Would love to be mortgage free but...

HumbleBumble_3

I would love to be mortgage free but I know that is a long way down the line so my current aim is to get my current mortgage down to £120,000 by the time the fix ends in two years time.

We currently have a mortage for £129,000 so would like to get to a nice round figure - not to mention LTV which will be 70% by the time we have to remortgage.

We first took the mortgage out in 2006 at £135,000 on interest only and i really despaired that we would never be able to pay it back. Then last year I thought that if we moved to a cheaper area then we could have a lower mortgage etc. which perhaps we might be able to pay back. But alas that never happened but it was the proverbial kick up the backside that we needed to go onto repayment for our current house.

I have read alot of the diaries on the forum all of which have given me loads of inspiration and we have both decided to take things slowly and in two year chunks rather than think of the mortgage as a whole. It seems a lot more attainable that on top of our monthly repayments of £763.12 we only have to find another £126 per month to meet our target. But seeing as I like round figures i might make it up to £900!:D

To help this we have upgraded our Lloyds accounts to vantage and have opened up the halifax reward accounts and applied for the clarity credit cards so that is approximately £50 per month that we will have coming in. I am also pretty confident that I will be able to find the rest from the grocery budget as that is where I will be able to save.

Here's to all of us on our journeys:beer: and i will keep you updated.

kiran83

well done in making the step HumbleBumble!!!!! keep reading the boards as you will defo pick up loads of useful tips on how to save money on your groceries and all other manner of things in your everyday life! keep it up! x

HumbleBumble_3

Last night i sat down with my DH and worked out how we could make the overpayments etc. and bless him he is with me in principle and would love to get the mortgage down to £120,000 but he is worried that I am going to become obssessed/possessd and chuck everything at it whilst we have no life!!!

I tried to reassure him that this wasn't the case and we have agreed to make the £126 overpayment each month to bring it down and then anything spare will go into the virtual pot so that when the time comes to remortgage we will have the fees etc. saved up.

I just have a quick question for you all.... how do you set up the little signatures at the bottom??

Many thanks
xx

cha97michelle

Welcome.

There is a whole board of us slight obsessives who still kind of have a life. I think your plan sounds a sensible one.

To do your signature, there is a bit at the top of the board which says user CP. Go into that section, and there is a whole menu down the left hand side. Pick edit signature. Change the words in what looks like a normal posting box, click save, and there you go. Hope that makes sense.

misscousinitt

Welcome aboard the good ship MFW.

Good luck with your journey.

lincoln-potter

Hello and welcome to MFW

There is plenty of good advice to be hand on here so stick around and keep us updated.

Cheers
LP

mintedmatty

HumbleBumble wrote: »

Last night i sat down with my DH and worked out how we could make the overpayments etc. and bless him he is with me in principle and would love to get the mortgage down to £120,000 but he is worried that I am going to become obssessed/possessd and chuck everything at it whilst we have no life!!!

I tried to reassure him that this wasn't the case and we have agreed to make the £126 overpayment each month to bring it down and then anything spare will go into the virtual pot so that when the time comes to remortgage we will have the fees etc. saved up.

I just have a quick question for you all.... how do you set up the little signatures at the bottom??

Many thanks
xx

He is half right, you do need to have a 'life' but its all about balance. It is all about meeting in the middle, I reckon that once you begin overpaying and you see the amount you save in interest, his interest will grow! but its good that he is showing enthusiasm from the beginning! My missus has had her times when she has thought if its worth it? I just make her logon and show her the £6500 we have saved in interest over the last 18 months! Thats 8 months we shortened our mortgage by! Tell him to picture those 8 months and what you could be enjoying with the money!

HumbleBumble_3

In my quest to save money and pay off the mortgage i walk/run to and from work which gives me plenty of time for thinking - probably too much!.:D I was wondering and hoping that you could advise me. As mentioned earlier if we o/p £126 a month we will meet our target of £120,000 in two years time, however would you pay that off each month or save it up and then o/p when you go to remortgage?

The reason i'm asking is that our child tax credits are due to change next month so we will have to put extra towards nursery fees and until we find out exactly what we will get i am a bit loathe to leave myself short. But then we could end up going through the whole term of the mortgage hedging our bets on what is around the corner!?

According to my calculations if we just saved the money and then paid it as lump sum we would pay an additional £224 in interest over the next two years which doesn't seem alot in the grand scheme of things but then i am missing the point in overpaying?:cool:

Any comments or suggestions would be gratefully received.

Thanks

HumbleBumble_3

Well

I have cogitated some more and talked to DH some more and we have come up with the following plan.

1. Round the payments up to £800 - that's overpaying £36.88 per month
2. Save the other £90 a month in a virtual pot until our monthly outgoings are stabilised a bit, then pay a lump sum and review the overpayments

The aim is still to get the mortgage down to £120,000 by the time our fixed ends in April 2013. So I shall phone the bank to organise the extra overpayments and then squirrel everything away.

gallygirl

HumbleBumble wrote: »

According to my calculations if we just saved the money and then paid it as lump sum we would pay an additional £224 in interest over the next two years which doesn't seem alot in the grand scheme of things but then i am missing the point in overpaying?:cool:

Well, if you found out someone had overcharged you £224 wouldn't you want it back .

You need to speak to your lender and find out if they will allow you to claw back overpayments. If they do then, once you have built up an emergency fund you can access quickly, if I was you I would OP as much as possible.

Good luck. Oh, and hello :wave: