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

SparkleBlack

Can I join?! We won't be anywhere close to MF on 12/12/12, but that date is just over 5 years into our mortgage and as we're aiming for MF in 10 years, it's a good halfway point. So can I say my goal is to have paid off half the mortgage.

Thanks to FB and Maz for setting this up.

SB

financialbliss

SparkleBlack wrote: »

Can I join?! We won't be anywhere close to MF on 12/12/12, but that date is just over 5 years into our mortgage and as we're aiming for MF in 10 years...

Nice one SparkleBlack. Newbie and very first post here on the MFiT-T2 challenge. I've allocated you as #15. I'll PM you back shortly.

Don't worry about not being able to be mortgage free at the end of the challenge. We've all got different circumstances, eg my mortgage of about 48k by December 09 may appear small, but we're a family of four on one income.

Any reduction - no matter how "small" is a benefit to you, rather thank the bank/building society.

FB.

aliwali

Hi
I really like the idea of having a 3 year target, but I'm not sure how to work out a realistic target. Does anyone have a spreadsheet that will work out what I would roughly owe in 3 years if we just made the minimum payments. I can't even begin to think how you would work this out.

I'll pm FB to join
Thanks

maz123_2

Hello aliwali, hopefully this link will take you to the mortgage overpayment calculators page. The best way is to have a play around them all and see which you prefer, we're all different and like different ones.
It should come with a health warning though, it becomes addictive! but you can also see how much even £10 month overpayment can make in years and interest!
http://forums.moneysavingexpert.com/showthread.html?t=155707
Hope this works

financialbliss

aliwali wrote: »

Hi
I really like the idea of having a 3 year target, but I'm not sure how to work out a realistic target. Does anyone have a spreadsheet that will work out what I would roughly owe in 3 years if we just made the minimum payments. I can't even begin to think how you would work this out.

I'll pm FB to join
Thanks

Hi aliwali,

Wondered why you name was vaguely familiar...

aliwali wrote: »

Hi FinancialBliss

I've just spent 4 hours reading your diary!

Post's 534 and 536 of my diary give a very flexible spreadsheet where you can adjust mortgage rates, payments overpayment etc:

534 : http://forums.moneysavingexpert.com/showpost.html?p=14965035&postcount=534

536 : http://forums.moneysavingexpert.com/showpost.html?p=14966029&postcount=536

I see Maz has already replied with a link, but you may also want to try the above.

Hope that helps. I'll sort out a number for you...

FB.

aliwali

Loving the spreadsheet!!! I agree this is going to get addictive.

I have had a play and as we are on a tracker it is quite tricky to work out what the interest rate will be for the next 3/4 years, so I have gone for an average or what it is now and what it was when we took it out.

So at the moment I think our target will be to reduce our motgage by £30,000. I think it will be about £95,000 by the end of this year but this is obviously subject to change.

Thanks for this challenge and the spreadsheet:T

SparkleBlack

Well I've been having a bit of a play with numbers this evening, but I'm not sure it's going to give much info for the chart! Mr SB and I have decided to try and reduce our mortgage to £72,500. However I've no idea what it'll be on 12/12/09, so I've no idea what the reduction will be!

Along with the above bits that I have no idea about, I also have no clue as to how challenging our goal is! We've decided to try and pay off the whole thing in 10 years, and this challenge ends halfway through that time period, so the £72.5K is just half the start value. Now I know we pay less capital at the start of the mortgage and more at the end, so a goal of half the original value may be unrealistic. However, we have an offset mortgage, so I can always decide to move my goalposts a little and count the offset savings, although that seems a little like cheating

Anyway, that's our goal! I'll keep an eye on the numbers over the year and update things as December approaches. As we're only just over a year in, another 11 months will almost double the amount of data I have to play with so that should help.

SB

financialbliss

SparkleBlack wrote: »

Well I've been having a bit of a play with numbers this evening, but I'm not sure it's going to give much info for the chart! Mr SB and I have decided to try and reduce our mortgage to £72,500. However I've no idea what it'll be on 12/12/09, so I've no idea what the reduction will be!

Hi SparkleBlack.

Great stuff. So I take it your mortgage is currently a fair chunk greater than £72,500 :eek:

We started our mortgage in 2004 - 95k. Ideally, I'd like a year end value of £47,500 - exactly half of the mortgage paid off. This would have taken about 5 years and 9 months to achieve.

Just a small task of paying the remaining 50% off by the end of this challenge, in just 3 years... :eek:

Handy tip: Don't forget that part of your payments / overpayments will be reducing the interest charged on your mortgages, so a dropping your mortgage by 30k is going to cost more than 30k once you factor in interest. Again from my diary, have a look here at this graph, which gives an annual mortgage reduction to monthly payment:

http://forums.moneysavingexpert.com/showpost.html?p=16772703&postcount=712

Hope this helps,

Financial Bliss / Maz123.

SparkleBlack

financialbliss wrote: »

Handy tip: Don't forget that part of your payments / overpayments will be reducing the interest charged on your mortgages, so a dropping your mortgage by 30k is going to cost more than 30k once you factor in interest. Again from my diary, have a look here at this graph, which gives an annual mortgage reduction to monthly payment:

http://forums.moneysavingexpert.com/showpost.html?p=16772703&postcount=712

Thanks for the tip and the link. I think I feel a spreadsheet coming on...

medic1978

Hi

My re-mortgage has just completed. It is an offset and current net mortgage is 90k

My target is to reduce the net mortgage (mortgage-savings/offset) to 40k by Dec 2012.
So I would love to join the challenge and be number 18!

My target is a little ambitious, so may need adjusting once I've played with a few figures