How to be mortgage free after 8 years

Thefunkygibbons

Thanks

The trouble with writing is that it is hard to come across in the right way, but hopefully like most people here, I am just trying to help, not by being an expert, just by sharing my story

I would not worry about how much you overpay

Like Tesco, every little helps

If you view your monthly mortgage as a maximum, the mortgage will last 25 years

If you view it as a minimum to be beaten, then it will last much shorter

Petal_3

I was just thinking. My son starts school (Bless..) next year and we currently pay £450 pm to the childminder....really looking forward to that saving and if I do as you suggest and start with a reasonable overpayment and then increase it every year/as and when I can....it could (at some point not too far away) be around the max. That's a good thought..... We'll see....it always looks good on paper!

martinpike

basill wrote:

I did some sums at the last remortgage and found to my surprise that the offset mortgages available required an offset balance of nearly £30K before the term became shorter than a similar straight repayment with discounted rate. This was entirely due to the substantially higher interest charged on the offset mortgage.

B

This needs to be put in some context though, I think. My main criteria for my mortgage was freedom. No tie-ins, no redemption penalties, no compulsory insurance. This excluded pretty much all of the 'deals'. I'm also no speculator when it comes to interest rates.

I've ended up with a First Direct offset arrangement on standard variable rate, which has a consistently low APR (even lower than Nationwide).

JanCee

Funkygibbons

I am really pleased you did this post because I was also intrigued about your signature. Whilst your overpayments are way out of most people's reach, I suppose the principle of what you are doing can be used by everyone who has a mortgage.

It has made me take a look at the family finances and I definately should be saving more so that will be the plan from now on, my mortgage is fully offset so I don't want to make overpayments, I would rather see the money in a savings account.

Thanks again. JC

budgetflyer

In my case, to reduce it from 18 yrs down to 7 1/2 . On a 48K mortgage I overpay £100 a month(The cost of a takeaway PW for my family of 5) at present.The rapid decrease in the term comes from the 15 % annual increase in the overpayment into offset I think.
Disapointing that some people come across as "jealous" of thefunkygibbon's financial status. Many people who earn a lot spend like mad. Its hardly a crime to save and put his money to work lessening his liabilities.
Regarding the offset rates being higher. I suppose if I changed lender every 2 years I would get a marginally better rate(Im still under 5% ) but is it worth it on £48K with the fees etc? Plus I managed to "stooge" £10K for a while.

MORPH3US

As with most people on here, I am greatful to the OP for his success story. I don't have a mortgage yet and know buggar all about them, but soon enough (within a year) I plan to buy so I will have one. THG has given me a lot to think about. Just like others I doubt i'll be able to over pay anywhere near as much as THG but I will do my best to be mortgaged up to my eyeballs for as little time as possible.

Out of intrest, are there any online calculators where I can enter a mortgage amount and an overpayment amount and see how much I would save in interest!??!

Thanks

M

Murtle

ok ok i conceede!! I must start making overpayments!! Thanks for giving me the nudge in the right direction.

Thefunkygibbons

MORPH3US wrote:

Out of intrest, are there any online calculators where I can enter a mortgage amount and an overpayment amount and see how much I would save in interest!??!

Thanks

M

Here you go

http://www.channel4.com/4money/mortgages/features/overpayment_calculator.html

thaylock

TheFunkyGibbons,

You are dead right in everything you stated, especially having a grand purpose. Most people think all people like you think about is money, but they are wrong because they have no idea what your plans are. Well done on paying your mortgage off in 8 years.

Took me 6 years to pay off my mortgage, doing pretty much the things you stated.

thaylock

TheFunkyGibbons,

Just read your post about choices, you are dead right. You are where you are in life today because of choices you made in the past, those choices were not made in years, months or even days, but in a second. Well done, you are a man after my own heart.