We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
DFW to MFW

DominicJ_2
Posts: 373 Forumite
I'm "lucky" enough to be being made redundant, so my plans for "debt free wannabe ness" are being somewhat hampered by having a big cash pay off to knock them all on the head with.
So, assuming I walk into another job, I'm moving onto being a "mortgage free wannabe".
A Brief Statement of Affairs
House Price £85000
Mortgage £76500
Date Aug 07
Payments since then have been £360 ish interest per month, nothing on capital.
I'm also owed a sum of money, so will have roughly £6500 left over when my inlaws sell their home, minus what I spend between finishing and starting work, and other bits and bobs.
My partner wants to move to a "nicer" area, and I have said that in order to move, she has to prove we can meet the higher mortgage costs for a year first, and I've set this target at £900 per month out of a combined take home of £2400 per month, I forsee few problems meeting that, minimum debt repayments are currently £250 per month, (£610 inc Mortgage interest) and we've comfortably overshot that.
I'm a bit unsure of how the "overpayments" work though.
Thats the exact text.
Now, thats fairly clear, I can repay £6500 tomorrow, because I've made no over payments for the last year.
But what then?
Does the "amount on that product" reduce to £70,000 or does it stay at £76,500?
If it reduces to £70,000, I cant make the next £900 payment without going over the 10% in a rolling 12 months.
That was a bit of a ramble sorry, anyway....
So, assuming I walk into another job, I'm moving onto being a "mortgage free wannabe".
A Brief Statement of Affairs
House Price £85000
Mortgage £76500
Date Aug 07
Payments since then have been £360 ish interest per month, nothing on capital.
I'm also owed a sum of money, so will have roughly £6500 left over when my inlaws sell their home, minus what I spend between finishing and starting work, and other bits and bobs.
My partner wants to move to a "nicer" area, and I have said that in order to move, she has to prove we can meet the higher mortgage costs for a year first, and I've set this target at £900 per month out of a combined take home of £2400 per month, I forsee few problems meeting that, minimum debt repayments are currently £250 per month, (£610 inc Mortgage interest) and we've comfortably overshot that.
I'm a bit unsure of how the "overpayments" work though.
Even then you can pay up to 10% of the amount on that product in any 12-month rolling period free of charge*
Thats the exact text.
Now, thats fairly clear, I can repay £6500 tomorrow, because I've made no over payments for the last year.
But what then?
Does the "amount on that product" reduce to £70,000 or does it stay at £76,500?
If it reduces to £70,000, I cant make the next £900 payment without going over the 10% in a rolling 12 months.
That was a bit of a ramble sorry, anyway....
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.7K Work, Benefits & Business
- 619.5K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards