Basic instructions

Legacy_user · 3 August 2019 at 9:55AM

From other messages in here looks.like there is an artical some where that says how to be mortgage free but I can't find it
Come someone link it please?

I am 19 years in to 25 year morthage started at about 200 K now just 80 K and would like to get rid of it soon as!

Thank you for help

A_Frayed_Knot · 3 August 2019 at 10:54AM

If you can show the message from which diary then we can say how.
Other than that, everyone's diary tells how they are getting rid of their mortgage.

Basically you need focus and overpay every chance you get whilst living the life.

tacpot12 · 3 August 2019 at 10:57AM

Basically you overpay the mortgage a much as you can. Stop your discretionary spending, and pump it all into the mortgage. Often the best way is to have a savings account that you pay into and after 12 months, make a lump sum payment just before your mortgage statement is due to be produced. That way you can get some money back if you have overstretched yourself.

System · 3 August 2019 at 11:48AM

thank you tacpot no idea what the other one about showing a diary was lol!

does the mortgage lender have to axcept the extra and take it off mortgage? or does they do it only if you have agreede arangement with them for that

my mortgage is currently 5 year fixed rate ends in a cuple of years but until then there is penaly for early redemtion this is with Santander

A_Frayed_Knot · 3 August 2019 at 3:55PM

Everyone on this thread has a "diary" - this one is yours, and as you posted on here and started your "Diary" I presumed you knew what it was, not taking note of the fact you are new.

As I said, focus and overpay, just as tackpot12 said.

Depending on who your mortgage lender is, the majority of them allow a 10% overpayment on the balance of your mortgage at the start of the year and balance at each year after that. For example
1st Jan 2019 - mortgage balance £100,000 - this would allow you to overpay £10,000 without any penalty being charged to you.
1st Jan 2020 - mortgage balance £80,000 - this would allow you to overpay £8,000 without any penalty being charged to you, and so it goes on.

If you were out of you fixed rate deal, then you can overpay as much as you like without penalty, but a svr - standard variable rate is always a higher interest rate than a fixed deal, but does not restrict you as much. You have to weigh up what suits you.

Some overpay their limit at the start of the year, thus reducing interest you have to pay each month, and some "save" their overpayments in a higher interest rate bank / savings account than their mortgage interest rate, for example - mortgage interest 3% - bank account/savings interest rate 5%.

Hope this is some help for you, if not, ask away, we are all very friendly and all have/had

the same "goal" to be Mortgage Free - asap.

System · 3 August 2019 at 6:05PM

Thank you too Frayed Knot - great funny name

i am so sorry that i was rude both barging in and posting before undertsnading and then my mention of you. so sorry all i can say i was out of sorts from dificult discussion on ppi thread

i understand now the idea
was hoping there was a little introdutcion to the ideas here somewehre but i think i get it now

thanks again and sorry again

A_Frayed_Knot · 3 August 2019 at 8:40PM

No problem, we are all here to help each other, and a friendly bunch, unlike some of the other threads where some are just downright rude :mad: This is now your diary, so you can either post questions on here or if reading someone else's then you can comment on there, you will make friends and get to know about them and their lives.

You will get fantastic ideas on other diaries, all about how to save ££'s so that you can overpay your mortgage and become mortgage free :j

Utilities, batch cooking, yellow stickers, insurance, bank switches, and yes even ppi - it all helps.

Keep your diary going, most usually have an introduction about themselves , how much they have left on their mortgage and their ultimate goal date, they often post a statement listing all outgoings and then you get suggestions on how to save or query the expensive outgoings.

This is only the start of your journey but keep at it with the "focus" I mentioned and you will be there before you know it.