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Mortgage-Free Wannabe Welcome and Explanation
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# 201
scottishlass
Old 01-06-2013, 6:49 PM
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Well after much reading - I'm taking the plunge and declaring that I want to be a MFW but need to decide if it is the best decision. The story so far:

Mortgage Nov 2011 : £69,300
Mortgage May 2013 : £48,000 ish

So little bit OP over the last year and a bit - its currently at 3.4% and fixed until Dec 2013 with unlimited OP allowed. The dilema is I no longer live in that flat and so am looking at renting it out...I know the interest is tax deductable and I'm planning on switching to a By To Let - but do I still want to aim to be MF?
"Made in England. Improved in Scotland!"

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# 202
it05jb
Old 05-06-2013, 7:13 AM
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Hello,

I looked at your post above mine and so i thought id give you my opinion on this, but im sure you have a lot more experience than me!

I suppose its completely your choice. If the choice is between leaving it empty and renting it out then i would rent it out, your in effect allowing someone else to pay your mortgage for you. This way you can continue to put in as much as you are as well as the income from the rent. Youd become MF in no time!

Jack
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# 203
wronlaster
Old 25-06-2013, 12:18 PM
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I like this "it's great to have a place where to track progress and discussed with others who have the same aim"
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# 204
GloriaAndrewCar
Old 27-06-2013, 2:38 PM
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I would love to be mortgage free!
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# 205
serry
Old 28-07-2013, 9:51 AM
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Having a forum like this is a far more realistic approach to the whole concept of aiming to be mortgage free.
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# 206
echocharlie
Old 30-07-2013, 10:41 PM
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Mortgage free date: researching at minute so have no idea but I'm gonna say 4./8/13 mortgage at minute: 121, 918 at the 30/7/13 . Years left 27 years 5 months.
Start of mortgage 127, 000 just need to figure out how this forum works and what to do next heeeeelllp!
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# 207
Jani9
Old 22-09-2013, 10:24 PM
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It's hard for me to get my head around being mortgage free.

As I said in another part of the forum, me and my OH are putting aside £1000 a month so £12000 a year and £120000 in 10 years.

We may move within the 10 years but if not then we could pay the mortgage off and own the house outright.

But our mortgage outgoing per month is only £600 so we will be doing all this saving to be better off going forward by £600 per month.

Am I looking at this right?
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# 208
argomatt
Old 22-09-2013, 10:34 PM
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Jani9,

The effect of your extra payments is much more than that because they reduce the capital, and as the capital is reduced the amount of interest is also reduced.

If you keep your £600 monthly payment as it is, then your mortgage will go down much quicker than you think.

Have a go with the overpayment calculator to check different scenarios and I think you will be surprised how much difference it makes to the speed you will clear the mortgage!

Matt
Credit card debt £2583.77 / £4016.44
DFBX2014 #038
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# 209
Jani9
Old 22-09-2013, 10:56 PM
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Thanks Matt.

We moved into our house 2 years ago and bought via a 30/70 split mortgage.

So our mortgage is on the 30% and works out at £300 a month and we pay rent on the rest also at £300 a month.

I'm not sure whether to keep things as they are and save until we can pay it all off.

Or maybe we should save for the next 4 years and have £50,000 as deposit plus any equity we may/may not have and get somewhere we will own 100% at the end.

I'm confused!
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# 210
Yog sothoth
Old 31-10-2013, 2:45 PM
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What about if the mortgage is interest-only and with a company who penalise you if you pay more than the monthly interest set by them, ie. they don't allow you to repay any of the capital, as they class even £10 as 'early repayment'?
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# 211
Palmanova
Old 03-11-2013, 3:01 PM
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I think it would probably be in your best interests to try to get onto a repayment mortgage where you can make repayments when you can. If you have enough money left over after your mortgage payments to put into your mortgage then you should have enough to get out of your interest-only and onto a repayment mortgage.

Otherwise, just save the money up for when you have to pay for the house at the end of all your interest payments.
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# 212
Palmanova
Old 03-11-2013, 3:07 PM
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Default Save for deposit or overpay current mortgage?.

We currently have a mortgage with 22 years left - £135k (£200k property).
We also have savings of 25k.

In a few years we would like to buy a bigger home and rent out the current one. Should we continue to save for a new deposit or pay off the current mortgage?.

What's evertone's views?.
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# 213
JCL
Old 10-11-2013, 7:45 AM
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If the interest on your mortgage is more than the interest on your savings then put it towards the mortgage. Keep yourself 6 months worth of bills as an emergency fund.
MFW 2014 #41 = £5,500/£25,000
MFW 2013 #41 = £10,000/£10,000
Original MF date = May 2036 - Target MF date = August 2017
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# 214
pollyanna24
Old 13-02-2014, 4:18 PM
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Can't remember if this is the right place to post your overpayments, sorry.


Also can't remember my number, oops.


But my overpayments are:-


January 2014 - £1,000
February 2014 - £1,300
Pink Sproglettes born 2008 and 2010
Mortgage taken out April 2006 - £185,000.00
Mortgage (2nd April 2014) - £118,694.90

Overpayments in 2014 - £4,400 so far
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# 215
Imma Number
Old 13-02-2014, 5:17 PM
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Quote:
Originally Posted by pollyanna24 View Post
Can't remember if this is the right place to post your overpayments, sorry.


Also can't remember my number, oops.


But my overpayments are:-


January 2014 - £1,000
February 2014 - £1,300
Here: mfw 2014 & number 51 ?
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# 216
Daisyscottage9
Old 17-02-2014, 10:44 PM
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Hallo, new to this forum but just wondered if anyone can help please?
I would like to start overpaying on our mortgage and being interested to see how we would benefit I used the calculator , but not sure how to work it out properly as our mortgage is fixed for another 9 years and then reverts to variable for the remaining 10 years . Sorry if I am sounding a bit dumb but I put the rate we are paying now and an amount we could possibly overpay each month hey presto it tells me how much sooner our mortgage is paid off . Is that not based on the rates staying the same ?what happens when our fixed rate comes to an end ? How can I work it out accurately ??? Help ��
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# 217
matthewwilson
Old 21-02-2014, 11:54 AM
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Hi
I am Matthew Wilson , I am new here.
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# 218
Opal crazy
Old 12-04-2014, 1:27 PM
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I have to say that in comparison to many posts on here my outstanding mortgage is minimal just £36000 but there's only little old me to pay it. I'm chuffed to say I pay my credit cards in full every month and have absorbed a lot of MSE ethics along with my dad being tight :-) and learned a lot from both.
I have 14 years left to run but would love to by sorted by 2020. I've just set up a standing order of £50 each month and have just paid £650 extra from my savings. I figure interest rates are so sodding low its better off being spent on mortgage payments.
I'm confident we'll all get there eventually
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