How to be mortgage free after 8 years

Thefunkygibbons

True example

There is a person at work who every weekend is doing something on the house

play area for kids, new shed, decking etc

very nice

However, he has an interest only mortgage so at the end of 25 years he will have nothing paid off

But he thinks he can afford all the stuff he is doing because he sees the mortgage being paid every month

In reality, if he had a repayment it would curtail his spending

If he had a repayment plus a standard monthly overpayment, then he would rein back even more and get his mortgage gone quicker

The trick is to pay as much mortgage as possible and then budget for the rest

halloweenqueen_2

We got a second hand freebie shed!!!!! This mse is in my veins now!!

aliwatts

Thefunkygibbons wrote:

True example

There is a person at wor who every weekend is doing something on the house

play area for kids, new shed, decking etc

very nice

However, he has an interest only mortgage so at the end of 25 years he will have nothing paid off
But he thinks he can afford all the stuff he is doing because he sees the mortgage being paid every month
In reality, if he had a repayment it would curtail his spending

If he had a repayment plus a standrad monthly overpayment, then he would rein back even more and get his mortgage gone quicker
The trick is to pay as much mortgage as possible and then budget for the rest

Aw bless him, have you suggested to this person that he changes?

Thefunkygibbons

Oh yes

I even gave him the MSE budget planner so he can find the extra money in order to make these payments

horse

water

drink

halloweenqueen_2

Thats a shame, he could have the pleasure of owning all his improvements quciker if he'd taken your advice.

Thefunkygibbons

just amazing how financial unaware some people are

But each person has to have their own light bulb moment, I guess

roswell

or not as in many of the case`s

halloweenqueen_2

I'm so impatient though, the shortest time I'm going to be able to pay mine off is probably about 5 years. I want it gone now!! Not sure what I will be like when i have cleared out all the stuff I'm selling at the moment, I'll be climbing the walls!

comping_cat

At the moment, im hoping to get my mortgage paid off in 10 years (i have 27.6 years left at the moment) but quicker if i can. Thats why im so chuffed with my mortgage pig, went through it yesterday and have nearly another £100 in it, so will get that paid into my mortgage next week before we go on holiday!!!!

Miss_Penny_Pincher_2

halloweenqueen wrote:

I'm so impatient though, the shortest time I'm going to be able to pay mine off is probably about 5 years. I want it gone now!! Not sure what I will be like when i have cleared out all the stuff I'm selling at the moment, I'll be climbing the walls!

That's exactly how I feel at the moment too!!
Will yours let you overpay as much as you want? Ours will only let me pay a maximum overpayment of £500 a month so any extra I'm saving to pay off as a lump sum at the end of the 2 years!! I'm hoping to pay it in 7 years but depends on circumstances, interest rates etc I suppose!