I described the starting point of my third mortgage (second remortgage) here. As the first quarter of 2014 is now over, I thought I’d provide an update (a bit late).
This mortgage is with Nationwide, who have online banking for mortgage accounts. This is the first time I have been able to check my mortgage balance online instead of having to phone a helpdesk, and I am really happy to be able to do that. Within the online banking account, you can select whether you want overpayments to reduce your monthly payments or your mortgage term, and I selected mortgage term.
After months 1 and 2 of the mortgage, we overpaid £2,000 and we received a letter from Nationwide so that our term had been reduced and the mortgage was now expected to finish two months early.
- Mortgage balance at start of year: £85,000
- Current mortgage balance: £75874.34
- Interest charged: £568.82
- Overpayment allowed in year: £8,500
- Current overpayment total: £4,000
- Mortgage term at start of year: 48 months
- Current mortgage term: 46 months
- Months to go: 42
Pretty good, nearly £10,000 shaved off in the first four months, and nearly half of the permitted overpayment made. I’m feeling confident that we’ll be able to reduce the remaining period to 36 months or less.