Mortgage Free in Three Yrs

RomysMum

I will work out my mortgage then. But let me just say over the last 3 years I have stopped in in the winter months and the money i saved i paid off my fridge freezer early and i paid for a holiday which is a must have for me. So now I am about to start selling things I don't use and even though I don't think I have had any charges in the last 6 years I will look into it this weekend.

I need as many hints and tips as possible cos even though I am a single mum I get no money from WTC as i don't qualify and none from her dad which was my preference and i am not moaning!. I totally support us and bring home about 2k a month.

Helpful hints please and I will post my mortgage details soon but I kno its approx 63k. House valued at 120k

H
x

minimoocow

Dithering_Dad wrote: »

As I'm clearly suffering from a deep depression due to the football and am now wallowing in misery, I've begun to speculate that perhaps I won't meet my 3yr target. To try and gee myself up I have decided to try drinking from a "half-full" glass and consider what would be a really good achievement regarding my mortgage paying challenge.

I reckon that if I pay off all of my Interest Only portion a good decade early (with no more fears of a shortfall) and pay off the bits on my new extension/kitchen that were not strictly building work related (such as the american style fridge and range cooker, etc) and so shouldn't really have been added to the mortgage . I will be really, really chuffed.

This lead me to wonder what everyone else's "minimum victory" levels were?

DD - you CAN do it! At the end of the day any paid off the mortgage is a good thing but I think we all need to stay focused - setting a "minimum victory" level now might just lead to less of one in a couple of months time and then again . . . if you see what I mean! The reason this challenge is good is because most people think it can't be done and together we are going to show them otherwise! So come on get back on the thread!

MMC

P.S. I'm very confused anyway - a couple of days ago you post you have to look for a new job but that's fine - challenge still on! Then following a game of football the challenge is all but over! MEN! :rolleyes:

ailuro2

I have been playing around with the overpayment calculator-

for an overpayment that only lasts three years,at the beginning of the mortgage, on a £50K mortgage-(although it seems the actual mortgage amount makes very little impact on the amount of savings we make.) It varies according to interest rate paid-so I put in 5,6 and 7% to see what it came up with.


overpayment of £10 per month

5 year mortgage 5% £66.45 6% £81.25 7% £96.61
10year mortgage 5% £187.31 6% £235.04 7% £286.87
15year mortgage 5% £341.07 6% £440.94 7% £554.56
20year mortgage 5% £537.78 6% £717.18 7% £931.27
25year mortgage 5% £789.92 6% £1087.58 7% £1461.50



overpayments of £50 per month

5year mortgage 5% £326.45 6% £398.67 7% £473.49
10year mortgage 5% £913.17 6% £1143.60 7%1393.08
15year mortgage 5% £1655.40 6% £2130.4 7% £2668.51
20year mortgage 5% £2592.25 6% £3431.30 7% £4420.80
25year mortgage 5% £3769.49 6% £5133.37 7% £6803.13

overpayments of £100 per month

5year mortgage 5% £633.32 6% £772.97 7% £917.26
10year mortgage 5%1769.52 6% 2211.17 7% £2687.26 15year mortgage 5% £3189.31 6% £4085.93 7% £5090.82
20year mortgage 5% £4953.48 6% £6505.77 7% £8307.62
25year mortgage 5% £7127.87 6% £9591.40 7% £12,532.65

For those of you who may not be anywhere near the end of your mortgage, and may be thinking there isn't much point in adding little amounts of money towards your mortgage, then have a look at how much you could save just by putting an extra £10 a month away for the first three years of a 25 year mortgage-that's less than one pint of beer a week! - even if you could have an interest rate of 6% for the whole mortgage term you'd save over a thousand pounds-that's a lot more than one pint of beer:D

ailuro2

btw- DD- keep your chin up- we are all here to help each other- look -you have a first and last page thingy for the pages now- that's how big this thread is!!:T
One month down, only thirty five to go- to cheer yourself up, make a dream holiday list- because you will be going to at least one of them in about three and a half years.:D



btw- has anyone added up how much our total overpayments per month are?

shazzany

Hi! Could you add me to the challenge pls?

Currently owe £45,000 and hoping to pay it all off in the 3 yrs thru regular overpayments and any spare cash !

Cheers

greengrass

Hi

Can I be added please, we owe 46000 over 12 years, any tips or hints to reduce term would be appreciated

Dithering_Dad

Hi shazzany, welcome to the team. Hi Greengrass, if you let me know what your 3 yr aim is, I'll add you to the list.

Team: sorry about moping - as you can see the DD avatar has stopped crying and the black armband has gone - a nice premiership and FA cup double will sort me out. Actually I think it's a combination of not having a contract yet (not used to this, but will have to as a contractor), United getting beaten and missing the wife and kids - going home tomorrow night after being away for 12 days).

I'm back in the game! Well, never really left. Lets show those banks who's the boss!

Kaz2904

phil7445 wrote: »

I hope you are not losing most of that saving in phone call costs? Can you check online?

I'm not as green as I am cabbage looking! There aren't any online facilities at the mo. We also only get one statement yearly :mad: !

ailuro2

greengrass wrote: »

Hi

Can I be added please, we owe 46000 over 12 years, any tips or hints to reduce term would be appreciated

any overpayments,even small ones, can drastically reduce the length of your mortgage, thereby saving you money.

We started out with an overpayment amount of £50 a month, found that we could manage it no problem, then went up to £100, got used to that,then up to £150 a month. Because we have done it over about 2 years we really don't notice a difference every month-when we remortgaged we put the money we saved getting rid of the protection insurance into the overpayment fund.Now the £15 a month we saved on our TV package will be the next thing to be added- every little helps:D
We are on a fairly average income/outgoings, but are willing to do little things to become mortgage free in three- for us, it is not about going without things to pay off the mortgage, more looking to add money we no longer spend into the mortgage overpayment fund- will put the savings from our new fuel bills deal in when we are onto the new supplier.
Our overpayment fund is still available to us if we ever need it- all we need to do is phone up and ask. Thankfully so far there has not been an emergency that needed it.:j

After our summer holiday-we are currently saving up our spending money for it- we are going to have a couple of months before Christmas when things are quiet and put our 'savings' into the mortgage as a lump sum.

Our remortgage letsus pay in as much as we like into the overpayment fund- make sure you are not restricted to 10%- but with 48K in mortgage you may prefer to make 10% your target to pay off this year?

Biggest tip of all is to read through these boards and use other peoples good ideas- remortgaging to a better rate,prioritising debts, doing some Old Style home cooking instead of ready meals- buying a few shop's own brands instead of Big brands- it all keeps a bit more money in your wallet/purse instead of giving it to someone else.:D

FrugalNotTight_2

Hello everyone,

I am so up for this you wouldn't believe it!

Please would you add me and advise what information I need to post and what the first and next step is?

Mortgage free in 3 years is an absolute dream of mine. REALLY!!!!!!

FrugalNotTight