We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Pay Off £200k in 100 months!
SwitchyChick
Posts: 144 Forumite
Hi All!:hello:
I have been waiting for 4 long months to start my MFW journey. At last, our offset mortgage is up & running (as of 31/10/08) and I’m raring to go.:j
My MFW challenge involves starting from scratch. We have had a mortgage for 9 years on an interest-only basis, whilst paying into stocks & shares ISAs as a capital repayment vehicle. Given the state of the markets & the fact that our remaining mortgage term is less than 10 years I am aiming to completely pay off the capital AND interest in 100 months without needing to use the ISAs. I hope that makes sense...
So, the details are: £130,000 capital, £68,570.50 interest, giving a grand total of £198,969.50/100 months = £1,989.70/month. Why 100 months? Well, it’s a nice round number and roughly translates to our remaining mortgage term. Is it feasible? Hmm...
Several factors come into play here & feature significantly in my offsetting spreadsheet
(1) Using some of our existing savings (not in the ISA) to pay a lump sum off the capital. Not sure at present how much we want to commit but possibly IRO £10-15k
(2) Instead of making £300/month contributions to the ISAs, pay £300/month off the capital part of the mortgage. (Have already done this today, boy did it feel good to see that balance reduce) :T
(3) Make maximum use of offsetting feature to make sure salaries stay in for as long as possible before being depleted by DDs & SOs
(4) In combination with above, expand current stoozing activity
I have stoozed for a few years (although I didn’t know there was a term for it, or a website come to think of it!) and have had £14k stoozed for 9mths in my B&B savings a/c. I’m hoping to continue to stooze but to offset against the mortgage which is more tax-efficient.
Up until now I have only stoozed cards in my name but plan to slowly include OH. I found a thread somewhere which mentioned a husband & wife having 13 cards with £56k stoozed between them and found myself wondering whether we could achieve anything like that. So, I have another target as part of the MFW challenge, and that is to see how long it takes me to get £50k stoozed and whether I can maintain it over the lifetime of the mortgage
OK, that’s me & my challenge(s). Wish me luck, I’m going to be on here for a VERY long time to come...:D
Switchy
CazManian Minx - have 'stolen' your sig, hope u don't mind!
I have been waiting for 4 long months to start my MFW journey. At last, our offset mortgage is up & running (as of 31/10/08) and I’m raring to go.:j
My MFW challenge involves starting from scratch. We have had a mortgage for 9 years on an interest-only basis, whilst paying into stocks & shares ISAs as a capital repayment vehicle. Given the state of the markets & the fact that our remaining mortgage term is less than 10 years I am aiming to completely pay off the capital AND interest in 100 months without needing to use the ISAs. I hope that makes sense...
So, the details are: £130,000 capital, £68,570.50 interest, giving a grand total of £198,969.50/100 months = £1,989.70/month. Why 100 months? Well, it’s a nice round number and roughly translates to our remaining mortgage term. Is it feasible? Hmm...
Several factors come into play here & feature significantly in my offsetting spreadsheet
(1) Using some of our existing savings (not in the ISA) to pay a lump sum off the capital. Not sure at present how much we want to commit but possibly IRO £10-15k
(2) Instead of making £300/month contributions to the ISAs, pay £300/month off the capital part of the mortgage. (Have already done this today, boy did it feel good to see that balance reduce) :T
(3) Make maximum use of offsetting feature to make sure salaries stay in for as long as possible before being depleted by DDs & SOs
(4) In combination with above, expand current stoozing activity
I have stoozed for a few years (although I didn’t know there was a term for it, or a website come to think of it!) and have had £14k stoozed for 9mths in my B&B savings a/c. I’m hoping to continue to stooze but to offset against the mortgage which is more tax-efficient.
Up until now I have only stoozed cards in my name but plan to slowly include OH. I found a thread somewhere which mentioned a husband & wife having 13 cards with £56k stoozed between them and found myself wondering whether we could achieve anything like that. So, I have another target as part of the MFW challenge, and that is to see how long it takes me to get £50k stoozed and whether I can maintain it over the lifetime of the mortgage
OK, that’s me & my challenge(s). Wish me luck, I’m going to be on here for a VERY long time to come...:D
Switchy
CazManian Minx - have 'stolen' your sig, hope u don't mind!
Mortgage #1 Oct 2008: £130,000
Mortgage #2 Jun 2010: £60,000
Both completely offset: 22/12/2011
0
Comments
-
Good luck with your plans, you sound very organised and focused.
Ev0 -
Hi! Welcome and good luck! Will look forward to reading your diary.MBNA - [STRIKE]£7068.60 [/STRIKE] £7060.00 Egg - 1422.35 A&L - [STRIKE]£249.32[/STRIKE] £215.00Loan - £13279.50 :rolleyes:0
-
-
Switchychick
Welcome and good luck with the plans. I look forward to reading of your progress.
As you already stooze then you'll be more than familiar with putting ALL spend on the credit card so cash remains in the current a/c offsetting until 4 business days before card payment is due.
I hope that the the £10-15k savings still leave you with 3-6 months income as emergency funding? I assume the balance will be offsetting your mortgage?
We have found the offset and OP works very well for us, but starting my thread here on 30 May has focused the mind even more so, and has helped to really bring effort to bear on the MF date.
I also like the "effective" mortgage rate calculation (see my sig) as this is a real incentive to help realise the benefits of your efforts at a time when the end date can seem a long way off.
Perhaps set some interim targets as these can help meet the long term goal, but, do enjoy life too along the way
0 -
Oh yes! And using a cashback card at present although thinking of switching to a slow stooze card... Sainsburys 0% for 12mths. We spend a LOT at Sainsburys!As you already stooze then you'll be more than familiar with putting ALL spend on the credit card so cash remains in the current a/c offsetting until 4 business days before card payment is due.
Hmmm. Not exactly. I know this is the general rule of thumb but figured that I can always 'borrow back' in a real emergency (not sure what constitutes a real emergencyI hope that the the £10-15k savings still leave you with 3-6 months income as emergency funding? I assume the balance will be offsetting your mortgage?. ).
I haven't worked out the "effective" mortgage rate but my spreadsheet shows me my daily interest rate which has the same sort of galvanising effect (still above £20/day) :eek:
Thanks for all your helpful suggestions Stuart. Like the idea of interim targets and will have a think about these over the next few days.Mortgage #1 Oct 2008: £130,000Mortgage #2 Jun 2010: £60,000Both completely offset: 22/12/20110 -
Sounds like a great plan you have and I am sure you will get there, sometimes slow is best lol
"Use it up, wear it out, make it do or do without!!"Nov NSD: ?/30 Nov Make 10 Day ?/300Get Rid Of Debt: ?/2000 !! :mad:0 -
Hi SwitchyChick do you mind if I join you as I have a similar goal.
I owe £256,898k :eek: currently over 25 years, i want to pay it of before i am 40 in 94 months or 7 years and 10 months.
So far I have.
1. Paid off unsecured debt (except interest free DFS suite, ends Dec 08)
2. We are ending our lease contract on car in Nov and will buy car outright out of stoozed money currently in account. Then pay back stoozed money before 0% deal ends in July 09, out of money saved on paying for car lease.
3. Cut back on heating, lighting etc. Am being a real nag about kids and hubby leaving lights on. Didnt put heating on until a few days ago. Not using tumble dryer (well only to soften towels up for 5 mins)
4. Hubby cycles to work saves money on fuel and gym.
5. Doing overtime as much as possible.
6. Made a chart to colour in as i go through each 1000k mark already coloured one in felt good. ( lead very sad life, clearly)
Hope you dont mind been meaning to start this for ages.0 -
Good Luck
Wishing you every success in your journey.
Us MFW's are so lucky to be able to enjoy the adventure we are on, whilst working towards such a fantastic reward - no more mortgage.
Topaz0 -
Hi tiredredhead - you sound like me: nagging re: lights, tumble drier, etc. Love the idea of the colour chart!! Welcome.
Ooo - also did the buying the car thing out of stoozed money too.
SwitchyMortgage #1 Oct 2008: £130,000Mortgage #2 Jun 2010: £60,000Both completely offset: 22/12/20110 -
Good Luck:T:T:T Look forward to reading about your progress:D0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.3K Work, Benefits & Business
- 599.5K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards