Mortgage free in 10 years

llydaw

I've got left over income of around £300 after outgoings until summer next year and have a lodger so they both go towards the mortgage. I'm clearing a few of my credit card debts, one of which will be gone my mid May and the other two on 0% December and Jan which is when this additional money (£465) and any other savings I can make will go towards the mortgage . I'm also getting into the swing of selling anything that I really don't need from the house (I've been a bit of a horder for vintage furniture/ornaments etc...)

My mortgage is split into two different rates, one with a 5 year fixed of 4.59% (25 year term) and second on a 5 year fixed, with around 4 years left (19 year term) at 3.99%. I'm aiming to clear the higher rate one in the 5 years. Just got to rein my food shopping in as that's where my money usually goes, comfort food shopping:cool:

Trouble is I find it looks so easy on paper, all the surplus income going towards o/p's but it's hard work not spending to achieve a future goal. That's why I enjoy reading so many people's diaries and threads reminds me why I'm doing it.

Good Luck

Engeroosi

Ok, that is the regular monthly overpayments made on both mortgages along with an extra 3k on the home mortgage which is amazing. If only there wasn't an ERC I would be remortgaging for a much better IR.

Nearly reached the limit I can overpay now(10% of original balance at start of year) so any extra I have will now be going into savings account. I am going to explain to the wife tonight that because we have managed to pay the max amount OP in the first 6 months then we can loosen the tight purse a little for the remaining 6 months which should please her.

Updated sig to follow

Engeroosi

Okay no more random overpayments until November now. The regular overpayments will take me to my targets for the year. So any surplus cash we do have will be going into ISA. Would be nice if we could fill them both by end of year that would be 10k saved for next years overpayment allowance or could help maybe remortgage to a better deal.

Current deal has 2% ERC as of 31st Oct 2011 and got 2 years left to run on the 6.29% fix rate. Might be worth looking around as the LTV will be below 75% potentially. Quite fancy an offset mortgage but not got a massive amount of savings so unsure whether would be worth it or not. I like the idea of all our money working for us towards the mortgage, ie even the money sitting in our current account. PLUS could maybe convince the parents to allow us any spare money they have to sit in an account for us to offset our mortgage since they are getting very little return on the money anyway. Hmm could be a good idea theory but in practice it might not.

Engeroosi

Ok not posted for a while but not much to report. Overpaid the most allowed without incurring charges, just saving the spare cash now until October when I am looking into paying the ERC and remortgaging to a better deal as should be below 75% LTV but I don't know what the house would be valued at in todays market.
Anyone any idea how to get a rough idea of value? The area I live rarely has properties on the market and when they do they sell within weeks. I have checked zoopla for sold prices but there isn't much recent data due to not alot of people selling. Not sure if this is down to the fact values have dipped or whether nobody actually wants to move from the area. The latter seems to be the case as not much properties appear on the market from the area but loads from other areas on the city. Never mind getting into a conversation with myself here. So the end!!

kingster2069

Engeroosi wrote: »

Ok not posted for a while but not much to report. Overpaid the most allowed without incurring charges, just saving the spare cash now until October when I am looking into paying the ERC and remortgaging to a better deal as should be below 75% LTV but I don't know what the house would be valued at in todays market.

Have you tried the "Ditch my Fix" calculator http://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator ?
I would also check with your lender if you can reduce your term without suffering and ERC's. Santander allowed me to reduce my term once I had used my 10% allowane for the year.
We done on reach 10%:T

Engeroosi

I have just checked with RBS and there is an admin fee of £35 to change the term. I think I will leave it for now, I am keen to ditch my fix at the end of October but worried that I end up paying admin fees then getting rejected for the mortgage I apply for. I have never applied for a mortgage myself before, always used a broker and they have dealt with it all.

Engeroosi

Well thats another regular overpayment for this month, will not be making any extra payments as dont want to incur erc as 10% will be reached. So any spare money will be put away into savings, this can be used to pay the ERC in November if I decide to ditch my fix for the HSBC tracker. Still unsure whether to risk going onto tracker, BOE needs to increase by 3% before oct 2013 for me to be paying the same interest i am currently paying. hmmm what to do!!!!

Engeroosi

Well the normal monthly overpayments were made at the start of the month. Still in the process of getting a mortgage offer for the HSBC tracker, not sure if they will accept me, and if they do, whether I will take the gamble on BoE rates not rocketing.

Been spending alot of money latelt on socialising with friends. Alcohol is not cheap!!! but still it is nice to know I can afford to enjoy myself while overpaying on the mortgages still.

justinj

Hi there, I'm in the same boat with regards to remortgaging. We have a similar target, so I will be interested to see what you decide to do. Good luck

Engeroosi

Called the bank to see how much more I can pay off without charges before end of Oct. £2233 to my surprise so Overpaid £1233 straight away and plan to pay the other £1000 after next payday. That means the balance of the remortgage if I get the application accepted will be £121700 and not the £123000 I predicted.

Not telling the wife though as she thought I had finished overpaying for the year!!! oops. She will thank me in 10 years I am sure. One day I will wake her up and tell her that we no longer have a mortgage to pay, unless of course we find our forever house before I get this one paid off.

Ok, im off to update my signature.