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  • FIRST POST
    • MSE Martin
    • By MSE Martin 22nd Feb 06, 11:32 AM
    • 8,104Posts
    • 42,233Thanks
    MSE Martin
    Mortgage-Free Wannabe Welcome and Explanation
    • #1
    • 22nd Feb 06, 11:32 AM
    Mortgage-Free Wannabe Welcome and Explanation 22nd Feb 06 at 11:32 AM
    Welcome to the new Mortgage Free Wannabe board. After watching the popularity of the Debt-Free Wannabe board which focuses on mutual support for people who want to get rid of their debts, I thought it would be fun to try the same with mortgages. It isn't about mortgages themselves, for that go to the mortgage board.

    Why?

    Paying off your mortgage is the best risk-free way to use your cash. Think of it like this:

    If your mortgage is at 5% interest, by paying it off you get the effective return of 5% after tax. This means a basic rate tax payer would need to earn 6.25% and a higher rate taxpayer 8.33% before they were better off and there's no real way of doing that with a lot of money without taking a risk.


    How far to go

    I'm not a believer in forcing your finances. Start by doing a budget. Then go through your finances and see what spare cash you've got. This isn't about cutting back on everything, it's about running a niced balanced life with no waste to clear your mortgage.

    In fact I'm very against forcing your finances - to see why read my past blog on it: Pay Off Your Mortgage In Two Years.

    What to do to get started

    I'm going to follow the pattern of debt-free wannabee as it works there. So why not start of by posting a statement of affairs (SOA) with all you financial details - though being careful to give no traceable info as this is a public forum. So detail your mortgage, incoming and outgoings, what you spend on. Then people can start talking about ways to improve your finances.

    Also why not have a signature that shows people your progress. For example

    Mortgage when started: £92,000
    Current mortgage (date): £82,000
    Mortgage free day: May 2013

    So people can watch your progress and you can motivate yourself.


    Good luck. I'm sure this board will develop its own way of working, can't wait to see it

    Martin
    Last edited by Former MSE Helen; 10-08-2011 at 3:18 PM. Reason: Fixing a broken link.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
Page 12
  • omarsgirl
    Hi I would like to join to give me an incentive.

    We owe £52000

    We have £16000 in a bond that is maturing in February so are going t use that to start with. I have set up a dd to overpay by £100 per month. Along with any extras we can pay, we should be MF in about 3 years,
    Leaving us lots of time to save for retirement.

    That's the plan- it wont leave us skint-we will still have an emergency fund and we like our holidays and going out so it's a sensible amount.
  • Seeingwhatsbest
    Am I doing it right or wrong?
    Hello all,

    I'm a new member to the MSE site, but a regular user of its Overpayments Calculator especially.
    I'm seeking any advice if I'm doing wrong with my mortgage overpayments...or reassurance if I'm doing right

    Mortgage type: Repayment, standard variable rate 4.99%
    Interest calculated: Annually

    Since July 2011 I have been making overpayments into my mortgage account, which then was at £43,429 with exactly 15 years remaining. This has included overpayment through my direct debit, and also one-off large capital payments from time to time, which reduced the subsequent mothly payments. In April my lender informed me that the mortgage term had been reduced by 9 months.

    Now the balance remaining is £28,080 and with my normal monthly overpayments of £100 currently debited from my account I will end the mortgage in February 2022.

    To date I have overpaid £10,100 in total, but am thinking I may have done a mistake in not requesting to keep monthly payments the same since making the occasional large capital payments i.e. when the first letter telling me about the payment change arrived.

    What do other members think? Am I going about it completely wrong, or maybe right?

    Hopefully I'm making sense with the above. Thanks in advance
    • andysdad
    • By andysdad 16th Nov 14, 11:18 AM
    • 142 Posts
    • 145 Thanks
    andysdad
    Hello all,

    I'm a new member to the MSE site, but a regular user of its Overpayments Calculator especially.
    I'm seeking any advice if I'm doing wrong with my mortgage overpayments...or reassurance if I'm doing right

    Mortgage type: Repayment, standard variable rate 4.99%
    Interest calculated: Annually

    Since July 2011 I have been making overpayments into my mortgage account, which then was at £43,429 with exactly 15 years remaining. This has included overpayment through my direct debit, and also one-off large capital payments from time to time, which reduced the subsequent mothly payments. In April my lender informed me that the mortgage term had been reduced by 9 months.

    Now the balance remaining is £28,080 and with my normal monthly overpayments of £100 currently debited from my account I will end the mortgage in February 2022.

    To date I have overpaid £10,100 in total, but am thinking I may have done a mistake in not requesting to keep monthly payments the same since making the occasional large capital payments i.e. when the first letter telling me about the payment change arrived.

    What do other members think? Am I going about it completely wrong, or maybe right?

    Hopefully I'm making sense with the above. Thanks in advance
    Originally posted by Seeingwhatsbest
    Congratulations on overpayinghttp://static.moneysavingexpert.com/images/forum_smilies/beerchug.gif
    If I follow it looks like your lender is sometimes reducing the length remaining and sometime reducing the monthly payment.
    If you are looking to pay off early you want them to only shorten the term. The key thing for you is to pay at least your original amount into the mortgage monthly so you could just increase your over payments in the short term whilst you give your provider the instruction to shorten the term
  • Seeingwhatsbest
    Thanks andysdad
    Thanks for your reply. I have been thinking that requesting my lender to reduce the term and not the monthly payments is what I should really be doing. Hopefully in the new year I'll be able to increase my overpayments further to speed up my mortgage-free mission...
  • Princess8783
    Five Year Plan!
    First post!!

    So I'm obsessed with overpaying my mortgage.
    I look at the accounts every day.
    We bought our first house in 2007 - mortgage borrow £99450.
    We overpaid massively and got it down to about £50000 in 6 years.
    Before we decided we should move.
    We borrowed our over-payments back and used them as the deposit for out new house, ported the existing (great deal!!) mortgage product across, and took a second mortgage deal.

    Total owed as of August 2013 - £129138

    Total still owing as at Feb 2015 - £114489.56
    Total over-payments made since moving to new house 11338.78

    We like our social life & holidays, but are currently trying to destroy the mortgage - I have a 5 year plan.

    The 'big' original mortgage - I aim to clear by 2018 and then we can focus our attention on the smaller second mortgage and have it cleared in 2020.

    We're doing a series of things to overpay, this includes a 'sweep' of what's left in our joint account at the end of a month, lump sums from bonuses at work, using the topcashback website for all online purchases and putting any rewards straight back into the mortgage, we car-share once a week and put the value we save on petrol into the mortgage pot, anything we win on football coupons or scratchcards goes straight into the pot, as does the money for anything we sell on Ebay. We also have 2 cashback credit cards, Santander 123 which we use in petrol stations and supermarkets to get the maximum cashback values, and another card that gives 0.5% on all purchases for absolutely all other spending. Anything we put on the cards, we 'ping' into a little esaver account until the credit card bill is due to be paid - we don't use debit cards or cash at all now to maximise cashback rewards which go into mortgage pot also. We're also trying to do regular exercises on reducing energy tariffs, car insurance renewals, sky package etc to make sure we're getting the best deals available... The more we save, the more there is to sweep at the end of the month...

    Also, we never go anywhere without a deal or a voucher. Always make sure I get a groupon for dinner, or a discount code

    I'm pretty obsessed and would be totally made up if we can be sitting mortgage free in 5 years time. Its so nice to find a forum full of like-minded people, most people I know think we're crazy!!

    : rotfl:
    • seven-day-weekend
    • By seven-day-weekend 25th Mar 15, 4:45 PM
    • 27,822 Posts
    • 51,037 Thanks
    seven-day-weekend
    Hi there!

    After years of being mortgage-free, we now have a mortgage again. We took this out on a bungalow we wish to move into which needs work doing, but did not want to live in it whist the work was being done.

    It is an interest-only mortgage for £100k. I am expecting a sizeable inheritance in the near future and this plus savings should pay it off. When the work is finished we will put our mortgage-free house on the market.

    We will pay the mortgage off with either the inheritance or the proceeds of the house sale, whichever happens first.

    If I have put this on the wrong board, please feel free to move it
    To love someone is to learn the song in their heart and to sing it to them when they have forgotten it
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine — 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
    • barbedhook
    • By barbedhook 2nd May 15, 9:27 PM
    • 69 Posts
    • 27 Thanks
    barbedhook
    Stop buying scratch cards and gambling and put money into your repayment pot
  • Jeannette Johnson
    Help
    I have a morgage left of 60k. I pay 600pm. Can I do this quicker or cheaper? I am paying mortgage only so that it is paid by the time I retire. Would it be better to stay with the Halifax or move and would this even be possible. Always scared of losing my job therefore my home.
    • gingeralan
    • By gingeralan 25th Jun 16, 10:50 PM
    • 216 Posts
    • 181 Thanks
    gingeralan
    Very pleased at the moment, well on target to clear my mortgage within the next 8 years. Just dropped below the £60k outstanding :-)
    • Adamjeffs
    • By Adamjeffs 22nd Oct 16, 8:18 AM
    • 26 Posts
    • 5 Thanks
    Adamjeffs
    Wannabe mortgage free
    Hi so I wanted to ask general advice

    I got divorced two years ago but was fortunate enough to keep the house . I was left with a large mortgage of 325000 which I've managed to pay down to about 300k now . Keen to pay it off as early as possible but with new mortgage rates I'm thinking its better to remortgage to a level I'm comfortable I can afford and then invest the extra money to pay off later. For info I can expect to get a rate of 1.39% fixed for two years

    I also pay a lot into a pension (I'm 35 and have about 100k already). I save about 18% (inc employers contribution) of my salary in it. Again what's people opinions should I reduce this and pay a bit. Ore into is as or off the mortgage I'm a bit concerned that by the time I retire in 30 odd years compound interest alone may take me over the allowance
    • tootallulah
    • By tootallulah 22nd Oct 16, 8:38 AM
    • 1,935 Posts
    • 6,680 Thanks
    tootallulah
    Hi, if you start a thread asking for advice you will get more responses. Good luck.
    Mortgage House £173,000 July17th 2016.
    • Fatbritabroad
    • By Fatbritabroad 22nd Oct 16, 8:46 AM
    • 2 Posts
    • 0 Thanks
    Fatbritabroad
    Mthanks sorry numpty posted in the wrong bit I have redone
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