Mortgage Free in Three Yrs

taka

Thanks TallGirl!:D

To be honest my MFiT challenge is not going too well!:o My mortgage has actually increased :eek: since we started and it looks like the savings I can make this tax year won't even cover the extra £1000 I ended up borrowing :mad: I've joined in the olympic challenge (part two) which starts in a few days in the hope that I can make a bit more money to try to make up the difference! :rotfl:

Taka

TallGirl

Taka don't worry we still have over 2 1/2 years to go so why not do the best you can this year and hope for more next year.
My DH has just counted all our loose change, £102 in total I will put that against the mortgage and hope to pay another £3000ish off when I know how much interest they are charging me this month on the mortgage. That would take it down to £40,000 which I would never have done if it had not been for this challenge. Good luck with the ebaying etc, I made £50 last time I sold 16 items of clothes.

Dithering_Dad

hosebergine wrote: »

Hello Dithering Dad

We've done really well overpaying and now we've decided to extend our house - Doh!! Interested by your separate mortgage for your house extension - why did you do it that way? We have the One Acct Mortgage (doesn't include a current acct) and have the money available to us as a draw down facility so we don't need to arrange further finance but I'd be interested to hear why you had a separate product.

Hi Hosebergine,

Don't worry about extending your house making a dent in your MFW aspirations, in my book increasing your house equity by property development is every bit as financially astute as paying down your mortgage, especially at the moment when the house market is a little flat in most areas.

I only have the one mortgage, but have three different mortgage accounts with my provider (Standard Life). My FTB home cost me £40k and I got an interest only mortgage with an endowment. When I bought my second home, I had to have two mortgage accounts, one for the Interest Only bit and a repayment one to cover the additional mortgage. We then decided to extend and so ended up with the third mortgage account for the money we borrowed for the extension.

It's handy for me because I was able to break down our £150k mortgage into "bitesized" pieces and decided to first pay off the IO loan, then the Extension loan and then finally the original loan for this house.

Cheers,
DD

pariskate

hey,
When we add up how much we have paid off, are we including our regular monthly scheduled payment in that or just 'over payments' .
The ebaying is going well, a little quiet perhaps.
Kate

Superfast_Gran

Been updating my budget and moving funds around all day, and am happy to say that I'll be able to call VW Finance tomorrow and ask for a settlement figure for the new car - have full outstanding balance available and will put non-payable interest towards mortgage!! Ta dah!! Will be on schedule to pay kitchen loan of £6500 before 0% period is up at the beinning of April. Have to call A&L mortgage line tomorrow to reserve new fixed period for end of August, when we'll be able to start overpaying same by minimum £100 per month ABW! OH starts new job on 6 August and have not budgeted his new wages AT ALL, so should also be able to tuck most of that, if not all, into mortgage fund. Looking good - but don't want to get too overconfident, pride before a fall yada yada yada! There are younglings involved after all - 5 if we count my oh so adorable Grandchildren who, for some unknown reason, love their "Gannie" to bits!!!!!!!!!

Redbedhead

Can I join please?

I have been following the thread but didn't join as we are about to buy a new home and then our mortgage will rocket up. I figured though if I join now then I can just change my target when we get the new mortgage.

I have 2 mortgage accounts both of which I can overpay up to £500 per month which I put against the smallest account (new kitchen) to get rid of that first. I am also saving for maternity leave and for our new house, so my spare money goes 3 ways. I am doing ok though and managing about £400 overpayments most months

Balance at 1/4/07
Main mortgage 62529.71
Small mortgage 3196.49

My target is to get rid of the small account completely (by the end of 2007) and reduce the main mortgage to £45000. So total reduction of 20725.

Currently at 02/07/07 I have the following outstanding
Main mortgage 61588.64
Small mortgage 1495.94
Total repaid = 2641.62

TallGirl

hey,
When we add up how much we have paid off, are we including our regular monthly scheduled payment in that or just 'over payments' .
The ebaying is going well, a little quiet perhaps.
Kate

It would be too difficult to just look at the extra payments so do include your regular payments. I think it is just nice to see the balance decrease and then use all the calculators to work out how long I have left to pay.

firesidemaid

i have updated my progress in my sig. for now.

i have paid off what i can this month and now it's up to ebay and any 'lucky money'!

one thing i cannot do, even though i know i should, is put money into higher-rate savings rather than off my mortgage. i know it is silly but i just have to see that balance go down!

angelavdavis

sazzacat wrote: »

i have updated my progress in my sig. for now.

i have paid off what i can this month and now it's up to ebay and any 'lucky money'!

one thing i cannot do, even though i know i should, is put money into higher-rate savings rather than off my mortgage. i know it is silly but i just have to see that balance go down!

I know what you mean, but I have discovered that my fixed rate account sets the interest annually, so I won't see the repayments going down until the annual review in December (when the deal is up anyway). Shame really.

Dithering_Dad

sazzacat wrote: »

one thing i cannot do, even though i know i should, is put money into higher-rate savings rather than off my mortgage. i know it is silly but i just have to see that balance go down!

I wouldn't worry too much about that, by the time you have factored in tax, daily interest compounding on mortgages and the extra incentive of seeing your mortgage go down (which can encourage you to try and find more cash to make overpayments), the difference between mortgage overpayments and high interest accounts are minimal.

angelavdavis wrote: »

I know what you mean, but I have discovered that my fixed rate account sets the interest annually, so I won't see the repayments going down until the annual review in December (when the deal is up anyway). Shame really.

Your bank should still be able to provide details of how much capital you have paid off with your overpayments. Don't be afraid to pester them, I'm almost on first name terms with the call centre staff at Standard Life - remember that if no one calls them, they won't have a job. I had a nice chat with an SL call centre lady that lasted about 10 mins where she was asking about how I liked working in Norway and whether I could recommend tourist sites in the country .