Our MFW journey part 1

Lotti1982

We're 4 yrs 7 months into our 35 year mortgage which has a fixed rate until July 2014 of 6.14%.

We currently have £86700 left to pay.

We've started making overpayments of £95 which would mean we will pay off our mortgage in 21 years.

Today we decided we can afford to pay off £195 overpayment per month. This will bring our mortgage down to 16 years :eek: can't believe this has nearly halved the amount of time it will take us.

I'm hoping our interest rate will drop after the fixed rate ends.

Currently, thinking of ways to pay off more.

teabody

Hi,
We have similar amounts/time left. Ouch on the rate though! I am sure you will get a much lower rate in July. Good Luck and hope to see the figure fall quickly for you x

Lotti1982

Thanks teabody, going to ring the bank today to up our monthly overpayment.

littlegreenpeas

Good luck. I was told by a mortgage co last week that you can fix a rate up to 6 months in advance if you pay. But I don't know if this applies to all companies.
Lgp

Lotti1982

Thanks Lgp I'm stuck until our fixed rate ends

Lotti1982

Hoping to do a ppi claim from the mortgage protection so if that's successful that will become an overpayment too, monthly overpayment is now at £220 per month.

Lotti1982

1065.85 overpayment made today! Looking at end of financial year savings etc it seems silly to keep it in a low interest account so now it's earning us 6.14% by coming off our mortgage but in the long run has knocked £6000 ish off or a whole year! Will update signature amount when I've had it confirmed by halifax

teabody

Yayyy on the Overpayment!!!

Lotti1982

Based on what we're paying off etc we should be mortgage free by the time I'm 47 but I'm desperate for 45 because that sounds nicer. I'm 31 at the moment so I'd best get cracking!

Mrs_Rachel_Trelfa

Hey Lotti and welcome. Good luck and 45 dues have w nice ring to it. I know what you mean about saving rates compared to mortgage rates. I look forward to reading your journey.

Muser1

We were on a high rate 6.87 :eek: even with the erp fee we were still better off swapping early.

Good luck on your journey :T:T