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mortgage free by april 2014

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de1amo
de1amo Posts: 3,401 Forumite
1,000 Posts Combo Breaker
edited 27 March 2011 at 4:03PM in Mortgage-free wannabe
İ have finally decided that i want to be set free from having a mortgage! i have been saving but funds have been getting diverted into a second home i have abroad but now i must stand firm and get to the bottom of my principle residence--55k mortgage on 2pc svr IO--i had an endownment mature a year ago which has provided a springboard of 18k and i have added another 4,5k so its a start of 22,500 as of now.--i can currently save 1k a month. i have a pension and a retirement home but need to secure things here.
İ currently get 4pc less normal tax on my savings and like i said pay 2pc interest so i am holding off actually paying down my mortgage.i wonder if mortgage rates go up wouldnt the savings rates rise in parralel??
mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.

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  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    yes and no once mortgage rates start to rise so will interest rates on savings but I bet you £10 that the mortgage rates will rise faster than the savings rates and you will have to swop saving deals every 12 months in order to get the best rates ( not forgetting the TAX MAN)
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    İ feel securer having some savings in the bank and taking a small hit on the percentages.--i am a bit different in my mortgage situation in that i own a home and business abroad(turkey) and my day to day funds and life is there.--i keep it all seperate because i have targets and goals to acheive in my second life!--i have more equity than this mortgage there but seem preoccupied with this one debt i have!!
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
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