33 years left on the mortgage, gonna start my MFW log now!

MORPH3US

I also overpay my mortgage at the maximum allowed each month (20% of the normal monthly payment).

If I carry it on (which I very much intend to) it will save me 7 years and £40,000....

I only wish I could overpay more but i'm not allowed without penalty so I just save it as a rainy day fund and when my fixed rate is up I will pay a lump sum off too.

Aaagh

setmefree2 wrote: »

We bought our first propert in 1987 and sold it in 1993 for £500 less than we bought it:rolleyes: ....

I paid into a mortgage for 6 years and following a relationship break up walked away with just £1000. The way I looked at it is it was cheaper than renting.

Welcome and good luck.

johncolescarr

Just a quick update,

recently got promoted, so instead of splashing the extra cash, we're putting the money on overpaying the mortgage, that way we wont miss it as we've got the same amount of disposable income as before. My partner is also due a promotion this year so this will also go on the mortgage.

Its developed into a bit of a bug!

StuartGMC

John, well done on the promotion. Very good plan to put the extra to the OP, assuming your pension is ok, and your savings are mounting too for items like replacement car, holiday etc. Hope you are both taking time to enjoy life along the way too?

setmefree2

johncolescarr

StuartGMC wrote: »

John, well done on the promotion. Very good plan to put the extra to the OP, assuming your pension is ok, and your savings are mounting too for items like replacement car, holiday etc. Hope you are both taking time to enjoy life along the way too?

Thanks,

I pay 3% of may salary as pension, company pays 6%. My GF works for the NHS so gets a final salary still, so I think she's got the better deal!! I'm debating increasing this 3%, but not sure, really confused over pensions, I take it as my company contributes so refusing it seems like refusing money!

We've built up 6 months outgoings as savings, although a lot of this will go on wedding next year. Even with saving rates so low, I have decided to use up cash ISAs for me and my partner as I figured that we'd earn more in compound interest in the future and will give us more of an emergency fund, especially in todays climate.

Still make sure we enjoy life though, I agree that there's no point living a life of a miser and do nothing, you'll end up regretting it when its too late!

stone1

wow, I am 24 but i never though of getting a mortgage with timeframe so big. I wish you good luck with it. Although, if I where you, I would try to refinance it in another country (estern-Europe country).

johncolescarr

stone1 wrote: »

wow, I am 24 but i never though of getting a mortgage with timeframe so big. I wish you good luck with it. Although, if I where you, I would try to refinance it in another country (estern-Europe country).

He he,

Took it out at 26, at the time it seemed perfectly reasonable, hindsight is a wonderful thing! House prices were booming and all advice from friends and family was "its good to get on the property ladder". We actually thought we'd been cautious since we borrowed 3.5 times our salary and opted for repayment mortgage, we were offered 6 times our salary!! How things have changed! Luckily though, we realised our mistake and with overpayments currently have the term down to a more respectable 20 years.

Gorgeous_George

Hi John

I just wanted to wish you well with your journey. When you want to eat an elephant you have to take small bites. Every £ you overpay is ££ less to pay later.

Of course, the usual rule still applies. Only overpay if your mortgage rate cannot be beaten in a savings account.

Look after each other. Rising prices can give you a feel good factor. Falling prices can have the opposite effect. Remember to have time out from overpaying occasionally. A nice holiday will bring memories that last a lifetime and it doesn't have to cost a fortune. When the kids come along you will be glad you had those special times together when you free of the responsibility. Holidays with kids are fun too but not necessarily in the same way.

I trust that you have a good spreadsheet to help motivate you. If not, I recommend you search mse for locoblade.

GG

littlemrtinkle

with a 100 % mortgage you could be in negative equity now, but by overpaying you can get back in the black and increase your ltv, so when you come to remortgage again you will be in a much better position to get the best mortgage deals available. To start so early is a very good idea and you will save a fortune on interest. Good luck.