2020 Mortgage Goals

I have upped the overpayment back to £250, we should have enough for New York and that was the only big expense left really, therefore back to overpaying the full amount we can afford!

According to Money Saving Expert’s mortgage calculator, based on our current mortgage of £152,475 with 24years to run, we will pay £39,227 in interest over the remainder of the mortgage. By the end of 2020, our mortgage would stand at: £147,459 and we would be mortgage free by 2044.

It is good to know, so I can play with the overpayment calculator and find out what the overpayments will do!

So, with our regular overpayment of £250 a month, starting on January 1st 2020, we would pay £25,966 in interest, saving £13,261. We would be at £144,432 by the end of 2020, this would be paid off in 16 years- 2036. This seems like a great achievement long term!

Though I would like to have paid off 10k, you know, just to round this off nicely!

So I added 2k as a one off overpayment in December 2020, it would save us an extra £700 over the life of the mortgage, end date would be 2035, a year earlier.

And out of curiosity, I added a one off payment of £4500, this would take us into the 140’s at the end of 2020. We would pay off the mortgage in 15 years, same as the 2k one off payment though would be saving an extra £1610 in interest!

In reality, I think that the 2k may be managable, the 4500 not so much, maybe if all we did was overpay it might work but we have other things to save and do next year! Hubby is happy with the £250 overpayments, so I would have to see about anything extra!

Author: aimingforthegoodlife

I am a 32 year old who is trying to find the balance, of only living once, and not wanting to be in debt forever! I do struggle with materialism, and love holidays and adventuring! This blog will be a bit money saving here, spendy spendy there I think! Looking for the perfect balance!

2 thoughts on “2020 Mortgage Goals”

  1. I have read a lot about investing instead of paying off the mortgage and then using the money you make to make the interest payments in the future. This has never appealed to me as there is always the risk that investments will go down and you won’t have the money to make payments against the mortgage when you need it. Interestingly I have just started reading ‘Work Optional’ by Tanja Hester and she advocates paying off the mortgage early, which is what she and her husband did. I think that there’s nothing like the peace of mind of owning your own property outright.

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    1. Yeah, it seems to me, investing has risk, paying off the mortgage has minimal risk- all money is tied up in a property- but that can be overcome- selling or remortgaging if needed. I also don’t have a lot of money and we don’t overpay a lot, so I don’t think that the investments would earn a lot anyway! Once mortgage is gone, can save that money or do whatever with it! It is such a lovely thought to know, that no matter what happens, your home is safe. There aren’t any saving accounts that can save more than what I technically save long term with the mortgage overpayments at the moment. So seems logical!

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