acemfw aim to be MF by 40

Acemfw

Hello,

Been lurking and reading lots of good posts so thought it time to share my plan.

Took mortgage out in Jan 2006 for 70,000

Its a repayment mortgage with Abbey fixed at 5.99% until april 2011 (though i was being sensible when remortgaged the rates plummeted!!:mad:)

Had £5500 in an ISA earning 1.5% so recently paid it off my capital (allowed to overpay by 10% each year)

I have increased my monthly payments by £50 a month

So new Total is £60380.88 :beer:
Still have around £1300 that i can pay off before next years 10% allowance kicks in January. So I will try to pay £500 each month (gonna be difficult) so i can use the complete 10% up this year.

Any ideas recommendations welcome.

Ace MFW

alfiesmum

Well done on your progress so far - be warned it's addictive though!

Was the Isa money your only savings? If so, do you have other money put to one side for emergencies? Redundancy etc. If not I'd be tempted to build that again before overpaying the mortgage, unless it's like an offset, and you can borrow back any overpayments if needed.

FunnyRabbit

Good luck with your journey, it looks liek you have made a great start.

dimbo61

Overpaying by £500 every month would be a great start as you would owe about £59/60k at the end of this year and 10% would be £6000 next year or £500 a month overpayment.
Its better to overpay than save with a 5.99% mortgage

Acemfw

I have a possibly three months wages in another savings account which is my emergency fund. I also have three thousand in Premium bonds which over the last year has not won a sausage, so thinking to use this to pay off the capital next january good idea?

Also found the date of my abbey deal finishing is Aprill 2011, I bet when that comes around Interest rates will have gone back up!!

dimbo61

Check Martins article about Premium Bonds but if you can keep up the £500 each month you will be well on the way to being MF at 40!

setmefree2

and Good Luck. Looking forward to reading about your progress.

Acemfw

Just for the record I am 31 and 32 in April. Going to pull the Premium bonds out after december draw. so I will be able to pay 3K off in January.

Ace

cake21

Welcome and good luck :beer:
I second alfiesmum, it's totally addictive
Will be following your progress with interest, you've made a great start already!

Acemfw

Quick update, Just paid the remainder of the 10% (this years allowance) of £1180 so I cannot make any more overpayments until January but my mortgage is now £ 58991

So I will be able to overpay by approx £5900 next year, as dimbo points out 500 a Month!!!

Back Soon

Ace

dimbo61

No its £491 and if you pay off £3000 in jan its even less each month next year!