Does any body have any good ideas ????

spooky25

To all money saving experts:

I would like to ask if anybody could give some advice on the situation that we are in.


we have recently taken out our first ever mortgage of £125,000 on a 3year interest only fixed rate.
we are repaying approx £700 pounds a month in interest and have a overpayment veichle in place to reduce the capital of the mortgage over the 3 year fixed period and then change to maybe a repayment mortgage after the 3 year rate is up.

the repayment veichle is a high interest account held with the brad and bing (hopefuly this will gain interest whilst we await the first years overpayment date ) we have been told that we can only pay overpayments up to 12.5k a year , so in the meantime we are adding to what we have saved in the brad and bing by doing extra work and other money making ways listed on this site.
does anybody know of any other ways in which we could reduce the capital on our mortgage quicker as we really would like to be able become mortgage free before I turn 35, ps im 25 now. " ive heard about stoozing but am very uncertain about doing anything like that at present

Jonbvn

You have not mentioned anything anout ISA's. They should be you first stop for any savings......

MissKJ

Pop over to the debt free wannabe boards. Even though you are not strictly speaking in debt except your mortgage, there are some good ideas for cutting costs and making more money. Martin reckons you can increase your "income" by 25% by money saving.

CLAPTON

What interest rate are you paying on the mortgage?

Does B&B stop you 'overpaying ' on a monthly basis as that would reduce the interest more quickly than waiting until the end of the year.

Saving in an ISA is tax free and so would be better than an 'ordinary' account.

Just by way of example if you want to pay 125,000 back over 10 years at say 6.75% APR you would need to pay over 1,420 per month

spooky25

Thanks to all money saving experts
now from your advice im seriously considering placing my savings elsewere

many thanks

spooky25

SPL

hi

thanks for setting up the thread spooky 25

we too are trying our best to reduce the mortgage and pay extra off every month - i know you mentioned you are wary of stoozing but if you review the boards on here it really helps to understand and the community is so generous with help for any questions that I would really encourage you to explore it

the mortgage pig is also a good idea - though I do not have an actual pig I move across any money into our savings account from the current account online when we hold back from spending on something e.g. saying no to a takeaway!!!

also make sure you use the cashback sites in december I cashed in my rpoints and had £130 which was a really good result !!!

Good luck and Happy New Year to everyone on here :beer:

Clapton - could you let me know what tool you used to work out how much spooky would need to overpay by to reach the 10 year target?