This Time I'm Really Going To Do It

Watty1

I've loved this little bit of the forum and over the years have often stopped by for a bit of motivation. And from time to time have even made moves to become mortgage free, making an overpayment here, and thinking about it and even once setting a date (12/12/12) when there was a great thread here about that.

And then poooffff ... I make a start and it all fades away.

A year ago I decided that we would be mortgage free by January 2014 ... and paid off 10% of the mortgage..found that was the maximum we could pay off without penalty and then I sort of gave up. But not totally. I have been saving and over the last few weeks been looking forward to the start of september because .....drumroll....today I can make a repayment without penalty. And so I am currently on hold to the Mortgage company to do just that.

And whilst holding I thought I would also start a diary here to keep me motivated... I mean January 2014 :rotfl:Thats only 4 months away...surely I cant do it by then????

But rather than give up once again I'm going to see just how far I can get by that date and hopefully posting on a nice friendly board will keep the motivation up.

Back later with more figures.

Watty1

Right here goes with the details. We bought this house in July 2005 taking out a mortgage of £210,295. In the last 8 years we have made the odd capital repayment and that with the regular payments means today the mortgage was down to £132995.80 with 17 years still to run.

Half the mortgage is on a fixed rate at 4.89% and half on a tracker currently at base + 1.89 so now at 2.39%.

There are payment penalties for paying over an certain amount each year and I'm wading through the paperwork trying to work out what those penalties might be.

And the great news is ...Mr Watty on board with the idea of overpaying too and wants me to call him at work and tell him when this overpayment made !!!!

Calfuray

Hey Watty

Don't feel disheartened, any progress, even pennies, saves you more money overall. So as we always say, any progress is good.

It sounds like you have a good plan, wishing you the best of luck

And a diary does help motivation

Watty1

:j£7083.25 now paid off. Just to call Mr Watty and tell him overpayment made. Hurrah!!!:T

Watty1

Wait a moment. The fixed part of the mortgage is charging 4.89% interest. The penalty charge is 1%. My cash ISA is paying about 2.25% So surely I am better off just overpaying that part of the mortgage and paying the penalty charge??? Help plse as I've no idea how to work that out.......

black_taxi_2

I thought u could o\p as much as you want on the tracker,pay that off first

Watty1

No black taxi the tracker has a 3% overpayment penalty with only 5% repayments allowed (the other 5% is on the fixed). And the tracker ends in November so it would be daft to get a 3% penalty for 3 months. My maths might be poor but not that poor :rotfl:

black_taxi_2

id just max out what you CAN do without penalties,save the rest

Watty1

Calfuray wrote: »

Hey Watty

Don't feel disheartened, any progress, even pennies, saves you more money overall. So as we always say, any progress is good.

It sounds like you have a good plan, wishing you the best of luck

And a diary does help motivation

Thanks for the Welcome Calfuray

Secret_Saving_Squirrel

I think the very fact that they charge you for overpaying is disgusting. I don't do maths well but do favour paying off if you can, as there is so little to be gained by saving at the moment. Good luck.

Squirrel

Watty1

Thanks Squirrell. That is the way I am leaning with the chunk that has the 1% penalty on it.

Reading the diaries yesterday a brillant concept struck me. That of "Mortgage Neutral" ...I have no idea why that never occured to me before. I had a bit of all or nothing thinking. If i couldnt pay off a chunk of the mortgage then I didnt really think about it. But savings that equal the mortgage ...oh wow that was an amazing concept and one that had never occured to me before :rotfl:

Am going to work on the bank accounts today and see where we can save money.