mortgage free - advice most welcome...

aliyah · 27 February 2006 at 10:00PM

we have 77,000 mortgage after buying our council house just over a year ago. although we pay 493.00 on this a month, we are saving 1000.00 in a separate account ready to add to the mortgage when our 2 year fixed rate is up in december 06.

we brought the house for 95,000 (had an 18,000 deposit saved) with the council discount. house valued at 179,000 now

we are tightening our belts, although with 3 teenagers and a 9 and 10 year old all at home, it is tough! whatever happens each month, we have put aside the 1k before anything else.

paying this off is our priority, then our reward will be doing the same for a holiday home in morocco next :j

will have another 20k to pay off it this december and we are absolutely determined to finish this mortgage by december 2008 at the latest.

making our plans so public will, i hope, keep us motivated.

currently saving the 1k each month in a & l online saver. is this the best deal?

most grateful for any suggestions to help us meet our target

thanks as always everyone

aliyah

Thefunkygibbons · 28 February 2006 at 9:13AM

Deals on savings move around a little, but for only a year, the difference between yours and others may be small

How does your rate compare to ING Direct?

Once your fixed rate ends will you be allowed to pay that amount off monthly? And does your mortgage deal calculate interest daily so as to get the benefit of doing it?

aliyah · 28 February 2006 at 9:50AM

hi funkygibbon (are you named after The Goodies song?!!)

we have a fixed rate mortgage which we want to change in december for one where we can make such large overpayments and which calculates interest daily.

do you know of any which are worth a look?

thanks

biblejohn · 28 February 2006 at 10:01AM

Oh my god, you live in a council house and can still save 1000quid a month *after* you have paid all your bills & mortgage!!!!!!!!! Thats really good going, especially if you have kids too!

Sounds like you are doing the right thing by saving the cash in savings acount. I have a really good job, no kids, no loans, hardly ever go out or spend any cash and yet I can only save 200quid a month. I plan on just paying off lump sums off my mortgage every 2 years when i remortgage. I reckon i`ll have paid my 70k mortgage off over the next 15 years if i save really hard.

AndrewSmith · 28 February 2006 at 10:13AM

Personally I save with ING Direct. The rate is competetive and it couldnt be easier to deposit or withdraw funds.

Andy

gallygirl · 28 February 2006 at 2:33PM

aliyah wrote:

we have 77,000 mortgage after buying our council house just over a year ago. although we pay 493.00 on this a month, we are saving 1000.00 in a separate account ready to add to the mortgage when our 2 year fixed rate is up in december 06.

we brought the house for 95,000 (had an 18,000 deposit saved) with the council discount. house valued at 179,000 now

we are tightening our belts, although with 3 teenagers and a 9 and 10 year old all at home, it is tough! whatever happens each month, we have put aside the 1k before anything else.

paying this off is our priority, then our reward will be doing the same for a holiday home in morocco next :j

will have another 20k to pay off it this december and we are absolutely determined to finish this mortgage by december 2008 at the latest.

making our plans so public will, i hope, keep us motivated.

currently saving the 1k each month in a & l online saver. is this the best deal?

most grateful for any suggestions to help us meet our target

thanks as always everyone

aliyah

Look at Bradford & Bingley - paying 10% till Dec - can't lift out till then but that would suit you? Even better than putting in an ISA - even if you're higher rate tax payer. Think Barclays doing also but need current account.

John_LG · 1 March 2006 at 12:36PM

Our mortgage was 66k in '01. We had a 2yr discount (25yr term) and soon realised we could have afforded a little more but weren't allowed to overpay. Any spare cash went to an ISA first, and then an internet saver. At the end of two years we paid a small lump sum, and went for another 2yr discount. Instead of carrying forward a 23yr mortgage we planned what realistically we could afford each month over 2yrs (accounting for wedding costs, expected salary increases etc). Instead of asking for a 23yr mortgage, we stated we wanted to pay £X, which turned out to be a 16yr term! We were delighted, and this started my desire to pay off the debt! We continued saving (ISA first, then an internet saver), so when that 2 yrs was up, we had another small lump sum. We had some excellent (free) mortgage advice and found a great fully flexible account (and with a new job) have now fully stretched ourselves (getting more realistic each time!), so that we are now aiming to pay off in 5yrs time (that will be 10yrs in total).
My message is, be realistic about what you can afford each month(don't assume 25yrs), save in an ISA to give you any back up monies for emergencies (ISA rates are so equivalent to mortgages, that there is little to gain in putting EVERY penny to the mortgage).
Save hard, but always be realistic about income.
We know that as our family expands (first child due today!) we have to move house, and the mortgage is going to be huge again, but just think of the interest charges we have saved, without being tight! It has inspired me to look at my own skills and actively get that better job.
Good luck.

Thefunkygibbons · 1 March 2006 at 2:13PM

aliyah wrote:

hi funkygibbon (are you named after The Goodies song?!!)

we have a fixed rate mortgage which we want to change in december for one where we can make such large overpayments and which calculates interest daily.

do you know of any which are worth a look?

thanks

Indeed, it is the Goodies song

It is too early to suggest good mortgages as they change constantly

Mine is with the Skipton building society and does both those things

ftbworried · 1 March 2006 at 4:37PM

Oh my god, you live in a council house and can still save 1000quid a month *after* you have paid all your bills & mortgage!!!!!!!!!

...and I thought that the state only provided social housing to those that were in dia financial need (which with 18k in the bank you obviously weren't).....

*goes to check with council to see if they'll sell me a 179k house for 90k*

Oh no, apparently because I've struggled to rent and then buy privately and not take handouts from the state I'm not eligible.....

anyway Good Luck in buying your second home in Morrocco.....I hope you send a thank you card to those tax payers who kept you in a house for all those years when it seems you could have afforded your own.

I feel sorry for the people who REALLY might have needed that council house.

newmum1 · 1 March 2006 at 4:46PM

ftbworried wrote:

...and I thought that the state only provided social housing to those that were in dia financial need (which with 18k in the bank you obviously weren't).....

*goes to check with council to see if they'll sell me a 179k house for 90k*

Oh no, apparently because I've struggled to rent and then buy privately and not take handouts from the state I'm not eligible.....

anyway Good Luck in buying your second home in Morrocco.....I hope you send a thank you card to those tax payers who kept you in a house for all those years when it seems you could have afforded your own.

I feel sorry for the people who REALLY might have needed that council house.

:mad: :mad: The original poster has asked for help with a query if you cant help then dont post and there really is no need to be so rude about it, what makes you think that the original poster doesnt pay taxes, people like you post before you think what you are saying, there really was no need for it. :mad:

ftbworried · 1 March 2006 at 4:52PM

The OP wanted help? It seems she has had plenty of that already from the state. Yes they might pay taxes, but who exactly paid for the ~100k difference between what she had to pay for the house and what it is REALLY worth? The state, the local authority and ultimately those tax payers that DONT get given a council house.

Social housing is one of the things that is great about this country (along with the NHS), but it really RILES me when there are people who can OBVIOUSLY afford (I mean 1k disposable income? savings of 18k?! buying a holiday home in Morrocco!!!!) not to burden the government with heavily subsidising their housing. What about the people who REALLY need it? What about homeless people?

mortgage free - advice most welcome...

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