Any Advice re MFW

deaks_2

Hi for the first time, I have no debts well a big one (mortgage), but no loans, credit cards etc, just one monthly payment urghh!

about £10K in savings - ISAs and emergency fund

horrific mortgage of £180k

great credit ratings for me and OH

income of about £90k a year

any advice re snoozing, tarting, overpaying etc greatly appreciated

have just started overpaying, but it seems a very long haul with such a big mortgage

thinking of offsett - any thoughts?

thinking of snoozing, but the % paid to get cash back makes me wonder if it is worth it?

should I just knuckle down and overpay each month or any other suggestions?

Any thoughts advice welcome, wish I had been money savvy years ago! - sigh - still never mind here now

ThankYouAndEnjoy!

deaks wrote: »

any advice re snoozing

Im not sure falling asleep will help you :rotfl:

ThankYouAndEnjoy!

Seriously tho ...

Your income to mortgage ratio on the front of it seems healthier than most .... could i suggest you post a S.O.A (if you havnt already) - if possible, post additional information about your mortgage (term / apr / fixed rate period etc) for us to get a better idea; and for greater assistance

deaks_2

Have looked at outgoings, nothing other than dentist DD can be changed and can't find an NHS dentist anywhere local, so think SOA is as good as it going to get so far

yeh I think income to loan ratio is good and it has been a long haul to get here and pay stuff off, this is the first time I have ever had a bit of money in the bank and not getting charged mad interest on stuff - now converted to money saving and would like to get Mortgage Free asap so we have some choices at last ...

Mortage
£185K
at tracker 0.49% above base rate with C and G

20 years and a bit to go

tried to get lower rate but Loan to Value is about 65%

thought of remortgaging but the fees seem high nowadays?

cheers any advice welcome!

angelavdavis

Have a look at the Mortgage free in three years thread as there are lots of tips on there.

Offsetting is a good option if you have the ability to save a good deal, but if not, you will pay a higher interest rate short term. Some people prefer to fix their mortgage rate and save in an ISA and then, when they have built up a decent % of their mortgage - move to an offset mortgage. Its completely a personal decision.

I have recently switched to an offset as my fixed rate period ends, it was a good option because I had managed to increase my income and trim my outgoings to the very minimum, so will be overpaying as of this month by approx £3k per month:eek: . I can't afford to "lose" this straight into the mortgage by simply overpaying, as I work freelance so need a financial cushion to fall back on if possible.

dimbo61

hi deaks
stick with c & g for the time being apr 6.24% ?
find out how much each month / year you can overpay 10% ??
make sure you also fill the cash isa,s each year best payers are 6.50%
build up your savings and overpay what you can.
it will make a big difference in how many years before you are MF
good luck

deaks_2

Dimbo61 - I have been paying off a bit each month - as there aren't any penalties for doing so

best payers 6.5% - can you let me know who pays that?

is our C and G mortgage rate not too bad then? - there seem to be better deals but think our loan to value rate is not brill and the costs seem mad nowadays to change and I get a bit confused with all the small print!

Kaz2904

Just typed a really long post and lost it all.
Anyway the gist was, 65% is an ok LTV.
Intelligent Finance have a good mortgage for you- the offset has a rate 0.34% above base rate and your ISA can be offset and still built up year by year so you wouldn't ever have to lose your ISA allowance.
The fees are £799 + £25 CHAPS.
Flat details: £180000/20 years @ 6.09%= £1335.02 per month.
If you offset your £10k then you would be at 0 by November 2024. It would then take you just over 7 months to pay the last £10k at 0%.
If you were to pay £1500 per month with a 10K offset then you would be at 0 by November 2021. So option 1 gives a saving of 2.5 years and option 2 saves you 5.5 years.
Hope this helps. TTFN, Kaz.

dimbo61

great post KAZ2904 not that brilliant at the numbers !!
I have an offset with ybs ( mine is fixed for five years)
I personally think offset is great
If you go with IF taking a tracker offset the fees dont seem to bad!
also you can fill you isa,s and offset them as well
6.5 % isa on martins email this week ?
good luck and keep overpaying

Kaz2904

No the 6.5% one isn't an ISA I'm afraid. It's a not very good savings account.
The best ISA that's available at the moment is the NSandI direct ISA- 6.30% but more will come out around April time.
They will usually pay more for new ones where they don't allow transfers in so it can be worthwhile having a new one and then finding the next best place to stash your cash for last years.
Then start again each year.
Actually, I stand corrected, there is a 6 month one at 6.55%- can't remeber who with though.