10 year plan

marc5180

Jonbvn wrote: »

I'm not convinced remortgaging every 2 years is a good idea. The fees will not be insignificant, and I think rates are likely to rise in the medium term (they can hardly go lower). Given this, it may be a better idea to consider a longer term fix when you remortgage next.

Yes i know what you are saying and the only reason i want to get a 2 year fixed is so that i can hopefully pay back at least 5% of the mortgage so then i should be able to get a better interest rate as i should have a better LTV.
I am aware that i am basing things on the market at the minute so maybe when i come to remortgage if the rates have risen then i may get a 3 or 5 year fixed term.

dimbo61 wrote: »

In 2 years look at offset mortgages and build up your ISA savings while both of you are working full time I think a good plan would be to overpay by £500 a month and fill your cash ISA allowance each year if you really hope to be MF by 40

Offset mortgage? I don't really know much about these type of mortgages.
What are they?

dimbo61

pretty much the same as normal repayment mortgage ( but you can get Interest only with FD) but you have unlimited overpayments and a savings account/s linked to the mortgage.
Check out FD and YBS

adwat

200k over 9yrs @5% is £2300 per month.

marc5180

dimbo61 wrote: »

pretty much the same as normal repayment mortgage ( but you can get Interest only with FD) but you have unlimited overpayments and a savings account/s linked to the mortgage.
Check out FD and YBS

Thanks for that, defiantly something to consider when we come to remortgage.
Althought the interest rates seem to be slightly higher with this.

marc5180

adwat wrote: »

200k over 9yrs @5% is £2300 per month.

True, but that is staying at the same interest rate for 9 years, I'm hoping to get a 2/3 year deal in sept 2011 of around 3-4% which would drop the figure dramatically.

I turned 31 on January 5th so my aim is to pay it off before my 41st birthday so I will be 40, hence the 10 year plan.

I know at only £500 a month overpayments I probably won't be able to achieve my target but this is the minimum I would be overpaying each month.
Any extra/spare money I have/can make/can save will also go towards overpayments.

alex_p

Interesting thread and some good points made! Good luck marc5180!

Just be careful re-mortgaging often as the fees can be quite high!

marc5180

Thanks, I've just read your thread and if I can do half as well as you did in 5 years then I'll be well on the way.

When it comes to remortgaging I'll have to take into account the fees before deciding which 1 to go for.

golfiematt

good luck with your challenge

adwat

marc5180 wrote: »

True, but that is staying at the same interest rate for 9 years, I'm hoping to get a 2/3 year deal in sept 2011 of around 3-4% which would drop the figure dramatically.

I turned 31 on January 5th so my aim is to pay it off before my 41st birthday so I will be 40, hence the 10 year plan.

I know at only £500 a month overpayments I probably won't be able to achieve my target but this is the minimum I would be overpaying each month.
Any extra/spare money I have/can make/can save will also go towards overpayments.

Hi Marc

@4% the monthly repayment will be £100 less so still £2200 p/m
@3% it'll be £2115 p/m

Also, I don't think rates are going to stay as low as they are at the moment (they can't go lower!) so in a couple of years time they are liable to be higher than they are now - if I were you I'd go for the longest fix you can find. At least that gives you stability of payments when you've such a large mortgage.

marc5180

A bit of an update.
It's 3 yeah on and I've managed to pay 40k off my mortgage amount and by next September when I come to remortgage I'll be down at £140k
So I'm still on target!!