Mortgage Free in Three Yrs

ailuro2

Kaz- your stepfather sound slike a piece of work- I feel sorry for your Mum now!

You could save the money up and give him it back when he asks for it - if it's an inheritance from your Grandfather then it's perfectly acceptable for you Mum to hand money on to help his grandchildren. It's also useful to dispose of money regularly to avoid steep inheritance tax. (death and taxes being the two things guaranteed inevitable for everyone:p)

If they need the money, then it's a different matter. Perhaps it would have been easier in the first place if your Mum and stepdad had told you both it was a loan.

Good Luck in your quest!

Trying_to_be_good

Before I started this challenge I thought I was quite well sorted out financially, with the plan being 'I'll get there eventually, in about 8 years'. However, this has made me rethink the priorities, and establish what I think is right for me, not anyone else. So I'm going back on previous years of diversification.

• As I said a couple of days ago, AXA Sunlife have agreed to refund all premiums plus interest on a small endowment, approx £3,500.
• I've made the decision to cash in my main endownment (unit-linked, so not possibke to sell it on) which is worth slightly more than the contributions that have gone into it cheque will be approx £23,500. I will lose the life assurance with the endowment, but that's cheap to replace now.
• I still have my technology equity ISA but am not paying any more into it. Units are now up at over £1 again, so I don't feel forced to sell it and hope it will recover to what I paid into it.

So I'll start this second year with some major lump sums to pay off, but Woolwich want to charge me £50 admin fee to convert the interest only bit of the mortgage to repayment. As I can make unlimited overpayment, I don't see the point in paying for this as I can keep it how it is, unless I'm missing something?
I still won't pay off in three years, but I'll smash my target for MFiT! :j

Keep going and sharing your news, everyone. I find it so inspiring!

dawnylou

angelavdavis wrote: »

Well, you have been making straight payments, so it must be going down to a degree.....

I certainly hope so!!
Other half phoned to change direct debit date and also get balance but he was thrown when he was advised can't change date of direct debits and then forgot to ask about balance!!!
I am so sorry everyone
He will have to phone again next Friday! I will definately get balance and post it and PM TG same day!

As for not being able to change direct debit dates! How crap is that?!?!
We can cancel the direct debit and instead pay by debit card by phoning every month instead for a £25 annual charge - but there is no way I could do that as I am bound to miss payments!!
So now we have no choice but to pay £25 every month for going overdrawn? That can't be right?
That's certainly put a downer on things because if I actually had £25 spare every month I could pay it off the mortgage!!! :mad:

Desperate_Housewife_2-2

Hi everyone, just catching up on ypur posts, my bank statement hasn't come yet so i can post updates yet, hopefully Monday.

Dawnylou, have you tried contacting the company where the direct debit is? They may be able to change the date for you. I think its just standing orders you can change yourself.

Hi to everyone and I'll post v. soon

Trying_to_be_good

dawnylou wrote: »

As for not being able to change direct debit dates! How crap is that?!?!

Dawnylou - I was told this by Woolwich/Barclays, but was able to set up a Standing Order (and cancel the Direct Debit) on a date of my choosing (granted this was earlier than the proposed Direct Debit date, but presumably you'd have incurred less interest on an earlier date in the month, so the payment might be less that first month?) - for me the 1st of the month rather than the 16th.

Might be worth a try?

dawnylou

Yes Desperate Housewife. That was who advised us we couldn't do it.

Trying to be good - What is the difference between standing order and direct debit?? Sorry to be dumb.
I only want to change it from the 1st to the 3rd. And the strange thing is last month it went on the 3rd of the month!
I changed so our money was available on the 01st of the month (rather than the 03rd) so it would be there a couple of days earlier and then this month N Rock took mortgage on 1st so still went overdrawn!

Trying_to_be_good

Dawnylou

A Standing Order means YOU control what goes out when (I like to overpay, so even though my tracker rate drops, I keep my Standing Order at the same higher payment). SOs are paid on the date you set, whether they're weekdays, weekends or Bank Holidays (I think).

A Direct Debit means THEY are in control - they choose when and how much (within the Direct Debit guarantee rules). DDs are taken on the date set or the next working day, i.e. not weekends or bank holidays - probably why one went on 3 Mar (Monday) rather than 1 Mar (Saturday).

So, in theory, you can replace a DD with an SO but you need to make sure the SO is always equal to or greater than what the DD would be, so you don't fall into arrears. Much easier in this era of falling interest rates, rather than rising ones.

jobbingmusician

OK, confession time, my mortgage balance is going to go UP

Some !!!!!! wrote off my car while parked. I am going to have to borrow some money to buy a new one, and the mortgage is by far the cheapest way to borrow this money. Don't worry, once I start the new job (for which I STILL haven't got a start date :mad:) I will be able to overpay by £1k a month again.

Yes, I do need a car for this new job. I a also hoping that the reimbursement for miles driven will be helpful in extra payments

So balance atm = £24k. I am hoping for some supportive comments as I feel carp about diminishing the overall pot of money repaid! :eek:

Trying_to_be_good

Jobbingmusician

Think about all the good you've done so far - and that's what's enabling you to sort out this 'glitch'. I was gutted when I needed to pay £2,500 for a replacement boiler the week before Christmas, but have nearly managed to replace the savings so have an emergency fund again. You'll get back there - but will be enjoying a new job!

firesidemaid

i like DDs idea about a party at the end of april 2010. could also be a great advert for mse - i can feel a photo opportunity coming on for us all.....;)