How to be mortgage free after 8 years

Thefunkygibbons

Thanks

Unfortunately some of what I tried to say (badly) got lost in the noise of

"He has a high salary, I don't, so none of this is for me"

meanmachine_2

Again, you people make me smile.

"I have a whopping £40K mortgage and am happily on the way to paying it off early. I'm not going to boast but...oops, too late."

Now answer me this - if you had to buy a property at TODAY's prices, how would your overpayment plans stack up?

Count yourself fortunate that you bought when house prices weren't crippling, then went through a period of rapid wage inflation, and are now in a low interest rate phase (although possibly not for much longer).

To the gibbon I say yes, excellent, take advantage of this collision of fortunate circumstances.

I have a friend who was crowing to me about how the int rate cut has made them £50 richer. I didn't point out to them that, as asaver, it made me poorer. But what are the chances of this person overpaying by £50? I'd say it'll probably encourage them to spend £51 on crap.

But anyway, back to my original point...

Sadly for those of us that only see massive house prices and virtually zero wage inflation, the picture ain't so rosy.

thaylock

meanmachine wrote:

Now answer me this - if you had to buy a property at TODAY's prices, how would your overpayment plans stack up?

Simple, I wouldn't buy a property at TODAY's prices, I would wait 2-3 years for prices to drop by upto 20%. House prices have dropped for the 14th consecutive month, prices are dropping at their fastest rate in 9 years. Ask me this question in 2-3 years time & I will be happy to provide you with a repayment schedule.

BoltonMinx

Many thanks to the OP. Its nice to hear the flip side of moneysaving rather than just the debt stories. Im not on as much pay but that shouldnt be a barrier to making good money choices. Ive chopped down on spending as much as possible - was horrified when I worked out I spent almost £4 a day on lunch which equated to £960 a year :eek: Im going to throw that money at my mortgage, as the OP & Tesco said, every little helps

meanmachine_2

Yes, sarnies in a lunchbox can save a packet - and you know exactly what's gone into them too.

£2.50 for a couple of pieces of bread? Worra f*ckin liberty, as the foul-mouthed gran on tv would say.

JanCee

meanmachine wrote:

I have a friend who was crowing to me about how the int rate cut has made them £50 richer. I didn't point out to them that, as asaver, it made me poorer. But what are the chances of this person overpaying by £50? I'd say it'll probably encourage them to spend £51 on crap.

.

This was exactly the point that the OP was about, using any extra cash to make overpayments on your mortgage and consequently reducing the capital sum, term and amount of interest paid.

Does every thread on this board have to turn into a rant about current houses prices? None of us has a time machine so there seems little point in harping on about house prices 15 years ago!

meanmachine_2

JanCee wrote:

This was exactly the point that the OP was about, using any extra cash to make overpayments on your mortgage and consequently reducing the capital sum, term and amount of interest paid.

Yes I know. That's why I wrote it. :rolleyes:

Unfortunately, they bought in 2004, so their mortgage repayments account for 60% of their take home pay. Their chances of repaying their mortgage in the next 80 years, let alone 8, is somewhat slim.

Willsnarf1983

meanmachine wrote:

Yes I know. That's why I wrote it. :rolleyes:

Unfortunately, they bought in 2004, so their mortgage repayments account for 60% of their take home pay. Their chances of repaying their mortgage in the next 80 years, let alone 8, is somewhat slim.

but £50 extra per month is still £600 a year and so on, it all helps, is this not the pt of trying to be debt free wannabes, making overpayments to technically get debt free, whether its £1 or £2000

i have to say mean machine i have been impressed with alot of what u say on these boards but disappointed in ur view of the OP

The guy worked hard in life and has been fortunate and has the luxury of paying £2000 pound of a month extra but his general advice was to pay WHAT you can afford to...........

Will

Willsnarf1983

whoops wrong board but the principle stands

Will

lush_walrus

meanmachine wrote:

But anyway, back to my original point...

Sadly for those of us that only see massive house prices and virtually zero wage inflation, the picture ain't so rosy.

Yes it is still possible, my parents brought the house they live in now during the last peak, but did exactly the same as the OP and went without a lot of the luxuries in life to pay off their mortgage as quickly as possible, I think they paid it in about 8 or 9 years. But exactly as the OP says you have to go without other things that some people wont to get there. Regardless of your income there are always temptations for new cars, new furniture, decorating going to restuarants that people on your income go to etc. I think the point the OP has made is true of any wage range, live below your means whatever your means may be and keep the surplus for your mortgage.

So if my parents can manage to pay their 'peak' priced house off then people must still be able to do it now. And ultimately the 'peak' price of the early 90s is no longer a peak now, the price they paid for their house would be considered an absolute bargain now!.

But thats how life is, there are always risks attached to everything bar those moves that are soooo safe that everyone and their dog does. Those who take the risks get the chance to make money Im afraid.