Mortgage-Free Wannabe Welcome and Explanation

jessicamb

kazzys51 wrote: »

hi all, just joined is there a calculator that works out in more detail when your mortgage free im doing it on paper at the moment and it takes ages and sometimes not accurate i like my five year plan u see! so that i can work out where i'll b in a years time thanks karen

Hi Kazzy

welcome to MSE - try here: Overpayment calculator - here

The_Casual_Tailor

My intention is to pay my £70k mortgage off by 1st August 2013 when my fix term ends.

I currently overpay by £180 per month and pay a lump sum of approx £5000k (ebay profits) every December.

Going to be hard with 3 young kids but I'm determined.

andyandkerri123

hi all-i currently have a flexible mortgage with a&L which has allowed me to overpay my mortgage by as much as i want each month.
i have now got in a position where i just owe £6700 on my morgage,but would really appreciate some advice here---do i a] CONTINUE AS I AM OVERPAYING THE MORGAGE AMOUNT BY APPROX£900 p/m until it is paid off
b]get out two 0% credit cards,pay off the mortgage through the card payments,and pay the cards back interest free.
any advice would be greatly appreciated.
regards
andy and kerri

oddball200

Hi,
Original mortgage 168.000
now owed 117.000
Endowment cashin value £59.000
Cash I.S.A. joint value £58,000
I have an interest only I.F. mortgage with mimimum payment £595.00pm but actually pay £755.00pm. Endowment cost £150.00pm. Myself and wife are 61 and 60 yrs young. 4yrs remaining on both mortgage and endowment.
Both have to work to pay bills at the moment.
Question. Should I cash in endowment and use i.s.a. savings to make us mortgage free but no savings or keep going as we are.

avfcforever

I'm really keen to start efforts to become mortgage free especially after reading everyone else's brilliant efforts and results!

I've had a mortgage since April 07, £130,000 then and up for renewal next April.. want to start making overpayments but have our first baby due in December so worried about putting the money towards the mortgage instead of unexpected baby/child related expenses, especially whilst the OH is on stautory maternity pay.. what kind of figure should I aim to keep in accessable savings before overpaying the mortgage?

EssexHebridean

oddball200 wrote: »

Hi,
Original mortgage 168.000
now owed 117.000
Endowment cashin value £59.000
Cash I.S.A. joint value £58,000
I have an interest only I.F. mortgage with mimimum payment £595.00pm but actually pay £755.00pm. Endowment cost £150.00pm. Myself and wife are 61 and 60 yrs young. 4yrs remaining on both mortgage and endowment.
Both have to work to pay bills at the moment.
Question. Should I cash in endowment and use i.s.a. savings to make us mortgage free but no savings or keep going as we are.

If it were me, I would continue to save until I had sufficient in savings that I had my emergency fund behind me, then would pay off the mortgage. You then immediately have your mortgage payments available for enhancing your savings again, or spending, depending on which is your chosen route.

My personal view is that there is little point in paying interest on anything for a second longer than you have to. Good luck!

Optimisticpair

avfcforever wrote: »

I'm really keen to start efforts to become mortgage free especially after reading everyone else's brilliant efforts and results!

I've had a mortgage since April 07, £130,000 then and up for renewal next April.. want to start making overpayments but have our first baby due in December so worried about putting the money towards the mortgage instead of unexpected baby/child related expenses, especially whilst the OH is on stautory maternity pay.. what kind of figure should I aim to keep in accessable savings before overpaying the mortgage?

Usual sort of figure for accessible dosh is enough to keep you going for 3-6 months if there is nothing else in place to cover your outgoings if the main wage wasn't coming in. I would recommend a bit extra also to cover for the unexpected baby/child related expenses but I've no idea what amount to put by. If you set the slush fund too low you could O/P less and if you set it too high it's still there as savings.

If it's any help to you I see some members on the Old Style / Thrift board and £4000 a year challenge use Terry nappies rather than buy disposables and make their own older baby food in a blender rather than buy expensive little pots of it.

Good luck and BTW Congratulations.

Herewegoagain

Hiya guys,
I have an interest only mortgage and when using overpayment calculates, find the term doesn't go down unless I put massive amounts in. I have been paying £340.00 over payment but don't see a great dif. Is this because it's an interest only and if so how do I get it down and still eat. Most calculators seem to be only on repayment, and the egg one, tells me depressing news

HWGA xx

Superwoman100

Well, I must have the biggest mortgage around.
£360,000 @ 6.14% fixed for 2 years since October 08 with 5% early repayment charge!
Desperately want to switch to a better rate - pref a tracker so that can take advantage of rate cuts. Does anyone know a way of getting this charge reduced to say 1 or 2% (which seems to be the average)?
Am overpaying by £1,839 per month (doubling monthly repayments to £3678).
By March 09 loan amount will be £346,000 with monthly repayments reduced to £1,773.
I can only repay in this way (terms of loan). So max I can overpay over life of loan is £44,136.
Are you still with me???
I can then hopefully remortgage for £346,000 at a lower rate of interest than 6.14% (although obvioulsy no guarantee that rates won't have risen again by then).
Am I wasting my time?
Any one got any better ideas (I have no other debts besides mortgage).
Any smart Brokers out there who can help (need Self Cert mortgage - have excellent credit record and own business which is doing well - healthy cash flow and forecast).
How about a £380k mortgage (includes £20k for early repayment charge and legals etc) over a longer period (19 years currently - I am 46) at lowest poss rate.

jammydodger0905

Hi there

Has anyone got or had a One Account mortgage? I have just used the "mortgage shrinker" and it claims I can pay off my mortgage within 4 years! :j :j

Is there a catch?? :eek: :eek: :eek:

Thank you!