new MFW wanabee

freebiequennie

Hello Husband and I want to pay our mortgage off as soon as possible

we took out a mortgage for £160,000 in june 2007 (house was £200,000 but had healthyish deposit) and were on a tracker that tracked 0.5% below the base rate initally this went up but we benefited hugely when it came down this deal ended last week and now have transfer onto SVR which is 3.5% (big jump from the 0.2% we were paying!!). We have been making huge overpayments (the max 10% we were allowed on the 2yr deal) and now are chucking every penny we have at it before taking on a new fixed rate or tracker deal.

Our current mortgage is down to £127,000 and we have a take home pay of £3,000 a month for the 2 of us and had been paying between £1,200-£2,000 a month on the mortgage depending on funds - we havent had any luxury hols in last 2yrs though!!

we had to take out the mortgage over 35yrs as bank said we couldnt afford on our salaries a shorter term think we have proved them wrong so when we set up a new deal we are going to have a term of 20yrs which will bring our new payments upto around £800 a month (based on rates of around 4% fixed for 3-5yrs depending on where we go and what we decided) and we can then make overpayments of 10% again.

Before we take out a new deal we need to get the LTV ratio down below 75% ( 2 months ago bank was valuing house at £175 now saying £165) in order to benefit from some of those better deals around.

we emptied out change jars and luckily our bank has one of those change machines you just put bank card in chuck in change and it counts it for you and in your account it goes (doesnt charge you like those supermarket ones either!) as we decided even 20p is better going towards mortgage than sat in a glass jar.

Is there anymore we can be doing as we want this paid off as soon as possible.

setmefree2

to the MFW board and well done on your progress so far. Good Luck with the rest of your journey.

dimbo61

Well clearing £33k in 2 years is great going
HSBC do a 5 year fix at 4.54% fee£499 and they allow up to 20% overpayments !
Max LTV 75% so all depends on what they value your property in the current market.
But keep up the good work.
I have ( and love ) an offset fixed mortgage with YBS but thats another story. GOOD LUCK

dimbo61

PS £127k at 4.54% works out at £806 a month

freebiequennie

Thanks dimbo61 (feel really rude calling you that but heys thats what youve called yourself!!)

Will get husband to look into the HSBC one as we actually bank with them and our mortgage is with halifax at the moment so although a nightmare transferring its seems very good and no worries with overpaying too much when coming to end of the deal and getting calculator out.

we have been very strict and although have brought 2 brand new cars in last year from doing additional work using our annual leave (yep we are determined) we hardly buy new clothes, shop very cheaply and cook lots of hm food we do go out at least once month for a meal (nothing expensive max budget for meal and wine of £50) as need treats when working soooo much.

but biggest treat will be owning this house and owing the bank nothing

freebiequennie

dimbo61 wrote: »

PS £127k at 4.54% works out at £806 a month

Thanks for doing the maths for me!! on 1st july after payday with all the bits of money we have saved we will be paying another £2k off that as well.

freebiequennie

I suppose I should add I am 29 and husband is 36 and plan to have a family so want to pay as much as soon as possible and then look at where we are in 2yrs and then start a family.

dimbo61

As an existing customer you may get an even better rate than that !

dimbo61

Just checked online and you get £100 off the fee but go see them as they may do a better deal if you are a premier /plus account customer.
My sister has called me dimbo for over 40 years

dimbo61

Well keep up the good work in 2 years you could be under £100k but think long term
you dont want to be looking for a new deal with only 1 income so go 5/7 years !
Have a look on the ybs website at offset deals

freebiequennie

Thanks again dimbo will look at the hsbc one will get husband to make an appointment for us to go and see them- do you know if we have to then involve a solicitor like we did when first took out mortgage??