blacksta - MFW - I want to be free 28 June 2011 at 7:57PM in Mortgage-free wannabe 4 replies 831 views

blacksta

I have an existing mortgage of £158105
currently on a tracker rate of 2.65%
paying about £349.16 interest only every month with about 20 years remaining on the mortgage.

I am inspired by all i have read on the site ,. Please help me i want to drastically reduce my mortgage.

PLEASE HELP ME

LilB_3

Welcome blackstar!

Fill this in and I'm sure the veterans will be along shortly.

SOA - Statement of Affairs

originalmiscellany

Hi blacksta - As you're on interest only, you do have some way of paying your mortgage off don't you? Some savings/ISA being filled up to ensure your mortgage can be cleared in 18 years time?
You've got a v. good interest rate at the moment BR + 1.5% (at a guess)?

Do you have any other debts? If so what are the rates and how much?
Do you have any savings?
Roughly what's your salary? important to help work out what's possible in terms of savings etc.

As LilB said, get an SOA filled in too, to help pin point where you may be a little generous in your spending currently.

and finally welcome!

goobergirl

Welcome Blacksta and good luck to you.:beer:

adwat

Hi Blacksta, welcome to the MFW's!

My advice would be to transfer to a repayment mortgage if you are able to - this will guarantee you being able to pay off the mortgage in it's term - with an interest only you will be left with the original debt at the end of the term (sorry, I know it's obvious but just in case you weren't sure!).

If after that you're able to afford them, then I'd recommend making overpayments to reduce the term still further - as much as you can afford if you really want to get shot of the mortgage as soon as possible. Obviously that's not what everyone wants but it's what I've done so far and am really chuffed that the mortgage is nearly gone.

Best wishes for all your MFW goals that you set yourself!