I'm almost there!

I purchased my first property back in 2004, with a mortgage of £167,000.
I am the main breadwinner - my wife does not work for the moment and looks after our 3 young children.

Over the past 10 years I have been scrimping and saving, using the credit card deals and offers where I can (paying all off without any interest being paid whatsoever).

I have always taken out 2 or 3 year fixed rate mortgage terms - shopping around to find the best rates etc.
At the end of each term I pump all off my savings into the mortgage, and start over.

I am now at a position where my mortgage is at £53,000, and I have enough in my savings account to pay it off completely!!

I'm STOKED!!

So my current mortgage fixed rate deal ends on 1st Nov.

The initial plan was to obtain a redemption statement and then pay off the mortgage.
However, I rang my mortgage lender and realised I can use a credit card to pay my mortgage off........so I got thinking......

I currently have an Amazon/MBNA card, with a £5800 limit.
The plan was to wait until my fixed rate mortgage ends (hence avoid fee's by overpaying during the fixed term) and put £5k into my mortgage using the credit card.
I would then pay the card off straight away, and then put another £5k on the mortgage, then pay the card off, and so on - until the mortgage had finished.

By doing this, with every £5k place don the card and then cleared, I would earn £50 in Amazon vouchers - hence making me just over £500 in vouchers by paying off something I would have otherwise paid in a lump sum!

HOWEVER - then comes the news that the Amazon/MBNA relationship is ending!!! So there goes that option!

I am now on the lookout for another card to use instead - may go for a Tesco one - but either way I should be completely mortgage free in a few more months!!!

BUT........A big BUT.........we are now looking to move into a bigger property at some stage in the next 1-3 years or so!!!! Ahhhhhh!!!! I'll have to start a huge debt al over again!!!!!
On the bright side, at least we'll have a nice big deposit of around £250k from the sale of our current house!

Just wanted to share the story as my first post ;)

Replies

  • Hi,


    Wow! Well done on your achievement. You have done so well to pay that much off in such a short time.
    I like your way of thinking about the credit card. I am fairly new on here and haven't started a diary (intend to in September). I am sure that someone with more 'experience' on here will advise about a credit card deal that may be able to help you.
    Interest rate 1.25%, offset mortgage Woolwich
  • jodles16jodles16 Forumite
    1.5K Posts
    Car Insurance Carver!
    ✭✭✭
    Just wanted to say wow and well done! Im not sure about the credit card stuff though sorry!

    Well done and happy house hunting!

    Jodles :beer:
    MFW2020 #115 250/3000 J-250
    1% challenge- /1525
    Save 1k in 2020- /3000

    Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
  • lulabelle1lulabelle1 Forumite
    2.7K Posts
    Tenth Anniversary 1,000 Posts Combo Breaker
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    Congrats (read... Well Jel!)
  • That is fantastic :) Well Done :)
    MFW Start Date: 18/08/14
    Mortgage At Start £183389.89 Mortgage Now £151000
    Mortgage Free Date - [STRIKE]October 2038[/STRIKE] [STRIKE]July 2036[/STRIKE] November 2021 :T
    2014 Overpayments - £11600
    2015 Overpayments so far - £18000:j

    Aim to be Mortgage free by November 2021:beer:
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