2013 mfw

Caeraugirl

Thanks VoucherMan. I guess I can put the £125 as Jan OP, and hopefully increase from there.....

LauraJo

I'm doing b and then just paying the extra bit I save into next months. I do this in case something happens and I can't afford the repayment.... Cautious I know! I know I could prob then lengthen it agin if I needed to but I'm sure they'd charge somewhere down the line!

gc_bus

gc_bus wrote: »

I want to be MF by age of 55 (currently 51 - eeek!).
Mortgage: 3.79% one year into fixed five years - balance outstanding £62500 - allowed 10% per year overpayments; currently paying £885 per month capital and interest repayment.
Car loan: £13800 outstanding - 4.59% - 2.5 years left and then lump sum of £6500 due to buy car totally. Currently paying £318 per month.
No other debt (use 1% cashback card and pay off balance each month)
Savings: £4000 in ISA - getting 2.5%; £525 in Premium Bonds
I'm a higher rate tax payer - earnings £45,500 PA plus on-call (variable can be up to £12,000 extra PA). Take home around £3200 per month.
Have company final salary pension. Can exercise flexible-retirement at age 55. Also have £9000 in money purchase cash AVC - have stopped any more payments into this due to future pension tax uncertainty.
I shop around for best energy/insurance deals etc.
Any comments on how to pay off mortgage earlier'?

Ok, arranging with my mortgage provider to increase my monthly payments to £1000 (up from £885) per month. Also, we're going to eat in most Sundays and relax at home rather then being tempted by the "buy one main meal get one free" restaurant deals that end up still costing £40 for two to eat out. Then save this into the mortgage. We're also doing Martin's downshift challenge with our food/supermarket shopping that was creeping up towards £100 per week for two adults! Going to cap that at £50 per week.

mortgage_destroyer

No 100 Mortgage Destroyer Have made an overpayment for february of £500:)

I'm option B - I reduce my monthly payments every month when I make an overpayment. This helps me to make higher overpayments towards my mortgage as we haven't had a wage increase in 5 years & everything always seems to go except our wages:-(

Not sure this is the best money saving option though if someone can explain if it's better to shorten the term instead.

Barny1979

OP of £8.60 made from ebay sale.

NPowerUser

mortgage_destroyer wrote: »

Not sure this is the best money saving option though if someone can explain if it's better to shorten the term instead.

Most lenders try and get you to reduce your monthly payments instead of reducing your term by default, this suggests that they will probably opt for the result that best serves their profits?

I am sure my lender would prefer me to keep paying my mortgage for as long a period as possible, that's why I opt to reduce the term instead.

Not saying my answer is correct but it feels right.

gc_bus

gc_bus wrote: »

Ok, arranging with my mortgage provider to increase my monthly payments to £1000 (up from £885) per month. Also, we're going to eat in most Sundays and relax at home rather then being tempted by the "buy one main meal get one free" restaurant deals that end up still costing £40 for two to eat out. Then save this into the mortgage. We're also doing Martin's downshift challenge with our food/supermarket shopping that was creeping up towards £100 per week for two adults! Going to cap that at £50 per week.

Bank confirms that my extra £115 per month overpayment now in place and will be deducted at the end of this month. Also I've set up my mortgage as a "payee" from my bank account via "faster payment" so I can also dollop excess funds into my mortgage this way. This will make it much easier and so much more tempting to pay extra in this way in future. Mortgage balance now down to £62,510 currently. 6 years and 8 months to go but should be down to 5 years and 9 months to go with my regular overpayments. I want it to be gone within three years - that's my aim.

LavenderBees

Some impressive saving going on there! :j

I was thinking this morning that I still have £18200 ish to pay, and it feels interminable, but then I thought, hang on, the mortgage I took out just over 2 years ago was £35,000, so I've already paid off £17,000, which isn't bad at all on one salary, so that cheered me up! :rotfl:

Still racking up the vets bills unfortunately, but being frugal for everything else, so still aiming to pay it off the outstanding capital (prob around £16,000) at the end of October...as long as I keep my job (which I almost walked out on yesterday, luckily, some good colleagues talked me down off the window ledge, so I live to tell the story )

Keep on keeping on, everyone. We'll get there!

LB xx

NPowerUser

LavenderBees wrote: »

I was thinking this morning that I still have £18200 ish to pay, and it feels interminable

You are doing well LB, just keep thinking positive.

I want shot of mine asap but I know before the end of 2013 with luck and hard work, it will be gone.

You can almost smell the deeds in your hand. Once you have paid yours off you can then decide if you want to look for another job.

LavenderBees

NPowerUser wrote: »

You are doing well LB, just keep thinking positive.

I want shot of mine asap but I know before the end of 2013 with luck and hard work, it will be gone.

You can almost smell the deeds in your hand. Once you have paid yours off you can then decide if you want to look for another job.

I know, thanks for the pep talk, just got to keep hanging in there, and just keep focusing on the mortgage...but it's bloomin hard. Paying off the mortgage will open up some options that I don't have just now, and to blow it all for the sake of a few months more patience, would be disappointing.

I can do this, I can...:T