How to be mortgage free after 8 years

Hagrid

I bought a House, then lost it to the recession, now buying it all over again! i first got it for £6,000, now its valued at £170,000! same old pile of Bricks, but now has an equity value of over £112,000, as Ive ended up with a £58,000 Mortgage! which is kinda weird dont you think?
Anyway as Im struggling to repay my overdraft off and re budget so as to stay in the black each month, I dont have any Pension to look forward to, so this House IS my Pension, and I shall have to live off it in my retirement and the poor kidiwinks will have to struggle just like I had too!
regards Hagrid

kinster_2

Sorry, you do not have to have a good 'job'. Being creative and enterprising can get you there.

scms1969

FunkyGibbons
Well done I admire your goal setting and commitment and you are right any amount overpayment helps to reduce as long as you keep it going and see your goals
I think the only problem is that most people can not live for the future they only see what they want now.

Thefunkygibbons

tanith wrote:

Can I just ask if you save as well as pay off extra on your mortgage or do you pay any spare money off the mortgage......

I have a mix of savings but the bulk of the money goes off the mortgage as the tax free rate on paying off the mortgage is better than the rates available on savings

kinster_2

scms1969 wrote:

FunkyGibbons
Well done I admire your goal setting and commitment and you are right any amount overpayment helps to reduce as long as you keep it going and see your goals
I think the only problem is that most people can not live for the future they only see what they want now.

that is true, but there are many people who use their money to create businesses/assets instead which generates cash and then use some of it to pay off the mortgage

whiteflag_3

Good luck to the the TKG , his circumstances are very rare.

Am I the only one who thinks he has done nothing clever? I think most posters on this site would be intelligent enough to start paying off their mortgage early if their income was vastly in excess of their outgoings.

I have many clients whos incomes are way in excess of their outgoings and by doing nothing they accumulate cash. Its not rocket science.

Repaying your mortgage should be just one part of an overall plan.

Why is equity release now the fastest growing area of financial sales? Could it be that people get to retirement and their only asset/ source of income is their property? They spend all their life paying off a debt and then retire and take out the biggest loan off their life.

Thefunkygibbons

I never said it was clever

Somewhere in the past, I made the point that whilst it is not clever, it is a result of active decision making

I could easily blow most if not all my excess income on holidays, cars, expensive living etc

But by making choices, and treating the mortgage as a debt to be eliminated like any other, I am saving lots of interest over the long term

whiteflag_3

I didnt say that you said it was clever, an awful lot of other posters seem to think you have been. The point I was trying to make was debt reduction shouldnt be the be all and end all.

By the way what was the purpose of your post on 3/1/2006 ?

Thefunkygibbons

I guess the point of the 3 Jan post was a cheerful reminder that there was a milestone coming up, the annual mortgage statement

I suppose that I could create a spreadsheet that would calculate my monthly position on the mortgage but since I haven't it is the annual statement that I look forward to as it gives a boost to the efforts to kepp making thoise payments every month.

It is nice to see a debt that is decreasing

whiteflag_3

Thefunkygibbons wrote:

It is nice to see a debt that is decreasing

Counldnt agree with you more!

Equally its nice to see savings and investments increasing, especially ones in tax free wrappers that could disappear in the future!