After reading these amazing threads i two want to be mortgage Free!!

RosieTiger

As I have said many times before, i a, stunned to see someone so young being so sensible, wish i had thought like you at your age !
Good luck with the journey, remember the old saying, A journey of a thousand miles begins with a single step !

Jenny2010

Just paid another £25 off - so £200 in the first month of me making overpayments - hopefulloy I can keep this amount up :-) thanks everybody for the messages of support xx

mummyofonechild

Well done. I wish I had known about overpaying when I was your age.

You will soon be mortgage free

CathT

Hi Jenny,

Well done on the OP so far, it is so addictive.

Will be following your diary

Cath.

Jenny2010

Hi Everybody paid another £30 off this week. My boyfriend has been doing overtime as well - so hopefully if nothing crops up will be able to pay another £75 off this Friday :-)
I've found myself cutting back on little stuff as in Magazines, bottles of pop etc and this is all adding up in my purse for the end of the week.
Also bought my daughters first xmas present this week. I know its early but it was on offer in Toys R Us and you can gaurentee this will be back up to full price come November xx

JonnyBravo

Jenny2010 wrote: »

I've found myself cutting back on little stuff as in Magazines, bottles of pop etc and this is all adding up in my purse for the end of the week.

This is exactly the kind of spending thats easy to cut back on with little change in the quality of your life, yet will add up to surprising amounts of money over a month, and then a year.

Well done and good luck.

LilacPixie

It is really suprising how quickly the overpayments count. One thing i find a good thing to do is most people pay their council tax over 10 months and not 12. So these two council tax free months pay the equivilent amount to your mortgage. I claculated that if I did that every year then I would shave something like 11 months off a 25 year term. Obviously that is dependent on rates, council tax levels and your mortgage balance. I think its a good indicator of how little things you will not notice actually make a difference. Try rounding your mortgage payment up to the nearest £10. For me it would mean adding £5.43 onto my monthly payment but would slice a further 7 months of my MF date.

I warn you I find senarios addictive. Just as addictive as overpaying

Jenny2010

Hello everybody just paid another £30 off feeling pleased with myself. Can any one help me out with a question. I have around £22000 on my mortgage loan as unsecured would I be best paying this off first? I have never been asked by NR how i want my overpayments being made - so assume they are just taking these amounts off my secured mortgage?

Also just been reading through my posts - I haven't neglected my savings we have £4000 in our joint savings account - I still try to add to this each month. You never know whats around the corner XX

wynnvegas

Hi Jenny,

It's a sure bet that they won't be doing anything to help you if the unsecured part is on a different interest rate. When we were with NR, they chipped a pro-rata bit off each part of the mortgage. Well done on the savings as well. We took a bit of a risk with having virtually no reserve fund which I wouldn't advise as there's always the "what ifs" nagging away!

On the spending, I can't understand how people can happily buy newspapers and magazines and spend a fortune on them. Firstly, they're mostly rubbish and old news by the time they get printed and, most pertinently, they're pretty much all online for free.

Cheers,

Billy

lil_lisa

Hi Jenny, you're situation is so similar to mine it's scary! I take it you have a Together mortgage with NR too? I only ended up doing the 1 overpayment before my OH was made redundant (now back in work so we can start again! Yay!)

When I called I specifically asked that it be paid off the unsecured part of the mortgage. Personally we opted for this as apparently if you were to sell the house you are obliged to pay off the mortgage part first and then any excess can be used to pay towards the unsecured loan (although you do have the option of just retaining the US loan and paying it off over the original 25-30 years or so). BUT... if the mortgage and US loan were to be separated like that then the interest rate jumps to (I think) 5% above the SVR, so you would be paying around 9% interest.

Also, our US loan seemed like a nice attainable figure to aim for initially so it helped us mentally. Paying off a £16k loan seemed a lot more attainable than paying off a £65k mortgage!