Mortgage Free in Three Yrs

Dithering_Dad

Hi Kaz, thanks for your comments.

I've started on the home extension loan already - all my regular monthly overpayments are now directed at that account. Once I've finally paid off the Interest Only account, I'll start making bulk overpayments there too.

I'm really chuffed at the progress I've made so far, and I'm hoping to have reduced my mortgage by half at the end of the challenge. I think this will be enough to allow me to give up contracting and work in a local job where I'm home with my family every night, yet still allow us to afford any extra school tuition, physio and medical care that our daughter needs. This was the whole point of my 3 year challenge and so I'll be delighted if I manage it .

Trying_to_be_good

Fliipin' 'eck - BoE rate slashed to 3%. Might have to start saving in fixed rate accounts instead of paying off the mortgage as my rate will only be 3.18% from the 1st of next month.

If we can keep up the level of overpayments we've all been making, we'll be making such a big dent in the target (and bank's profits, even thoughthe banks are partly ours as taxpayers now...).

sallyb17

With today's cut and with my +0.28 tracker mortgage, I'm hoping to increase my overpayments even further and tackle that debt so much more quickly now! :j

Bargain_Rzl

Trying_to_be_good wrote: »

Fliipin' 'eck - BoE rate slashed to 3%. Might have to start saving in fixed rate accounts instead of paying off the mortgage as my rate will only be 3.18% from the 1st of next month.

Depends what rates are available on the fixed rate accounts. As long as inflation remains at 5.2% it's going to be very difficult to make savings accounts worthwhile. Till then I'm carrying on bunging it into the mortgage...

Dithering_Dad

I can't see such a low rate lasting many months so it's hard to base a new financial strategy on it. What it does mean is that us MFWers can 'make hay while the sun shines' and leave our mortgages at their original monthly amounts, yet pay even more off each month.

taka

Hmmmmmmm!! Why did I go for a 5 yr fixed rate :doh: I'm stuck at 5.78% till summer 2012. It was a toss up between this and a tracker (which I could have switched to a fixed rate with no extra fees during the 5 yrs). :wall: Crap, crap, crap! Hmmmmm I guess my fill my ISA as its higher than my mortgage interest strategy will have to change too. :rolleyes: On the brighter side this means I might actually make an OP before the end of this challenge :rolleyes: :rotfl: I feel a review of my finances may be in order in the next few weeks!

Mudbath

I've not managed any over payments for October as i've been trying to pay off the interest free credit card. We've got until next April on it but I don't want to get another one (and probably won't be able to anyway) so my overpayments are on the card until that's paid off. It'll be great to get rid of that and then i'll have more money to throw at the mortgage. It'll be interesting to see if we get the 1.5% passed on. Afraid i'm doubtful as I got the 0.5% last month ... we'll see xx

chickadee

I have a One Account and I have just called to check whether or not they intend to pass the rate on to borrowers. They have a recorded message saying that their rates are 'under review'. I guess I shouldn't be holding my breath then.....

sallyb17

Yay!

Yes, C&G are passing on the cut in full :j :j :j This means my monthly interest amount will be approx £300. I'll keep the same monthly repayments though, or may even increase them slightly as my cash ISA will soon be full, and start overpaying by even more.

It will be interesting (no pun intended) to see what happens to the rates on the ISA and other savings accounts, and Premium Bonds.

angelavdavis

Well done DD, just over £2k - how satisfying!

Great to see everyone able to take advantage of the % cut with their overpayments!!!

Well my contract is looking in jeopardy with little else out there and OH's company is threatening mass redundancies, so it looks like the credit crunch is starting to have more impact. So so so glad we have got the outgoings right down now. I was going to start a stocks and shares ISA this month as it seemed a good time to invest a bit, but I think I will hold fire and stockpile some funds a little just in case.

Hope all is well with everyone!