Mortgage Free in Three Yrs

flibbertigibbet_2

Hi everyone,

Here's a question that I'm hoping someone might be able to advise me on (if it's been done before could someone direct me to the right page - I've only just joined and I haven't had time to read them all yet).

My mortgage is part endowment, part repayment. The endowment was supposed to cover 45K but I switched 15K to repayment a few years ago to cover the predicted shortfall. The endowment is still 'failing' and I'm wondering if it would be just as well to switch the whole loan to repayment, cash the endowment and put it towards the pay off. The endowment has another 13 years to run (its 12yrs old now) and I'm wondering if it would be best to cut my losses and use it to help the MFI3 rather than throwing good money after bad. Having read various other thread on this site I have opened our first mini cash ISA's and intend to do so year on year, thus building up a little nest egg that way?

I'm a bit of a numbers dimwit so am I horribly misguided or might it be worth looking into?? Any advice appreciated.

Flibertigibbet

P.S Thanks DD for having me aboard

shazzany

I want to be mortgage free so we can afford to move to a better house (so the new mortgage wouldn't be horrendously high)but my dh fancies staying where we are and having a good/ easy life . Currently figuring out a compromise!

Move_To_Portugal

As today is my day off I've spent the morning researching supermarket sites looking for any good deals/Bogoffs they have. I normally do a monthly menu plan and then adjust it to take into account any good bargains I find. (yellow sticker items).

My aim for September is to spend £200 for the five of us. I've got it down to £180 before but this month I've struggled and I'm not sure why. I've adjusted my price book also as a few items I buy regularly have gone up in price. :mad:

The grocery bill is definitely one area where you can make a good saving in your budget, giving you more money towards overpaying the mortgage.

mtp

~daisy~_2

flibbertigibbet wrote: »

Hi everyone,

Here's a question that I'm hoping someone might be able to advise me on (if it's been done before could someone direct me to the right page - I've only just joined and I haven't had time to read them all yet).

My mortgage is part endowment, part repayment. The endowment was supposed to cover 45K but I switched 15K to repayment a few years ago to cover the predicted shortfall. The endowment is still 'failing' and I'm wondering if it would be just as well to switch the whole loan to repayment, cash the endowment and put it towards the pay off. The endowment has another 13 years to run (its 12yrs old now) and I'm wondering if it would be best to cut my losses and use it to help the MFI3 rather than throwing good money after bad. Having read various other thread on this site I have opened our first mini cash ISA's and intend to do so year on year, thus building up a little nest egg that way?

I'm a bit of a numbers dimwit so am I horribly misguided or might it be worth looking into?? Any advice appreciated.

Flibertigibbet

P.S Thanks DD for having me aboard

really interested in hearing the advice on this one - we were endowment swapped 10k due to shortfall then 18 months ago changed it all to repayment but we have kept our endowments going - kinda thinking well whatever we get will be nice when it comes
is it worth cashing them in early ? we have 2 - 22k and 25k with scottish widows and standard life

this prolly isnt the right thread for my question never mind right forum - sorry

flibbertigibbet_2

~daisy~ wrote: »

really interested in hearing the advice on this one - we were endowment swapped 10k due to shortfall then 18 months ago changed it all to repayment but we have kept our endowments going - kinda thinking well whatever we get will be nice when it comes
is it worth cashing them in early ? we have 2 - 22k and 25k with scottish widows and standard life

this prolly isnt the right thread for my question never mind right forum - sorry

Daisy - yes, I wondered after I posted if it might not be a bit too specific and wouldn't have been better as a new thread. I'll wait and see what response I get and I might start a new one.

Karmacat

flibbertigibbet wrote: »

Daisy - yes, I wondered after I posted if it might not be a bit too specific and wouldn't have been better as a new thread. I'll wait and see what response I get and I might start a new one.

I'm interested in the reply to this one too. Its been on various separate threads in the past, as far as I can tell, but answers have been very thin on the ground. I'll be watching this one with bated breath too.:cool: Not too bated, actually - I have to breathe, after all.:rotfl:

Dithering_Dad

I cashed in my endowment (I did try and sell it but no one wanted to buy ) when I decided to pay off my mortgage ASAP. I was tired of the uncertainty of how much of a shortfall I would have to make up once the endowment matured (it had 14 more years to go) and I was sick of feeling like a mug, throwing good money after bad at an investment that was giving worse returns than I could get from a cash ISA.

After cashing it in, I put all of the money onto the Interest Only portion of my mortgage, and then made repaying the IO mortgage my top priority. After about 5 months along in the MFiT challenge I have paid off just slightly less than half of the IO mortgage and will expect to be rid of the whole thing by about Feb/Mar or next year. This will be 13 years early.

I certainly don't regret cashing it in

Desperate_Housewife_2-2

I cashed mine in a couple of years ago and never looked back. I made money on it so not too bad but I don't think it would have paid out much if I'd kept it till the end. One thing to remember is to take out life cover to replace the life cover you will lose when you get rid of the endowment. I saved by cashing it in and also because life assurance premiums have got cheaper over the years so I was saving £30 per month in insurance payments too, also saved in unpaid interest payments.

plumduff55

Hi everybody, I discovered this site about 18 months ago although I have just registered and started posting this week. I was inspired by the MFW board to try and pay off my mortgage early. I had nearly 9 years left to pay.

I budgeted to live on 40% of my income and set up a direct debit with the Building Society for the remaining 60% so that I was not tempted to overspend.

I picked up lots of tips and hints from the OS board, joined Quidco and Pigsback etc. The emotional support I got by visiting the MFW board EVERY day. Sometimes it was very hard and I would feel quite deprived but then I would spend half an hour reading the MFW threads and know that I was doing the right thing.

I now only have 3 more payments before I become MORTGAGE FREE.


I am so pleased I discovered this site and grateful to all the people who have been such an inspiration to me.

Thanks

~daisy~_2

wow that is amazing !!! huge well done to you - i bet it feels fabulous !!