By April this year hopefully I’ll be mortgage free! As Nicola mentioned, overpaying on the first few years of your mortgage is so important, will literally save you thousands. Chip away at it, no matter how small the overpayment is - key is consistency.
Paid my mortgage off 12 years early. Best thing I ever did. Now I have minimal expenses, so I can invest what I earn and work as much/little as I like. Best of luck on your journey Nicola.
I've been overpaying my mortgage for the last 3 years now, its really nice to see the balance and the interest amount come down bit my bit .I think its easier now days with internet baking to get it payed off and set yourself free.
With Barclays, you have to overpay by at least 3 times the normal monthly anount, if you want to reduce the payments. For me personally, I save up to do this before overpaying.
Ive watch 8 overpayments videos and its actually towards end of your video when you said maybe near the end of the month what ever money you have left use that as overpayment this is my favorite method so far as mentally it feels like you see more of your salary on the 1st and seems less scarey to make overpayment on 1st ❤
I've been making small overpayments every month, not by much but it will all help. I found that my account with my utilities supplier was a lot in credit so I've reduced my DD and added the difference to my mortgage overpayments. I'm 53 and got 15 years left on my mortgage so blitzing it early is a high priority for me
I live a very frugal life so I have paid my last couple of houses off in 7-8 years. I never take out more than a 15 year mortgage. I was raised by depression era parents who drilled into us kids not to buy anything that you can't pay for with cash. The only exception was a house and you better pay it off quickly. Then when it is paid off I celebrate with a nice (not expensive) trip somewhere. Gives me a goal to shoot for.
I'm just over a year into my mortgage (35 year term, recommended by my broker) and I've only just started overpaying in the last few months. I'm on a 5 year fixed rate and paying just over £600 per month initially. The vast majority is interest unsurprisingly. However since overpaying £60 - £150 for the past 3 months, my initial capital/principle has decreased further and interest has raised. It doesn't make sense.
If you had a bigger deposit, you wouldn't have to borrow so much and save loads of money. I'm really overpaying it as soon once my full emergency fund is in place. If i had my time again i would be overpaying from the word go. so listen in people who are just starting out.
One other thing, in the US, you can make all the overpayments you want to without penalty on a regular conventional loan. I would never take a loan where you are penalized. (I think that the banks know very few people make extra payments here.)
I'd like to get the politicians to change the law here. These blood sucking leeches (the banks) have that audacity to charge £1,000 "arrangment fees" and any other form of fee on top like wighng a swimmer down with concrete before stopping their victims from coming up for air!
I’ve been lucky with my mortgage rates - always under 3% but currently 2.09% - so I’m able to put by an extra £250 a month (mortgage payment is £299.89 and about £90 is interest) and I’m hoping to be paid off in 5 years - by the time my fixed rate ends… if I’ve done my sums right lol 😂 My lender has a standard variable rate of about 8.5% right now and I am like nooooo I couldn’t afford to live if I had to be on an SVR 💀 So I’m chipping away as much as I can. I know people say it’s always a long term debt and you could just leave it but to me the number is so big it’s a lot of pressure. I like a quiet life lol. T- minus 58K and counting! 🤞🏻
Always remember to keep some free cash to pay for any surprises/emergencies. Losing your house even when you over paid ever year on your mortgage isn’t a benefit 😅
@@ep1929 If the Interest rate goes up then whole UK will be in trouble. 30% returns on Vanguard vs 1.5% interest. Overpaying is good if LTV above 80% or something. If its in 60% or less then better to stick to the minimum payment
Even if it doesn’t “make sense” in terms of interest rate, being mortgage free has a huge psychological benefit. Having your roof over your head garanteed can be priceless. And it partially frees you from work, gives you more flexbility as to where and how much you want to work.
By April this year hopefully I’ll be mortgage free!
As Nicola mentioned, overpaying on the first few years of your mortgage is so important, will literally save you thousands.
Chip away at it, no matter how small the overpayment is - key is consistency.
Paid my mortgage off 12 years early. Best thing I ever did. Now I have minimal expenses, so I can invest what I earn and work as much/little as I like. Best of luck on your journey Nicola.
That must be so good to not have that expense every month! Maybe one day :)
I've been overpaying my mortgage for the last 3 years now, its really nice to see the balance and the interest amount come down bit my bit .I think its easier now days with internet baking to get it payed off and set yourself free.
Absolutely! It makes all the difference long term :)
With Barclays, you have to overpay by at least 3 times the normal monthly anount, if you want to reduce the payments. For me personally, I save up to do this before overpaying.
Good plan!
Thats a great way of doing it because if something crops up before the actual time to pay, you can adjust if up or down to suit
Ive watch 8 overpayments videos and its actually towards end of your video when you said maybe near the end of the month what ever money you have left use that as overpayment this is my favorite method so far as mentally it feels like you see more of your salary on the 1st and seems less scarey to make overpayment on 1st ❤
Thank you ☺️
I've been making small overpayments every month, not by much but it will all help. I found that my account with my utilities supplier was a lot in credit so I've reduced my DD and added the difference to my mortgage overpayments. I'm 53 and got 15 years left on my mortgage so blitzing it early is a high priority for me
Sounds like you’ve got a great plan ☺️
Instant gains on paying off a mortgage as it is an instant saving on your interest rate. Any kind of overpayment is usually a great long term move.
Exactly! Cannot wait to be mortgage free :)
This video is so so inspiring to me. Thank you so much
I live a very frugal life so I have paid my last couple of houses off in 7-8 years. I never take out more than a 15 year mortgage. I was raised by depression era parents who drilled into us kids not to buy anything that you can't pay for with cash. The only exception was a house and you better pay it off quickly. Then when it is paid off I celebrate with a nice (not expensive) trip somewhere. Gives me a goal to shoot for.
I'm just over a year into my mortgage (35 year term, recommended by my broker) and I've only just started overpaying in the last few months. I'm on a 5 year fixed rate and paying just over £600 per month initially. The vast majority is interest unsurprisingly. However since overpaying £60 - £150 for the past 3 months, my initial capital/principle has decreased further and interest has raised. It doesn't make sense.
No, that doesn’t make much sense.
That makes no sense at all. If you can afford that large of an overpayment each month reduce the initial term. Please seek advice!
Thank you for this video. It is a huge help.
You're very welcome! :) do you overpay your mortgage at the moment?
@@NicolaatTheFrugalCottage No not yet but will definitely be doing so even if it's a little each month.
Any little extra will help :)
If you had a bigger deposit, you wouldn't have to borrow so much and save loads of money. I'm really overpaying it as soon once my full emergency fund is in place. If i had my time again i would be overpaying from the word go. so listen in people who are just starting out.
That’s very true! And overpaying from the very start is the best thing to do if you can :)
One other thing, in the US, you can make all the overpayments you want to without penalty on a regular conventional loan. I would never take a loan where you are penalized. (I think that the banks know very few people make extra payments here.)
That’s not an option unfortunately - most mortgages here have the 10% rule so it stops you getting rid of so quickly I suppose?
I'd like to get the politicians to change the law here. These blood sucking leeches (the banks) have that audacity to charge £1,000 "arrangment fees" and any other form of fee on top like wighng a swimmer down with concrete before stopping their victims from coming up for air!
Worth to pay off erarly a shared ownership property? Or just sell it and buy a full ownership one?
Not sure - you’d have to run the figures.
Nice video . Thank you.
Thank you! Did you find it useful?
Nicola at The Frugal Cottage yes indeed.
Great!
Do they warn you when about to go over the 10 percent ammount
Not that I know of
I’ve been lucky with my mortgage rates - always under 3% but currently 2.09% - so I’m able to put by an extra £250 a month (mortgage payment is £299.89 and about £90 is interest) and I’m hoping to be paid off in 5 years - by the time my fixed rate ends… if I’ve done my sums right lol 😂
My lender has a standard variable rate of about 8.5% right now and I am like nooooo I couldn’t afford to live if I had to be on an SVR 💀 So I’m chipping away as much as I can. I know people say it’s always a long term debt and you could just leave it but to me the number is so big it’s a lot of pressure. I like a quiet life lol.
T- minus 58K and counting! 🤞🏻
I hope you achieve your aim 🤞💜
Do the mortgage companies has to right to dig your bank statement ir order to see where the money come from in your overpayments? Thank you.
Don’t think so? :)
Thank you.
No problem :)
No they don't, they actually don't want you to overpay as they are loosing out on the interest payments.
Sta8ght up gangsta, love this vid. Keep it up
Thanks, will do!
Always remember to keep some free cash to pay for any surprises/emergencies.
Losing your house even when you over paid ever year on your mortgage isn’t a benefit 😅
Very true.
Overpaying at 1.5% mortgage rate makes on sense at all.
It does if it’s part of a bigger picture. Plus, getting rid of the biggest monthly expense in your budget can only be a good thing!
Plus think about if the interest rate goes up in future.
@@ep1929 If the Interest rate goes up then whole UK will be in trouble. 30% returns on Vanguard vs 1.5% interest. Overpaying is good if LTV above 80% or something. If its in 60% or less then better to stick to the minimum payment
@@cryptobatman1050 the ones in debt and with big mortgages will be in trouble, not so much the debt free types.
Even if it doesn’t “make sense” in terms of interest rate, being mortgage free has a huge psychological benefit. Having your roof over your head garanteed can be priceless. And it partially frees you from work, gives you more flexbility as to where and how much you want to work.