Would like to become MF- any tips/ advice welcome

gallygirl

Money777 - re the incentive you say you haven't received for the mortgage - I hope you are planning to contact them about it? Although it will probably be something like 'the arrangement fee was 2.5k, we gave you an incentive of 1.2k so only charged you 1.3k'

Money777

Yes Gally girl I will give them a ring and find out about it :beer:

pupsicola

Ive been mortgage free for 8 years now.

Bought my first property in 1999. I realised that house prices were way lower than they should be due to the areas close proximity to London and that they would rocket. I aimed to clear my mortgage in 3 years.

Set up a split repayment mortgage, 2/3 of it on a slightly higher rate that allowed me to pay off lump sums without penalty and the rest on a lower rate that had a fee for clearing the balance.

I was in a great job but just by paying off lumps sums or overpayments wasn't going to do it as quickly as I wanted to. I worked in the city and knew the money bubble would pop sooner rather than later.

Firstly like you I looked at my finances closely and made sure everything was covered, allowing for inevitable increases in utility bills, putting aside an emergency fund etc. Think you need to look at some of your figures and allow a bit of extra cover. Your gas, electirc and car maintenance figures seem really low.

Saving interest rates were crap (nothing changes). Decided the quickest, easiest way to make alot of money fast was to invest in property and let it. At first it was nervewracking but set myself up with an agent that guaranteed the rent. The area had a uni nearby so there were loads of students only too happy to rent.

In the end it took 3 1/2 years to clear my mortgage. In 2006 when I sold the properties, they had each tripled in price.

I realised with the state the economy was in the market was going to crash so I rented for a while. Bought a place by the coast in 2008 for far less than it was really worth. Back in that situation of waiting for the market to rocket. Dont know if it ever will again in the same way.

What I am saying is look at all the options to make the maximum amount of money from your money and dont just focus on knocking years off your mortgage.

Money777

Thank you for that. I have thought very seriously about buying a 2nd property to rent. I could save up a decent deposit in a couple of years the problem I see is getting a 2nd mortgage as I am on my own and also they don't count income from lodger so I have put that idea aside for now... although you've got me thinking about it again now! :beer: