New MFW - It all starts now!

Hell1

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de1amo

have you never thought of doing the figures about breaking your current mortgage deal Vs getting a new deal at a lower rate ---if you are in a position to still get a new deal before pouring more capital into it between now and 2011

Hell1

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de1amo

you might save some labour and money by asking another question with your details on here--there are lots of ifa s who watch and advise!--you have to know what fees its costs to break your current deal from your building society--i find it incredible that you have struggled to lower your debt and it has never been suggested to you that you should look at your (colossal to me) mortgage rate--i pay 90 quid(interest only) on a 55k mortgage on a standard variable--ie no deal in place!

setmefree2

Hell1 - I have to ask - you have got some emergency savings in place haven't you?

Hell1

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IHateDida

Hiya Hell1!

I started out with a £142k mortgage 2 years ago so similar to you - and am also on a fixed rate (5.57% - whats yours?). This board is an inspiration!

One of my faves is to pay off my council tax in 6 months instead of 10 - so for half the year am free of payments which makes me feel richer - and then I put this towards the mortgage!!! (I hate council tax with a passion as we have a small new house but somehow seem to band it at a hefty D band - and I have been through a tribunal - but the council bloke was a friend of the blinking person at the hearing - I couldn't believe it!!!!!) - rather off topic - but you can probably tell how much I hate council tax now!!

Have you used an overpayment calculator - its surprising just how much you end up shaving off - just with a little overpayment! Anyway - nice to see someone else with a £100k+ mortgage who is a MFW! :-)

Hell1

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clearmydebts

Just wanted to wish you luck. I am hoping to start my MFW journey at the end of this year when I ditch the debt

de1amo

with the high repayments you have and at least 1 year til the end of the term you could be paying more than the 3000 for the redemption fees!-go onto a web site like 'first direct' and do a calculation based on their products-(otherwise seek advice from a ifa-a good one wont charge for an assement)-first direct have an offset product for 2,89apr and you could stash your cash that way-they have other low apr products--you could put the redemption fees on the new product and still save-what is your apr for your current fix?

kustard

I'm in a similar position to you - I fixed at 6.39% just before all the rates dropped and current have about 3.75 years left to run on this rate. My early repayment charge is 3% which equates to around £3000 too.

I got on the phone to London and Country mortgages (who were great by the way, and free) and they found me a 2 year fix with Woolwich at 3.89% - the difference in the rate over two years effectively recoups my £3000, and then I have 1.75 years left to save money even more money as I'm confident I can get a rate better than the 6.39% when the 2 years at 3.89% are up.

It also gives me 2 extra overpayment opportunities which I wouldn`t have normally had, as my current deal is limited to 10% a year, which I have made.

Anyway, just sharing my experience and showing that early repayment charges do seem like throwing money away, but if you do the maths you can recoup them and quite a bit more by breaking out of a high rate.

Good luck with your MF journey anyway!

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