Gosh, I can’t believe that it has been another year in mortgage world! Received our years breakdown and I do like the look of what progress we have made in this time. Overpayments have varied, as life is never straight forward but overall we are seeing big reductions in the mortgage especially compared to when we first got this mortgage- the interest made up 3/4 of the monthly payment, my goodness that was a painful time!
In December I wrote a post about my plans for the mortgage, including projections on how OPs will shape it. As of the 1st August 2020 the mortgage stood at £147,254. The projection I made in December 2019, based on moneysavingexpert’s mortgage overpayment calculator, was – £147,459 by December 2020. So I am very very pleased to see that the OPs previously made meant we hit that 4months early!
So here is what we have achieved this past year:
£10,201.76 has been paid to the mortgage
£3,193.04 of which was in interest
£7,008.72 of which was capital
Based on the current mortgage balance and rate, another year with no OPs will see our mortgage stand at: £142,607 in August 2021. As it stands, we are still making a small OP of £50, this still makes a noticeable difference long term. We will pay the mortgage off 2years and 2months earlier, saving £4352 over the lifetime of the mortgage. In a year the mortgage would be: £142,001 knocking 601 pounds off the morgage in a year. That doesn’t sound as good as when we paid more, but it is better than nothing and over time makes a big difference. And you never know, we might be able to increase those payments again soon! 🙂