Mortgage Free in Three Yrs

groatie_queen

Hello Mortgage-free in Three-ers!!

Long time no post, I've had a sick computer for nearly 2 weeks - had acute MSE withdrawal symptoms - problem sorted and collected the beast this afternoon - first stop MSE and particularly here, to see how you're all getting on. I haven't read the thread yet, just wanted to say hello first.

Glad to see wisewoman has joined the cheerleader team! I'm off to read everything I've missed - in the meantime, guys....

:j 2,4,6,8 - well done with your payback rates:j

:j 4,6,8,10 - Mortgage free in 2010:j

GQ:T :T

Battleaxe_3

Please add me to the challenge. I am hoping the reduce the time left on my mortgage by an extra month every 2 months. So my mortgage is currently set to be clear in June 2030, by July I want it to be May 2030 etc. The figures are too scary so I thought it would be better for me to take this approach.

I think that I will have to pay an extra £100 per month to achieve this so I'll have to see how it goes!

This is a fantastic forum and I wish everyone good luck!

B
x

save-a-lot

ailuro2 wrote: »

Save-a-lot- I'd suggest you put your figures into an overpayment calculator and work out how much the total interest saved is for your own mortgage length and rate.

As I sais in the post above the knock-on effect of overpaying means you don't just save the mortgage rate in interest, you save by getting rid of more capital amount too.;)

Try it and see- it is particularly good when done at the start of a mortgage compared to halfway through.

Thanks alot for the advice, the calculator you suggested is a good guide - that has really helped me to change my approach to this, drawing down the capital as quickly as possible is now part of my plan too.

tigtag02

Battleaxe wrote: »

Please add me to the challenge. I am hoping the reduce the time left on my mortgage by an extra month every 2 months. So my mortgage is currently set to be clear in June 2030, by July I want it to be May 2030 etc. The figures are too scary so I thought it would be better for me to take this approach.

I think that I will have to pay an extra £100 per month to achieve this so I'll have to see how it goes!

This is a fantastic forum and I wish everyone good luck!

B
x

Battleaxe - I like this way of looking at things and your idea is pretty much like ours - we are set to be free by Apr 2030 but can knock about 10 years (will have to double check) off that by and extra £100 per month!!

Good Luck
tigtag

EDIT:- Having checked on the calc the £100pcm will leave us MF in Apr 2021 :eek:

pfpf

99. pfpf - Hurry Up and decide pf - the challenge will be over before you tell me what your challenge is!!

haha, sorry m8...my challenge is to pay off all my mortgage asap. i am currently owe about £68500 over 19years ish.

my target is 5 years, but i dont think thats realistic.

Miss Penny Pincher did me some sums, and had me down to £33k in 5 years time with my current plan......how much more into the £33k i can get i dont know as yet.

thank you.

dang

"I'm trying to set up a deposit account with them to hold my corporation tax at a higher rate and they're taking ages for the same reason."

Why dont you hold it in your offset account until its due?

pinky8

save-a-lot wrote: »

In your post you mention savings. So you are saving rather than overpaying. I am doing this aswell, the reasoning I have is that my mortgage rate is 4.67% and I can earn 5.8% saving into an ISA. So, it makes little sense to overpay in my case as I can earn over 1%+ extra by saving my money. This offsets the mortgage essentially.

Question is; are you saving into an account that has a higher rate than what your mortgage rate is?

also, what is your mortgage rate and what rate are you saving at??

Thanks for your reply

I am actually planning to overpaying rather than save as once I overpay I can't touch the money whereas if I save then I can

The £800 that is currently in my savings is not just from one month it is just the money that I had remaining in my current account from the months before I started the 3 year plan iyswim?

I will keep some savings for emergencies.

My mortgage rates are:

£85000 (remaining) @ 5.19% fixed for another 7 + years = £536.14 (Repayment).

£53200 @ 5.44% fixed for 10 years = £240.50 (Interest only)

I definitely want to overpay rather than save but, which should I overpay?

Thanks again

pinky8 xxx

Miss_Penny_Pincher_2

Hi Battleaxe - I'm chuffed that you've joined in the MFiT challenge
From tigtag sums sounds like you will both knock around 10 years off your mortgage by overpaying £100 a month - 10 years of freedom from the mortgage millstone

pinky8 - on both mortgage rates can you make overpayments without penalties? If you are then I would think that it would be best to make the overpayments on the interest only mortgage as this is charging you a higher interest rate.

pinky8

pinky8 - on both mortgage rates can you make overpayments without penalties? If you are then I would think that it would be best to make the overpayments on the interest only mortgage as this is charging you a higher interest rate.[/QUOTE]

Thanks Miss Penny Pincher

I can make overpayments of £499 per month for each mortgage. My over payments are going to be a lot less. I thought interest only would be the best mortgage to overpay Thanks again for the advice

pinky xxx

Angeldelight_4

Hi,

I'm new here but already addicted. Can I play?

I've got a small mortgage and had I been much more savvy in my youth I could've (and should've) cleared it long ago.

My mortgage balance is £25k and as I'm new to all this moneysaving stuff (and admittedly not very good at it) I'm going to aim to pay off £12500 in 3 years. I've also got a secret credit card I need to get shot of so might not be able to do it but will give it a go.