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

Jock_Tight

With my latest mortgage payment my starting balance for the challenge is now £39,906

Link to ** Jock_Tight ** mortgage free diary:=
http://forums.moneysavingexpert.com/showthread.html?t=2101757

All the best everyone :beer:

gerbiljo

Hi wel I have submitted my balance for 12-12-09 which is £106,800 slightly less than I thought which is all good, hopefully it will come up on the sheet I'm 115

A quick question, if anyone can help..
Weve been overpaying our mortgage since the interest drop and due to the amount were overpaying weve seen a drop of about £10 a month on our official payments. The last couple of months the amount hasn't dropped and I called the bank today and they say they've changed their policy so they actually shorten the term of the mortgage now rather than reducing the monthly payment, I cannot see a problem with this but no idea how I'd actually work out if it will work out financially in my favour or make no difference? Gonna have to have a quick rejig of numbers so I can ensure I pay the amount I aim to!! I presume it's to do with the bank wanting to have as much coming in as possible which I don't mind as long as it doesn't work out that I pay more! Any advice gratefully recieved

I'm off on holiday for the start of the challenge hence submitting now not likely to have a holiday for a while either so will make the most of it!!

broomstick27

Can't believe I haven't noticed this thread before now but seems i'm just in time. Just spent an unplanned hour calculating how much i think we owe. We got a £150000 mortgage 2 years ago and now owe £134,000. If we continue at that rate my goal for 12/12/12 should be £105,000 but that would be too easy so i'm going to push for getting it under £90,000. Bearing in mind we have a baby on the way and could really use new bathroom, windows and central heating this could be a challenge, but hey thats what its all about isn't it?

Can't wait to tell OH i'm about to become even tighter than normal lol!

broomie
x

black_taxi_2

o/p 1st dec

starting balance 12/12/09 will be £39515.23

starbucks

Hi,

I would like to join in also. Mortgage at start £26K aim to be £1K. Will confirm exact starting balance once this months payment cleared.

Thanks !

Moneybag

Hello MFiT-T2'ers (sorry,but don't know what else to call this group yet)!!

Please join me in. I don't have any figures yet as I'm busy completing my first assignment for a course I'm doing at the OU (don't laugh but it's a finance one).

Will sort through mortgage paperwork during next week and post here again. Just hope I have enough time as this is such a great motivation for me at this time in my life (sorting finances alone after 30+ years is so daunting) so need all the encouragement/support you can manage.

Thanks and good luck to all
Moneybag (I wish)!!

weezl74

gerbiljo wrote: »

Hi wel I have submitted my balance for 12-12-09 which is £106,800 slightly less than I thought which is all good, hopefully it will come up on the sheet I'm 115

A quick question, if anyone can help..
Weve been overpaying our mortgage since the interest drop and due to the amount were overpaying weve seen a drop of about £10 a month on our official payments. The last couple of months the amount hasn't dropped and I called the bank today and they say they've changed their policy so they actually shorten the term of the mortgage now rather than reducing the monthly payment, I cannot see a problem with this but no idea how I'd actually work out if it will work out financially in my favour or make no difference? Gonna have to have a quick rejig of numbers so I can ensure I pay the amount I aim to!! I presume it's to do with the bank wanting to have as much coming in as possible which I don't mind as long as it doesn't work out that I pay more! Any advice gratefully recieved

I'm off on holiday for the start of the challenge hence submitting now not likely to have a holiday for a while either so will make the most of it!!

Hi gerbiljo and welcome to the challenge.:D

My understanding is that it's better for you financially for the bank to reduce the term rather than the monthly payments.

If you put some figures into this calculator it will probably help, but to give a brief worked example:

Mr X has a mortgage of £100000 payable over 20 years at 5% fixed interest. His monthly payments are: £659.96 per month. He overpays a lump sum of £10,000. If the bank reduce his monthly payments, then his mortgage monthly payments reduce to £593.96 per month. Over the 20 years, this is a saving of £15,840. If they reduce his term but keep the monthly payments the same, he will save £22,570.48 because the last 38 months will be mortgage free compared to if he paid off over 20 years.

HTH!

jsbarrett

Hi there,

Please could I be added to the challenge list!?

Current mortgage £106,089.49
Aim to reduce to £66,089.49
current interest rates 2.5%

Can't wait to get started.

James
:j

Lady_Tara

Hi all, I've rung and got my balance and its slightly more than expected by a couple of hundred pounds, so I am starting from: £131,864.71. :rolleyes:

We've not overpaid the last couple of months, but have saved instead, as we are on a 1.49% mortgage rate, and can get slightly better by saving instead (I think??), but the intention is to save/overpay by at least £500 every month for the length of the challenge.

I've also joined the Frugal Living challenge to try and inspire me to do better with budgeting, although this didn't work today when I spent £4.95 on xmas crackers at lunchtime!!!:rotfl:

shangaijimmy

139 reporting in!!
We are heading to Egypt on Friday for 2 weeks so i wanted to wish everyone good luck in the challenge!

And a merry christmas!!