MF in 2020...£104,500. Any tips...?

spideyboy

2 years ago, we bought a repo house for £80,000 in a lovely area. We spent 15k doing it up and have now been valued at £130,000. We're now remortgaging for £104,500 (80%) which leaves us with 34k to get an extension and the outside looking as good as the inside.
Intro over...we were paying, at the start, £502pm (Thanks HS*C.!) and were managing quite nicely. Our mortgage advisor, who has had loads of patience, got a new deal and we decided to up the payments, initially to £650pm, bringing the term down to 20 years.

We thought about it and, after becoming hooked on the fab stories on here, decided to push the boat out a little further.
Instead of promising ourselves that we'd 'overpay' each month (which I knew simply wouldn't happen...) or saving up and paying off a lump (again, even less chance of that happening...!) we looked at what we could afford and decided on approx £800pm.

This has reduced the term to 15 years and also reduced the cost of life assurance to cover the mortgage as it won't be running for as long. (I also have a house rented on Interest Only mortgage (from a previous stress-free existence and my partner has hers that we'll be renting shortly)

Our financial wizard has been thoroughly impressed with what we're planning, if secretly a little annoyed at having the BS, to re-draft all the paperwork :mad:.

With paying off more, over the next 2 years and having the extension built, we'll be in a much better place (LTV wise) and hopefully will be able to secure a good deal next time round too.

Even thinking we were going to be in this for 20 years...we decided, by 'tarting' every couple of years, that we would hopefully get it down to 10 years.

Now we're at 15 years left, and haven't really started yet, what should we be doing to reduce this further...? It may sound daft but would the odd £50 here and there make a difference...?

Reading the wonderful posts on here of mortgages, far greater than our 'little un', being paid off at lightning speed, is really heartening.

Good luck to all...your comments and thoughts would be appreciated. :beer:

Engeroosi

£50 per month for 10 years is £6,000 off the capital plus any interest you have saved so of course it makes a big difference!!

Phelpsie001

I owe £122,000 and I increased my payments from £760 to £800 and it knocked off 5 and a half years Thats only £480 a year extra!!

wynnvegas

Hi SB,

Get yourself onto a mortgage overpayment calculator and work out what it would take to pay off the lot in ten years and then aim for that amount if you can. We started with the idea of being mortgage free by 46 (initial mortgage end date) then moved it to 40 as a nice round number then to 35 when we started earning a bit more then to 30 as a nicer round number. We paid ours off (all of £500 more than your current figure) last year (and I'm not 30 until the middle of next month). All it took was a bit of dedication and a few wee sacrifices every now and again. We're on the home improvement road now so you're doing grand. Best of luck to you.

Cheers,

Billy