Mortgage Free in Three Yrs

amazamum

Hi everyone can we join as well please?.
Our mortgage at the moment stands at 42,000(sorry can't find the pound sign),at the beginning of this year we had 12 years left to pay,but I phoned up and increased the mortgage payments by 60 pounds and knocked 2 years off it so it now stands at 9 years and 8 months.
I have 7 years left until my 40th birthday and have every intention of paying it off before then so that I am mortgage free at 40.:T
At the moment my oh and I both work and get paid monthly and the motgage payment is one of our wages so we live off the other one.
We have 2 children so get working tax and child tax credits amounting to about 60 pounds a week,it would be 80 but we are paying back an overpayment(boo).
So our aim is to reduce the term to 4 years in 3 years time(hope that makes sense).
Hopefully in the january of next year I will be in the position of phoning the mortgage co and reducing it by another 2 years and so on every year after.

Can anyone advise me though,is it always best to pay the mort weekly so that the interest is calculated weekly so any overpayments take immediete effect(at the mo it is calculated monthly).

please can we join.
Thanks amazamum and mr amazamum:T

Miss_Penny_Pincher_2

Thanks Dithering Dad - I use a spending diary to try to keep the feeling of guilt strong and my splurges to a minimum! Works 90% of the time, I reckon

TrikerAndBiker I would tell your mortgage company to use your overpayments to take off the capital (used for that rather than taken off the interest anyway ) but tell them you want the overpayments to be used to reduce the term if they will allow it.

The alternative is to use the overpayments to reduce the monthly payments but it is calculated to keep the term the same so isn't what you are looking for in this case

I wanted to extend a special Penny welcome to Cazand Amazamum! Amazamum do you know if your mortgage company calculates interest daily? If it does and will allow you to make weekly payments and you are happy with that then the earlier you pay money off your mortgage the less interest you are paying them

tigtag02

ali007 wrote: »

tigtag are you much under 50k? If there are no penalties why not borrow 50k then pay back what you don't need?

What a clever yet cunning idea and worth it too - we are less than £2k under

Thanks for that ali :beer:

Kaz2904

I've just found a recipe for nettle beer on the river cottage website!
I've just printed out the recipes for next weeks meals. I used this meal plan for the week. https://www.bigbarn.net/food/articles/?articleid=195 my shop for this online was £37.21 and should easily do us for a week. I'm thinking about alcohol now and wondering what to make 12litres of beer in!

Dithering_Dad

Thanks for your nice comment Caz but I'm not sure I'm any different from other Dads, especially where their little girls are concerned.

Welcome amazamum, I've added you to the OP. I agree with Penny, daily interest is the way to go.

Kaz, here is another great use for nettles, though it may be a tad itchy!

Ali, I loved your "kant spel" edit reason on one of your postings, it really cracked me up. :rotfl:

gallygirl

Dithering_Dad wrote: »

Ali, I loved your "kant spel" edit reason on one of your postings, it really cracked me up. :rotfl:

ok so it shood hav bean kannt sppel but know kneed to mok me. Knot my folt I had a pore edukatchion

TallGirl

Great that so many more are up for that - really inspiring to read peoples stories.

Had a chat with DH last night as I showed him our mortgage statement (and Sarah Beeny - my hero - was on Property Ladder). He cannot see how we can do it in 3 years as paying £1000 a month only gives us £36000 and at 6% (if it stays that way) we need to find an extra £6253. I told him we already have £12000 saved so if we used that we would easily do it. I don't think he is convinced but at least with an offset mortgage I can leave the savings where they are and technically we would then be mortgage free if DH does not want to pay it off completely. Ah well 3 years to worry about that still.

Take care everyone I'm off to sunny Devon for a couple of days (work not pleasure).

Dithering_Dad

Hi TG, don't worry about actually paying off the mortgage in 3 years. I'm going to put 20k into my offset (to cover me for non-work periods) before I even start doing proper overpayments to the mortgage capital. I'll probably end up with a 20k mortgage remaining at the end of the 3 year quest, but because I'll have 20k in the offset I won't actually be paying any interest any more and so technically I won't have a mortgage.

Actually does anyone know what the bank will do once you have parity between what you owe on your mortgage and what you have in the offset? I'm assuming that it'll be like a 0% credit card where I just make capital repayments until the balance is paid off?

Kaz2904

I don't know DD. I would assume it's something like that.

Tall girl, I think that if DH can see the mortgage disappearing before his eyes then he may well have a change of heart between now and 36 months time. Hey you have 3 years to convince him it was his idea!

DH was wingeing the other day about having no money to just spend and cursing Martin. I said "don't you want to pay off the mortgage dear? We'll make our last payment on your 36th birthday honey." He said no it's not that I just wish I had more money but it's a good idea. I asked him what he'd do with any extra money and he said he'd spend it on stuff. He then said he'd only regret it as it would get in the way and be clutter. I think someones having a change of heart!

Some of our friends can't understand why we're doing this but neither of us had very stable childhoods so we want stability now for us and the children. It'll make it easier for them when we tell them that they aren't adopted and yes we are their real parents!

cupid_s

My DH used to be bad at managing money. He'd get paid, put aside the money for the mortgage and give everything else to me. Now we don't bother (mainly because I spent some of the money on new lizards after he told me we shouldn't get any more and he was a tad annoyed that I bought them anyway) but he's great with money.

I asked him recently if he wished we had more money and he said 'yes, because then we could pay the mortgage off quicker' :j . He says he has everything else he wants anyway. Which certainly helps when it comes to having an excuse for not spending money