How to be mortgage free after 8 years

Herewegoagain

Optimisticpair wrote: »

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

Sure hon supporting each other is what it's all about:T good luck

Herewegoagain

esthomizzy wrote: »

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.

Thanks esthomizzy,

That was really helpful, had already uped my payments for nov to £1100. and the calculater said £918.29 so that will be great, still doesn't say it will shorten the term, but it obveously will so I'm happy with that at the mo.

This tread is soooo supportive, thanks guys:T

Thefunkygibbons

v.rajput wrote: »

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??

I really do not think that it makes much difference, as you will be buying the new place with the combined total of your cash and the equity in your house as the deposit, and how these are split is irrelevant

However, the two advantages to paying it off the mortgage are
1. It stops it being spent elsewhere
2. The interest saved on the mortgage is higher than the interest earned by leaving it in a savings account

Thefunkygibbons

Optimisticpair wrote: »

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

That will depend on the term

But if you had it over 25 years, it would be 17,000/(25*12) = £56

Over and above the interest payment, and of course the interest would decline as the OPs take effect

Herewegoagain

Hiya guys,
Still pluging away at mortgage, I put £3699 into isa this year and will do the same every year and use it all to pay off my mortgage as soon as poss, when my falling mortgage and rising isa's meet IYKWIM

HWGA xx

mirry

Hi everyone , just read this whole thread :rolleyes: .

we have a fixed rate mortgage for another 1.5 years, so can only pay off 10% extra a year .

I am building up my savings to pay off the mortgage (when the fixed rate ends) and wonder if I should open up a Isa for this purpose ?

any advice much appeciated.

setmefree2

Mirry - it's a great thread isn't it? A MF board classic:D

HappySad

I have just started reading this thread and the person who started it is amazing!!!!!! No matter how much money you have you need to know how to manage it well.

Books like Think & Grow Rich & Millionaire Mind come to mind. They state that poor minded people spend their money on liabilities and rich minded people spend their money on assets which can generate more money. I know of plenty of people who have been rolling in money who just spent their money like it was water from the tap and ended up with nothing. Others on a low income who spend wisely and lived very well.

My Mother was extremely good with her money and most around her could not understand how she lived so well while on benefits. We always bought a cut down prices and we never throw anything away.

Well done Setmefree2. How much is your mortgage now?

When someone is doing well others get jealous which is understandable. Those who can go beyond this can try to learn from those who are obviously doing better from themselves. WELL DONE!!!!

setmefree2

HappySad wrote: »

Well done Setmefree2. How much is your mortgage now?

We'll be going sub £90k tomorrow :T:T We also have our mortgage fully offset with savings now :T:T

pammyj74

I am studying accounts at the moment as I am striving to have a better paid career. I agree that studying and wanting to better yourself is your own doing and those that moan about how much the OP has dont realise how hard it is to gain qualifications to get a good earning like that and are just jealous that it hasnt fallen in their lap (it doesnt work like that!)

My mortgage has just gone sub £80k :j but it was only £90k 2 years ago so not as great as yours SMF2