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

LauraJo

Wow Thebees - that is great news...mum, dad...you listening????

Kaz2904

I've made lots of money recently by selling loads of unwanted toot on Facebook and eBay. I figure that I'm better off with the cash in my pocket!

TheBees

Yes we are extremely lucky and I love my Mum and Dad!!!

The plan is to keep overpaying as much as we can so that when the endowment pays out in April 2014 the mortgage balance will be already paid off. That will mean we might then be able to use the endowment proceeds to enjoy ourselves or help our teenagers get through uni or on the propery ladder themselves, change the car, go on holiday........:j

So we're staying with the MFin3 challenge and the challenge now is to get the balance down to £20K by the end of this challenge in December. (We suggested that M & D hold back £5K until next April to avoid inheritance tax so it's coming to us in stages!)

Trying_to_be_good

I've taken the plunge and opened a Nationwide Flexclusive cash ISA paying 4.25% - but only with £1 as it's still less than the 4.49% fixed rate (until July 14) on the mortgage, so I won't transfer the rest until the end of the tax year.

Is anyone else trying to balance longer-term tax-free savings against clearing the mortgage? My pension is an occupational scheme, and I'm already topping up a couple of added years and will have higher contributions from this month as I'm public sector, so not much else I can or should (yet) do for that.

setmefree2

The setemfrees are now into there final WEEEEEEKS!!! We will be MF at the end of May.

So excited :j:j:j:j:j:j

smf2

Kaz2904

Wow, we'll done! Bet that feels great doesn't it?

setmefree2

Kaz2904 wrote: »

Wow, we'll done! Bet that feels great doesn't it?

I thought it might be an anti climax but it really isn't.........:j:j

Jock_Tight

Trying_to_be_good wrote: »

Is anyone else trying to balance longer-term tax-free savings against clearing the mortgage?

Yes, we use our cash ISA allowance each year for the longer term tax benefits. If you dont use it you lose it and this is equally as important to us as clearing the mortgage.

At the least, peoples emergency funds should be held in easy access ISA accounts so they still gain the tax benefit while clearing the mortgage. If no emergency crops up then that ISA could be switched to a fixed rate to gain more interest and then start using you allowance each year (retirement planning).

Trying_to_be_good

Took advantage of the free listing weekend on ebay last weekend, so now waiting tediously for the 12 items to finish and being on hand to answer any last minute questions. Not mega bucks by any stretch, 6 items have bids, mainly clearing out clutter and not wanting to chuck stuff straight in the bin. I've had a good clear out of old financial papers today too, with lots of burning of the old info. All on a mission as OH wants to convert the garage, so I'm trying to get rid of the tat in there. At least I'm having to re-home less stuff!

curlygirl1971

Jock_Tight wrote: »

Yes, we use our cash ISA allowance each year for the longer term tax benefits. If you dont use it you lose it and this is equally as important to us as clearing the mortgage.

At the least, peoples emergency funds should be held in easy access ISA accounts so they still gain the tax benefit while clearing the mortgage. If no emergency crops up then that ISA could be switched to a fixed rate to gain more interest and then start using you allowance each year (retirement planning).

I can only afford one or the other and as I've already built up a savings pot i'm comfortable with, then my surplus cash is going toward mortgage OP's. Last month I even took £1K out of an ISA earning 3% and used it as an OP, am tempted to use even more. The cash I OP every month X 12 doesn't = the yearly ISA allowance, so even when I finish with the mortgage and I turn my attention back to long terms savings, I still won't be using all my allowance

I also look at the amount I have in easy access and judge whether some of it can be fixed to get better rates