Mortgage Free in Three Yrs

TallGirl

Yes seems like we have the usual ding dong going on but nice to hear from DD again.
:hello:

I don't have an ISA never have had one and don't intent to get one until my mortage is paid off. My mortgage is offset and as it is only £24k now I would rather pay it off and then start ISA's for the long term. DH and I both pay extra into our pension and I have a frozen final salary pension too. Yes we could possible get a higher rate if we take out ISA's but I don't think I am diciplined enough you keep chasing better rates when they drop and I know DH would not do it. He hates paperwork and hassle that is why the offset works so well for us.

I have just completed the paperwork for our endownment misselling. I went with a no win no fee company so we shall wait and see. I was cashed in in 2002 and it was a unit linked one so I don't hold out much hope.

Dithering_Dad

BACKFRMTHEEDGE wrote: »

...it's all abit of a luxury though....you guys should pop onto the debt free board...these are luxury problems:o

Hi BFTE, as Ali rightly said in her post, many of us on MFW are graduates of the DFW board and after paying of our CC and loans we have decided to continue and get rid of our mill-stone mortgage debt.

I joined MSE in Feb last year with 12k of debt and would probably be residing on the DFW board still if I hadn't started my own company and been lucky enough to make a decent profit in the first year and pay off all my debt and 25% of my mortgage to boot.

While it may seem a luxury to be able to discuss what to do with our spare cash, it's taken a lot of hard work for us to get here! All we are doing now is making sure what spare cash we do have is put to best use in paying off our last debt (mortgage). So not really much different from what we did when we were DFWers .

Whether people decide to use ISAs, offsets or direct mortgage overpayments it doesn't matter so long as they reach their goal of being mortgage free ASAP!

Dithering_Dad

TallGirl wrote: »

Yes seems like we have the usual ding dong going on but nice to hear from DD again.
:hello:

I don't have an ISA never have had one and don't intent to get one until my mortage is paid off. My mortgage is offset and as it is only £24k now I would rather pay it off and then start ISA's for the long term. DH and I both pay extra into our pension and I have a frozen final salary pension too. Yes we could possible get a higher rate if we take out ISA's but I don't think I am diciplined enough you keep chasing better rates when they drop and I know DH would not do it. He hates paperwork and hassle that is why the offset works so well for us.

Thanks TG - it's nice to be back!

I dipped my toe in the ISA camp and got a bit singed. I'm not sure that in the current climate of uncertain markets and credit crunches that S&S ISAs are the way to go, certainly not if they are going to be used to pay off a mortgage within the next 3/5 years.

Cash ISAs may beat the mortgage rates but we're only talking a few pounds per year, so I'd rather have the "feel good" benefit of seeing my mortgage reduce than make a few extra quid in savings.

Naturally, once the mortgage has gone I will be blitzing my ISAs, National Saving Certificates and Pension (for both me & Mrs Dither).

tattycath

It's an easy decision for me and my OH-our mortgage interest rate is definitely higher than the isa interest rates-so we will just carry on concentrating on paying the mortgage off!!!

firesidemaid

i can never believe the arguements and tit-for-tat that goes on on any of the forum boards:rolleyes:

i also spend a lot of time on the DFW board both to try and help others like i have been helped and for support for my own debts.

the things is all my debts are at lower rates than my mortgage, so actually the snowball calculator says that i should throw all my spare cash at the mortgage first.

i also believe that the same principles apply to paying off any debt, whatever it is and however it has been accumulated - spend less and earn more, even if it's just quidco/surveys etc.

Dithering_Dad

firesidemaid wrote: »

i also believe that the same principles apply to paying off any debt, whatever it is and however it has been accumulated - spend less and earn more, even if it's just quidco/surveys etc.

I agree, though a lot of people don't count mortgages toward their debts. While it may be the case that a mortgage is "the cheapest debt you can get", it's still a debt and with the advent of the Credit Crisis perhaps more people will be looking to ditch their mortgages ASAP.

I know that I'm going to carry on with my MFW plans!

ailuro2

My mortgage is the only debt that I have.

The 'luxury' of not having other debts is because I have been working hard for the past 21 years since I was 16years old, and managing not to spend outwith my means even when it was very tempting.

Yes,I know I'm lucky to have remained in employment , but I'm sensible too not to have bought into culture of having the latest flat TVs when everyone and their brother has one, or the newest car either. I only have a PAYG phone that I hardly use too. It's like a small brick,but it does the job!:p

I earn less than the average wage, and am proud of dealing with what is my only debt the best way I see possible.

For the people who would persuade us otherwise- I suggest you go advise folk on a different board where your advice will be heeded. Us simple MFi3 folk will carry on doing what we decided to do last April- paying off our mortgage ASAP!:D

Little_Mama

OH and I have our Cash ISAs as our emergency funds but every year we take off the interest earned and put it towards the mortgage. I then feel I'm achieving my "pay off the mortgage as soon as poss" goal as well as having the most tax efficient liquid savings.....then again....if we only had an offset mortgage.....I doubt if I'd be looking out for a Cash ISA then.

Keep up the good work, whatever approach you decide to take

Dithering_Dad

Some offset accounts let you offset Cash ISAs against your mortgage. This means that your ISA interest offsets the mortgage interest, making your regular monthly payments go that much further. The real advantage though is that once your mortgage is paid off you also have also made full use of your ISA allowances.

Once my current mortgage deal is up I'm really thinking of moving to a provider who does this (I'm fast reaching the conclusion that I WONT have paid off my mortgage in the 3 year challenge period )

esthomizzy

Blimey I'm busy for a few days and come back and the place has turned into a warzone again. Anyway today is the 8th and the 8th is the day I ring up and get the latest figure from my mortgage company (but since it's Saturday I'll have to wait until Monday). After payday it's my favourite day. How very sad is that