Getting plan together...

I started with a £77500 5yr fixed-rate loan in April 2006, my basic repayments are £460ish.

Then back in Feb I decided to start monthly o/pmts of £50 after getting a pay rise (int is recalcd mthly). I have now just started making the full 20% o/pmt of £94pcm since starting a great new job. I will shovel the rest of my rise in pay into my ISA for now (tax-free so int won't affect Tax Credits).

The plan is to remortgage in 2011 and reduce the loan further with any savings I have by then. Then dilemma will be whether to get another fixed rate and continue with the monthly o/pmts, or maybe even get an offset mortgage. By then both the kids will be full-time at school and my partner will be able to go back to full-tme work (he just works w/e at the mo). Hopefully there'll be more cash about by then and we can really start denting the balance!

Mortgage-free by 45... then start piling the cash into our final-salary pensions... then early retirement to the Caribbean where my dp originates from! (well, something like that anyway)

Teresa
Initial mortgage: £77500 over 25yrs wef Apr 2006
Now: £72800

Just started o/pmts of £94pcm (max allowed) until 2011 when fixed period over...

Want to be mortgage-free by 2022 (or sooner)!

Replies

  • EssexHebrideanEssexHebridean Forumite
    16.7K Posts
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    Ahh - another MFW with an ambitious plan for the future!! Welcome to the mission!

    Sounds like you're following our plan of shoveling money in the direction of the mortgage before you notice you've got it - a sound plan if you're anything like us - once we realise it's sitting there there is a strong likelihood it will get spent!

    Well done for attacking it!
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  • StuartGMCStuartGMC Forumite
    2.2K Posts
    Tesspip
    Welcome to the "family" here, and congratulations on those first steps.

    If the savings are your emergency and/or funds for possible needs like house items (windows, bathroom, kitchen) needed in future then I would start to look at the offset possibilities.

    Do keep us posted on progress - we're here to help and encourage you too.
  • tesspiptesspip Forumite
    16 Posts
    Thanks. Oh I am sooo like you guys!

    My dp and I started off in a tiny hsg assn bedsit with nothing but our modest jobs. We pooled our money into savings and kept every penny we could. We even survived having babies (2) & dp getting made redundant after his co relocated to London (hense me ending up as main breadwinner).

    Once we'd emassed £50k (I still look back at those bank stmts in amazement) we bought our home, with the help of aforementioned £77.5k, plus £37450 given to us by my Dad in the form of an interest only mortgage in his name (it's in his will that any capital remaining be deducted from my inheritance). I service the loan my Dad took out, he doesn't want me to pay back the capital (yet!).

    So as you can see my story is part hard work and part thanks to a very generous Dad (who is also a very thrifty Accountant). The best I can do to thank him is work as hard & smart as I can. I know from my savings past that as I see the balance reduce it will motivate me to do more & more... very addictive!

    Teresa
    Initial mortgage: £77500 over 25yrs wef Apr 2006
    Now: £72800

    Just started o/pmts of £94pcm (max allowed) until 2011 when fixed period over...

    Want to be mortgage-free by 2022 (or sooner)!
  • Welcome & well done on your progress so far. I'm sure your Dad is delighted to be able to help you. Good luck with your MF journey and I look forward to reading all your stories about your progress.:money:

    All The Best

    SMF2
  • WelshlassieWelshlassie Forumite
    1.7K Posts
    Part of the Furniture Combo Breaker
    Forumite
    GL with your MFW challenge, it will become addictive, but in a good way!! Looking forward to hearing how you do over the coming months and years.
  • moominyakmoominyak Forumite
    236 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Forumite
    Hi there Tesspip, and welcome to Planet MFW from me too :hello:
  • Hi guys, thanks for the warm welcome. I'm looking forward to reading all your success stories & learning lots of tips. This is a great site.
    Initial mortgage: £77500 over 25yrs wef Apr 2006
    Now: £72800

    Just started o/pmts of £94pcm (max allowed) until 2011 when fixed period over...

    Want to be mortgage-free by 2022 (or sooner)!
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