Paying off the Mortgage earlier.

Brokeattheminute

Changed my mortgage account from my extension mortgage to the existing 1 and increased it to 110.If i keep on paying that amount per month the mortgage will be paid May 2024 instead of Feb 2028.Was paying the other 1 for 4mnths with an overpayment of 95.But by me changing this over i save more money and knock 3yrs 9mnths off it.My extension mortgage will be paid in May 2021.So ill have my mortgage fully paid off before im 50 in Oct 2024.

Brokeattheminute

Sorry i should have introduced myself and gave a bit of background.I am married ,will be 41 in 2wks time and have a boy who's 11 and 2 girls 9 and 5.Last yr we put an ext on the house which gave us 4 bedrooms and a bigger kitchen for 36,000 but we had money saved so borrowed 21,650 from the bank which means I pay 301.34 over 7yrs.My existing mortgage has 12yrs 5 mnths owing 38,500 on it.In June i paid a 95 overpayment on the ext mortgage for 4 mnths but i found that by paying a slightly bigger overpayment on the bigger mortgage itll save me over 3000 rather than less than 1000 on the other one so this morning i rang up and changed it over so am on target to have it fully paid by May 2024.

Brokeattheminute

Got 2 more days o/t there which will help towards paying the mortgage next month.Went grocery shopping which come to 110 which wasnt too bad.Need to put some money away towards car ins and Christmas.

ecoelle

Hi brokeattheminute. Sounds like you are on top of things. We too are trying to pay off our mortgage early. We also need to fully 'redo' the house. Got the money saved for some of the work but the rest has to be saved up gradually and then jobs done as and when we can afford it. Hope that you find having a diary useful, I know I have over the years, I have to say though that using it is really important. I fall out of the habit of filling in a post or two then somehow months go by and we are floundering again so my advice is to stick with it and little and often is best. I'll be subscribing and maybe we can motivate each other.

Brokeattheminute

Thanx for the advice Ecoelle Trying to stay on track.Am looking to get the hall tiled before Christmas which will cost around 200

Luckyinlife

Sounds like a good plan
Best advise would be to save as much as you can when you can enjoy life as well and op when you feel its right for you

set a few targets and go hit them :]

Brokeattheminute

Hi everyone,my wife got some bad news that the store she works in will be closing anytime between Feb 2016 and Christmas 2016.It means that if she cant get another job shes not entitled to unemployment benifit as she only does 16hrs a wk and doesnt earn enouth to pay ni and tax.As she pays for the broadband electric and pays a credit union loan of 150 Per month it means that if she doesnt get a job i will have to pay these bills.The loan was to put a kitchen in last yr when we were doing the extension.At the minute im going to keep on paying the overpayment on the mortgage and see what happens next yr.Her redundency will only give her about 3months pay which will only be about 900.

bexster1975

Hi

Sorry to hear your wife's bad news. The better news is at least she has some time to make plans. That is a wide range of times for the store to close, will there be a more accurate estimate eventually?

It sounds like another job is a must. Can you put the money you were intending to overpay to the side now for an EF? It will leave you with a bit more than a redundancy to play with and she could even consider foregoing the redundancy payment if she could find a suitable job in the meantime. how long does the Liam have to run? Could it be gone preform she loses her job?

Either way, sounds like time to dust off the old CV.

Good luck

Bexster

Brokeattheminute

Thanks for your reply,No the loan was for 7000 which was took out last yr so theres about 5000ish left on it.She has 2000 in the credit union at the minute but she was hoping to use half of that to pay the loan off at the end and keep the rest for a small emergency fund.Shes starting applying for jobs now in the hope that maybe shell find something early next yr.Everythings all up in the air at the minute!

bexster1975

Hi

Shame about the loan. Great news she is applying already, I guess she will just need to avoid the Christmas temp traffic! If you can continue to put some cash aside as EF then if the worst happens next year and she doesn't find something to fill the cash gap right away, she will have a few months put by. The best laid plans and all that. It's a blip, plan for the worst and hope for the best

Bexster

Brokeattheminute

Thanks for your advice and support BEXSTER 1975.Will let you know how things work out.