I’m now three months into my mortgage challenge so, how are things going?
I plan to pay an extra £4000 off the mortgage in 2018. This won’t be spread evenly throughout the year, however. We have a lot of expenses towards the end of the year, including car tax and insurance, as well as Christmas, so I will be trying to ‘front load’ the overpayments by doing as much as we can in the early months of the year.
In order for the overpayments to reduce the term of the mortgage we need to pay off at least £500 at one time, otherwise the monthly payments get recalculated instead, which is not what we want. We can’t afford to pay off an extra £500 each and every month, so we will need to save up our extra money until we have £500 before overpaying. Because of this, overpayments are likely to happen every two or three months.
The year so far
February and March were months with no council tax payments. Hooray! Our lowered expenses meant that we were able to put more towards the mortgage. We made a payment of £700 in early February, and then sneaked another one of £700 in right at the end of March.
So here are the numbers for the first quarter of the year:
OPs made this quarter: £1400
Total OPs made in 2018: £1400
Updated balance: £71,723.99 (March 31st 2018)
Daily interest: £5
Mortgage term due to end: August 2039 (21 years 5 months)
So, things are on track so far this year. Overpayments are likely to be a little less in the next quarter, but I’m looking forward to getting that daily interest under £5 for the first time. Onwards and downwards!