Pay off mortgage and start having fun!

newgirly · 20 April 2010 at 7:02PM

I was wondering how many of you MFWs are overpaying on the mortgage so you can buy an even bigger/better house when you have finished. It seems that there are two different ways of looking at becoming mortgage free, those that want the security of no debt and being financially better off, and those that are doing this as a means to an end,so they can one day own their dream house, which may be otherwise out of reach. I am asking as I can't decide which of these I am. It does not stop me wanting to work hard to become MF, but knowing the end goal may help a little.

pammyj74 · 20 April 2010 at 7:40PM

I think at the moment I am striving to not have that debt and be financially better off to be able to save for other things like a car or holiday BUT it does not stop me looking at houses and wondering if one day I could possibly afford the better detached house with the garage!!

On the whole though to be mortgage free and in a house that isnt that bad really, I have to look at the bigger picture and think, in 10/15 years time the kids will hardly be here and the house I am in will be plenty enough for just me.
But who knows I may meet the man of my dreams one day and then I would be on a completely different path

laurasavon · 20 April 2010 at 7:46PM

I'd definately like to move, although my initial thought is to rent out the current house if / when we move and use that rent money towards paying a new mortgage so if we start a family in the future we could live on a smaller income

Lynn11 · 20 April 2010 at 9:36PM

I have been overpaying the past 4yrs and managed to overpay £13K which meant that we had more equity in our 2 bed semi to hopefully in the next few days conclude a missive on a 3 bed detached. I know that the interest rates are low and we have got a good deal on the top up part of the mortgage and hopefully I can overpay a small amount (reduction from nursery fees) and it will help in the future and then we can try to reduce the mortgage term at a later date.

pawlala · 21 April 2010 at 10:20AM

newgirly wrote: »

I was wondering how many of you MFWs are overpaying on the mortgage so you can buy an even bigger/better house when you have finished.

I am! (well, have already.) You can see some of my diary at http://forums.moneysavingexpert.com/showthread.html?t=2099401

newgirly · 22 April 2010 at 6:03PM

I have contacted my building society chelsea today to find out how much I will owe when the fixed rate ends 1st August and the figure was a little higher that I thought at £160,230, the credit card will be a little lower than expected at £9500 so will be looking to borrow just under £170,000:( The thing that really shocked me though was that out of the £961 per month payments only £169 has been coming off the balance eeek! So I am feeling extra motivated, and have decided to ban myself from looking on rightmove for a bigger (more expensive) house. I have had a fairly cheap day except for the TEN pounds :eek: I have just paid for my boys to go to their junior disco at school, but other than that have been very good, and dinner is homemade curry from the freezer and a nice bottle of red that mum left last week.

bobbybobby · 25 April 2010 at 9:24PM

interesting that i am also keen to be mf but keep dreaming of my big house in the country!!:o

pammyj74 · 25 April 2010 at 11:30PM

i keep thinking where could I be living in 10 years time, being MF, will I want to move and start again but have a great deposit to have. I have to keep telling myself to not be silly, my house will be ample for me when the kids are older!!!

Sunnyday · 26 April 2010 at 6:44PM

Hi Newgirly :wave:

just stopped by to wish you luck!

SD

newgirly · 27 April 2010 at 9:49AM

Hi everyone, I'm after a second opinion on what I should change my mortgage to. I had decided to go for the one account, putting my mortgage of £160,000 and credit card of £9900 ish together. However I have spoken with my building society chelsea and although my fixed rate finishes in August they will let me change to a better rate with them in May. It seems tempting as they have a fixed 2year rate at 4% , also there will be no fees or charges at all. I will be able to shorten the mortgage from 30 to 12 years and also overpay ( if possible!) by 20% per month. The only drawback is I can't add the credit card debt as it will take me over 75% LTV. If I do this and make sure cc stays 0% do I over pay on mortgage or credit card? I feel like I just want to get started overpaying the mortgage as I am so keen now, what does everyone think, is lumping both together in the one account cheating a little anyway?!;)

Pay off mortgage and start having fun!

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