MilneBay wrote: »
I have been following the posts on this forum for a few weeks now and think it!!!8217;s finally time I got down to it and joined in.
I have to agree with all the people who say that being a mfw is addictive as I have found that without even starting a diary.
My situation is that I bought a flat in 2007 for £100,000 and put down a deposit of £20,000 so took on a mortgage for the remaining 80k.
I have been fortunate on a number of fronts !!!8211; I took out my mortgage before the financial squeeze kicked in and was able to borrow four times my salary on a flexible mortgage which tracks at 0.59% above the base rate.
Obviously this means the amount I am required to pay has almost halved. I also got a new job 18 months ago paying 10k more than I was earning previously and my partner has moved in so have more free cash! As a result, I have been overpaying my mortgage, firstly by £300 a month and in the last six months by £400.
I!!!8217;m 29 now and currently owe approx £63,500 on the mortgage. I thought I!!!8217;d start my challenge by seeing if I can get it to under 60k (for some reason 50-something sounds like a massive milestone!) before I turn 30 in February.
Now I just need to work out how to get a pretty signature with the figures in it to keep me motivated!:j
getmore4less wrote: »
Stop overpaying immediately and start saving this money you can get more than 2.5% in loads of places and even after tax you will be better of with a mortgage of 1.09%
NET(debt-saving) is the number to track.
Review the savings whenever any of the rates change.
If you are with Barclays check if there is a convert to offset option on the mortgage might come in handy if rates do go up, they also have a regular saver which would be a good place for some of the savings at 3.25%
I don't think we will see rates like this again so if you ever move you will want as much of this mortgage as you can to port with you idealy not needing to borrowe any more so if you keep it as high as possible while it does not cost anything save rather than overpay
wynnvegas wrote: »
Hi MB,There was nothing in the world that would have convinced me that the extra 1% or so on a saving rate was worth giving up my mortgage freedom for so I completely understand your thinking. Seeing that balance reduce (eventually) to £0 was great as a motivation tool. I think we were worse off in the long run by about £280 but I wouldn't have done it any other way - possibly even with the knowledge of offsetting that I have now!
It will rise to 1.40% from June
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