Get me on the road to being mort free!

padee

What would you do? I

'm keen to pay my mortgage off in next 10-15 years. Don't know how to go about it.

Current mortgage fixed rate expires 1/11/08. N/Rock 2gether mortgage (balance is 61k of mort + 13k loan = 74k).

Value of flat is around 73k. I guess I may need to get a 90-95% mortgage and a loan to make up the LTV shortfall.

What would you do in my position to get a good deal and get on the road to being mortgage free. Salary is 28k.

Cmon experts! :beer:

StuartGMC

Padee, welcome.

Firstly save like anything now to cover the costs for a new mortgage and to reduce the "negative equity" you face when exiting discount. I assume you have no other debts?

Secondly sort out your budgeting in detail (I can send you a spreadsheet if you PM me your own address). This is essential to cover all your regular costs (monthly and annual), plus allowances for things like car maintenance and holiday etc. You'll need this anyway to discuss mortgage options so it's good to get into the detail now.

Do look to get your rainy day fund (3-6x your monthly income) saved in easily accessible form.

Plan to overpay (and ensure you get a new mortgage to allow you to do so).
You could run the comparison of offset vs other options but I would guess that you don't have major savings this time round, but you may want to see if it could become viable as a target for you in 3-4 years time?

Succinctly, understand your income and outgoings, look at what you can really have as your monthly "enjoyment" budget as you have to enjoy things too, then stick to your budget and put savings away at the start of the month (not end) you'll save much more that way.