This Time I'm Really Going To Do It

Watty1
Watty1 Posts: 4,668
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edited 2 September 2013 at 1:09PM in Mortgage-free wannabe
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.
Made it to mortgage free but what a muddle that became

In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
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Comments

  • Watty1
    Watty1 Posts: 4,668
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    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 !!!!
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • Calfuray
    Calfuray Posts: 1,003
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    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
    Watty1 Posts: 4,668
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    :j£7083.25 now paid off. Just to call Mr Watty and tell him overpayment made. Hurrah!!!:T
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • Watty1
    Watty1 Posts: 4,668
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    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.......
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • I thought u could o\p as much as you want on the tracker,pay that off first
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
  • Watty1
    Watty1 Posts: 4,668
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    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:
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • id just max out what you CAN do without penalties,save the rest
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
  • Watty1
    Watty1 Posts: 4,668
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    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
    :)
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • 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
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • Watty1
    Watty1 Posts: 4,668
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    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.
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
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