View Poll Results: Do you overpay your mortgage?
Yes! Pay everything I can off it 96 24.37%
I overpay a small bit. 102 25.89%
No. I'd rather the money in my pocket. 117 29.70%
Don't have a mortgage. 79 20.05%
Voters: 394. You may not vote on this poll

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30-04-2021, 10:16   #1
KKV
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Do you overpay your mortgage?

Supposed to be do you overpay... (assuming you have a mortgage, of course).


Massive loans, generally costing at least a hundred grand each in interest alone. I pour every spare cent I can into mine (albeit, my plan is to eventually move elsewhere).


I know one other person who overpays their mortgage by €60 per month. I think the bank let them overpay by €60 on their fixed rate term, so they just keep fixing for 5 years and overpay the €60 each month.

However, almost everyone else I know pays the minimum required, and ignores it, with the attitude being that "sure it's there forever anyway" or "it'll be gone when I'm retired". They couldn't care less if they were paying 3 times the mortgage cost in interest. They know the monthly figure and they're happy to stick with it that way.


Do you bother overpaying? Or do you care at all?
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30-04-2021, 10:21   #2
trixi001
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Yes, i overpay mine. Everytime i remortgage etc and get lower fixed payments, i continue to pay what i was paying before - my mortgage allows overpayments of £500 a month

I advised all my friends on variable rate mortgages during the recession to continue to pay what they were paying before every time the interest rate dropped (assuming they had the same income). Don't think many of them listened to me.
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30-04-2021, 10:22   #3
SteM
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Yup, absolutely. Used to overpay by a lot more before we had the young fella but we still overpay every month with KBC.

1) It comes off the principal so you don't pay interest on whatever you overpay.
2) You can 'withdraw' what you've overpaid if you need it. It will take a few weeks but at least I know the money is available if a disaster happens.
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30-04-2021, 10:24   #4
barney shamrock
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About 11k left on our mortgage, I'm going to throw 5k at it soon so it will be paid off next year.
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30-04-2021, 10:25   #5
mrcheez
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2 more years on mine... threw in a lump sum there last week before starting another fixed rate term bringing it down another 3 years.... happy days

Actually matures the month of my birthday

And to the OP... yes always overpay and keep monthly repayments same for the past 6 years
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30-04-2021, 10:27   #6
sydthebeat
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Yes.

Lucky enough to have a small mortgage and be able to pay 50% more each payment. Came in handy back last April when lockdown meant my job finished prematurely. When we checked about a moritorium we were told we were 18 months ahead in payment.... Which meant that when we restated payments this year we'd only eaten 9 months into our over payment.

I'm back to paying an extra 50% per month again
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30-04-2021, 10:28   #7
Stark
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Don't have one but hoping to take one out soon and will probably take out a 25 year term (brings me to my 65th birthday) and try to make overpayments as habit rather than taking out a shorter term mortgage which I could afford but could leave me stuck if disaster struck.
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30-04-2021, 10:29   #8
bazwraf
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Yip, overpay by €250 a month. Ulster Bank allow us to overpay up to 10% of the remaining value of the mortgage per year. So, if mortgage was €350,000 on Jan 1st 2021, then I overpay up to €35,000 in 2021. This is on a 4year fixed rate mortgage.
Plan is to increase overpayments by €50 a month each year, while it's affordable.

There is a great calculator out there, which allows you to see the benefit of overpaying on a mortgage.
https://www.mtgprofessor.com/calcula...culator2a.html

Based on my overpayment plan, I should increase the length of my mortgage by 90 months, and save €111,000
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30-04-2021, 10:31   #9
A Lamb Named Miltiades!
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No I certainly do not overpay my mortgage and whenever this question comes up, I find myself getting very mad at Eddie Hobbs, who used to go around telling everyone to overpay their mortgage.

If you are already very rich, then overpay your mortgage. Most of us are not at all rich.

Like most mortgage owners, I don't have a big rainy day fund sitting in a bank account, so comparing savings vs lending interest rates is purely theoretical in the first place.

If I put all my money into my mortgage, however, i will inevitably need a personal loan sometime in the future, or run up a big credit card debt. Have you seen the rates they charge?

Keep your money. Pay at the agreed rate. If you are likely to need a personal loan in the medium -future, do not pay down your mortgage. Save that money for a rainy day.
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30-04-2021, 10:36   #10
super1290
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so if your on fixed rate and have DD coming out every month. how do you do the overpayment every month? by telephone and pay by card? or what.
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30-04-2021, 10:36   #11
Icemancometh
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Originally Posted by A Tyrant Named Miltiades! View Post
No I certainly do not overpay my mortgage and whenever this question comes up, I find myself getting very mad at Eddie Hobbs, who used to go around telling everyone to overpay their mortgage.

If you are already very rich, then overpay your mortgage. Most of us are not at all rich.

Like most mortgage owners, I don't have a big rainy day fund sitting in a bank account, so comparing savings vs lending interest rates is purely theoretical in the first place.

If I put all my money into my mortgage, however, i will inevitably need a personal loan sometime in the future, or run up a big credit card debt. Have you seen the rates they charge?

Keep your money. Pay at the agreed rate. If you are likely to need a personal loan in the medium -future, do not pay down your mortgage. Save that money for a rainy day.
I think having a rainy day fund is a given if you're planning to overpay your mortgage. Not sure what the rule of thumb is with months of wages etc for cash savings. But once that's in place, yep I overpay mine.
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30-04-2021, 10:36   #12
mrcheez
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Originally Posted by A Tyrant Named Miltiades! View Post
No I certainly do not overpay my mortgage and whenever this question comes up, I find myself getting very mad at Eddie Hobbs, who used to go around telling everyone to overpay their mortgage.
Certainly there's an argument to keep it as it will be cheapest loan you'll ever get, but if you can it makes economic sense to clear it off as soon as you can.

But yes, if you are going to need a loan in the future due to overpaying the mortgage don't do it.
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30-04-2021, 10:37   #13
sydthebeat
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Originally Posted by super1290 View Post
so if your on fixed rate and have DD coming out every month. how do you do the overpayment every month? by telephone and pay by card? or what.
Set the DD above the minimum payment...???
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30-04-2021, 10:38   #14
Jeremy Beagle
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Fixed with EBS. Not able to overpay. I am saving a lump sum though that’ll be lobbed at the mortgage when the fixed term is up.
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30-04-2021, 10:38   #15
mrcheez
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Originally Posted by super1290 View Post
so if your on fixed rate and have DD coming out every month. how do you do the overpayment every month? by telephone and pay by card? or what.
You generally fix it with the bank... discuss the options. You might need to wait until your current fixed rate ends and then set it up at a new rate per month.
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