How to be mortgage free after 8 years

benbenandme

I am trying to do some bottom fishing at the moment,

:eek: :eek: :eek: :eek: :eek: .............. Dare I ask what this means ????

Thefunkygibbons

^^ bottom fishing

you know

...

It means buying shres when they have been oversold and trying to pick up bargains

The risk is that you have not hit the bottom and then they carry on falling

setmefree2

Hi Mr Funkygibbons:hello:

We're are all still here trying to emulate you:D

Shares - now there's a dirty word:rotfl::o

Herewegoagain

Hiya TFG,
(Thought I'd ask you this too, have put it on other threads, I have always made overpayment's, but they go up and down according to means etc)

I have an interest only mortgage and when using overpayment calculates, find the term doesn't go down unless I put massive amounts in. I have been paying £340.00 over payment but don't see a great dif. Is this because it's an interest only and if so how do I get it down and still eat. Most calculators seem to be only on repayment, and the egg one, tells me depressing news

HWGA xx

Thefunkygibbons

I have never looked at that before, but I am not surprised

On an interest only, you have say 25 years of interest payments and at the end the capital sum has still to be paid

By making over payments, you are reducing the capital, which should reduce the interest bill, but as you state, you would need a huge overpayment to affect the term.

For you, a simpler calculation would be based on the capital repayments that I am making will this pay off the capital by the end of the term

And really simply, if the capital is say £100,000 then you need to find just over £300 a month over and above the interest payment to pay it off. Now of course, the interest bill will decline which makes the task easier.

However I would not get depressed, every penny counts when it comes to paying off the mortgage

Optimisticpair

Thefunkygibbons wrote: »

if the capital is say £100,000 then you need to find just over £300 a month over and above the interest payment to pay it off. Now of course, the interest bill will decline which makes the task easier.

However I would not get depressed, every penny counts when it comes to paying off the mortgage

TFG How do I calculate how much O/p to make on a 17k interest only mortgage please?

HWGA Keep each other going? I have a 17k interest job and a new offset to come to pay off

Courgette

What an ace thread! It's really inspired me. I love reading people's stories

esthomizzy

Herewegoagain wrote: »

Hiya TFG,
(Thought I'd ask you this too, have put it on other threads, I have always made overpayment's, but they go up and down according to means etc)

I have an interest only mortgage and when using overpayment calculates, find the term doesn't go down unless I put massive amounts in. I have been paying £340.00 over payment but don't see a great dif. Is this because it's an interest only and if so how do I get it down and still eat. Most calculators seem to be only on repayment, and the egg one, tells me depressing news

HWGA xx

If you do two sets of info based on your owed amount on whatsthecost.com one for repayment and one for interest only you will see the difference needed to equate a chosen term. Play with the amounts to figure out what your term will be.

I have a 25 year repayment (am on the 24th year now) but I pay 200pcm overpayments each month, according to whats the cost this means 18 remaining years if I keep up those extras every month. If you can't always guarantee what you can put in the term will also be quite a grey area, but truly every little does help. Depending on how close your means are to overpayments eating into your absolute must haves bill pcm then I'd recommend overpaying by the difference between interest only payments and repayment payments at your rate. Then you have the flexibility of interest only for the tough times but you are making a respectable dent in the capital owed when times are better. If you can't make that just decide on a level you are comfortable with. If your income is very variable then keep a record of what you've paid each month so you can try and average out the yearly amount to the same.

v.rajput

Hi,

I too have a .89% above base rate mortage, with approx 20yrs left, again this is for the term of the mortgage.
I am not a high earner, but at 36, i have left the armed forces with a pension and have a full time job.
Between my wife and I, we have ticked all the right boxes with saving ie ISAs, Internet savings etc.
The interest from our savings is overpaying our mortgage.
We borrowed £133k about 5yrs ago. I am overpaying £400.00 a month, after discussing this with the Halifax we should be mortgage free in just uner 10yrs. We have overpayed for the last 3 months.
However, we also want to move and i am concerned that having more equity in our current property is not a good idea, but rather have a large cash deposit, would be better.
The house had been on the market for 3 months, but everyone is rel!!!!ant to buy.

I really am stuck. In one way i want to be debt free, but on the other i dont want to overpay and the money gets stuck into the house.

HELP??

Herewegoagain

Hiya guys

I contacted mortgage peeps yesterday and yes the OP does come off the capitol, but 1st they take the money off the sum that I had drawn down to lend to oh to start his business,(which went bust owing me loads and loads:mad: :mad: )but drawdown is now paid with OP:j so the rest will go off the remaining mortgage now:T

My mortgage is a tracker (1.25 above base rate interest only)which I can pay off/ lend from, when ever I like and that flexibility has always been good for me as I feel in control. I can see that a repayment would mean that it would go down in term, but the way I pay it means I treat it as one anyway IYKWIM.

I have been paying £800.00 including interest payment monthly and from Nov have upped that to £1100.00 which means an OP of £671.55 which sounds good to me:T

They are sending me an up to date statement as well so I can see where I now stand:j

:eek: :eek: :eek: :eek: :eek: :eek: But am paying £14.00 daily interest:eek: :eek: :eek: :eek: :eek: :eek:

I wanted to be mortgage free whilst still young (did it once) but circumstance have got in the way(too boring to talk about) but am now aiming to do it again in 3years, and hopefully might manage it in 5. (aim short and see how it goes) very motivated at the mo, and aim to stay mortgage free.

HWGA xx