I really really want to be........mortgage free!

ourcornercottage

A great MSE day today. Free tickets to see our beloved Norwich City (loose) from SkyBet and free drinks from bzzagent to take with us. Total spend for the day under £20. Brought woof o keep us warm £85 but still just under our monthly budget by £15.

ourcornercottage

Totally forgot sold some stuff on eBay, paypal now at 14.12 which can OP mortgage. Added £5 in the holiday fund, withdrew 2.58 from Quidco straight to mortgage and updated my funding circle returns in my signature. Month one and no defaults on funding circle :-)

Cream_Tea

It is a brilliant deal it might be worth looking at what the early repayment fines would be and see if it would be financially worth doing it that way. Maybe set up a savings account for the OPs and once you are at the stage you can pay it off do it and pay the fine. Good luck whichever you choose. I too hope to be mortgage free in 10years if not sooner.
CT

ourcornercottage

Cream_Tea wrote: »

It is a brilliant deal it might be worth looking at what the early repayment fines would be and see if it would be financially worth doing it that way. Maybe set up a savings account for the OPs and once you are at the stage you can pay it off do it and pay the fine. Good luck whichever you choose. I too hope to be mortgage free in 10years if not sooner.
CT

If I went for this I wouldn't be able to afford to OP (unless I had a windfall) and I would be paid off in 10 years anyway. I think fee is 6% for early redemption and 5% overpayment allowed.

It does give you food for thought, knowing that it will be gone in 10 years, but on the other hand if my circumstances change in 10 years I could be screwed.

Anyone got feelings on when they expect rates to go up? With inflation so low can the BOE realistically out them up?

shangaijimmy

Id be surprised if anything went up before the general election. Especially in light of the media hysteria about the NHS and A&E waiting times at the minute. Governments are always very good at reporting figures and percentages in their favour!!

That said i haven't really got a clue!!

ourcornercottage

shangaijimmy wrote: »

Id be surprised if anything went up before the general election. Especially in light of the media hysteria about the NHS and A&E waiting times at the minute. Governments are always very good at reporting figures and percentages in their favour!!

That said i haven't really got a clue!!

I would be suprised this year with the election to see it go up. I think I will review again about September and stay on the tracker til then. I've decided to put in solar panels earlier than expected by getting them in next month rather than wait so my OP's will be limited for the next couple of months

toffeepopcorn-mfw

Wow you're doing so well with the amount you op! I'm a lot more limited in the amount I can op each month due to financial reasons but I'm completely obsessed with the overpayment calculators and these forums!

I'm fixed on 2.99 for 5 years and even if times are harder I would be able to pay (still got the full 35 years left, no way I could afford it if it were only over 10 years!). It is completely swings and roundabouts though.... 10 years is a very long time and as you said, no one knows that the next 10 years hold. If you can afford it I would be tempted to go for it but if slightly stretched then leave it. I love that my mortgage is lower and I have room for overpaying but if things are tight then I can just pay the standard amount.

Sorry to waffle on!

ourcornercottage

toffeepopcorn-mfw wrote: »

Wow you're doing so well with the amount you op! I'm a lot more limited in the amount I can op each month due to financial reasons but I'm completely obsessed with the overpayment calculators and these forums!

I'm fixed on 2.99 for 5 years and even if times are harder I would be able to pay (still got the full 35 years left, no way I could afford it if it were only over 10 years!). It is completely swings and roundabouts though.... 10 years is a very long time and as you said, no one knows that the next 10 years hold. If you can afford it I would be tempted to go for it but if slightly stretched then leave it. I love that my mortgage is lower and I have room for overpaying but if things are tight then I can just pay the standard amount.

Sorry to waffle on!

Hi, any OP's add up, some months I've only done £5 other months hundreds. It all adds up.

It is an option to go for a longer term and OP as much as poss, that's what I'm doing now although they are down to 14 and 19 years on the 2 mortgages. 10 years would stretch me but as things stand now it would be fine but things change and that worries me :-(

Tbh I really just want it gone asap, it seems such a lot of money to owe.

shangaijimmy

Where are you with LTV? You could fix for 2-3 years (first direct with no fees, no overpayment limits or redemption charges, you could get 1.99% for 2 or 2.69% for 3). Kind of gives you the best of both worlds, and if your like us allows you to break it up into smaller chunks.

We've opted for2 year option so we can really go hard for 2 years of overpayments and try to take 15k off the balance, then we'll reevaluate. Smaller blocks doesn't seem so daunting then. Within the 2 years well bang all our overpaymen into a regular saver (4.8% after tax) then make lump sum payments off mortgage when the interest is credited.

We have an initial plan of overpayments but the 1.99% fix allows us for lots of flexibility if we have un forceeable expenses. We do have around 1.5k each year to find extra to regular overpayments and hopefully will make that through under spends on weekly shopping and petrol, feb and mar council tax funds etc...

Overall though like everyone on here were over the moon with every overpayment as it'll always put us in a stronger financial position as time goes on, not to mention the phenomenal interest savings. And if we don't hit our small targets we just reevaluate, but we'll always know that we'll be finished earlier than the 30yrs we signed upto!

Discipline is the order of the day!

ourcornercottage

Regular repayment came out today and the monthly interest so the total amount has dropped under £138000 :-) Next target under £135000. Signature updated.