Mortgage Free in Three Yrs

ailuro2

Wow- what a fantastic result for August-just had a quick look at the table, too jetlagged to read it all through-
as you may remember I'm just back from Canada- sadly the house prices there seem to be worse there than they are here, so no plans to move just yet, even though the place is utterly gorgeous!

I've updated my signature though:j

taka

Desperate_Housewife wrote: »

I wonder if people think we are living on beans by candlelight in order to do this challenge and wanted to say (as Dithering Dad has already in previous posts) that its not affecting the quality of my life, in fact, it has enhanced it.

I have to agree. I'm not going without stuff... just being more organised about spending my money and not buying junk that I think I want (rather than need). I still spend my money but I think a whole load more about why I'm buying it as half of my shopping previously was to cheer me up rather than cos I liked/wanted/needed whatever it was I was buying. I'd say for me its been more like getting my life in general under a bit more control and money is only 1 side of it.

Anyhoo, just wanted to get that off me chest! I wonder what you MF3 guys couldn't live without?

My computer!!!!!!! :rotfl: I am better off cos of this website but horribly addicted to it now!! Also cos I'm addicted to updating my spreadsheets etc so I know how well (or not) I'm doing in various challenges including this one!!

PS Hi Tim ... good luck paying off your mortgage too :hello:

mountainlioness

Hi all

Mr Lion and I are in! Our challenge is to pay £10k off our mortgage...
Paid our 1st £300 off our highest rate mortgage (we technically have 3 has both times we've moved Nationwide just give us a new mortgage for the extra borrowing) this month, now doing some serious grocery budgeting and bootsaling to keep the cash coming. :A

mountainlioness

Our current mortgage debt is £261,385 eek!!

Batgirl

AnW'sMum wrote: »

Well if you wanted to invert the list and pay the largest off first then collectively we would have paid off catshark88's mortgage only and be almost £188,000 short of paying off meme's mortgage.

I can report it both ways if people would like me to.

Either way we are still beating the banks

BUM!!!!!!!!!!! I thought I had the highest mortgage and would therefore be paid off!!!!!!!!!!!:D Never mind I must be close to the top.

Thanks so much AnWs mum you are a fab cheerleader.:j

AnW'sMum

Batgirl wrote: »

BUM!!!!!!!!!!! I thought I had the highest mortgage and would therefore be paid off!!!!!!!!!!!:D Never mind I must be close to the top.

Thanks so much AnWs mum you are a fab cheerleader.:j

Awwwwwwwwww shucks thanks guys. It is down to you lot and your efforts to repay those mortgages early that give me the figures to play round with.



If we still had our mortgage I would be very much an active member in the collective aim. I am just chuffed to bits for you all with every extra £ (or $ or € ) that is paid off those mortgages as it means true financial freedom is a step closer

Batgirl by my reckoning your mortgage is 4th largest, if we discount DD's £100k pension pot building then you would move up to position 3

In terms of largest percentage of pledged amounts paid off would put benbenamdme in first with 86.13%, Karen L 2nd with 64.79% and pa2539 3rd with 62.33%

MoneySavingNovice

Just thought I would post an update.

Since my last update I have had a good couple of months, reducing my total debt from £59,000 to £51,500 - which is in advance of my target.

I also reduce my Mortgage to £47,500 - using some of my offset account. My mortgage rate went up... but the offset account rate has still not! :mad:

I now need to save some £4,000 in the next 5 months to pay off my other debt.

This month I also applied for a 0% Credit Card from the Halifax - I am going to use it for purchases only - there is a 12 month interest free period, after which I ditch its after paying it off in full, so its free credit for a whole year.

Its good to see so many others doing so well..... Thanks to all for their support.

M.S.N.

Little_Mama

Hi Sparklymessygirl,

Do the value of your ISAs equal or exceed what you owe in Mortgage?

Also are they Cash or Equity based? OH has drawn on his Equity one previously, just taking out the amount needed, generally leaving in the initial sum invested, for life's little essentials....like a motorbike :rolleyes: . If they are cash based then you could always think about pulling out just the interest, I don't know how flexible yours are but the ones we have allow this. Every little helps.

I'm a little risk averse when it comes to delving into the messy world of overdrafts, it's not somewhere I feel comfortable so I can't really advise but if you are feeling uncomfortable about it then I wouldn't do it.

Good luck with your quest.

LM

Little_Mama

:T :T :T :T

Well done to all of you!!!

I've just been reading this thread....well on and off for last few days....lots to take in for one sitting.....and want to say thanks to you all for the ideas and motivation.

Our aim is to be in the best possible position for when our fixed rate comes to an end in 18mths but like DD OH is a contractor so it all depends on what the future holds..........and I'm a big scaredy cat when it comes to having back up for the out of contract times! :rotfl:

As our timescales are different I won't use up someone's space in the MFiT but I'll be following this one for ideas/motivation and wish you all the best of luck!

All the best
LM

AnW'sMum

sparklymessygirl wrote: »

I wonder if anyone with an idle spare moment has any thoughts on the following….I apologise in advance for what seems to be a perennial question - saving v paying off the mortgage - but I think I am in a minority because I am on an SVR and cannot benefit from re-mortgaging (no financial advantage in re-mortgaging for the small amount outstanding)

My SVR is 7.75% If I used my overdraft I would get charged at 5.75% - so I’m wondering whether I should regularly use say three quarters of my overdraft by paying a capital sum off my mortgage (keeping one quarter as a buffer). It would seem to be financially beneficial but I would have to look at my level of comfort with being in perpetual overdraft (haven’t been there for 10 years :eek: ). In actual fact the actual figures on this won't make that much difference so perhaps I'm being a bit obsessed about this bit! 2% difference just seems a lot!

I am also still battling with my view on my ISA savings. My SVR is nearly 1.5% higher than the amount I am getting on my ISA savings (6.3%) - all the articles seem to suggest keeping ISA savings protected but I’m wondering if the articles simply assume that your mortgage rate is always (or in recent years has been) lower than available ISA rates? OR is the main point about ISA's the idea of keeping them tax protected for future years - so that I should take a long term view and think about getting a good interest rate on the ISA money over several years?

(I understand that conventional wisdom does state one should have emergency savings so I do have to decide how comfortable I would feel without a safety net for a certain number of months until I build up again - DD does point this out in earlier posts :beer: and barring going completely nuts at work I can't be kicked out of my job very quickly :rotfl: )

Sparkly

On a straight comparison using the overdraft would make it cheaper and therefore quicker for you to repay the mortgage in full. You might be able to increase your overdraft to cover the whole amount outstanding or higher (when we wanted to change our car we organised an overdraft of £10k while the 0% credit card came through, the account was £9964 overdrawn for about a week!!!)

If you don't like the idea of permanently being overdrawn then what about opening a secondary everyday account and then setting up a standing order back to the overdraft account for the amount your mortgage payment would have been plus the overpayment. Have had a quick play around with the figures and if you set up a SO for £250/m starting this month then your final payment in April 2010 would be about £160.

The other bonus from paying the mortgage off with your overdraft now is that the house would be all yours, whilst there is a mortgage outstanding it could be repossessed. If it is paid off then you retain more control over what would happen in the event of a financial castatrophe.

Stoozing on credit cards could further reduce the interest you pay.