mortgage free by april 2014 27 March 2011 at 1:41PM edited 27 March 2011 at 3:03PM in Mortgage-Free Wannabe 2 replies 539 views

de1amo

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??

dimbo61

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

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!!