mfw new to the site

nobby2011

hi everyone new to the forum and thought i would say hello, and tell you all about my goals for the future.

first of all i'll let you all know what i'v planned, and how i intend to sort my finances, and become mortgage free.

first of all as of the end of this month (march 2011) all credit cards, and any other credit will be paid off:money:
so i can concentrate on the mortgages going forward.

so i'am left with a mortgage of £140,383.89 on a repayment mortgage of 2.5% i can over pay any amount without a penalty.

also 2 years ago i had to takeout a further advanced mortgage so outstanding on that is £41,287.41 fixed until 31st july 2011 of 7.73%, and i can over pay upto £500 a month over payment until the fixed term is up.

i was able to make my first over payment on both mortgages last month (feb 2011) of £500 each:beer:

now i do have some savings so the question i have is should i save or pay as much as possible off my mortgages.
because after getting rid of all my other debt, and paying all monthly living costs
i could still over pay £500 off each mortgage, and still save a good deal of cash.
whats the best thing to do?
thanks in advance for any advice.

DawnW

I am overpaying and also saving, so the best of both worlds I think if you can do this

It makes sense to overpay the max allowed on the higher rate second mortgage and not the other one if you are short one month though.

Good luck!

drewwa

Welcome aboard! Definitely ensure you overpay the second mortgage to the max each month if you can!

Cheers,

Drew.

nobby2011

Hi everyone I haven't posted since the day I started this thread:(:(
So I thought I would come on and give you all an update of how my attempt to become mortgage free is going.

As of today Thursday 24th November 2011 I have reduced my mortgage from £140'383.89 down to £136,202.09
And the same date I have reduced my further advanced mortgage from £41,287.41 down to £31,167.56

My aim is to clear the further advanced mortgage which is out of it's fixed rate, and now at 3.9%

My mortgage is still at 2.5%

My credit card has £200 on ATM, but will be cleared on payday the 1st of December.

Anybody that's reading some of the mfw posts, and think I wish I could do that.
Stop wishing, and get clearing.
Every payment you make no matter how big or small makes you feel so proud:A

Tilly_MFW_in_6_YRS

Hi N2011, I think I read that you could overpay without penalties, so would it make more sense to throw all of your OPs on the higher interest mortgage and clear that sooner, then focus on the other one? Just a thought.

Good luck, Tilly

dimbo61

Well done so far and agree with Tilly that paying £1000 a month off the part with a rate of 3.9% is better than £500 off each now you are out of the fix!
Keep up the good work and £14K off in 8 months is very good going

Twiddy

dimbo61 wrote: »

Well done so far and agree with Tilly that paying £1000 a month off the part with a rate of 3.9% is better than £500 off each now you are out of the fix!
Keep up the good work and £14K off in 8 months is very good going

Agree with this dimbo, I'd do the same. :money:

nobby2011

Thanks for the advice , and reply's to my little thead:D
You are all right, my higher rate has just come out of it's fixed rate in october so i am leaving the bigger mortgage, and focusing on the higher rate mortgage.

If i have done my sum's right i should have the smaller of the two mortgage's paid off in 20 month's:j

I'll keep you all posted (if anyone is interested):o

madeupname1

nobby2011 wrote: »

I'll keep you all posted (if anyone is interested):o

We are interested! I find MFWs tend to be quite addicted to the subject and always curious about what others are doing!