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I’ve hardly mentioned the mortgage this year, probably because we stopped overpaying it and concentrated on building an emergency fund. However it’s time for a re focus as we’re starting to make {small} over payments again next month.
The current balance is £121,581.65 and we still have 20 years and 8 months to make payments! Originally we had hoped to clear this balance by 2012, however due to work situations changing {all the bonuses got stopped!} we changed our goals and our priorities. We still want this debt gone though!
Anyway, from December we are making a small over payment of £57 a month, which will bring the monthly payment to £600 and reduce the term of out mortgage by approximately 2 years. In the new year any extra money we make, above our budget, will be split 50/50 between the mortgage and our travel fund. When I get a new job, all my earnings will go into these two pots. If we can at least up the overpayment to £100 in the new year, this will reduce the term of the mortgage by 5 years; it’s amazing what even a small overpayment can do to your term.
Mortgage Snapshot;
Mortgage New Pyt Act Pyt Int Balance
1st Nov £542.34 £542.34 £102.60 £121,581.65
1st Dec £542.34 £600.00 £100.00 £121,081.65
1st Jan £542.34 £600.00 £100.00 £120,581.65
1st Feb £542.34 £600.00 £100.00 £120,081.65
1st Mar £542.34 £600.00 £100.00 £119,581.65
1st Apr £542.34 £600.00 £100.00 £119,081.65
Are you making any mortgage overpayments?
{photo credit: Fr Antunes}
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Funny you should post about this.. I was poring over our mortgage statements last night, working out overall payments and getting totally depressed about the amount we actually pay back compared to how much we borrowed.. Overpayments are the way to go!
apieceofwood´s last blog ..Saturday stats
I’m glad you started focusing on the mortgage again. This is what originally attracted me to your blog.
I think it’s an excellent idea to live off of one partner’s earnings and using the other’s earnings to pay off debt.
Good luck!
Executioner´s last blog ..Monthly Summary: October 2009