Mortgage free in 10 years

Engeroosi

been offered the HSBC lifetime tracker with no fees mortgage at base rate plus 2.49% subject to value. But the YBS has just released the low fixed rate for 5 years. Contemplating whether to take the fix now for the security of the next 5 years. Only issue is only allows 10% overpayment per year but at the low interest rate I would be able to save any extra at rates not that much below the interest rate on the mortgage.

Only issue is I have to go through another mortgage application which is painful sometimes!!

Engeroosi

Decided to stick with the tracker, If need be I can apply for a mortgage elsewhere and not have any charges to pay to leave the HSBC tracker rate. Fingers crossed I made the correct decision, saves me some money. Fingers crossed I can beat the mortgage down before the rates start rising to anywhere near the 6.29% I currently pay. The lower I get the balance the less impact any interest rate rises makes.

Engeroosi

Despite not receiving rent for the previous 2 months I have still managed to over pay my flat mortgage by 500 per month, I aim to make 1000 overpayment on my house mortgage before the end of september which would mean I have overpayed the maximum allowed before charges on the house mortgage and also the max 500 per month on the flat mortgage.

I remain hopeful I receive rent for the previous 2 months but I do not expect it, if I get anything it will be a bonus. Fingers crossed can start receiving rent again in the near future.

I have holidays for end of this month and also the credit card bill is getting a bit high although on 0% and I have put the money away to pay it off in the overpayment reserve on the flat mortgage im hoping to be able to clear the credit card when the interest free period ends without actually having to touch the overpayment reserve, by remortgaging in november I save 330 pounds per month so this should help. Although it has cost me 2300 pounds for the erc.

Engeroosi

News today that interest rates wont be rising in America is good news I guess for tracker rates here if we follow suit.

Also hoping to receive a big bonus in June, which will help me meet the 10 year aim, mortgage free by time I am 37 which is 10 years from the date I decided to try clear it off.

SAMMYE_2

Engeroosi wrote: »

News today that interest rates wont be rising in America is good news I guess for tracker rates here if we follow suit.

Also hoping to receive a big bonus in June, which will help me meet the 10 year aim, mortgage free by time I am 37 which is 10 years from the date I decided to try clear it off.

Nice one.

I think Mervin said today Bank of England would be keeping the rate low for a long time.

Engeroosi

Oh I havent seen or heard that today, will have to investigate. Good decision to apply for the tracker, just wondering now if the fixed rates will fall even further!

Potentially the interest rate could fall still, but cant see that happening. Must use this time to pay down mortgage

Engeroosi

Ok, just back from holiday, now to look at the damage! Hopefully manage to get the finances back to normal and get the last £1000 overpaid on the house mortgage and also this months £500 overpayment on the flat by the end of the week.

Also need to make sure I have the ERC for when I ditch and fix at the start of November. And with latest reports on the interest rates staying low for a couple years things are looking good on a personal level for paying the mortgage off although not so good for the economy.

Now I am off to see what the damage is. Not looking forward to this!!

Engeroosi

Ok managed to pay the full 10% allowed this year on the mortgage with the last £1000 OP. Also kept up the maximum £500 per month on the flat mortgage which gives me a good reserve to clear the credit card when the 0% runs out.(assuming I cant clear it with funds in the bank)

So now to make sure I have the ERC in place to pay when I ditch my fix on the 3rd November for a tracker. actually got it sitting in the bank waiting. So all in all things in good shape, and mortgage will be paid of in 15 years instead of 22 years from November, already 7 years ahead of original 25 year term. Fingers crossed can keep this up while rates are low. Also the balance on the mrtgage that I will be transfering to HSBC is slightly less than I planned which means the monthly payment is slightly less. Need to decide whether to keep overpaying into tracker or to keep the money in the ISA accounts until such time where the interest rates start to rise.

Mortgage rate 2.99% ISA rate 3.1% not much difference really.

Engeroosi

Ok got the money for the ERC and looking forward to paying less than half the interest I am currently paying. Hope everything is smooth for the remortgage.
Decided to start paying more into ISA and also managed to continuing overpaying the maximum amounts on both mortgages which is something I never thought I would manage. If I keep this up then the 10 year target is possible. Although will prob have moved into dream house before then and have an even bigger mountain to climb!!!

Engeroosi

Remortgage is now complete, its great knowing the daily interest has more than halved and with the payments now we pay it off 7 years quicker, that is assuming the rates dont rise which of course they will. 6.29% to 2.99% is a good feeling. Now to concentrate on getting the ISAs filled up for me and the wife, at least until the rates are higher on the mortgage.
Anyone got any other suggestions for me to do now.