Time to stop procrastinating!

moments_of_sanity

Afternoon All,

I hope you don't mind me joining on this thread.

A little about me, first marriage 1992 - 2005, second marriage 2010 and going strong! . 2 adult children, eldest DD 20 and in second year of Uni and youngest DD 18 just started an apprenticeship both of whom still live at home but eldest DD leaving in August/September

Hubby is the only one working as I had to give up in 2012 due to ill health so for the last few years we have had our mortgage on interest only. When I purchased the house in 2002 with ex I had it on repayment but after 2 family deaths, DH being made redundant and my ill health the only way we could keep the house was to transfer to interest only.

Ex Husbands share bought out which added £30,000 to the balance and as at 1 January 2016 my mortgage balance stood at £94,394.80 and the value of my house is £300,000. Interest rate is 1.84% (according to my account, although I don't really understand mortgages and rates) . My monthly payment of interest is £144.93 and I have now started on my mission to reduce the balance by making as much of an overpayment as I can afford each week.....this gets addictive very quickly!

So, in January I managed an overpayment/capital payment of £360 and in February I am hoping to overpay by £613.72 but have already paid £248.72 in addition to my £144.93 monthly payment! :j

If you have read this far, thank you

Flower1976

Hi there,
Mortgages really are very simple but I work in that area so I would say that!
Basically, with an interest only mortgage, you just pay the interest so anything you pay on top of that will come off the balance.

If you keep your contractural payment at £144.93, as your balance is reducing when you make any additional payments, the amount of interest charged will actually go down so some of that £144.93 will come off the balance too.

Any questions, just ask and I will do my best to answer them.
Good luck with your journey
Flower

moments_of_sanity

Flower1976 wrote: »

Hi there,
Mortgages really are very simple but I work in that area so I would say that!
Basically, with an interest only mortgage, you just pay the interest so anything you pay on top of that will come off the balance.

If you keep your contractural payment at £144.93, as your balance is reducing when you make any additional payments, the amount of interest charged will actually go down so some of that £144.93 will come off the balance too.

Any questions, just ask and I will do my best to answer them.
Good luck with your journey
Flower

Thank you Flower, I am ashamed to admit I have never really taken any interest in my mortgage but that is going to change! :rotfl:

We have until August 2027 to clear the balance otherwise we will have to move which we don't want to do as we love living here. My daily interest charge is £4.73 at the moment and my fixed rate finishes in April 2017.

In order to clear the mortgage by 2027 I would need to pay £755 a month but that is just out of reach for us at the moment so I will try and pay whatever I can off and hope that with a downhill run and a good tail wind I might be able to get back to work in the next 2 years or so

SueP19

Welcome to this wonderful supportive board

Sounds to me like you have had a bit of a rough time (I have too) Taking control is brave but it's the first steps to freedom.

If go onto "what's it cost" you will be able to put in your overpayment and play with future ones to help you have targets and goals

Good luck xx

Kittenkirst

Welcome to the board! :-) x

Flower1976

So that's 11 and a half years - a lot can happen in that time.
Just pay what you can because it will put you in a better position closer to the time

moments_of_sanity

Thank you for the warm welcome.

SueP19, it has been a very rough few years but I feel we have all turned a corner now :j. I am trying to look at my Daughter leaving in August as a 'positive', decrease in food costs, petrol costs, running around to train stations, water, washing etc.......although I'm not sure any of that will outweigh how much I will miss her.

Mortgage balance checked this morning and increased from yesterday by £4.73 but I did make a 'faster' payment of £197.00 which isn't showing yet, hopefully it will appear tomorrow

I resisted the urge to grab Nando's last night, youngest DD finished work at 7pm and wanted take out. I feel mean as she pays us 'keep' each month but I won't buy her takeaways, she has to fund that herself.....can still feel the pangs of guilt this morning! Debating whether to pay the money saved on not buying the takeaway off the mortgage :rotfl:

Moneyfordreams

Hi, looks like you are on a really good deal

Good luck, my youngest is planning to go to Uni in September... as much as she's a grump sometimes I'm sure I'll be heartbroken .... bittersweet... I doubt we'll save much money.. she's a lazy mare as hasn't yet got a job..

moments_of_sanity

Moneyfordreams wrote: »

Hi, looks like you are on a really good deal

Good luck, my youngest is planning to go to Uni in September... as much as she's a grump sometimes I'm sure I'll be heartbroken .... bittersweet... I doubt we'll save much money.. she's a lazy mare as hasn't yet got a job..

My eldest lasted 3 months in halls but by mid January she had come home and she now commutes into London daily. I am sure it will be better for her this time though as her and 3 friends are renting a house together

Youngest DD finished school in June last year and finally got a job in January this year, she too was a lazy mare! (Although in fairness, she knew what she wanted to do and was doing work experience to help her get her dream job) :rotfl:

moments_of_sanity

Muccho excitement here, my mortgage payment for this week has gone through :j

Balance on the 1 January was £94,394.80 and the balance today is £93,696.43 :j :j :j

Hubby is VERY pleased!

shangaijimmy

And with that excited post the addiction begins! Welcome aboard!