Mortgage Free in Three Yrs

comping_cat

Dithering_Dad wrote: »

Brad was only going to make a brief appearance for a joke, then I was going to revert back to Harry Boyle from "Wait till your father gets home". Unfortunately, that avatar pic is stored on my PC and while I'm working away I can't get at it.

I'll have to make do with Brad until the weekend.

We dont mind making do with Brad for as long as you like!!:p

mummybear3

I'm looking for some advice please. I know I won't be MFi3 but I would like to have a lot less of a mortgage!
We have a mortgage of around 77,000 over 19 years and after reading posts across the forum have decided that rather than putting cash into savings we would try to put it into bringing down our mortgage term. We're only getting to place where we can actually put anything away so at first it might only be £50- £100 a month, is it still worth it when its only this amount?

Our fixed rate ends next March and my plan is to shop around for a fixed rate but I'm hearing more about offset so my next question is, would this be a better move but when we don't have lots of "spare" cash each month is it better to have a fixed rate and overpay?

TIA

ailuro2

mummybear3 wrote: »

We're only getting to place where we can actually put anything away so at first it might only be £50- £100 a month, is it still worth it when its only this amount?

Yes, this is how we started, £50 a month, then after a while when we didn't notice the extra £50 we upped it to £100, we now overpay £200 every month.

We were lucky to get a tracker mortgage that is flexible so we can overpay as much as we like. Most mortgages only allow 10% per year to be paid off the outstanding balance. This would probably be OK for you at the moment if you're looking at under £1500 a year, say, so you'd go for the better deal on interest rate, then next time round have a mortgage with more flexibility built in.

It does of course depend on the interest rate on your mortgage and whether you've good rates of interest on full up ISAs, sometimes it's better to keep the overpayment fund stashed in an ISA, sometimes not.

You need o have a read through these:-
http://www.moneysavingexpert.com/mortgages/remortgage-guide

http://www.moneysavingexpert.com/mortgages/fixed-discount-mortgage-guide

dawnylou

mummybear3 wrote: »

We're only getting to place where we can actually put anything away so at first it might only be £50- £100 a month, is it still worth it when its only this amount?



TIA

Personally I think so. I think every penny is worth it! Looking at my mortgage deal for example, we pay back around £2.50 for every £1 borrowed! Any overpayments should come straight off the balance making quite a saving straight away.

allyjb

Has anyone any experience of using 0% on cards to offset on mortgage for the 12 month period? Is this worthwhile at all?

Got a clean credit file, with no debt at all other than our mortgage and on reading this thread started me thinking that offsetting 10k or so from a card, may make a difference of c. £650 over the course of a year...better in my pocket than theirs. Assuming £300 transfer fee mind you this nets to £350. Or am I misunderstanding how this would work?

jas65_2

My Wife was diagnosed with Multiple Sclerosis last year, and after looking at the Insurance policy discovered that She was covered:j .We sent all the relevent info off, and after a few weeks of signing papers to say that they could look at Her medical records, and one thing and another. They sent a letter out to us, saying they were not going to pay out because she had been off work with depression,:mad: and that the tick box had been ticked NO, but it was an advisor that had filled the form in, not ourselves, and she told him that she was off work at the time, and what medication She was on, which He wrote on the form, but for some reason He ticked the NO to having time off work box. The money would have paid half the mortgage off. Leaving us £32,000 to repay, as it is I had to sell the car just to keep the House, and now just about keepin the House. We have now been to see a Solicitor, who has taken our case on, so it's fingers crossed at the moment.

Kaz2904

I'm so sorry, let's hope that you manage to get somewhere. I remember reading about something like this a while back and it's becoming really bad.

angelavdavis

Hi Jas65,

Good luck with your claim. My mum used to work in insurance (for a company that was bought out by an American firm) and she said that they refused 90% of the claims on the first try. About 75% then got their claim honoured when they chased, it, but of course a lot of people don't bother - so good luck!

TallGirl

Morning All
Should really be packing for my weekend away as I am leaving in 1 hour but just had to remind you that

Please get your updates to me by the 17th April

There are still 30 who have not sent their updates but it is looking good.

If you have posted in the thread but not sent me a PM I am likely to have missed you so please PM me.

Miss_Pink_3

jas65 wrote: »

My Wife was diagnosed with Multiple Sclerosis last year, and after looking at the Insurance policy discovered that She was covered:j .We sent all the relevent info off, and after a few weeks of signing papers to say that they could look at Her medical records, and one thing and another. They sent a letter out to us, saying they were not going to pay out because she had been off work with depression,:mad: and that the tick box had been ticked NO, but it was an advisor that had filled the form in, not ourselves, and she told him that she was off work at the time, and what medication She was on, which He wrote on the form, but for some reason He ticked the NO to having time off work box. The money would have paid half the mortgage off. Leaving us £32,000 to repay, as it is I had to sell the car just to keep the House, and now just about keepin the House. We have now been to see a Solicitor, who has taken our case on, so it's fingers crossed at the moment.

I know how you feel on this one. My partner hasn't been diagnosed, but has been in hospital with Optic Neuritus, which Im sure you'll know thats connected to MS. That was 5 years ago and we haven't got him officially diagnosed yet until he has a serious relapse. So in this time we're trying to get the mortgage payed off as much as we can and kind off planning for the future etc. Its getting to the stage now though that a couple tiny signs are showing, so I would say in the next year or so he will have to get sorted out. Good luck on your insurance hun. Isn't it a shame when you rely on people who are ment to know what their doing and they get it soooo wrong!!!