Ok, so how am I going to prepare for this challenge? I have 56 days left until the Mortgage Free Challenge begins. I have been reading posts on the www.moneysavingexpert.com website for quite some time and have gained some invaluable advice. I've been overpaying on my mortgage for quite some time now (but not long enough!!).
We got our first mortgage over 10 years ago and honestly, if I knew then what I know now, I would be in a far better financial situation. If any of you feel inspired to pay a little bit extra each month then that's great. Honestly, every penny helps. Don't think you have to overpay by hundreds each month. It doesn't have to be like that. With the present levels of interest rates, if your payments go down, then leave the payments as they are - the difference is classed as an overpayment and means you will pay off your mortgage months, if not years earlier.
I have created a fabulous spreadsheet (curtesy of the challenge founder) and it's amazing! It lets you complete the figures relevant to your own situation. You can then test out the impact of making overpayments - even by paying £10/month, you will make a big difference to the length of the mortgage term, hence how much you re-pay for the mortgage over the years.
So in answer to the question in the title - yes you can get obsessed with overpaying. Once you realise what an impact overpaying can have to the term on your mortgage, you too could start giving in to the obsession.
If anyone would like to know how to create the fabulous spreadsheet I'm referring to, please let me know and I will post some instructions on.
Thanks for reading!!
Pintsized1 x
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