Wednesday, 30 November 2011

Mortgage overpayments - Small bite sized Chunks!

I didn't manage to make as big an overpayment to my mortgage as i'd hoped this month, but still managed £1000.00. I paid this before I sorted any other bills etc so the money was gone and can't be spent.

Does anyone else currently overpaying their mortgage get moments where they swither about making the call to bank and, even just for a few moments, think about what else they could spend that money on? I had that yesterday as I was making the call.

However I didn't act on the urge, I made the payment and felt very relieved afterwards. The money was paid and it cannot be spent on anything else.

Like Laura at No More Spending and Frugal Queen and many others blogging away out there I am also on a misson to get rid of my mortgage as soon as possible.

I have mentioned it before but I have a LARGE mortgage. I cannot bring myself to tell you the exact amount outstanding but it is over £200,000 (wince). It seemed such a good idea when we bought the place but the reality is it has to be paid off some time! We recently remortgaged and got a fantastic deal. The (almost) £700.00 we are saving in interest each month is now getting overpaid each month.

I find that rather than thinking about the outstanding balance all the time if I think about reducing the interest owed each month it seems more manageable, as it is a much smaller number. This may not make sense to some of you but I just find that concentrating on reducing the interest payment makes it easier to stay focussed. 

I have only been overpaying in earnest since August and so far have reduced our monthly interest payment by £14.37. When we remortgaged the interest was £517.25. I am aiming to be below £500.00 by the New Year.I have not chosen to reduce the monthly payments either so a little extra gets paid off on top of every over payment.

Small bite sized chunks, as a wise colleague used to say, when faced with a seemingly huge task.

I would love to have my mortgage paid off by the end of 2017, all being well. This is quite a task and I know and I will have to remain focussed. However life will happen in the meantime and we don't know what is ahead of us. I also have kids and there are things we want to do as a family so ploughing every single spare penny into the mortgage isn't realistic for us.

Mortgage freedom is the ultimate dream for me right now. I wish I had been more careful in my younger days as I could have been mortgage free right now if I had been more sensible. But hey ho, I can't go back, only forwards.

Good luck to everyone trying to achieve mortgage, or any sort of debt, freedom.


  1. Making a £1k over payment is still great! :)

  2. Hello lovvie, To make you feel better, last year I owed 217K and now it's down to 188K you will get there, I also make £500 regular capital payment per month. You will get there xxx