Planning for the next chapter

skye_blue · 17 March 2017 at 9:12PM

Hi

Newby here, please be kind

Read loads of threads and have decided to step up to the mark and set myself some targets

With all the talk around retirement, pensions etc going around its made me think!

I have 6-7 years to my retirement, small pension but my mortgage is interest only changed after being off work for a year due to illness a while back and could never afford to change back to repayment. Have asked if i could part part repayment but was told no. Cant change providers as i wouldn't pass all the new criteria now.

Im on a dmp for another two and a half years and i keep putting it up every few months so its hopefully coming down quicker

Have about a months salary in savings which i add £10 to each week but as its earning little interest im starting to overpay the mortgage. So ive managed £300 this month

Do you reckon im on the right track? I know i probably can't pay it all back but it saves interest and probably gives me more choices if i need to sell later. I do not have a partner so just my wage to do this

House value £115,000 owe £75,000

Thanks for reading

Kittenkirst · 17 March 2017 at 11:13PM

Hi there Skye blue, I'm not too sure in the best advice but I didn't just want to read & run!

Any savings/Overpayments have to be a good thing though

skye_blue · 19 March 2017 at 6:15PM

Thanks kittenkirst for your reply

I just had to write this down as it was going round in my head

Keep going as it is for now i think

freshcotton · 19 March 2017 at 9:09PM

I don't think you can go wrong with throwing extra bits at the mortgage.

Is there interest on your unsecured loans?

skye_blue · 20 March 2017 at 6:33PM

wow freshcotton your totals are amazing

my dmp debts are 0% bar one
my savings are dire at 0.50%
my mortgage is 4.29%

no brainer really

Freddykrueger69 · 20 March 2017 at 6:46PM

Must admit I am really inspired by some of these threads. It's great that everyone can keep focus - I'm a born worrier so that is one of the main drivers with me wanting to get to the point of mortgage neutrality. Don't want to be a slave to the system

skye_blue · 20 March 2017 at 10:35PM

i know what you mean about worrying

have friends who say stop worrying about the future but those are the ones with no mortgage and 2 salaries

Moneyfordreams · 21 March 2017 at 2:24PM

How long do you have left on your mortgage?

A couple of family members have interest only mortgages finishing in 7-8 years, one same age as me, 47 and the other 58, without savings/insurance to pay off.

It's great that you are overpaying. Do you have any way of paying it off at the end?

skye_blue · 21 March 2017 at 8:17PM

8 years left and at 59 i have nothing in place either

hence sleepless nights thats why im trying to find a positive challenge to help me look forward rather than worry for the next few years

mfmaybe · 21 March 2017 at 9:26PM

OK so I'm not an expert on DMP. But my understanding is that, if you keep making the agreed payments, you can offer full and final settlements when you have some cash set aside. These will be a percentage of your outstanding debt. Might it be worth investigating that option, and setting aside your spare cash for that instead?

You say your debts are at 0%; but if you could have a 60% !!!!!! accepted, for example, that could be much more beneficial overall. Worth looking into, I'd have thought? Depends how much is still outstanding.

skye_blue · 25 March 2017 at 12:12AM

Hi

Thanks for the reply mfmaybe

I did offer a settlement offer on one of the lower debts a few months back but they would only accept 10% reduction so i left it at paying the monthly amount

Planning for the next chapter

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free