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

financialbliss

@gjb1503 - no real rules as per comment from black taxi.

During the T2 challenge, and after my mortgage rate dropped to 2.5% (and you could actually get savings in excess of 3%), I had started saving instead, but deducted my mortgage by my overpayment savings pot as and when I reported the balance for the charts.

Can't see anything wrong with that. If rules were applied, it could become so rigid that no one takes part.

As long as people appreciate that I'm doing this in my own time, off my own back and I don't always get updates applied immediately, then we're good.

Also, if you had, say, two mortgages at different rates, there's nothing to stop you requesting two challenger numbers and reporting each mortgage balance separately. Same comment for a mortgage and a savings pot, of which we have one or two.

FB.

Trying_to_be_good

gjb1503 wrote: »

Would it be cheating to declare the money saved in the ISA as over-payments before actually using it to overpay? Otherwise we will be working hard on the challenge but have nothing to enter on the updates.

What do you think?

Great minds think alike - lots of us have official or unofficial offsets, and report the 'net' balance as the outstanding borrowing. I keep track of mine in my Sig below. Welcome to the challenge!

gallygirl

Trying_to_be_good wrote: »

Great minds think alike - lots of us have official or unofficial offsets, and report the 'net' balance as the outstanding borrowing. I keep track of mine in my Sig below.

The way I see it is 'any excuse for another few lines on the spreadsheet' :cool:. What matters really is the net debt, however it is made up :T.

gjb1503

thanks everyone.So I will change my signature to show the full situation but declare it as paid on the challenge. just got to get on with the money saving now.

RosieTiger

gjb1503 wrote: »

thanks everyone.So I will change my signature to show the full situation but declare it as paid on the challenge. just got to get on with the money saving now.

This is all about what works for you. During the last challenge we went from looking at mortgage only, then moved to mortgage less savings and finally ended up working from straight mortgage again.

Reality here is that whether you opt to pay it off, or save the same amount in savings makes no difference - depends on how you feel and your personal circumstances, but either works fine.

RosieTiger

Kwaker_Knacker wrote: »

My wife doesn't get involved with any of the payments or bills, but she likes spending money, so I feel like I'm on my own with this, but working with 1 hand tied behind my back :rotfl:

K_K

Sit her down and show her the numbers in a spreadsheet and let her see exactly what that means for you both when related back to the same value in terms of whatever does interest her:

Bigger house, extension, new car, holidays, shoes, going out etc etc

Sometimes the MF goal seems too big to comprehend that it's possible because in general we have all been brought up to believe that mortgages are just something we have for life and might just finish when we retire - even having a special name for it seems designed to switch our attention away from the reality, a loan paid at what appears small rates of interest over many years that ultimately proves extremely expensive.

Kwaker_Knacker

RosieTiger wrote: »

Sit her down and show her the numbers in a spreadsheet and let her see exactly what that means for you both when related back to the same value in terms of whatever does interest her:

Bigger house, extension, new car, holidays, shoes, going out etc etc

Sometimes the MF goal seems too big to comprehend that it's possible because in general we have all been brought up to believe that mortgages are just something we have for life and might just finish when we retire - even having a special name for it seems designed to switch our attention away from the reality, a loan paid at what appears small rates of interest over many years that ultimately proves extremely expensive.

I've tried this many times, but it just ends up feeling like this :wall:

So I just go on my own as best as I can. I'm probably doing her a dis-service as she's not blowing hundreds of pounds every month, but it would be better if both of us were pulling in the same direction on this.

K_K

RosieTiger

Love that head against a brick wall icon !!!!!

Mrs RT never quite got it at first as it probably sounded like I was banging on about something that was never really going to happen. Once we began to make progress she did get on board and could see that it was achievable, so hopefully you will get he same result.

I would say that the best thing then is to set up a standing order for the OP and leave it running in the background

Almost like cheating by pretending you have a monthly bill figure that's higher than it really is.

Most of our efforts were done this way with it just running in the background taking care of itself.

RevolvingDoor

RosieTiger wrote: »

Sometimes the MF goal seems too big to comprehend that it's possible because in general we have all been brought up to believe that mortgages are just something we have for life and might just finish when we retire - even having a special name for it seems designed to switch our attention away from the reality, a loan paid at what appears small rates of interest over many years that ultimately proves extremely expensive.

:T So true.

black_taxi_2

Before I made the decision 2009 to become debt/mortgage free I was the bankers BEST FRIEND.

All my life I've taken out loans(1k to 5k)forever in debt

My capital debt NEVER reduced because I always topped up

I finally became debt free June/2011

Not taking on debt meant I could begin MF journey

I make my o/p on the 2nd of each month for the next month

So my jan o/p will be good but feb/march will be low to cover Xmas ect.

Xmas past I would of taken out a 1k loan now I just stop o/p

when I started MF journey I thought I could do it in 3 years

What I've learnt is---my out goings are more than I thought plus unknowns--bills/sickness ect. My loans hid this.

I still need my holiday abroad---but 1 week instead of 2 with no loan to pay for it.

I think many give up MF journey because progress can be slower than you hope,especialy if your single.

ive had many low moments but when you reach the beginning of a new year and see your closer to your goal and read threads on here you know one day you will make it.