The Mortgage Free in Three - Take 3 challenge (MFiT-T3)

black_taxi_2

i put starting value at 19k but now i know value figure starting dec will be 21k.

hope to MF in two years then start saving/investing

g/l all

Fluffypigs

I've just signed up for the challenge but I'm unsure what to put as my objective. I am aiming to reduce my mortgage, but should I state just my overpayment objective over the 3 years or the total amount including basic payments and overpayments?

samtoby

SusanneCape wrote: »

Hi SamToby, I am not sure as I don't have this type of restriction on my mortgage, but it seems very common. You would need to check with your bank. If you have more money than the 10% allowed, put it in an interest-bearing account for the following year and/or pay it when you remortgage. You would then exit your first mortgage on a higher amount than your entry amount for your second mortgage.

I can't wait to start. I hope you have a stressfree completion soon. If you need help packing, let me know

All the best,

Thank you! All packed and completion is next Friday. So the 23rd of Novemeber 2012 is going to be a very important date for us as a family.

Does anyone else have a Halifax Mortgage - or on a 10% maximum over payments a year? Does this include what we pay on the payments or indeed completely independant of the payments we make. The mortgage balance starts at 110,920 so in my thinking I can pay 10,920 in the first year with no penalty.

Am I thinking it right? Not meaning to be dumb....:o

samtoby

Skittle wrote: »

Sorry, yes it's a debt management plan. All our finances have been tied up with paying these debts off so haven't been in a position to make mortgage overpayments till now.

Hopefully you will be able to apply your debt clearing to mortgage clearing! Good luck

SusanneCape

samtoby wrote: »

Thank you! All packed and completion is next Friday. So the 23rd of Novemeber 2012 is going to be a very important date for us as a family.

Does anyone else have a Halifax Mortgage - or on a 10% maximum over payments a year? Does this include what we pay on the payments or indeed completely independant of the payments we make. The mortgage balance starts at 110,920 so in my thinking I can pay 10,920 in the first year with no penalty.

Am I thinking it right? Not meaning to be dumb....:o

Hi samtoby, the way I understand it is that the overpayments are over and above your monthly instalments. I found this on the net, but it is not very clear. Glad you are packed and ready to move. :beer:


Halifax - All Mortgages - Annual 10% overpayment option. Each year you can overpay by a maximum of 10% of your outstanding mortgage balance without incurring charges. You can then make underpayments up to the amount of any previous overpayments.

Spiggle

Hi samtoby,

I don't have a Halifax mortgage so you are better checking directly with them but I have always understood the restrictions are on mortgage overpayments and so would be in addition to (on top of) your normal mortgage payments.

Hopefully someone will be along to confirm soon. I think you could OP just over £11k by the way.

All the best,
Spigs

ETA: Seems we thought the same at the same time Susanne!

VoucherMan

samtoby


I'd definitely recommend contacting the Halifax. The way I read it the total payments shouldn’t exceed 10% so worth sorting out if you’re planning to make some big ops
http://www.halifax.co.uk/mortgages/specialfeatures.asp#Make_overpayments

Luckily for me I'm on the SVR so can overpay as much as I want

samtoby

On the mortgage info it says:

The limit on any extra payments you can make each year before the charge applies is 10% of the mortgage balance. This means if you have a mortgage subject to an Early Repayment Charge you can pay up to 10% of your mortgage balance before incurring the charge, unless you go on to repay or change the rest of the loan within the next six months. The charge varies, depending on how long you have left on your mortgage deal.
The 10% overpayments limit is a concession and could be withdrawn at any time.
If you want to make an extra lump sum payment, your monthly mortgage payments will be lowered to repay the reduced overall balance on your mortgage over the same remaining term. However if you want to remain paying the same monthly amount then we can recalculate the remaining term.

samtoby

I understand that as 10% for payments and everything so the balance can not be below 110,920 - 10,920 (made up of over payments and payments) so I can be at 100,00 at the end of year one? (I am being ambitious but I am really going to try.)

financialbliss

Hi folks. Way out of touch here. Apologies.

Went away for a few days during half term, was very busy last week and I've also been suffering from man-flu since the latter part of last week.

Got in from work this evening, had some tea, out for the count on the settee and Mrs Bliss woke me up to suggest I go to bed :eek:

Hope to have everything back in order by the end of this week.

That goes for the T2 challenge also, if anyone it looking on in this thread.

FB.