Mortgage-Free Wannabe Welcome and Explanation

mrsval

Hi all, I need some help and advice to be mortgage free. My son is on long term sickness benefits and has his own 1 bed flat and has suggested he comes back home and rent one of my rooms. I have read that the government allows up to £7.5k a year which would be a huge help. I don't work or claim benefits, my husband has a state pension and we are struggling. Our mortgage is currently an interest free so nothing being paid off and if we don't get help soon we will have to sell our home. I'm currently recovering from an operation and wont be able to work for a while. I did claim ESA contributions based for about 10 weeks but the jobcentre staff were horrible and it just made me feel so stressed I ended my claim. But if I could rent a room out to my son instead of the government paying the local council for his rent it would be great because we could then look after him at home rather than the long daily trek to see him. We don't claim carers allowance either. Thank you in advance for your help.

george4064

mrsval wrote: »

Hi all, I need some help and advice to be mortgage free. My son is on long term sickness benefits and has his own 1 bed flat and has suggested he comes back home and rent one of my rooms. I have read that the government allows up to £7.5k a year which would be a huge help. I don't work or claim benefits, my husband has a state pension and we are struggling. Our mortgage is currently an interest free so nothing being paid off and if we don't get help soon we will have to sell our home. I'm currently recovering from an operation and wont be able to work for a while. I did claim ESA contributions based for about 10 weeks but the jobcentre staff were horrible and it just made me feel so stressed I ended my claim. But if I could rent a room out to my son instead of the government paying the local council for his rent it would be great because we could then look after him at home rather than the long daily trek to see him. We don't claim carers allowance either. Thank you in advance for your help.

Hi mrsval - if you haven't already I would suggest starting your own thread in the 'Mortgage-Free Wannabe' forum.

Good luck!

sgebbie

What exactly is 'daily saving'?

for example, is it :

a: your normal routine is to buy a coffee at the train station, but today you don't buy one....saving £2.
b: you still get thirsty so you buy a tea at £1...thus saving £1 from your normal daily spend.
c: tea didn't hit the spot, so you buy a coffee...a daily overspend of £1

d: you think about buying a flask, but don't....saving a possible spend of £10

e: some other method

obviously, a and b would need some type of tracking...how were you recording your savings.

d is great but I'd often save £100k on a ferrari I didn't buy, so not a fool proof idea.

ira_ira

I need advice on becoming mortgage free. I've been doing all the right things in terms of overpayments but I have a few questions that I hope other people can answer. I'm coming to the end of a 2 year fixed rate deal with Barclays.

1. I have a lump sum that I want to deposit to reduce my balance. Does anybody know if you are allowed to do that at the end of the deal without incurring overpayment fees? I'm only allowed 10% per year but I was told you can overpay more at the end of the deal. Any experience doing so without being charged for overpaying?
2. I was told I could do monthly overpayments of 3x the monthly payment. Does it mean 3x + the monthly payment? Or just monthly payment + 2x? (in total 3 months).
3. I can't understand the difference between overpayment and part redemption. Apparently, you are allowed to do both in one year. Can anybody explain?
4. I need to choose my next deal and would like to pay off my mortgage in the next 2 years. Am I better off moving to a 2 year variable deal, which is a higher rate but doesn't punish overpayment?
   Thank you so much for any advice!

HoneyRoastedParsnip

Seeingwhatsbest said:

Hello all,

I'm a new member to the MSE site, but a regular user of its Overpayments Calculator especially.
I'm seeking any advice if I'm doing wrong with my mortgage overpayments...or reassurance if I'm doing right

Mortgage type: Repayment, standard variable rate 4.99%
Interest calculated: Annually

Since July 2011 I have been making overpayments into my mortgage account, which then was at £43,429 with exactly 15 years remaining. This has included overpayment through my direct debit, and also one-off large capital payments from time to time, which reduced the subsequent mothly payments. In April my lender informed me that the mortgage term had been reduced by 9 months.

Now the balance remaining is £28,080 and with my normal monthly overpayments of £100 currently debited from my account I will end the mortgage in February 2022.

To date I have overpaid £10,100 in total, but am thinking I may have done a mistake in not requesting to keep monthly payments the same since making the occasional large capital payments i.e. when the first letter telling me about the payment change arrived.

What do other members think? Am I going about it completely wrong, or maybe right?

Hopefully I'm making sense with the above. Thanks in advance:)

Can you get a better rate? That will help a lot. I have read a lot on here (but just got access and nerves to post) and keeping the payments the same while overpaying any 'bonus money' acquired through savings or vouchers goes a long way towards becoming mortgage free ASAP.

HoneyRoastedParsnip

Oops - old post!! Anyway - I bought a house in May. Will start MFW journey 1 Jan as I am away with work and unable to access banks. 243800 mortgage for 80% on a 2yr fixed but think I'll try to go offset when we remortgage. Invested in LISA for first time this year. Enjoying reading the back catalogue of posts!