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What A Joke - Overpayments


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Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that!

Edited by guitarman001
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Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that!

And? That seems sencible to pay down your mortgage.

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Heard a mate of mine's friend say that he had been overpaying his mortgage the last 2 years... total payment per month now up to £500. And he bought in 2002 for cheap! I can't understand this (i.e. still not paid off)...!? Some people! My NORMAL payments if I HAD a mortgage now would be sky-high compared to that!

That's our savings he using to pay back his mortgage with. F**king corrupt system.

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That's our savings he using to pay back his mortgage with. F**king corrupt system.

Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise.

So they are not 'your' savings or mine are they ?

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Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise.

So they are not 'your' savings or mine are they ?

I;v followed your posts for a while now.I'v come to the conclussion you are a touch arrogant and you post on the wrong site.... i maybe wrong but i don't think so.

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What is it we're supposed to get outraged by? He's overpaying his mortgage which seems sensible. You don't give any info about the size of his mortgage, the term of it, or about how much he earns in comparison to his mortgage payments?

Are you just trying to wind people up?

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I;v followed your posts for a while now.I'v come to the conclussion you are a touch arrogant and you post on the wrong site.... i maybe wrong but i don't think so.

I think your initial summing up is probably spot on just the wrong side of confidence in truth, but if you try it not a totally ineffective strategy in chaotic times.

As for the wrong site, it's a free world and you will find many alternative views on here boomer v youngster , home owner v can't get on the ladder, private v state education.

I have learnt a lot from people posting on here obviously not from the post above what is there to learn from a statement and a pat on the back?

If you think this site is full of people:

1. Who want a HPC

2. Who don't cover other subjects

3. Who only post Mumsnet style hugzz

Then I guess you are on the wrong site in fact they would love you on MSE or Mumsnet I keep getting slung off anyway how long is a while with 59 posts ?!

Edited by Greg Bowman
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Not everyone sees the a mortgage as something that needs to be paid down asap and everything else needs to be given up to service it.

Some people probably just like having the choice of either over paying or just spending the extra on themselves. Yea it makes more sense to over pay and clear the debt asap but you can't blame them if they feel like enjoying the extra cash and just paying the normal monthly payments.

For all you know he might now only be in a position to over pay where as before he may have had other things that needed paying down such as CC debt or car loans

Edited by Downside
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Yes it is lucky for them that they bought for cheap in 2002 and I would have loved to do the same.

However, this person is being sensible by overpaying the mortgage. Compare that to the MEW brigade who end up in negative equity, driving around in big 4 by 4s and moaning about the 'slow' housing market.

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Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice. There are plenty of vehicles with which to earn more than the current savings rates (not sure why you have an entitlement to have a savings rate linked to inflation) the best of which is probably your own enterprise.

So they are not 'your' savings or mine are they ?

I am with The Count on this one. One of the reasons your friend can overpay is the subsidy from savers who are being robbed by inflation AND paying income tax on their depreciating capital.......and since he bought cheap it's a win double for him.

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Come on - my point is that somebody who bought for ~£60k around 2002 (approx value), they really should have been overpaying and had it done by now anyway. Nowadays I'd be paying £180k for the same and would have no chance!

Can you explain why this should be the case. It seems harsh to expect people to pay off their mortgage within 10 years. Perhaps this person has a low pay job and many kids and finds it difficult to pay off so much. Perhaps they prioritise other things like holidays or cars.

As long as they are paying it off, I don't have a problem with them.

Being obsessed with property, us HPCers probably would pay it off much earlier, but I'm not going to criticise someone whose circumstances you haven't fully explained.

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Single with income > £40k. That's all I'm saying - has plenty of money, believe you me. If it were me, I'd have had the thing paid off yonks ago.

Yep, with that kind of salary it would generally make financial sense to pay it off early. Maybe though he is planning to rent it out and buy another one, in which case it would make sense to keep the mortgage on the property for tax reasons and to allow a bigger deposit on the next purchase. Just saying.... :D

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Actually I presume it is his money he has earnt from his own endeavours and is now making a sensible choice.

So they are not 'your' savings or mine are they ?

I guess you're being wilfully obtuse.

The point The Count is making, which I'm sure you're aware of, is that with normal interest rates the subject of the post wouldn't be making overpayment because he'd be paying interest rather than capital, and people who had savings would be able to make overpayments due to their better return.

Rates are such to bail out the over-extended at the cost of the prudent.

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  • 2 weeks later...

Obviously you're including the returns on your income tax form aren't you? ;)

Ha ha ha! Most BTL people i speak to dont even know they can only pay off the interest on their mortgage with rent and should be paying the tax on the difference, and the one who does know this doesnt seem to care.

I hope someone in govt decides this is a mega easy way of collecting a LOAD of back owed tax (the figures must be huge) and comes down hard on all the BTL tax evaders

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  • 442 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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