Mortgage piggy on a mission!

halloweenqueen_2

Well thanks to aliasjo's thread on the mortgage pig I'm going to keep a log of aiming to be mortgage free.
I have one mortgage free property which is more an investment for the future and my kids, its rented out and very stress free so have been lucky there.
I took out a 25 year mortgage in 1997, I remortgaged a couple of years ago and dropped 3 years off so i now have 13 years 9 months left.
As at the 1 st March I owed 84,585.83, the property is worth about another 100k but thats on paper really unless i sell it and move into a tent I'm not going to see that money.
What I can see is the balance owing, I really would like to halve the term but am probably looking at a ten year stretch.
Because of the pig (yes you herman:D ) I am galvanised into making overpayments,I make a small overpayment each month of £9.05 when i never got the repayments reduced when my rate went down.
This month I have just sent a £60 overpayment cheque off and will see whats in the pig at the end of the month and hopefully send some more.
Will log it in my signature as well from 01/03/06 so we'll see whether it will make a difference!

filmfan_2

Hi HalloweenQueen,

Good luck with the mortgage piggy. I had a query after reading your situation:

If you have a mortgage free property that is rented out I assume you are paying income tax on this as it's un-earned income? I believe that if you have a mortgage on the property any mortgage payments can be deducted from the rent and income tax is only paid on any profit.

If that is the case (and I'm no expert) I would expect that you would be better off taking out a mortgage on your rental property and using that money to pay off the mortgage on the property you are currently living in (and thus not earning any money from). This would save you a reasonable amount of money in income tax each year.

I'm not sure if this is the case but maybe someone else on this board could confirm this? I hope my first post isn't full of incorrect advice but I'm sure someone will tell me if it is.

Good Luck either way,
Filman

halloweenqueen_2

Yes it a taxable income and for reasons I don't want to go into I don't want to tie a mortgage to that one, but many thanks for the advice.
Thanks for the good wishes!

halloweenqueen_2

Made a tenner via pigsback bingo boudoir so will transfer that as well - have little piggy obsession now!

Prudent

halloweenqueen wrote:

Made a tenner via pigsback bingo boudoir so will transfer that as well - have little piggy obsession now!

This made me laugh, thank you. I paid off my mortgage with the same level of obsession. I entered every competition I could find for things like cinema tickets, meals out etc. When I won I always put into my mortgage fund the amount I would have spent on entertainment. Same with coupons in tesco.

aliasojo

That's a good idea Prudent. I usually forget about the coupons in my purse when I get to the checkout and I end up coming home with them. :doh: Maybe if I print off a mini Herman pic and stick it to the inside of my purse it might make me think twice and then I could utilise the savings.

halloweenqueen: you are a woman after my own heart. :rotfl:

halloweenqueen_2

Well i did my lottery online, and bought a virtual scratchcard - haven't had one for aaaages - thought with my bingo win I might be on a roll and won £24, so I donated £6, i saved some money in coupons! and 'the pig' has donated £100 this month already to the mortgage! If I could just do that every month I would save over £7000 and 2.5 years!!
'The pig' also has change in her so will see what march ends up with!

halloweenqueen_2

Well I should be adding another £50 courtesy of Barclays insurance, been told will get my cheque by the end of this week.

comping_cat

I have just bought a lovely pig off ebay, and as soon as it comes, all our loose change will be going in, and i think that idea about the coupons is excellent, think i might have to try that too!!!!!

halloweenqueen_2

Received my £50 cheque - pig got a slight lick of it before it was given to bank, will keep chnage in piggy for April as not enough to bag into the bank little bags!

halloweenqueen_2

Paid off £810 today, still got the £9.05 overpayment and anything in the piggy for this month!