Buying a house

[BigGreenField]

Is overpaying your mortgage a myth, or even worth doing? Up to 10% or something?

It depends how confident you are in your financial circumstances.

If not confident then overpay.

If confident then better to invest in an equities ISA taking a 10-20 year view, rate of return will exceed that of paying off the mortgage early.

Most people aren't confident hence they overpay, the well off are and get more well off by appropriate investing.

Take advice though from an advisor.

[brokencrossbar1]

Most places will allow an annual overpayment of 10% charge free. If your idea of peace of mind is being free from debt and you can afford it then it makes a lot of sense. The Woolwich used to do a fantastic offset mortgage where you could over pay and under pay regularly and if you had savings in your account with them then this was offset against your mortgage interest payments. Was a big seller in late '90s early '00s when people were coming out of the high rates of the '80s/'90s.

On that too, like MR2  we are currently looking at mortgage offers due to maybe moving house. People are complaining about rates in recent years but the rate we are getting is similar to what what I got for my first house,  in 1999. The rates will always steady out around 3-4.5% over the term of the mortgage so never panic

[Milltown Row2]

If I'm being honest lol, I'm bored of paying it now!

Would downsize tomorrow and move a bit out and have it all cleared (and then some) but there is no mission of her leaving!

So plough on, at least the kids will be sorted when I go 

[LC]

When our mortgage was up for renewal every 2  years we always took a year off the remaining term e.g. if 10 years left we got a mortgage based on 9 years then 2 years later when down to 7 we got one for 6 years.  A bit of a squeeze (I drive a very crap car) at times but well worth it, will be mortgage free by the time I turn 50.

[Milltown Row2]

When our mortgage was up for renewal every 2  years we always took a year off the remaining term e.g. if 10 years left we got a mortgage based on 9 years then 2 years later when down to 7 we got one for 6 years.  A bit of a squeeze (I drive a very crap car) at times but well worth it, will be mortgage free by the time I turn 50.

I'd have been mortgaged free a few years ago but moving and renovations extended that ffs!

But it is what it is! But that's a good idea.. but living in a house of spenders it's difficult to give up on the nice things!

[giveherlong]

Get a cushy job on the club managerial merry go round and you'll have the mortgage paid off in no time. Minimum £100 cash in hand 3 times per week.
£1200 per month Jan-Sept 😉

[Munchie]

When our mortgage was up for renewal every 2  years we always took a year off the remaining term e.g. if 10 years left we got a mortgage based on 9 years then 2 years later when down to 7 we got one for 6 years.  A bit of a squeeze (I drive a very crap car) at times but well worth it, will be mortgage free by the time I turn 50.

Don't mean to sound nosey but have you kids?

[Munchie]

Is overpaying your mortgage a myth, or even worth doing? Up to 10% or something?

Cheapest loan you will ever get why would you put that pressure on yourself especially if you have kids.

[LC]

When our mortgage was up for renewal every 2  years we always took a year off the remaining term e.g. if 10 years left we got a mortgage based on 9 years then 2 years later when down to 7 we got one for 6 years.  A bit of a squeeze (I drive a very crap car) at times but well worth it, will be mortgage free by the time I turn 50.

Don't mean to sound nosey but have you kids?

4 kids, like I said it has not been easy in that we have had to cut our cloth to suit e.g. both mine and hers vehicles have big miles on them but are paid off so fingers crossed they will stay on the road for another couple of years.

[Munchie]

3 myself the last thing on my mind when they were young and all the expenses that bring was to overpay my mortgage and put additional pressure on us all as a family, I am sure you know what you are doing but this aspiration of paying of the cheapest loan you will ever get early was always alien to myself, your mortgage paid of at 50 or 55 can't understand the thinking.

[ardtole]

Im with LC, I work in construction so I got my eyes open during the last recession. Things going relatively good now, but id be wary of what is coming around the corner.

We have made a right few sacrifices over the last 6 years to get our house paid off, only 2 years to go and can see the light at the end of the tunnel. I suppose it depends how secure your employment is, but I've no regrets, once bitten, twice shy.

[Munchie]

Fair point - horses for courses, I suppose it boils down to individual circumstances.

[93-DY-SAM]

Is overpaying your mortgage a myth, or even worth doing? Up to 10% or something?

Cheapest loan you will ever get why would you put that pressure on yourself especially if you have kids.

Paying a few quid extra off a month or throwing a few quid at it every now again if you have it can make a big dent in the term. You'll have knocked years off it and saved 1000's in interest in the process.

You don't have to scrip and scrape to do it. My thoughts are, why be chained to a mortgage and be working for the bank? There is a happy medium in the middle. But yes, horses for courses. What works for one doesn't for another.

[brokencrossbar1]

Is overpaying your mortgage a myth, or even worth doing? Up to 10% or something?

Cheapest loan you will ever get why would you put that pressure on yourself especially if you have kids.

Paying a few quid extra off a month or throwing a few quid at it every now again if you have it can make a big dent in the term. You'll have knocked years off it and saved 1000's in interest in the process.

You don't have to scrip and scrape to do it. My thoughts are, why be chained to a mortgage and be working for the bank? There is a happy medium in the middle. But yes, horses for courses. What works for one doesn't for another.

Very simple sum which can take years off your mortgage. Take your monthly payment,  divide it by 6,  put that away every month and pay it off the capital sum every year. You're basically making 14 months payments in 12 months.  Over a 25 year mortgage that's potentially 4 years but you would reduce your term every change of deal and knock the amount of years you feel comfortable with off the term.

[Dougal Maguire]

As someone who is retired I would just make this reflection, when you're young with a young family you have little money and lots you could spend it on, when you're older you've plenty of money and a lot less to spend it on. My advice therefore is to enjoy life when you're young and don't be scrimping on things in order to have jam tomorrow