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  • FIRST POST
    • Ms-Bristol
    • By Ms-Bristol 8th Mar 16, 7:26 PM
    • 22Posts
    • 83Thanks
    Ms-Bristol
    Project 2018
    • #1
    • 8th Mar 16, 7:26 PM
    Project 2018 8th Mar 16 at 7:26 PM
    I've been lurking a while so I thought I'd post my thoughts!

    We bought our house in 2007, with a mortgage of £235,000. The mortgage was ported from the previous property with part 4.5% and part 6.2% fixed (as this was pre credit crunch!) Repayments were a whopping £1500+ per month (ouch!)

    Nine years later the balance is £91,000 and I've repaid the ported amount and switched the fix to 2.99%. The repayments are now just over £600 per month.

    The fix only allows 10% repayment per year so I do that every year and put the rest in an ISA. The aim is to have enough in savings to pay the remaining balance when the fixed rate and associated restriction comes to an end in July 2018. This requires an 'overpayment' that actually goes into a savings account of £1500 per month. Currently saving £1600 per month so I am on target to do this. Every month I use the mortgage overpayment calculator on MSE to check I am on track.

    If it goes well the savings will meet the mortgage balance before the end date dictated by the fix. Due to the interest I earn on the savings and the penalty on the mortgage, ditching the fix is not worth it.

    I'd be interested if anyone else is taking a similar approach?
Page 3
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 31st Dec 17, 9:28 AM
    • 622 Posts
    • 2,758 Thanks
    SuperSecretSquirrel
    Nearly there Ms Bristol! Well done and keep going!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero! :)
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£51,530.12 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £269,388.83 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 18.0%
    • Ms-Bristol
    • By Ms-Bristol 6th Jan 18, 1:31 PM
    • 22 Posts
    • 83 Thanks
    Ms-Bristol
    Done some more sums on the situation -

    Mortgage balance: £66,400
    Savings balance: £50,900
    Shortfall amount: £15,500

    Months till end of fixed term: 7 months
    Anticipated repayments minus interest: £250 x7 = £1750

    Savings required: £15,500 - £1750 = £13,750
    Monthly savings required to repay in July 2018: £1964
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