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Think i've already started...
philhoward
Posts: 37 Forumite
The idea of not having to worry about the mortage is a nice thought - question is how to go about it...
Some background:
Bought house in 1997; 95%, so 43500 mortage. Had the mortage indemnity premium added to the main loan (silly me - but was the only option at the time)
At the time, was advised to go fixed rate @ 7.95%/5yrs, so did...as it happened, rates fell. Sadly any savings would have equalled my redemption penalty, so i just put up with it. Monthly payment was £331; i rounded this up to £350 and have been paying that ever since.
When the fixed rate finished, i'd managed to totally screw my credit rating up through CCs etc so couldn't go anywhere else to get a better deal. Since then, the rates have fell such that my required payment is currently £217 (I think), yet i'm still paying the same £350.
My secured loan finally finishes this October (£225/month) and seriously contemplating using this to pay the mortage off quicker (currently stands at about 25k?), so i'll actually be overpaying by nearly 150%! If I'd have been able to do this 10 years ago, then i'd have been quids in, but such is life! I'm not sure if the indemnity premium was paid off beforehand, or has just been added to the lump sum though.
It'd be nice to have it paid off ASAP - one less worry...
Some background:
Bought house in 1997; 95%, so 43500 mortage. Had the mortage indemnity premium added to the main loan (silly me - but was the only option at the time)
At the time, was advised to go fixed rate @ 7.95%/5yrs, so did...as it happened, rates fell. Sadly any savings would have equalled my redemption penalty, so i just put up with it. Monthly payment was £331; i rounded this up to £350 and have been paying that ever since.
When the fixed rate finished, i'd managed to totally screw my credit rating up through CCs etc so couldn't go anywhere else to get a better deal. Since then, the rates have fell such that my required payment is currently £217 (I think), yet i'm still paying the same £350.
My secured loan finally finishes this October (£225/month) and seriously contemplating using this to pay the mortage off quicker (currently stands at about 25k?), so i'll actually be overpaying by nearly 150%! If I'd have been able to do this 10 years ago, then i'd have been quids in, but such is life! I'm not sure if the indemnity premium was paid off beforehand, or has just been added to the lump sum though.
It'd be nice to have it paid off ASAP - one less worry...
0
Comments
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Welcome to the forum and good luck with the diary and paying off the mortgage0
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to the MFW board. make sure you have some emergency savings (3 to 6 months salary) in place before you start overpaying.
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