Just another MFW 21 April 2009 at 12:59PM in Mortgage-Free Wannabe 34 replies 3.7K views

Catanddogs

Hello everyone,

So this is where my journey began.....

6 months ago we purchased a property for 195.00 @ 6% fixed for 3 years (over 30 years). We paid a £20000 deposit when we purchased the property and the Monthly repayments are £1200, these seem to be very high at the moment not sustainable in the long term. MB Dec 08 £157000ish.

Luckily we were able to pay 17000 in December, which brought the term down to 22years. MB April 09 £155000.

My OH's job is a bit risky at the moment but we plan to overpay as much as possible.

Regards Catsanddogs

Catanddogs

We can pay 10% per year, so the over payments will be going into a bank account until Dec 09.

SmlSave

Welcome and good luck on your journey.

I'm in the same boat with the 10% and have to wait till Januray

littlemissbossy

Good luck, I paid mine off last Nov, it's well worth the effort.

RosieTiger

Follow the sensible advice on the forum, if you may need access to some cash in the future, please amke sure you have savings to cover you.

Catanddogs

We started our journey in April and there has been little progress since really due to spending £1000.00 on the garden, £1000.00 on garage door, oh well it's gotta be done i guess!!

SmlSave

i dread to think how much we've spent on the garden :eek: but like you said it's gotta be done and hopefully we won't have to do it again soon!

setmefree2

and with your mortgage free journey

Catanddogs

I'm wondering what people think......?

Now that we have done all the major stuff in the house, i rang the bank today and told them that i wanted to reduce the term to 12 years instead of 21. This has increased the monthly payment by approx £300 we are fixed for another 2 years and have the £300 x 24 monthly payments in savings, so are covered if we need to use it. A reduction of 9 years seems good to me and a possible saving of £60000.

Catanddogs

I'm just popping into to update my signature.

clearmydebts

Hi Catanddogs,

You are doing really well. I didn't know that you could reduce your term while on a fixed mortgage. We are on a fixed mortgage but could afford to pay another £100. I wonder how much that would take off the term?

Must check it out.