my MF plans...

andyj81

Several years ago after moving into my second home, I took a Nationwide mortgage of 65K, and although overpayments were allowed up to 500 a month I only started overpaying around the beginning of 2009.

I opted to be able to view my mortgage on-line and since doing that you can see the interested added on daily - arond 6.50 a day at first, so I said i would pay at least 200 extra a month and effectivly cancle out most of the interest, and after a year later I am making good progress. Always aiming to overpay by 200 however now put any spare money onto the mortgage at the end of the month making my current account always start with 100 at the start of each month when I get paid. Now around 5.80 is being charged daily. So looking at the mortgage online and it going down is a driving thing for me.

I still save and now my 5yr fix is ending I am just going to sit on the base rate (2% above BoE) However I am considering offsetting if rates go back up so I still have savings to invest as rates do pick up, rather than paying off the mortgage totally.

good luck to other aiming to become MF ! Sorry my pound symbol key does not work !

Jock_Tight

All the best on your mortgage free journey Andy

PS if you hold down the ALT key and type in 0163 you will get the pound symbol

wynnvegas

Hi Andy,

We didn't start seriously overpaying until probably about 3 years into our mortgage but the intent and ability to do so is always a start. When we moved to HSBC in August 2008, the mortgage balance (even though it didn't update daily) being displayed was a massive incentive. Whilst we're lucky to have decent jobs and no kids or major financial constraints, I don't think we'd have battered it quite as much as we have done without that big figure staring me in the face every day!

I hope the interest rates stay low for you. I can't see them going up more than 1% between now and 2011 so I would guess you've made the right decision to leave the mortgage as it is. We got incredibly lucky with the interest rate collapse as we'd grabbed a .89% above BoE just a couple of months before they collapsed.

Cheers,

Billy

andyj81

Not written on here for a long time. Compared to interest of over £5 being added to my mortgage every day, I now have around 62p each day. I am having a big push now and am on track to be mortgage free in April next year.

With interest rates still low, I now split money by 70% onto mortgage overpayment and 30% into savings.

8k to go now then once cleared it will be brill !! Good luck everyone else on this quest.