Mortgage Free in Three Yrs

Galster

Hi all,

Have been following the Mortgage 3 in 3 for a few months now and have been inspired by peoples enthusiasm and dedication- am I too late to join up now ? I had 120k outstanding in June when I cashed in an endowment from my previous property and put the 12k of the 16k I got into my current repayment mortgage (I am only allowed 10% overpayment on my current deal). I then in July, when the new mortgage year began, overpayed another 10.8k (the remainder of the endowment plus some savings I had) reducing my balance to about 97k. For the past 6 months I have set a target to save 1k into my savings account, which I have met each month with an average of 1.2k. When my next overpayment is allowed I intend moving into a more flexible arrangement even if the interest is slightly higher than my current discounted deal, and all things being well, hope to splash in about 15k - and then on to keep up the 1k target per month, which I hope will get me free in about 3 years! One question I have for you experts, is it better to have your monthly payment reduced (as I get now) or have the term reduced ?
Cheers, Galster

Trying_to_be_good

I've made a spreadsheet (I'm a nerd) of all the houses I've owned, the purchase price and initial mortgage, plus the sale price. It shows how house prices have rocketed and how lucky I was to buy in 1998, when I was just 24 (eek!) before prices went so mad.

It also calculates the mortgage as a percentage of the purchase price - the highest has been 90%, now down to under 50%. But the comparison with salary has been over 4.5 times salary at its worst! At least those days are gone, but I long for those mortgage-free days.

Trying_to_be_good

Galster

On your question re reducing monthly payment versus reducing term - if you're confident you'll be able to maintain payments at your current rate, I'd always go for reducing the term. If you think your ability to keep up at least minimum payments is not ongoing, go for reducing payments. As we're trying to be mortgage-free as soon as possible, we're into reducing the term above all else.

Hope this helps! I've had two glasses of Bucks Fizz, so it's all a bit free and easy tonight!

Galster

Thanks mate. I don't think I can do much until I get out of my current deal but I'll look to change it next year and go for term reduction..have a good night on the fizz!:beer:

tattycath

Galster wrote: »

Hi all,

One question I have for you experts, is it better to have your monthly payment reduced (as I get now) or have the term reduced ?
Cheers, Galster

Not that I am an expert, however, my opinion is that it is better to reduce the term than the monthly payments-that's what we (OH & myself) are trying to do anyway. OH took mortgage out in june over a 20 year term and we hope to drastically reduce it - somehow!!!

MUSTBEFUNNY_2

Who are you calling an amateur DD:eek:

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Dithering_Dad

Welcome TheBees, Miss_Pink (again, lol), Galster and tattycath. Welcome the MFi3 thread and good luck with reducing your mortgages

I'm having problems posting when I am at work - my client has changed their firewall so I can log on and read the forum but can't actually post myself (or edit existing posts, edit my signature or send PM's). It's most frustrating!!!

Kaz2904

After my little panic the other day about not having bought DS a birthday present, I asked DH what we bought DD. He said "no Bleeping idea. you said it was the trampoline...." -I'd forgotten about that. So we don't need to get him a birthday or Christmas present.
He's asked Santa for a sonic screwdriver (which I got in John Lewis with pigsback vouchers!) and he wants a ben10 watch (JL again!).
My dilemma is this. He wants his SS from santa but DD has asked for a baby Annabell- £35. We're all having the wii so won't be spending that amount on her so my judgement says that DS shouldn't have his in his stocking.
MiL asked me to get DS's rc dragonfly which was half price but I couldn't get it. I think I ought to give her the Sonic screwdriver and the ben10 watch and the change and not let her buy anything else for him.

I sound really mean but I know I'm going to end up with a house full of carp that gets broken and slung by January. It's such a waste when there are people who can't afford to eat at Christmas.

inkie

I

sound really mean but I know I'm going to end up with a house full of carp that gets broken and slung by January. It's such a waste when there are people who can't afford to eat at Christmas.

Kaz you don't sound mean at all - but sensible. Who says Christmas is all about spending ££££££s more than we want to?!

Trying_to_be_good

Kaz

Inkie is right - I ended up ebaying some of last year's presents that weren't really played with after Boxing Day (not the broken ones - they're still in a box upstairs!) to help pay for some of this year's presents, and have been "much more sensible" about what's been bought. It's about having fun with the family, and as you're splashing out on a wii, it sounds like you've already thought this one out for a successful solution!

I'm knew to the 'family Christmas' thing as my partner (of just over a year) has four children and I don't have any of my own, but it sounds to me like you're doing exactly the right thing.