The Mortgage Free in Three - Take 2 challenge (MFiT-T2)

financialbliss

Been letting this thread just bump along, although I have been keeping an eye on it…

Nationwide. I’ve a Nationwide current account and a Nationwide mortgage. Why it takes up to 4 or 5 days for the mortgage account to be credited I do not know. I put this to Nationwide some ago and didn’t get a satisfactory (to me) answer. Does anyone do payments / overpayments as faster payments to mortgage accounts?

How much is my standard mortgage? I couldn’t answer this, so had to roll my sleeves up and fire up a calculator (Excel this time around).

Our mortgage was taken our in March 2004 as a 25 year product, ie completing in March 2029. Trouble is that I’ve re-negotiated my term 4 times now, each time reducing the remaining term by upping the standard payment. This started at £543.80 but initially dropped as we made overpayments.

Started reducing term instead of payments and put payment back up to £543.80 initially, then upped to £597.31 then £898.03 and currently £929.33. On top of that I’m making overpayments – this year I’ve gone a bit mad and I’m dumping our savings into our mortgage account and getting the mortgage rate (4.79%) as savings. Doing this via the £500 Nationwide overpayment.

So, I’ve set a mortgage rate of 5% from September 2010 then calculated what the monthly payment need to be to complete in March 2029 and it comes out at just £265.57 :eek:

We’re currently paying over 5 times more than per month at £1,429.33 :eek:

Just in case you think we’re minted, we can’t keep that level up for too much longer as we will run out of savings! Probably until the end of 2010.

Financial Bliss.

Queen-Bee_2

Hello Financial Bliss,

Lol... I'm adopting exactly the same strategy with my savings - basically, I want shot of the mortgage asap, so I shortened the term to coincide with the expiry of my fixed rate product (March 2011). This means I am paying a few pounds short of £4k a month :eek: I am not sure how much longer I can keep this rate of payment up for, but the intention is to do it for as long as I can...

It does mean I'll be cashing in my ISAs, which is a shame. But my current fixed interest rate is 4.59% and I'm of the opinion that the best place for one's savings at the moment is in bricks and mortar!

BTW, my mortgage is with Nationwide, and although they take the payment monthly from another bank account, it still takes a few days to show. On a few occasions, I've cancelled the DD and arranged to pay them manually - in these instances, I have used a faster payment facility with another bank. Again, it was a couple of days before it showed up as hitting my mortgage account, even though it left my bank account the moment I pressed the button on-line.

I rang Nationwide to query this, as I expect the payment to be applied to my account the moment they receive it - not three days later!!! - and they assured me that it was credited the same day, it just didn't show. Of course it's not possible to see this summary on-line, as the individual payment days are not shown - only a monthly summary - but I have taken them at their word... maybe I shouldn't have...
QB

gerbiljo

wynnvegas wrote: »

...the good fortune (only as it wasn't planned) to have the mortgage amount outstanding staring me in the face every time I logged into the internet banking. I'd recommend that as a spur for anyone who wants to pay their mortgage off...

I agree, I have the same and as all my accounts are with hsbc I have the ease of just slipping a little extra into the mortgage and seeing it drop instantly, such a great motivation... infact I might have to see what I extra I can slip in now haha!

Guys I also would be annoyed if I got charged my extra interest due to their lates transfers!!!

cazmanian_minx

Our mortgage is an interest only tracker for the whole term. When we took it out, base rates were 5.5% so we were paying 6.6%, which was a minimum payment of £737. Now we only have to pay them £192, but every time the base rate went down we put the monthly payment back to the level it was originally at, so we're getting a chunky automatic overpayment each month (in fact what we've done is turn the interest only mortgage into a repayment one in effect, because if rates stay as they are - unlikely, I know - we're scheduled to pay it off in full 6 months before the term ends with no additional overpayments.)

loopy-juice

loopy-juice wrote: »

Taking away your overpayments how much mortgage do you actually have to pay per month?

Mine is £89.22.

I'm currently paying off £1000 per month on an endownment policy. It is difficult but with an endownment coming in next year this should help greatly by reducing the capital. Every month the amount per month drops by a few pence. Will be great to get it under £80.00 per month.

welshlady33

Number 44 checking in

Cashed in poorly performing endowment and that is now offsetting against the mortgage.

Current balance - offset = 15350.34!!

Jumping for joy :j, can't wait to see next months interest reduce dramatically. 12/12/12 deadline looking good!!

Money saved on not paying endowment premium each month has been added to regular mortage payment.

Thanks to everyone on this forum for your wise and funny words which really help and motivate me every day.

TTFN

loopy-juice

welshlady33 wrote: »

Number 44 checking in

Cashed in poorly performing endowment and that is now offsetting against the mortgage.

Current balance - offset = 15350.34!!

Jumping for joy :j, can't wait to see next months interest reduce dramatically. 12/12/12 deadline looking good!!

Money saved on not paying endowment premium each month has been added to regular mortage payment.

Thanks to everyone on this forum for your wise and funny words which really help and motivate me every day.

TTFN

S'ok. Glad to be of service.

RosieTiger

Hi all,

ages since we posted - the last update apparaently. Just took some time to catch up with the thread and incredible progress appears to be the order of the day. congratulations - it's inspiring!

Wynnvegas - I wish I had been as sensible as you at your age!!!!

Following the comments around savings v adding to the OP, we are in a similar position too. at this point, we have opted to leave the ISA's as technically they are doing better than our mortgage rate, but almost nothing in it so remains very tempting. Continuing to debate it!

Our month end figure for the next submission will be at £75,600 - feels a little frustrating and vey tempting to take that down to the 60's and hit our original target figure !

hoobydoobydoo

Hello everyone - been lurking around some other boards looking for ideas to save money while DH is in Iraq for 6 months so that we have money to spare when he gets home!

loopy-juice wrote: »

Taking away your overpayments how much mortgage do you actually have to pay per month?

Mine is £89.22.

We currently pay £101.56 a month on the further advance we are trying to clear through this challenge, with a monthly overpayment of £500 which is the maximum allowed by Nationwide. By the next update the balance remaining should be under £10,000 and will definitely be long gone by the "agreed redemption date" September 2027.

We also pay £638.37 on our main mortgage which we will target once the further advance has gone. I am truly amazed by what some of you have achieved - I wish I had known about the support available on here when I first started paying a mortgage. Perhaps I would be mortgage free by now......... although "mortgage free by fifty" has a certain ring to it and could be achievable in 8 and a bit years!

Best wishes everyone
Hooby

taxi73

Welcome aboard hoobydoobydoo..and all credit to your DH serving his country may he remain safe xxx