Getting first house on friday but want to be Mortgage free asap!

happytails

Any tips on becoming mortgage free sooner rather than later?

WE are on a 5 yr fix at 5.99%

Sarah xxx

determined1_2

Firstly well done for taking the step :j

Making OP now will make a massive difference due to the effect of compount interest.

Perhaps look at my diary as we may be able to relate as OH and I got our mortgage and house last year at the age of 19.

Best of luck :T

happytails

Do you think if we can overpay by £30 a month it will be worthwhile? x

I think we can manage that!

Also how do we go about it?

determined1_2

Absolutely. You may find in time you can do more once you settle into your new home. I certainly found that.

Have a play with this hopefully it will spur you on.

The way I do it is I have set up a seperate standing order that I can then change as and when I want.

You will have to ask your bank if you can do this. Also check you can overpay without penalty.

HTH

jemw

Hi Happytails

WELCOME and congrats on your new purchase!

Firstly, you need to check what the OP rules are with your mortgage. Do you have any other, more expensive (i.e. cc or loan) debts? If so, you may save more money by clearing these balances first!

Google overpayment calculators and these will show you roughly the type of savings you will make by making the OPS.

Good luck for the move - we did it 18 months ago and it can be stressful

spidystrider

Congratulations on buying your first home Sarah, you must be so excited.

After paying my last mortgage of £97,000 off in 7 years, instead of 25 years I am starting all over again.

This time it's for £151,000 over 20 years, but I'm hoping to pay it off over 9 years.

The only advice I can give is to watch every penny but do spend some of those pennies enjoying your life. If you spend all your spare money overpaying you will be more likely to get fed up and fall by the wayside.

I love reading the diaries on here as they really inspire me. Maybe you could start your own.

Good luck on your journey, it's great that both you and determined1 have started so young. I am sure you will do brilliantly as you obviously have sensible heads on your shoulders.

All the best,
Allison

kingmonkey

Am I being silly or could you have just agreed to repay mortgage over 25 years rather than 35?

happytails

kingmonkey wrote: »

Am I being silly or could you have just agreed to repay mortgage over 25 years rather than 35?

mortgage payments would be too high if dp were to loose his OVertime wage

happytails

Thanks everyone!

WE dont have any CC or car loans etc just a wee bit of an overdraft to clear first! Oh and we owe my friend 3k :eek: but its nothing that needs paying back urgently.

Wish i could understand matched betting. I dont work (on maternity) and going to get an evening job over xmas to boost funds. DP works endlessly for us and if i could manage matched betting it might take the strain off him

Our mortgage lets you pay 10% of the outstanding mortgage each year (so £8,300 this year) without a penalty,

Sarah x

getmore4less

Forget overpaying to you rebuild an emergency fund and pay off your debts

suisidevw

GM4Less, what do you consider a good emergency fund?

My wife and I are in our second month of house ownership and have various funds here and there for 'house doing up' and have a £5k emergency fund. This is being kept (not being touched) and added to incase of one of us being made redundant etc.....