Mortgage FREE by 2018

wantabetterlife

HI Justinj, firstly congratulations on your girlfriends pregnancy :j.
Sounds like you have had a bit of a nightmare with the house recently but at least no one was hurt in the fire.
Its hard to know what to with mortgages and whether to take out a new deal or not. Have you kept your payments the same even with the lower interest rate?

justinj

Thank you for your comments, we don't come out of the fixed rate until this October 2011, My plan is to pay the same monthly mortgage payment we do now plus the overpayment.

justinj

Having watched my beloved United outclassed last night, I've awoken early to outclass my mortgage and work on a budget review as my GF will be leaving work shortly to have our child. Hopefully we'll be back in the house by then!!

kingster2069

Congratulation on reducing the mortgage and more importantly then pending parenthood. Have you heard for the Nation Childbirth Trust (NCT)? We have an 11 month old and found the NCT to be a great way to meet other parents to be. Which was invaluable after we had our little one an mum wanted some company.
On the fixed or tracker question I would say it depends on your financial situation. If you can continue paying at your old rate and leaves you enough money to live on happily then I would say stay on a tracker. No-one knows what interest rate are going to do, but my guess is they will start to rise slowly over the next few years and will end up at there historic levels sometime around 2015. If you can pay 6.99% levels now, I think the amount you should reduce your mortgage in that time will make it affordable in the future.
I wish you good luck and remember that although you have paid a big chunk off it was also the hardest chunk and when you get on to the lower rate it will really start to fly off:j

justinj

Thanks I'll check the NCT out Cheers, I was thinking of staying put with the mortgage but knowing my luck the interest rates will start going up as soon as the mortgage turns variable.
GOOD NEWS: Hopefully be back home in 2 weeks can't wait!

Engeroosi

Hey Just popped by to say thanks for the post on my thread and all the best for your new born. My wife and I are currently trying for a baby but only started last month.

I hope to match your MF date as our targets and balances and interests rates are similar. Help drive me on seeing you manage!!

justinj

Hi all, back in the house which is fantastic!!

My girlfriend has now finished work, but has been offered a little work from home until the baby's born and then she'll review it when baby's here. I'm still working 6 days a week but at least I have Sunday's off.
We've been trying to cut down on what we've been spending on shopping and this week we've managed to spend £56 on food. Also had my loft insulated free by British gas last month and then changed to an EDF fixed tariff until sep 2012 the next day as it worked out much cheaper.
My mortgage statement for the year is due on the 17th of this month it will be interesting reading, had this mortgage for 3 years now!
That's all for now just keeping you all updated, speak soon

justinj

Into the 120's :money: So happy!!! Off out tonight, I'll be back tomorrow

justinj

Hi all, I've a little more time to elaborate today. As I've said we are into £120k's which is great. My mortgage is running at the interest rate of 6.99% until the 1st October 2011 (not long) then drops to a variable rate of 2.25% above the BBR, which is 2.75% at moment. Would i be right in thinking that it would better to save than overpay, if i could get a saving account over 3.5%, if the BBR stays the same??

blueberrypie

justinj wrote: »

Hi all, I've a little more time to elaborate today. As I've said we are into £120k's which is great. My mortgage is running at the interest rate of 6.99% until the 1st October 2011 (not long) then drops to a variable rate of 2.25% above the BBR, which is 2.75% at moment. Would i be right in thinking that it would better to save than overpay, if i could get a saving account over 3.5%, if the BBR stays the same??

Sort of. You'd need to earn over 3.5% after tax, so closer to 4.4% before tax. Bear in mind any restrictions on overpaying your mortgage too, in case you want to make a large lump-sum overpayment if/when interest rates rise.