The Saving Starts Today

helpful27

I am new to this so I am not sure the forma of these things. But as of the weekend I am determined to pay off our mortgage asap.

My mother in law has very generously given us £8000. We decided to use it to pay off some mortgage. i called to do it but apparently I am not allowed to pay it till April due to the deal we are on. After April we can pay as much as we want.

So we currently owe £43,500.

So the £8000 gift takes us to £35,500, so really doable I think.

We currently overpay about £600 a month (need to find out exactly).

I want to get it pad off in 2 years!!!!

Any advice?
x

lilyp

Hi and welcome :j

Sounds very doable to me. You already seem to be making great progress. There are loads of tips and advice on the board. Good luck :T

kitjos

Sounds like a good plan to me! Very generous of MIL to give you 8k, at least your using it in something worth while than a trip to Vegas .

How long have you left on your term if you didnt OP?

helpful27

We have 11 years left on the 'term'. but I always usually move it when the 'deal' runs out but this time I think I will keep it on just the variable rate so we can overpay.

The mortgage is with Loyd's- but now it has been transfer to TSB apparently when I called for a balance. Anyway I was a bit disappointed to read on the TSB website that they have a variable mortgage rate that differs depending on when you took out the mortgage.

" The Standard Variable Mortgage Rate only applies at the natural end of a fixed-rate, tracker or other special deal period - not if you come off a deal early. If you applied for a mortgage on or after 1 June 2010, different variable rates will apply."

So we got this mortgage deal in April 2012 so it seems we will be on the 'DIFFERENT' variable rate which is 3.99% as opposed to 2.5%. This seems very unfair especially since the mortgage we took out was not even with the TSB! Do you think I would have any luck complaining about it??

chirpchirp

helpful27 wrote: »

We have 11 years left on the 'term'. but I always usually move it when the 'deal' runs out but this time I think I will keep it on just the variable rate so we can overpay.

The mortgage is with Loyd's- but now it has been transfer to TSB apparently when I called for a balance. Anyway I was a bit disappointed to read on the TSB website that they have a variable mortgage rate that differs depending on when you took out the mortgage.

" The Standard Variable Mortgage Rate only applies at the natural end of a fixed-rate, tracker or other special deal period - not if you come off a deal early. If you applied for a mortgage on or after 1 June 2010, different variable rates will apply."

So we got this mortgage deal in April 2012 so it seems we will be on the 'DIFFERENT' variable rate which is 3.99% as opposed to 2.5%. This seems very unfair especially since the mortgage we took out was not even with the TSB! Do you think I would have any luck complaining about it??

You really need to get your contract out and see what interest rate it said you would go to and whether it stated that there were two variable rates.

TSB was part of LLoydsTSB but has split so you would find it difficult to argue the point that you hadn't taken it out with TSB. You may be able to compare the rates Lloyds do with those of TSB and argue from that. Good Luck

kitjos

We missed out on the 2.50% and ended up on the 3.99% because of our buyer stretching out there mortgage application :mad:. Very annoying but different reasons to yours.

I guess it wont hurt to phone them up and complain - see where it gets you. Never know if you don't ask .

Regardless of what they say, your taking the right steps to being MF a whole lot quicker.

lilyp

My mortgage 1 seems to be on similer figures to yours so shall be interested to see how you get on. Very jealous of the ability to op £600 a month. I was aiming for 500 and it all went a bit wrong :rotfl:

Good luck. Sounds like a lovely achievable goal.

helpful27

A bit more background information.

Bought house for £170,000 in April 2010.
Start Mortgage £102,000 with 13 year term (to tie in with husband retiring).
Remortgaged in April 2012 £82,000 with 11 year term.
Current (Nov 2013) - £43,500.
Savings - None
Other Debts - None

As you can see we have been overpaying whenever possible to try and get the balance down. We overpay £600 ish a month and we have put all our savings into paying off the mortgage. We even raided the kids bank accounts to make payments. I know that might sound a bit drastic but it just seemed silly having £5000 sitting in their accounts earning no interest. (we will obviously pay them back once mortgage paid off).

We have take home pay between us off about £3500 per month. Where the hell does all that go?

Outgoings
£1300 on mortgage
Food £400
Gas/Elec/Water/Phones/Ctax/Sky £500
Car £100
Gym £140
School Dinners £80
Contact lenses £16
Kids activities £170 (Football £30, Judo £50, Dancing £15, Tennis £35,
Piano £40)
Hair £70
Childminder £200

So basically we have regular outgoing of £3000 (which includes the over payment) so that should leave about £500. Only we NEVER have £500 or even slightly near it left at the end of the month. My account is always overdrawn by the end of the month and my husband only ever has about £60 left. So this month we are going to have to look at where it is all going?

We go out for meals at the weekend so we could reign that in a bit and we defiantly spend too much on alcohol. We are going to limit drinking to the weekend and cut down then in our bit to mortgage free.
This month my plan is to not buy any clothes. I have also not had my highlights done and thus far only been out once for a meal (which is less than usual).

I reckon with more thought me could payoff an extra £200 a month.

helpful27

Forgot to mention current mortgage rate is 3.64 and looks like it will go up to 3.99 on 1st April.

helpful27

Got my password through the post today for online banking - so I can now see my mortgage balance online. I cant work out if I can alter payments online. But as i know my deal wont let me do that till April (although it says June on the web page?) I wont worry about that yet.

Secret_Saving_Squirrel

I love the typo which says that you defiantly buy too much alcohol! Good luck, you have been doing really well. I identify with the money black hole, we have one too.

Squirrel