Mortgage free in 10 years

sutwam

Hi Engeroosi

Just wanted to say what a great job you are doing

Its a great feeling seeing that mortage decrease and knowing that you are saving thousands of pounds in interest

Sutwam

Engeroosi

Thanks alot Sutwam,

It does feel amazing seeing the balance go down, and also the interest going down. You find yourself wishing your life away!!!

originalmiscellany

Well done Aren't overpayments great! And your target has been met and increased. I think you should aim for 20k by the end of the year now
Get a pot saved up for October and then clear another 6k - easy. Your wife would be grateful of that I'm sure.

Engeroosi

Hmmm as much as I would love to manage that target also I dont think it would be possible!! We have a holiday planned in Sept and also might have the ERC to pay if I decide to ditch my fix. But if not then I will definitely be putting the money set aside for the ERC towards the mortgage.

I would like to get it below 120's!!! The target for end of next year is def to get it below 110's!!! I can't wait!!!

Engeroosi

Well appears that assuming the valuation comes in ok, I have been accepted for the lower tracker rate mortgage with HSBC. Now I need to decide whether to pay the ERC and risk the BoE rate rising in the next 2 years to more that 4%.

Due to circumstances finance isnt as free flowing as it was, but hopefully only for a short time. Once back to normal I hope to resume the Overpayments.

JonnyTwoToes

Just had a good read through this thread and it seems you are in a pretty identical situation to me.

We have a flat that we rent out, worth about £90k and we have £53k left on the mortgage for it. Making overpayments (20%) on a fixed 5.5% (got 9 months left).

The house we live in is worth £190k, got a mortgage for £128k at the moment (lifetime tracker of 0.3% over base), only paying 0.8% at the moment.

Our idea is to get the flat paid off (within 2 years after the fixed term is up - it switches to variable so payments of £2k a month) and use the proceeds of that to pay a large proportion of the mortgage of the house. We're saving around £2k+ a month as it stands so this should be possible.

Are you considering doing the same? Selling your flat to pay the mortgage on your house?

Engeroosi

Selling the flat wasnt really in my thoughts, I would rather clear the mortgage on the house as can use the interest on the flat to offset taxes. Then once that is cleared will look at clearing the mortgage on the flat. The rent more than covers the mortgage on the flat currently so in effect it doesnt cost me anything to keep. But once the mortgage is cleared it will then be an additional income with the potential to sell when the time is right.

This time will be more than likely when we decide to move to our forever house so we dont have to take out too much of a mortgage. Circumstances are forever changing though in the current climate and I will have to take things as they come. I am hoping that I am mortgage free by 2020 which will allow a comfortable and stable family life.

JonnyTwoToes

Engeroosi wrote: »

Selling the flat wasnt really in my thoughts, I would rather clear the mortgage on the house as can use the interest on the flat to offset taxes. Then once that is cleared will look at clearing the mortgage on the flat. The rent more than covers the mortgage on the flat currently so in effect it doesnt cost me anything to keep. But once the mortgage is cleared it will then be an additional income with the potential to sell when the time is right.

This time will be more than likely when we decide to move to our forever house so we dont have to take out too much of a mortgage. Circumstances are forever changing though in the current climate and I will have to take things as they come. I am hoping that I am mortgage free by 2020 which will allow a comfortable and stable family life.

How old are you now?

Engeroosi

27, and counting......

JonnyTwoToes

Engeroosi wrote: »

27, and counting......

You've got 9 years head star on me then....

Good luck with it!