Mortgage Free in Three Yrs

Dithering_Dad

We have a precedent for that, MFiT Member 15, alias "hypno6" is doing the same as yourself, aiming to pay off debts and then make a start on the mortgage. As long as you plan to tackle the mortgage at some point in the next three years you'd meet the stringent membership criteria

phil7445

I do! I definitely want to "chill" in my late 40s with work so with no mortgage that would be possible. Shall I wait till I am at home to get my figures to post before I become a member? Although it may all change as I plan to move up, borrow more money, but get a lodger and their rent would enable me to shorten the mortgage! Us singles, although we don't have kids which consume a lot of the parents money, we don't have a second income from a partner!! :-)

Dithering_Dad

phil7445 wrote: »

I do! I definitely want to "chill" in my late 40s with work so with no mortgage that would be possible. Shall I wait till I am at home to get my figures to post before I become a member? Although it may all change as I plan to move up, borrow more money, but get a lodger and their rent would enable me to shorten the mortgage! Us singles, although we don't have kids which consume a lot of the parents money, we don't have a second income from a partner!! :-)

Sure thing, have a look at what you can realistically save over the course of the three years, remember it's supposed to be challenging, but not so harsh that it affects your current standard of living. Let me know what the challenge is after the weekend, we'll still be here - for another 35 months

And then I think we should have a big party to celebrate!! How sweet would that be?

DD thoughts to self: Lovely, another bloke member. That should help with the male and female balance. There's so much oestrogen in our team that it's having a knock on effect on my manliness. I've started crying at movies, buying shoes before my last ones have even worn out and using words like "lovely" and "sweet"!! It has to stop!

minimoocow

Dithering_Dad wrote: »

And then I think we should have a big party to celebrate!! How sweet would that be?

That's a great idea - if we all succeed with the challenge just think how big the party could be when we don't have any mortgages to pay! That's going to be one huge hangover!

MMC

Bargain_Rzl

Hi - new challenge member jumping on board :wave:

Not sure how to put my targets in the context of a 3 year period, but here's a summary of my circumstances:

Property: 40% of a shared ownership flat
Outstanding mortgage: Currently 24 yrs 7 months and about £51,225
Current monthly payment: £298.92
Current level of overpayments: Nil - interest rate is out-performed by savings
Level of savings in Nov 06 when mortgage began: £2,000
Level of savings now: approx £3,500
Adding to savings: Currently £100 regularly per month. From July payday I should be able to increase this to about £170 (due to annual cost of living payrise - I've already absorbed this year's cost of living increases - plus a slight decrease in travel costs) and I am hoping to be able to "harvest" an additional £1,000-£1,500 into my savings at the end of the calendar year due to underspending in various areas.

Targets:
- to have £10,000 in cash savings by end of fixed rate in November 08
- to reduce mortgage using probably £6-7,000 of this and pay upfront for arrangement fee on next fix
- to make a decision within the next 5 years about whether to extend my mortgage to buy the rest of my flat.

I'm also currently considering making an overpayment right now, just for reasons of morale - I'm currently not even paying off the capital, as I'm still working my way through the arrangement fee :rolleyes:

I'll be back soon with a progress report

chickadee

Hello Bargain Rzl, :hello: (and everyone else of course)

Good to have you on board here, as well as on the OS board. Knowing how organised and disciplined you are, I'm sure you'll have that mortgage licked pretty quickly. It does seem unfair that you have to fork out a huge chunk of 'arrangement fee' every time you choose to buy a bit more of your flat though. Mind you, I can't imagine what it must be like trying to buy property in London. Some of the mortgage figures on this thread (I think leafy suburbs were mentioned) make my toes curl.

As far as my figures go, I have splashed out recently on some home improvements and furniture, some of which are yet to reach my bank (travelling a circuitous route via a cashback credit card). As I have a One Account it will temporarily increase my outstanding balance but I can justify it.

1. It is about 12 years since I have decorated my lounge.
2. The sofa I have just replaced was third-hand.
3. I shopped around for the carpet, eventually saving about £150 on the first quote.
4. It was planned to do it this year.
5. It looks FAB!

I didn't splash out on a plasma tv. My Sony Trinitron is still going strong.

I intend to get some serious ebaying done soon and bank that all as additional income to be set off against the outstanding balance and am trying to change my mindset so that if I get a bit of fortuitous income, I don't think 'Oh I can have that new top/CD/makeup/shoes now. Just joining this thread has helped me this week. I have planned meals and brought lunch to work, which had fallen by the wayside.

Lets keep our motivation strong and have an amazing blow out when we prove to ourselves what we can achieve. :beer:

chickadee
x

Bargain_Rzl

Chick - thanks for the welcome

The arrangement fee I referred to was purely in relation to fixed rates on the mortgage. However there would be additional costs were I to buy more chunks of my flat - valuations and legals, etc.

To be honest, although (as you say) London property prices are enough to make you give up and leave the country, I do have a very good deal in comparison with the rest of the market. The £299 mortgage + £218 rent + £78 service charge (£595 per month in total) works out cheaper than the £700+ per month which I'd have been looking at if I'd wanted to either rent or buy in London. To buy something suitable, in fact, it would have been more like £800 per month including the service charge :eek: so I think I've got a good deal.

(Oh, and that's not in leafy suburbs either )

ailuro2

Dithering Dad- how did you work out how much interest you're saving a month?

We have 11500 in the overpayment fund, with a total mortgage of 38000, on a 15 years mortgage,so how do I work it out?

Thanks in advance.:D

wisewoman

Hi Questees!
Have spent the last two days trying to find my avatar...asked my darling daughter who's supposed to be the whizz-kid graphic designer "Please help me with this atavar thing"
"Mum, it's an a-v-a-t-a-r". Half a stressful hour later she left in a huff, and you can see the final result, on the left. May I still post without one, DD?
And while I've been wrestling with technology, look at all the new Questees!!! I've counted 12...AnW'sMum, what does that add up to now? Are we over £2.5 million?
Welcome to you all...ra-ra-ra.
DD, I'm sensing that self-doubt is creeping in, but your such an inspiration to so many, and look at all the great work you've done so far. It's a little hic-cough, and you'll come storming back with a new rush of enthusiasm...can anyone recall The Giant Despair in Pilgrim's Progress...well, altogether we can see him off. Altogether now...Shooo-ooooo...ooooo!

save-a-lot

ailuro2 wrote: »

Dithering Dad- how did you work out how much interest you're saving a month?

We have 11500 in the overpayment fund, with a total mortgage of 38000, on a 15 years mortgage,so how do I work it out?

Thanks in advance.:D

Hi

This is ok - http://www.quote-engine.com/mortgage-overpayment-calculator.html if you are thinking of paying off in 3 years. This calc does not account for altering rates, i.e. if you are on a deal at the moment which will end - it cannot deal with that etc... I do not know of any calculators that allow for changing rates through the mortgage term - does anyone??? Anyway the calc in my case states that in order to pay mine off in 3 years I would need to add another £1700/month as an overpayment on top of my current £505 :eek: on £74000 mortgage.