New mortage Fee Wonnabe

goodgodthatonesevenbigger · 22 August 2006 at 5:31PM

Hoorah

I got my Mortgage,

I now need to pay the thing off (as fast as possible)

so here goes

£70000 over 30 years, to be paid of ASAP

How do i do it?

1 - regular over payments? I can only afford £10-£15 per month over payment

2 - Scrimp and save? I do that already, with 2 kids and one on the way i cant do anything but,

I need as many suggestions for someone on a very tight budget to be able to shake this monkey from my back( not that its much of a monkey at the moment.

Please let me know how you have done chipping away at the ol' mortgage and i'll let you know if it works for me.

Any suggestion greatly recieved.

Welshlassie · 22 August 2006 at 6:03PM

What is your interest rate and are you tied in.

goodgodthatonesevenbigger · 22 August 2006 at 7:02PM

Interest rate is about 6.25 fixed for 2 years

Cara79 · 22 August 2006 at 7:31PM

Hi there

Are you allowed to make overpayments and if so are there any stipulations, i.e. 10% a year, or minimum/maximum £500 per month etc etc.

Also, 6.15% fixed for two years seems high?

Any overpayments you make will reduce the capital, so the more the better.

I think posting an SOA on the debtfreewannabe board will help in identifying areas that can be cut down. Worth a look.

x

Welshlassie · 22 August 2006 at 7:34PM

By paying just £15 a month overpayment you already knock 2 years and 8 months off your terms.
Have a look at the mortgage pig thread. Great way of savinig up more overpayment and the bit on the side thread for ways on finding extra cash.
I use ebay just selling a little bit here and there and pay it off as I receive it.
Find out if you are able to overpay and whether there is a maximum you can overpay each year (maybe 10%). Any money which you get which you're not expecting use towards the mortgage.
Check out the Old Style board as well for other ways of saving all around the house without loosing your standard of living.
Most of all, good luck, whatever you can pay off, however small to start with will mean you won't be paying the bank the interest and it will end up in your poscket at the end of things

goodgodthatonesevenbigger · 22 August 2006 at 7:44PM

Thanks for your suggestions

I'm limit to about 15% i think for over paymenys each year.

The rate is high as i have a bad credit history, but i'm only tied in for 2 years so will shop around when i can, which hopefully will help me save some too.

Cara79 · 22 August 2006 at 8:23PM

Ah that's good then.

Well any extra bits of money thrown at the mortgage help, that's certainly what I am doing!

x

AnW'sMum · 24 August 2006 at 10:07AM

hi goodgood

You also need to check with your mortgage provider that you are on daily interest otherwise any over payments you make might not be applied to your mortgage account until the year end just as your mortgage statment is produced. The lender then will have had the benefit of the interest gained on your overpayments for potentially almost 12 months.

A phone call should tell you if you are on annual or daily interest, you may need to write to confirm a request for daily interest. In the meantime put your overpayments in a high interest account until confirmation is received.

Hope all this makes sense!

goodgodthatonesevenbigger · 24 August 2006 at 10:31AM

Thanks for that, i didn't know there was a difference, im n the phone now.

gallygirl · 28 August 2006 at 10:12PM

Hi goodgod, another suggestion is to have a look on the debt free wannabee board. For example, they do a grocery challenge every month which could give you ideas and keep you motivated.

If you post your SOA (statement of affairs, see sticky at the top of the DFW board) people will be able to help you - even if you save only £10 a month it will help. have you signed up with quidco - arrange insurance etc through them for cash back etc.

And get a pig!!!!

New mortage Fee Wonnabe

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