta, we're cheering you on! ❤️❤️. By the way, how did you come across our video? Was it recommended to you?
@@TheHumblePenny I saw you and your wife Mary on The Sisters Channel talking about your book 📖
Great video - plain English and easy to understand thank you. My one question - you say you started overpayments immediately, but many mortgage agreements with fixed interest rates for 2,3 years etc. do not permit overpayments. Is it better to re-mortgage to a low fixed rate or accept the higher rate and overpay?
Thanks for the video. We are actually thinking of leaving London and could be mortgage free, weighing this up against staying in my job (fairly well paid) and making overpayments against going (might have to leave job due to commuting time). We have two mortgages on the house due to a refurb plus nursery fees so has felt quite stressful.
Congratulations & thanks for breaking this down! Recently moved to my families forever house, same numbers in your example, and didn't realise how big an impact an extra few hundred pounds could make each month. Will download the spreadsheet & give it a try. New channel subscriber! Cheers from Scotland!
Excellent! Thanks for checking out the channel! 😀
Originally started to comment complaining about this video. Then decided to check a mortgage overpayment calculator and have to say if i put my self in his shoes and paid the £400pcm i have for investment/saving i would pay off the same in just over 8 years and save £39k in interest payments.
Haha that's interesting! I wonder what you'll do with that information next?
Soooo good to see a UK based channel for financial knowledge. This video is so timely for me as I am now starting a house buying journey in middle age and I'd like to pay it off early. I like that you do the breakdown and the calculations for different overpayment amounts too. Very good content. You gained yourself a new sub today for sure. Please keep doing these you are doing a great job. Blessings
Thanks a lot 😊. Congrats in advance on your home purchase. Exciting times! Be super careful about how much you borrow. That money you borrow is REAL.
@@TheHumblePenny Thanks to you and others willing to share information and educate, I have been preparing for this thoroughly. Hopefully this next phase of my journey will be as successful as paying of debt as a single parent and raising two decent humans has been. I am excited!
So let say I don’t make early over payments and save that money, and pay at the end of the year. Example I save up the £100 each month or I get extra money from a side hustle and make a payment lump sum of £3k each year. What impact will that make towards agreement in principle?
Love this video- you’ve inspired me ! I’m itching to get started on the side hustles and can’t wait to use the mortgage calculator! Making it my mission to be mortgage free in 5 years! You’re fab!
Hey Asma!
Thank you 😀. You can do it in 5 years! Absolutely
I owe 77000 left on my mortgage. This video is very helpful with starting . BETTER LATE THAN NEVER...
Absolutely :). Keep going!!
I've recently purchased my first house and I'm looking to pay it off as fast as possible, this video was very informative and certainly gave me some things to think about. I'm lucky to be in a job that is offering overtime all the time (worth an extra £15k gross per year) so I'm certainly hoping to be able to pay it off within 10 years (then maybe invest in a second house as a buy-to-let).
Over payments is the key then and paying what you can save every year!! Right I’m on to the bank tomorrow. Only got a mortgage out 3 months ago, and already had a goal, but didn’t think about middle of the month repayments really makes sense.
Many thanks bro this video was amazing and so inspiring
Thanks so much for watching, Michael.Please share with others 😀
Torn between investing and overpaying the mortgage. Settled with investing £150 pcm and overpaying the mortgage by 10% pcm. Fab video. Thanks so much 🙂 Sue
Hi Susan,
Great approach!! 😀 Your challenge is one that A LOT of people have. The key there is to choose a path and follow it and tweak as one goes along. Buying shares/funds and paying off the mortgage are both different forms of investing.
How can one get into investing in shares
Kenzy Christy my advice would be to NOT invest in single shares (ie 50 shares in Barclays or Apple, etc) as the share prices can be very volatile. Look in to something like mutual funds/ index funds that track the market. I use Vanguard, they’re very informative and also have lots of information so you can look at past performance of a fund before you invest in it.
I am 28 and have been looking to get a mortgadge and didn't know much about it, But watching this has helped me get a clearer picture! You have explained it in very simple terms that anyone can understand and I really appreciate it!! keep on doing what you are doing, great stuff!! Defo subscribed and liked!!
You're most welcome, Baktazh! 😀. Let me know if you have any content suggestions.
Gosh you're so smart! I wouldn't have ever thought of paying a mortgage off twice a month! Thank you :)
😉 tbh these are things that you get to learn over time
I got a $141,000/30 year loan on a $320,000 house at 4.375%. If i didnt over pay id be paying almost $7,000 a year just in interest.
Since day 1 ive been ovwr paying my 700.00 mortgage and paying an extra 2,000.00 each month. 21 months later and my 141,000 is now 95,000 principle left to pay. Im on track to pay off my whole house in a total of 5.5 years.
I really enjoyed this video. My family was a victim (so they thought) to mortgage fraud in the US. We fought back (pro se/no lawyer) and were settled from 235,000 on paper to 85,000. Now I am eager to payoff in 5 years. I would love hear more from you on stocks as well...I totally subscribed after my first visit...
Thanks Hermena! 😀. 5 years is doable!
Here is a video on Stocks -
ua-cam.com/video/u4n8f-YL5_I/v-deo.html
I started off working towards being debt free, then I built a healthy investment portfolio now I am working towards a fat deposit for my 1st property and the very last step will be paying off the mortgage in shortest possible time. Seeing my nett worth inch up month after month is the most satisfying thing for me ( to think that 1ce upon a time I used to get a thrill from buying designer handbags🤣). Anyway, great channel, I enjoy listening and learning from how different people pursue their journeys to FI.
Hehe great to hear about your change in money mindset and allround progress :)
This was a really helpful video, thank you :) I chose to buy outside London too - I now combine working from home with a long commute, which I enjoy, firstly, I work on the train and count it towards my working hours :) secondly I am on the way to owning my own affordable home, I am also making overpayments - thanks to your explanation I’m just about to increase these overpayments a bit each month 🙂
You're most welcome 😊. You're on your way 💪🏾💪🏾
Before overpaying your mortgage, check that your lender allows you to overpay it penalty-free, and if there are any limits as to how much you can overpay.
Ofcourse. Or get a mortgage product with no overpayment cap.
Fantastic video. U made up my mind whether to Spend £15k on a new car or put money into my mortgage! i have 33 years left on my mortgage with interest at 2.25%. It feels like I am getting nowhere with the interest the bank charges.
OMG, Dat so happy to read this. You would have regretted the car investment over time. Enjoy your investment in your freedom 😀
Thank you for this video. My husband and I are currently doing everything you said to pay off our mortgage. Hopefully it will be paid off in less than 10 years.
Good work, Sheila!
I laughed all throughout this video because I could feel your excitement! I’m fired up!💪🏽
Haha! Go go go, Nicky! :)
2.98% is quite high for a mortgage rate, mine is 1.49%. At that rate I get more return on fairly straight forward investments. Whilst I'm still overpaying my mortgage, it's not always the best way to over pay things.
What is your current Loan To Value?
I really liked your motivating and empowering speech. You are right, if people just focused on good financial planning, they will reap the benefits further down the line. It's definitely worth it.
Much appreciated! :)
The point at the end about whether to pay the mortgage off is the key bit be financially liberated. Short term pain for long term gain.
The concept of essentially cutting your cost, selling your stuff and doing more than 1 job pay your mortgage off isn’t rocket science. It comes down to whether you want to live for the moment or live for the future.
Hi ken, great video. Breath of fresh air for the UK personal finance community as most videos centre on US strategy and regulation. I’ve subscribed. Might be worth mentioning to people, when they remortgage to consider if the product has an Early Redemption Charge which could be triggered through overpaying :)
Hey Ed
Thanks for subscribing 😀. Great point re ERC.
Im paying mine off in July. Paying a 35 year mortgage off in 5 years. Im 35 and its time to start living life to the max
Amazing achievement, congrats dude. How did you manage that?
@@martin096 working like a dog for 15 years basically mate lol
Thank you so much for sharing your knowledge, experience, geekiness😂😂 The glow is your eyes and smile, is evidence that being Mortgage free has a made a huge difference to your life. This was so inspiring! Thank you!
,
You're most welcome 😊. I loved making this video and my wife did a great job editing it whilst still learning how all of this UA-cam stuff works
I love this video. It has motivated me to be financially free. Owe no man anything but the debt of love. Thank you.
Tomi, that's amazing 🙌🏾. This is exactly why I made this video.
Me and the wife paid off our mortgage in 7 years this June. The freedom of not having the bank on our back coming into this winter is priceless.
Another tip is check if lower over payments register towards your 10% annually. We found that our bank didn’t register an overpayment if it was under three times the monthly amount which allowed us to overpay more without getting charged.
I don't get it... If I can't overpay more than 10% in a year, and my mortgage is 320k, then it's not more than 32k a year IE 2.6k a month. If my monthly payment is 2k, then 3 time less than that is £633. How is paying this monthly as extra more than 10% in a year? Have i totally got it wrong?
@@joannazian7699 Basically he just told you. If the lender allows them to pay less than 1/3 of their mortgage monthly towards over payment without counting towards the 10% then they can essentially pay more than 10%.
example:
Monthly Mortgage payments = 900
Mortgage left to pay: 80k
Over Payment allowed this year: 10% of Mortgage left to pay (80k) = 8k max over payment for the year.
If the bank says you can pay less than 1 third of your monthly mortgage towards over payment without it counting towards the 10%
then you could pay 299.99 each month plus a final 8k. 299.99 x 12 + 8000 = 11,599.88
I maxed out my mortgage and it was the best thing I did. Financial education is worth far more
Haha, i guess you've been going about seeing to paying up in due time?
This is useful.
For future videos I would recommend you have a quick 30sec-1minute summary where you replay all points. You can have the points on a board as you do it, to cater to learners like me that are visual.
Thanks.
Great tip :)
Would also like to see an Opportunity Cost analysis of paying off the mortgage early (at 3% interest) vs investing those same overpayments at a mild rate of 7% return over the 25 years.
No I totally agree with you it is EXCITING saving on all that interest and all them years it’s amazing!!!!!! Being mortgage free is the best idea over savings. I can start saving after that point! 42 is my Happy year if everything flows!!!!!! It’s actually mental how much that £100 changes but the mortgage advisors never really tell you none of this (Annoying). Great video has driven me even more. The thing about life is things crop up or overtime can drop but for now I’m super focused. I didn’t do what you did at 28 I paid a low amount to free up more money to live but at 33 I locked into the idea 💡 man I want this done before children I went from paying like £700 a month to £1000 sacrificed holidays etc but I shaved off so so many years. I keep thinking but when it’s done then we will see the holidays il go on. Having a bigger bulk left over after the bills is a big peace of mind not being forced to do extra overtime every week to survive. Freedom is the best thing in life and with that I’m sure everything will flow and improve too. Loved the video and the passion in your voice wish I’d started over paying on day one but I’m just glad I am now and have been. To one day get paided and a £1000 is not going out of my salary wow!!!!! I can save it towards a pension, spend it and be lavish pay for things easier it gives you so many options!!!! I need to stay focused and graft
Thank you for your great Ideas!
Blessings.
From Atlanta GA.
Thank you, Lucy 😊
Agree to all your advice and live by the same philosophy. My friends and family think I’m nuts, but I’m so motivated to be mortgage free
Excellent!! 😀. Keep at it. You'll be the one laughing.
The Humble Penny I bet you’ve watched your share of Dave Ramsey videos too 😀 Looking back I’m mad for not discovering FI earlier. Something is fundamentally wrong when “everybody” accepts living paycheck to paycheck.
Powerful stuff, thank you soo much, we ill start with the £100 per month overpayment then £250 and by next year £500 per month
Binging through your videos am going to use your tips. Middle of the month extra payment. Thanks
Thank you for watching 😀
@@TheHumblePenny we just got a mortgage in September so we are just at the beginning. Thanks so much as we didn’t know what to do with the extra pennies we have. We don’t have the tv packages either which have been great. Saving a lot of money
We're just starting work on clearing debt. But I have much bigger goals than that! It has taken me years to get my husband to want to turn everything around, unfortunately he's waited till a crisis to get there, but at least we're tackling the debt together now.
Our 5 year fixed term ended (30 year agreement) so we've renewed to another 5 year fixed, (at 25 years) but with better overpayment options. We'll have cleared our debt and will be working on 3-6 months running costs behind us by the fixed term end on the new plan, so my plan is to find a new deal then so we can throw everything we can at it.
I've crunched the numbers, but my husband doesn't really believe we can do it, so I've had to be extra generous with my time frames in order to keep him with me on this.
He's managed to transfer his credit card debt to low or zero offers over the past few years, so we're not working with massive interest rates. I'm just keeping everything crossed that when he starts seeing the debt snowball he'll be more committed.
It's so refreshing to hear uk based advice on this! Thank you for your time.
Wonderful! Sounds like you've got a real action plan going there :)
I paid mine off in 5 yrs ,a 1 ,bed flat I got made redundant and paid last bit. With that
But eventually moved but kept flat and rented it out . It is now part of our pensions income but the government have introduced too many regulations so agency charges too much.
Hi Alison
Awesome re 5 years! Yes, UK regs are too stringent unfortunately. Highly topical.
Great work. I was on track to pay off the mortgage in 10-11y but then need to move so have gone back up 🙈Overpaying made it possible to move and have a low LTV!! Will attack this mortgage again!
This channel is GOLD!!!!!!!!!
Much love, Tae! 😀
That is a great idea and something I had not taught of was to switch banks during the repayment. Currently I am on a high interest mortgage because I lived in the UK for years and moved back to Ireland it was a struggle to get a mortgage but I am paying back extra but now in a year I am going to go back to the bank and look for a lower interest and take a big chunk of interest off. Brilliant, that suggestion is really a game changer. Thank you.
I have been saying this for years, however my Mrs is like.....no.... I have been paying £20 a month and knocked off 2 years.... problem is unless your on good money its hard to over pay.
It's an incentive to make more and buy your freedom. It's possible 😉
You might be surprised at what you're overpaying in monthly expenses. Re-watch this video. My husband and I made very, very little for the first 8 years of our marriage but we still saved. Seven examples:
1. We had one car (the first 8 years together while living in the middle of nowhere).
2. We did and still do make a pot of vegetable soup or similar for lunches and some dinners - serve with a nice sourdough bread; it's worth the extra £.
3. Tech Stuff: We don't own a tv and lots of tech gadgets. We had only one land line and one mobile until recently. Now two mobiles and no land line.
4. For 5 years we only took our holidays around the country and by camping. Discovered great places and the campsite facilities were always nice.
6. I purchased most of my clothes at charity shops and altered several on a sewing machine.
7. We use credit cards to build a good record and PAY THEM OFF MONTHLY.
Summation: The minute we had extra income at any time, we'd put it in the bank.
Good luck - you can do it!
I stopped smoking transferred the money of a packet of cigarettes everyday into the mortgage account. The difference is incredible. Just keep chipping away at people.
Recently discovered your channel and I love it! I've considered overpayments but never looked into it... but now I have and I'm amazed how how much we can save in interest and the reduction of how long it'd take to pay off.
Thank you! 😀😀
Cheers, Fiona! 😀
I live in the midlands and have a pretty small mortgage. I’m
About two years into 25 yr mortgage and I’ve recently started overpaying by standing order with the intention of increasing that every quarter once I’m no longer feeling the pain on that overpayment.
Good work, Richard 👍🏾
Treat savings and overpayments just like any other bill and budget it in.
Love that!
When you're watching a video about paying off your mortgage, when your total income is too small to even apply for a mortgage.
It's called working on your mindset for success 🙌🏾
This video popped up at the right time, been thinking about repayments recently. Thanks for this will definitely swap expenses.
👊🏼😉
Inspiring video on the very real possibilities of paying off one's mortgage in a shorter term; doing small things which result in a huge shift. Something I think many do not consider. A house is often our largest purchase and we almost periodically pay out this huge monthly outgoing to the lender in rote manner, at their request, without thinking creatively. I've subscribed!
Amazing content! You and Mary are great people and deserve the best life has to offer!
Thanks a lot! Very kind of you :)
@@TheHumblePenny the fact that you take the time to acknowledge/ reply E V E R Y single message you receive does not go unnoticed :)
Im not sure how you can overpy twice in a month. When you set up an overpayment, it will only take it out once a month. Also, you have to be careful not to go over your limit to avoid receiving a penalty.
Set it up as a standing order. Of course, check your limits by calling the bank, etc.
THANK YOU SOOOOO MUCH FOR THIS VIDEO. REALLY INSPIRATIONAL. 😭👏🏿👏🏿👏🏿
Jeffrey, huge appreciation! 🙏🏽😊