my aim to be mortgage free

jennivee

Hi all I've been reading these threads for some time as well and decide I wanted to be mortgage free before I hit the big 50, now 40.
I am a single parent with two girls and my mortgage at highest was £90000 bought in 2008.I have been overpaying for two years now paying £150 per month extra. im on a very high interest rate of 7.24% at present with Halifax which I cant wait to get off in November.
I would greatly appreciate any advice anyone could give, I don't save as I thought overpaying would be better than me saving.
thanks
here,s to my journey in being mortgage free in 10 years !:):)

laptop80

7.24% sounds painful, it will make a massive difference once you can get a better rate.

Overpayments are usually the way to go, especially with an interest rate that high, but I'd always recommend saving for an emergency fund if you haven't already - at least a few months wages if you can. Unless you're on a flexible mortgage you probably can't get back any of the money you've overpaid should something come up, so you need to be fairly sure you won't need it for something else.

Once you're sure you're ok with an emergency fund, any extra cash you have from the reduced interest rate can go straight off your mortgage capital - what you've not had you won't miss.

Other than that, no real advice - sounds like you're doing great as it is.

dimbo61

You really need to look at the LTV and what deals are available NOW if your current deal finishes in November.
Read the paperwork which came with the mortgage or give the Halifax mortgage centre a call with your mortgage account details and ask the question " What does my mortgage revert to at the end of the Fix!"
This is your start point as it may be the SVR or it may be some sort of tracker deal
There are many very good fixed deals out there IF you have the right LTV.

jennivee

I have contacted Halifax and their valuation of the property is very low compared to what houses on my road are actually selling for, I have requested a valuation, according to my calculations my best interest rate would be 2.99-3.5% which I would be happy with. I intend to continue to pay the same amount as if I was still on the 7.24%.:)

jennivee

I have contacted Halifax and their valuation of the property is very low compared to what houses on my road are actually selling for, I have requested a valuation, according to my calculations my best interest rate would be 2.69 - 2.99% which I would be happy with. I intend to continue to pay the same amount as if I was still on the 7.24%.:)

originalmiscellany

I believe that you can get a mortgage in principle for 6 months, e.g. you go and get a better deal set up, all paperwork agreeing to it, then you can hold onto it for 6 months (which would take you well into 2014) where you can then as soon as your mortgage changes back to its rate (check original paperwork) swap to a better deal.

The only thing holding you back is a) your Loan to value and b) your credit rating.

But well done and keep on persevering.