Advice wanted...

mircea

Hi
We are currently looking at ways to pay off our mortgage more quickly, we would love to be mortgage free by the time we are 50 (17 years). If I set our out situation and one option we are looking at maybe someone can give some advice on whether or not this is possible or other options available.

Our house is currently worth about 155k our mortgage is 133k we have a joint income of 60k per annum.
We have looked at overpaying £400 a month into the mortgage once our remortgage goes through and think that would allow us to pay off in 15 years this is with HBOS mortgage.
We have two loans both of which are finished within the next six months, leaving us with the extra we borrowed with Northern Rock which we have no means of paying off in one go.

Any advice?

JonnyBravo

Simple really.

Overpay as much as you can without incurring penalties. eg once the loans are paid, put the cash you were paying on those against the mortgage.

Make sure you have some cash tucked away in ISA's too. Not only is this often more efficient than only overpaying but of course you should have a back up fund in case of emerggencies.

ailuro2

http://www.co-operativebank.co.uk/servlet/Satellite?c=Page&cid=1170748477454&pagename=CB%2FPage%2FtplStandard&loc=l

is a link to an easy to use overpayment and mortgage payments calculator, you need to know the interest rate etc, then on the next tab add any overpayment or lump sums.

Just click 'launch the calculator, then once all the info is in, click on the graph tab to see how quickly you can pay it off.

Have a play about with the figures to see what effect an extra £50 a month makes.;)
It's a great way to incentivise overpaying.:D