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

black_taxi_2

oct--reduced mortgage by £207

only nov/dec payments to go before 2009/2012 thread finishes

its good looking back to 2009 to where you were

g/l all

Jock_Tight

black_taxi wrote: »

its good looking back to 2009 to where you were

According to my spreadsheet, we were at £41,806 back in Oct 2009, so have knocked off just over £40k in 3 years :eek:

black_taxi_2

heres your 1st post jock

Jock_Tight
18-11-2009, 11:34 AM MoneySaving Stalwart

Join Date: Nov 2009
Location: Scotland




Hi, I'd like to join too as this challenge fits in with my own plan to be hopefully mortage free in 3 years!

Background:

We bought our house back in 2003 and took out a 2 year fixed rate mortgage so we knew where we were financially each month. After the first two years we hunted around for another 2 year fixed rate deal. Our monthly payments were reasonable however after 4 years we had hardly paid back much capital as most was going on interest! At this point we would be mortgage free in 2028 :mad:

Months before the second fixed rate deal came to an end we started hunting around for another mortgage. It was now the end of 2007 and we had an outstanding mortgage of £74,000.

We had considerable savings so decided to look into an offset mortgage to reduce the term. We put £10,000 into the mortgage and took out an RBS offset mortgage for £64,000. With our savings and a lump sum from our parents we offset the complete amount so now we were paying 0% interest; every penny we paid in was reducing the capital. Estimated mortgage completion was now 2017; we had saved 11 years off the mortgage term.

I created a spreadsheet and with monthly payments (full capital) we could see exactly when we would complete and what difference further overpayments (no limit with RBS) would make.

Each time we make a monthly mortgage payment we take the same value out the offset savings account and stick in a high interest account / max our cash ISA allowance each year.

We switched life policy saving us £25 a month so this was put into the mortgage every month. We also have a 'spare change' pot which gets put into the mortgage. We then analysed our outgoings and decided to overpay even more. With the additional monthly overpayments we were now on target to complete by mid 2013, saving a further 4 years.

Major aim for me was now to be mortgage free before I was 40 (Jan 2013) so I set about looking at the spreadsheet again and seeing how we could complete by Dec 2012. We now increase the monthly overpayments in line with our company salary increases.

So plan is to clear our remaining 40k mortgage balance by Dec 2012 (3 years to go!)

Regards,
Jock_Tight

:beer:

Jock_Tight

black_taxi wrote: »

heres your 1st post jock

Brings back memories

By the time we started the mortgage free challenge we had got the balance down to £39,906

Jock_Tight

The last regular mortgage payment has left my account which brings the mortgage balance down to £1,065

Just need to pop into the bank on Friday afternoon to transfer the final money over and all is done!

2 more days to go

black_taxi_2

you will have a good weekend then

tattycath

That's brilliant black taxi and Jock Tight-most inspiring. I've just been looking back on my journey. Hoping to achieve so much more in the next challenge

gallygirl

Jock_Tight wrote: »

The last regular mortgage payment has left my account which brings the mortgage balance down to £1,065

Just need to pop into the bank on Friday afternoon to transfer the final money over and all is done!

2 more days to go

:j I day to go :j

Just FOR YOU Jock

Jock_Tight

gallygirl wrote: »

:j I day to go :j

Just FOR YOU Jock

Thanks, 1 day woo hoo

Jock_Tight

All done, now mortgage free !!
This MF challenge has been fantastic! :j