Advice Please 24 May 2006 at 3:16PM in Mortgage-free wannabe 3 replies 876 views

Greenwellies_2

I'm only just 'debt free' so being mortgage free is a long way away at the moment.

I have 27 years to go on my mortgage and I have it in two parts, 108k in mortgage and 21k in equity release loan.

Any tips on where I should start?

Thanks

GW

FrankieM

I'm by no means an experty but....I have my mortgage in 3 different parts as well. I'm allowed to over pay only by 20% of the monthly repayments because we are on a fixed rate.
I'm putting my overpayments into a savings account and when the fixed rate finishes will pay the lump sum off my 'cheapest' part. Which is just over £17k.
Then once that is paid off will roll over the payments to pay the next chunk off...etc...etc.

I hope that helps...

Oh I'm also putting all change into my mortgage pig....and any money left over from the grocery shop/ petrol etc will go into the mortgage savings account too.

Greenwellies_2

Thanks, I have no idea about over payments, but I'm not capped or fixed so I guess it should be ok.

As for a mortgage pig, well I am using my pig that I have had since I was about 4 to save left over change and £2 coins. It's a start!

Thanks

GW

FrankieM

About overpayments...give your mortgage provider a call and see how it all works. I'm pretty sure that you can just up your fixed monthly payments....and then pay off odd amounts as and when..