Financial independence – quarterly #mortgage update 2015 Q3

A fairly quiet quarter since we paid off 10% of the original balance in the first six months. For this quarter, we paid the standard monthly charge, and then saved as much as possible to pay off a lump sum at the beginning of 2016.

  • Mortgage balance at start of year: £57,511.66
  • Current mortgage balance: £31,211.40
  • Interest charged: £692.44
  • Overpayment allowed in year: £8,500
  • Current overpayment total: £8,500
  • Mortgage term at start of year: 48 months (December 2017)
  • Current mortgage term: 39 months (March 2017)
  • Months to go: 21
  • Overpayment savings: £2,500.00

Overpayment savings were lower than expecting, as my husband has been working less overtime and also got a company car for which he was taxed quite a large amount at once.

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3 thoughts on “Financial independence – quarterly #mortgage update 2015 Q3

  1. Thanks for sharing this. It’s interesting to see how mortgages look like in other countries. I am quite surprised that you are not able to pay more than £8500 over (if I understood that correctly). With our mortgage, we can pay it all at any point and without interest for the remaining period.

    • This is because we have a fixed term interest rate e.g. when we took out the mortgage, the interest rate of 2.19% was fixed for two years. It’s common in the UK that you can’t pay more than 10% per year during any such fixed term. If you’re on a standard variable rate, you can overpay as much as you like, but the interest rate will vary from month to month. 2.19% was a very low interest rate at the time, which is why we went for fixed term. From February 2016 the fixed term will end and then we’ll overpay as much as possible each month.

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