12 years mortgage left? quickest way to pay?

dorry_2

hi,

I am totally new to this board, but I was wondering if anyone could help??

we have 11 years andd 10 months years left on our mortgage of £40,000, we are currently with chelsea bs and pay £362.00 a month on a repayment scheme and still have isa's that will pay our £32,000 cash in 12 years time, as well.

we could afford to pay more off mortage and would love to be mortgage free asap, any advice greatfully received, as I really would not know where to start?

we would consider switching over to one of those one accounts, we have a joint income of approx £2,700 a month, with me working part time. I work for a agency and I can up my hours, as and when i like. After years and years of being a student at uni, I now want to pay our mortgage of as quickly as poss!


thanks in advance xxxxxxxxxxx

StuartGMC

Dorry
An offset looks like it may work for you, with the combination of overpayment, offset and no ERC.

Overpaying is the best way to make major inroads to clearing the mortgage early. There are several threads on here that talk about this including my plans http://forums.moneysavingexpert.com/showthread.html?t=944413.

We are with NatWest and their Offset mortgage, but you can't offset ISA against the mortgage; I believe with Barclays (Woolwich) you can do so http://www.woolwich.co.uk/mortgages/offset-mortgages.html

Offsets work well when you are always in credit (use the credit card for everything you need each month, then pay in full 5 days before due (ie allow 3 to clear)) and thus all this money sits there offsetting for most of the month

Of course, you need savings to offset too, but, if you are willing to have your ISAs "on hold" for a few years (they won't accrue interest but remain in their wrapper and I'm not certain if the £32k is a projection rather than current value?) then you could offset the vast majority of your mortgage now. However, think about this very carefully.

If you have some savings for planned costs such as holidays, replacement car etc then the offset with these alone may be adequate (keeping your ISAs growing in the background).

Personally, we have chosen a mid-way position; we offset (presently around 55%) as this is tax efficient for us and overpay by 40% per month plus we invest separately in Stocks & Shares ISAs for growth which are not associated with the mortgage. I have just been reviewing today whether to boost overpayment....

I'll drop you a PM regarding the spreadsheet I use.

Good luck

dorry_2

:T thanks stuart :T

we don't have any other saving at present, as I have just finished uni afte 7 years and we have been doing the house up, using cash from my wages.

I am really keen to become mortgage free and i manage to work out plan, it impress oh. ideally i would like to get it paid off in 5 years time:D

thanks for pm your an :A