Mortgage Free in Three Yrs

buddy4

sparklymessygirl wrote: »

Here it is

http://www.whatsthecost.com/snowball.aspx

Here is the mortgage snowball thingy

http://www.whatsthecost.com/mortgage.aspx

but I like this calculator though (pretend the dollars are £)

http://bankrate.com/brm/amortization-calculator.asp

Sparkly

Thank you! your suggestion :T

meme_3

Mortgage at April 1 was £135,075.
Currently £130,354.

Have fixed rates for next 6 years so can't overpay too much.

Also plan to borrow more to buy holiday home (£125,000) which will inevitably be at a higher rate of interest, therefore saving like mad to reduce the amount we need to borrow. Currently £7,388 saved.

Can we add together actual mortgage on 1 April and the anticipated borrowing as a starting point? That would be £260,075.

Then deduct amount paid off to date and our total savings from this figure? That would be £247,966.

Hope this is not too complicated.

If you are OK with this, our aim is to reduce to £150,000 by April 2010.

If we did not take up the extra borrowing, aim for £30,000.

ptee

Hi guys, I was wondering about when to make my monthly payment on my offset mortgage when it finally completes. Now I've a feeling it doesn't make a difference but thought I'd see if anyone knew any better
So, I get paid on the 23rd of each month, should I make my payment on the 23rd to reduce the mortgage amount immediately or should I keep the payment in my offset savings account until the 22nd and make the payment then? My initial thought was keep hold of the money as long as possible whilst offsetting it but then i thought surely paying it off would have the same effect? Does it really matter when you're paying the mortgage company?
Any thoughts? I'm having a numb brain day! :rolleyes:

Cheers
Pete

Kaz2904

I may be wrong but I would imagine that the only difference between your wages being offset rather than paid off is that you could inadvertantly use your wages and not have a payment there IYSWIM?

BeccaG

This is my first post ever!!

About to move into my house after getting divorced (finally!), have a £109,500 mortgage fixed for 20 years, over a 30 year term.

Plans at the moment are:

1) Have it paid off in full by the end of the 20 year fixed period,
2) Save enough money in the meantime (in addition to overpayments) to be able to afford to buy a field for my horse :rotfl: (long term dream!!!)

Once I get moved in, which should be in the next week or so, going to be selling as much as possible on ebay, and saving money on shopping etc each month - anything saved going straight into mortgage.

Hopefully, will come up with some other money-saving ideas in the meantime too!

Think this board is a fantastic idea - not only do we save money but we prevent the banks from having our hard-earned cash - they get enough as it is that they don't deserve any more!!

Keeping saving everyone!!!

taka

:hello: Hi and welcome BeccaG!

cupid_s

Hi all!
Hope everybody's challenge is going well. I'm happy with our progress despite our ridiculous level of spending this month - which is only set to increase even more next month with yet another wedding to go to and another road bike and accessories to purchase.

We can pay all our savings from the past 2 and a half years off the mortgage tomorrow (well apart from our ISAs which we're keeping for emergencies for the time being)

I'm getting excited now, even though my monthly payments will go up as my rate is going from 5.39% to 6.75% :eek:

I hope I wont be stuck with that rate for too long

Trying_to_be_good

Cupid_s

I'm assuming you're in the process of re-mortgaging?! See if you can do so before the rate jumps to the dreaded Standard Variable Rate, because even a month means your hard-earned cash is paying the bank interest instead of reducing your balance! Or is the 6.75% a new mortgage?

financialbliss

Oops. Got a bit of an issue here...

Even before I'd taken our my current mortgage (2004), I'd wanted to make inroads into it after seeing an IFA and being gob smacked at how little capital would have cleared after the first two years.

So, wanting to clear my 25 year mortgage in about 10 years, I thought, great, lets jump on the MFiT band wagon to spur me along.

Currently paying a car loan (515 - 6 payment remaining), so I knew I'd not make much inroads this year. So, I'm starting big style come January 2008.

So my MFiT goal theory was as follows: Added existing mortgage amount 597 + car loan, ie 1112, rounded up "slightly" to 1,250. My thinking was that if I made a few small overpayments this year and got my Jan 2008 starting balance to 70k, 24 months @ 1,250 (30k) gives a balance of 40k in April 2010.

And just to ensure it's a "challenge", I took a further 5k off, giving my target amount of 35k.

This seemed achievable until I twigged I'd not factored in the interest.

With approximately 280pm interest (but reducing), I've not factored in about 6.0-6.5k of interest - will alter depending on when I make overpayments.

Excel suggests I'll need around 1,459 monthly from Jan 2008 to hit my target of 35k. That's not going to happen - single income - family of four.

However, I'm still up-beat, and because it is a challenge for me, I'm more motivated to try and achieve it.

Excel already suggests my Jan 2008 starting balance will be slightly under 70k, so you never know! Tools, Goal Seek... Like that option.

Thanks for listening,
FB

TheCount

Hi there, your 3 year plan does seem very optimistic. I wouldn't put yourself in the grave trying to pay of the £140k, after all it is a lot of money. Like yourself, I am a contractor and operate through a Ltd company, earning a similar amount to you when working, however the very nature of contracting and the increase in your earnings means that there will be times when you are out of work. You will have done very well if you manage to pay off half of your mortgage, actually have some form of life and pay your CT and Income Tax when they fall due.

I have been through the very same process, however I decided to downscale in property, realise the money, pay off the mortgage and invest in a holiday home in Ireland. My motto is "live lean" and that means not renting additional bedrooms from the bank.

Good luck and don't put yourself and your family under too much pressure.