How to be mortgage free after 8 years

Thefunkygibbons

StuA1964 wrote:

Have made overpayments of £100 for the past two months.
Not quite in the Thefunkygibbons league but it is a start.

It is good going

I started at £50 a month overpayments

By seeing how often I could increase it, I have manged to get it up

Byspending on mortgage overpayments, rather than myself, it is now a little bigger

Goldiethedog_2

This post is inspiring and got me thinking....
Only this year have I tried to turn around my finances as I was always owing the credit card companies money although I was never out of control. I also had an overdraught from my student years that I never mangaged to shake off.
All that is now gone and I'm well on my way with stoozing and an overall in credit account balance.. .. first time in 15 years!!
I earn 30K have 2 kids and a wife earning 12K part time, and have a 62K repayment mortgage. Also have a 8 year old endowment worth about 8.5K and costs me £100/month.

I'm thinking that instead of just pure overpayments I will remortgage with an offset on the increasing stoozpot. This way I will then overpay on the interest difference gained. I could cash in the endowment and either offset or payoff some capital but then again that would leave me without life cover for the mortgage....

I don't like the idea of not having some capital to fall back on if the unfortunate happened by tying it all in the mortgage payments. Also I have no pension shock horror gasp even though the company offers one..

How can I calculate estimated gains for paying off early etc?

halloweenqueen_2

I hav an offset but I really want to see the mortgage figure go down - someone may correct me on this but I think it would be paid off quicker directly to the actual mortgage than the savings account interest offset?

Thefunkygibbons

I stooz as well, but I am not sure how much longer it will last

If you can get a reasonable stooz pot the offset is theway to go

However, with mortgages, I always prefer to keep it simple

Pay off the mortgage, !!!!!!, its gone, simple

catznine

Have just read through this thread and want to thank funkygibbon for his input.:T

It has really made oh and I think and we really want our mortgage gone as soon as poss. We are tied in for the next 18 months to our interest only mortgage with an under performing endowment. So we are saving like mad (luckily had a lump sum to invest) and will remortage in 18 months bringing total down by hopefully £30,000. Will then get a repayment mortgage and channel all surplus monies into this.

At last we have a real hope that we can do this, even looking forward to it!

gallygirl

halloweenqueen wrote:

I hav an offset but I really want to see the mortgage figure go down - someone may correct me on this but I think it would be paid off quicker directly to the actual mortgage than the savings account interest offset?

It makes absolutely no difference - interest is calculated on the outstanding amount, regardless of whether it is the principle or the principle less offset. The advantage of the offset though is that you have access to the funds if there is a hiccup!

Not up to your standard - am paying £200 extra a month, but also lumping off any little bits I have left. Hopefully £500 extra as bonus this month - will knock a month off. Down to 10 yrs, aiming for 5 years. Need to:
a) stick to menu plan
b) stop drinking as much!

Then in 5 yrs will be mortgage free and bootylicious into bargain!!!!:rolleyes: yeah right!!! Mortgage might be poss, not the rest!!!!

halloweenqueen_2

Yes, but I want the actual figure to go down, i can still accesss the money in the form of an overdraft sort of thingy in the account a reserve I think they call it so its still there for emergencies and as i pay off more that reserve gets bigger. thanks anyway!
Have had a good couple of months and if I can keep up to this standard will pay off mortgage in 5 years and own 2 houses outright, its really spurring me on!

violetb_2

Hi there Halloween Queen. Please forgive such am impertinent question, but how can you make such large overpayments - are you reining everything else in to a really tight limit? I often dream of such overpayments, bu the reality does not pan out that way.

Thanks

V

aliwatts

halloweenqueen wrote:

Yes, but I want the actual figure to go down, i can still accesss the money in the form of an overdraft sort of thingy in the account a reserve I think they call it so its still there for emergencies and as i pay off more that reserve gets bigger. thanks anyway!
Have had a good couple of months and if I can keep up to this standard will pay off mortgage in 5 years and own 2 houses outright, its really spurring me on!

My mortgage is the same as this, has a reserve which u can borrow back any overpayments, a good idea but hopefully will never use it.

Your posts on here are what spur me on to want to save more and pay mortgage off quicker. Thanks

halloweenqueen_2

Go on ali - I'll race ya!!!!!!!!!!!

It amazing what stuff I've turned out, forgotten things that I haven't used in ages and thought - what the hell did i buy that for, happily theres usually someone else thats willing to buy it!! I've had a count up and with bits to sell and some odd jobs i've lined up I'm hoping to get about £300 at least into my June overpayments!
The bonus of it is, i'm usually so busy sorting things out and doing bits and pieces I haven't got a chance to spend anything, had to force myself to do weekly shop, sorted out all my coupons before I went and bought those rather fetching blue and white stripy range of food!!