My Improbable 10 Year Target

philhews

This was from another post on here that I knew I'd seen recently

JonnyBravo wrote: »

Here's what you roughly pay back in each of the 5 year periods of a 25 yr mortgage. (rounding errors)

1st 5yr - 10%
2nd 5yr - 15%
3rd 5yr - 18% (youve paid total of 1/3 off at 12.5 yr)
4th 5yr - 24%
5th 5yr - 33%

There's no guarantee this is right, you could use a mortgage calculator to tell you how much capital you've paid off after different timescales. If no-one else has a good answer to this I may try and work it out this evening.

Phelpsie001

Ahhhh I see!! So at the end of my first 5 years, I should have paid back 10% of my debt...so thats £13,000....plus any OPs...so I might pay off £20,000!!

Thanks for that!!

philhews

In essence yes, although overpaying would reduce the interest proportion of your regular payment meaning you'd pay more capital, but this overpayment calculator should tell you a bit more precisely and you can play with different overpayment amounts.

Phelpsie001

Just paid off another £900

Need to update my signature!

Phelpsie001

Just paid back £9.70!! Felt a bit silly ringing up to overpay by less than £10 but at least I now save interest on that!! Really want to get below the £120,000 this year of possible!! Time to update my signature too =P

Just to add also, the operator did laugh at me when I told him the small amount which made me feel a little embarrassed!!!

Engeroosi

I have a similar target to yours, also a similar balance outstanding. Have you considered ditching your fix? I am on 6.29% and I am looking at ditching my fix if possible to a lower interest rate. I know there are ERC's but I would save £330 per month on the lower int rate so over the 2 years left on the fix that would mean I would save over £4000 and also that is allowing for a few increases in the BoE rate over the 2 years.

Phelpsie001

I want to ditch it but to be honest, I'm a bit scared to haha?? I dont want to pay £2000 to ditch and then only save £2001 for getting a lower rate?

How are you going about ditching?

Jock_Tight

All the best on your mortgage free journey, I'm sure if you stick to it you will achieve your goals

Another free money tip is the Halifax / Bank of Scotland reward account. If you leave £1 in the account and each month transfer £1000 in then out you pick up a £5 reward each month, so thats £60 a year for a couple of minutes online.

Also make sure your savings are getting the best interest rates.

Jock

Phelpsie001

Jock_Tight wrote: »

All the best on your mortgage free journey, I'm sure if you stick to it you will achieve your goals

Another free money tip is the Halifax / Bank of Scotland reward account. If you leave £1 in the account and each month transfer £1000 in then out you pick up a £5 reward each month, so thats £60 a year for a couple of minutes online.

Also make sure your savings are getting the best interest rates.

Jock

Yay! All done! =D

Phelpsie001

Just realised.... I've overpaid 1% of my original mortgage amount this year!

Since August 2009 when I got the mortgage, I have overpaid £5,309.02 and my actual ownership of my house has gone from 10% (from the deposit) to 19% (according to a recent home evaluation by a friend in the building business). Yay!!