Planned attack: Less Than 10

FunLovinCriminal

Mortgage balance of £77000
10 years left.
7 years till I am 50.
Eek
Those are the facts
Would love to be mortgage free by 50.... or sooner
Current deal 4yrs left of a 5yr fixed at 2.18%

Any hint, tips or cash would be greatfully received...

FLC

Lomcevak

Overpayments of £250 a month would get you there.

Only you know if that amount is practical, but if it is then my approach is to set up a monthly standing order and let it run in the background. After a few months you virtually forget that it's there.

edit: general disclaimer though, getting rid of the mortgage is part of broader financial planning, and in many cases you might be better off putting that £250/month in a pension. Certainly don't OP until you have paid of debt (if relevant) and built up suitable emergency funds - one downside of mortgage overpayments is that (short of remortgaging etc.) you can't usually get the money back if you need it later.

greent

Are your yearly OPs limited? (eg to 10% of balance) - take that into account when making payments What can you pay afford to pay extra per month? Don't forget extra monies from ebay, ziffit, cashback etc are all good sources of irregular extra OPs too

FunLovinCriminal

Limited to 10% OP
£250 Seems a lot - but if it was easy, everyone would be doing it.
Thanks everyone

beanielou

Can you make £125 a month as an OP?
That would be a great start

bexster1975

Hello FLC!

I assume the employment issue for your OH was resolved? Either way, pleased to see you back posting.

Bexster

shangaijimmy

Have some goals - retirement age (work out how much you need), mortgage end. Start with making a list of debts, savings, investments. Then prioritise. Then do a budget and see what you can afford for each, alongside your priorities.

We started by adopting a 33%/33%/33% approach to savings/pensions, mortgage and living costs. After that we've then added any payrises to the pensions fund.

Overall i'm not sure there's an actual method to this. Everything has to fit personal circumstances and preferences. No matter how small your payments everything is a step in the right direction.

FunLovinCriminal

Hi Bexster
Sadly yes. She goes on 24th March. Hoping to retrain in nursery childcare - meanwhile the bills in.
£16k as a redundancy package.
FLC

bexster1975

I'm sorry to hear that FLC. Maybe a career change will be the making of all of you. In the meantime, good luck.

Bexster

FunLovinCriminal

So. Kind of mortgage/thread related....
Yesterday we received my OH redundsncy.
We have £14,300 plus £2k savings to make work as hard as possible to fund us.
We have £1500 of the £2k in a TSB account earning 3%
The rest I think will be in an ISA, VIRGIN have a flexible one arlt 1.16%
Basically our outgoings are £1800 per month, my earnings are £900
So £900 per month needs to come from the ISA.
Any help/advice/loose change is gratefully received.
FLC

bexster1975

Hello

OK. So £14800 to last until finances improve. That will cover the £900 shortfall for 16 months ( plus a little bit). I know your OH is retraining, but can she pick up something in the meantime? If she can, it just means the 16 months can be extended as less shortfall to make up. I know this seems really scary, but there is quite a bit of time to play with here.

Bexster