Hope to be mortgage free dec 2014,,

alwaystryyourbest

Hi this is my first post and as you can tell by my title trying to be mortgage free by dec 2014,,i have been a MFW for about 6 months now, and been reading all your diarys for ideas,,i will try to post as much as i can to see how well i am doing.

a little about my self we have a mortgage of £72192.69 with a rate of 5.69 till 2017

we have lucky to have a mortage where we can over pay would we like,,
i thing i would like to ask is should i overpay my morgage or fill up my ISA's any advise would be lovely,,thanks,,

originalmiscellany

All the best! It seems that people here offer very good, sensible advice... I'm sure you'll find their thoughts invaluable

gerbiljo

good luck!

dimbo61

Have you got emergency savings of 3/6 months of income ? in cash ISA,s ?
You want to pay off £72192.69 plus interest at 5.69% in 40 months that must be nearly £2000 a month in repayments!
If you have the emergency savings then overpay the mortgage by every spare penny you have each month and good luck.
With the interest rate you have I think you would be better off overpaying than trying to save in savings accounts.
As your mortgage is fixed until 2017 you also need to check for Early Repatment Charges if you clear the mortgage early.
Good Luck

financialbliss

alwaystryyourbest wrote: »

i thing i would like to ask is should i overpay my morgage or fill up my ISA's any advise would be lovely,,thanks,,

Hi alwaystryyourbest,
As dimbo61 advises, with a mortgage rate of 5.69%, you would need savings before tax at 7.11% or more before it becomes cost effective to squirrel away your cash into savings.

With the BoE base rate so low, you will not get that good a rate any time soon, so throw as much as you can at the mortgage.

Usual warnings of having a buffer of savings, plus check to make sure you don't get stung with early repayment charges, which you look like you've checked already anyway.

Best of luck - look forwards to reading how you get on.

Financial Bliss.

alwaystryyourbest

Hi thanks for my good lucks and no dimbo61 i haven't got any 3/6 months saving i know i should have, but i couldn't wait wanted to pay money of mortgage straight away.
also financialbliss i will not pay all my mortgage i will leave £5 or something so not to pay charges,,

Luv2Budget

Good luck alwaystryyourbest! - I'm hoping to pay off my mortgage sometime in 2014 as well.

As others have said, make sure you have savings for 3/6 months just in case of any emergencies.

All the best.

dimbo61

You need to read the terms and conditions of your mortgage offer as some allow 10% or even 20% overpayments but few are totally flexable and allow unlimited overpayments.
Even if only allowed 10% thats £7,200 this year!
Build up some savings Just in case!

alwaystryyourbest

hi the mortgage is with northern rock and I'm lucky because it is a flexable mortgage where you can pay as much as you like,,:)

alwaystryyourbest

Quick update,, have paid £1000 to mortgage this morning:j

going to a car boot today,so hopefully won't spend to much,,(we'll see) it's normally the kids ,and i can't always say no,,

alwaystryyourbest

quick update,,,did'nt spend to much at car boot only about £15,,

Did spend £72 at tescos and £37 at ice land so bit of a spend day,,
only good thing is freezer is full :)