Alion's Mortgage Reduction Diary

nesssie1702

well done! Just read your thread from the start and it's inspirational!

SmlSave

have removed 5 years from our term (taking it from 25 years to 20 years) and saved (at an average rate of 5%) almost £45k in interest

:T :beer: :T Wow - congratulations!

setmefree2

Alion wrote: »

Oh my word according to my spreadsheet we have removed 5 years from our term (taking it from 25 years to 20 years) and saved (at an average rate of 5%) almost £45k in interest

Blimey

Well done - nice feeling isn't it?

Alion

Howdy, and welcome to March

Well, at the end of last month we went to test-drive the car we've been saving for. And we didn't like it. Plus it was too much. Plus the salesman was pushing too hard (oh come on I wasn't born yesterday, we've got the cash for the whole purchase so why would we put down 10% of the value and pay a stupid interest rate on the rest? Mind you he seemed shocked when I put the numbers in his calculator and said "I'm not paying £10k for a £6k car!!!!")

Aside from that, we decided to spend a little money on repairing all the little niggles on the current car and show it some love.

So we dumped the £6k into the mortgage. Our mortgage is now £158,873 in comparison to the £190,649 we'd have if we hadn't overpaid and we've saved £52,975 in interest (at 5% average for the rest of the term). Our new completion date is November 2025, where it would have been December 2031. That's over 6 years removed now.

Plus with the reduced monthly payments on the variable rate at the moment, we're going to top everything up to what we used to pay - at the moment that's £200 difference and it's like a free overpayment

SmlSave

I am very impressed at your super human powers at reisisting the car sales talk.

Mind you he seemed shocked when I put the numbers in his calculator and said "I'm not paying £10k for a £6k car!!!!")

Wish I could have seen the look on his face when you said that!

Keep up the good work with the OPing

Alion

SmlSave wrote: »

I am very impressed at your super human powers at reisisting the car sales talk. Wish I could have seen the look on his face when you said that!

Keep up the good work with the OPing

It's frightening though how much he was pushing it. If I wasn't so cynical it would have been easy to be taken for a ride. He had the sales talk down to a tee - so many people must get ripped off that way.

setmefree2

well done on all your progress

We are trying to keep our old car going - we have an x reg Scenic. It has low mileage and one careful owner (us:D) and I love it (it's a great car for a family)

momoney

keep up the good work! makes me wanna save!:j

Alion

Right, another month another overpayment (if a little late this month)

£750 gone. It was meant to be £500 but our repayments are about £250 less than they were on the fixed rate so we decided to put that in too as we had it ready to pay.

Alion

ETA the spreadsheet says we've now saved 6.4 years by overpaying!!! We only got our mortgage 2 years and 3 months ago!!!