Mortgage Free in Three Yrs

Trying_to_be_good

Number 48 update (I've already PM'd TallGirl):
I was paid some extra this month, and had saved for a few months previously as I described in an earlier post, so my new mortgage figure is £126,000, less the £13,067 in the ISA leaves a net balance of £112,933. But it'll slow down now as my savings are used up!

Woohoo!

Superfast_Gran

Balance as of yesterday £46128.90. I really don't understand how to work the balance out as it seems to be going down soooo slowly in comparison to what we actualy pay every month. I feel such a dimwit.

New fixed period to commence in September, but I've just heard twin foster kids moving on so we'll be seriously down financially. Lets hope we get a new palcement sooner rather than later! nlol! OH starts new job on Monday and we have absolutely no idea how that's going to work out financially - gulp.

cupid_s

Badger_Lady wrote: »

Wow :shocked:

I don't know what to say.

How did you manage that? That's like the national average annual take-home wage in a month!!!

It's over two and a half times my yearly salary in a month! But I've been cheating

For the last three years our mortgage has been fixed, and we were only allowed to overpay by 20% of our usual monthly payment. So we've been busy saving. Yesterday my fixed rate ended and so I could pay a big lump sum off our mortgage.

It's actually 2 and a half years worth of overpayments so it's not all that impressive, especially considering that my mom and dad were so impressed that we'd saved 16k (we still have 6k in ISAs as I mentioned) they gave us 10k to pay off the mortgage as well :j

Badger_Lady

Brilliant - I'm so happy for you cupid_s!

TallGirl

Hi All
Gosh I have missed you, been on holiday in Devon for a week with no internet access. Just got back today and saw I had 24 PMs. Thank you all so much I will get on with updating the chart and will post it later this week.

Also before I even unpacked I went into my mortgage account and paid off this months interest £145 so it back down to a nice round figure again.

Lovely to read you are all doing so well, wow 20K cupid that is lovely. Also momo-jojo dont forget to shop around for insurance and use Quidco to get cash back some pay over £100.

Nearly unpacked so can now tell you I have done all the PMs and we have

67 on the chart out of 94

Also I have 3 on the chart who are still on the original mortgage balance they gave me in April so please can you update us it is
Tigtag
Brumiebabe
Keren29

(sorry if you no longer want to be on the chart or if you are on interest only mortgages)

Just to remind everyone else

Please PM me your August updates and I will include you on the chart.

angelavdavis

Superfast_Gran wrote: »

Balance as of yesterday £46128.90. I really don't understand how to work the balance out as it seems to be going down soooo slowly in comparison to what we actualy pay every month. I feel such a dimwit.

New fixed period to commence in September, but I've just heard twin foster kids moving on so we'll be seriously down financially. Lets hope we get a new palcement sooner rather than later! nlol! OH starts new job on Monday and we have absolutely no idea how that's going to work out financially - gulp.

Hi SG,

You are probably in the same boat as me on a fixed rate mortgage.

What generally happens with fixed rate mortgages is that they fix the interest payment on your anniversary but charge it monthly. So as an example, here is how mine works:

I initially borrowed £135,000 on a two year fixed rate in December 05 at 4.24% - this fixed my interest for the year at £5724 or monthly to £477.00 (and payments of £841.47 per month)! The interest is then charged monthly. So I make a payment of £841.47 every month, but only £364.47 is actually being paid off (841.47-477.00)!

So, in December 2006, my anniversary date - they recalculated the interest to be charged for the year £5538.56 on the amount now owing - £130626.36. Yes, out of the total £10097.64 in mortgage payments, I had only reduced the mortgage in 12 months by £4373.64!!:mad:

So, the interest reduced to £461.55 per month (that's a whole £15.45 per month less - :mad: !), meaning that of my 841.47 monthly payment being paid into my mortgage, the amount now going off the balance is £841.47-461.55=£379.92.

Making overpayments won't make any difference to my monthly contribution until my anniversary (when the interest rate will increase anyway as I am switching to an offset!).

So as well as being confusing its also depressing isn't it!??!

I am trying to aim to get to lower the mortgage to £100k in time for the remortgage, but we will see. With a September wedding planned and my contract up in September, who knows what will happen!

inkie

We are on a fixed rate mortgage (at 4.99), but our interest is daily. I rang them up to check, and was told that the interest is £3.99 per day. So, once this £120ish in interest is taken out of the DD we pay them each month, then the rest of the payment (and now the overpayment, of course) is to reduce the capital. This should really cut into it.

angelavdavis

inkie wrote: »

We are on a fixed rate mortgage (at 4.99), but our interest is daily. I rang them up to check, and was told that the interest is £3.99 per day. So, once this £120ish in interest is taken out of the DD we pay them each month, then the rest of the payment (and now the overpayment, of course) is to reduce the capital. This should really cut into it.

Yes mine is worked out daily but added monthly which can make it tricky to work out the actual running balance (have been agonising for hours over my spreadsheet!)

gallygirl

No. 11 - reporting in!

Original Balance 53500.48
Aug 1st Balance 49162.43
Paid off 4338.05

Getting there slowly! Had a lot of unusual incomings & outgoings last month - and total may actually increase this month :eek::eek::eek::eek::eek::eek::eek:, still, this is keeping me v motivated.

Best thing this month was that expected quidco payment of £28.59 turned into £148.59 :j:j:j:j:j:j:j:j, queried item finally resolved, tracked & paid in 2 days:T:T:T:T:T:T.

Keep going peeps!!!!!

pink_fairy_7

Hi all

Start £160,592
Now £158,062
Paid off £2,530

It's slowly coming down.

My August goals:

• Stick to menu plan
• Stick to grocery budget of £180
• Sell 10 items on Ebay
• Do a Car Boot sale

Good luck every one.

pf x