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  • FIRST POST
    • Rosie D
    • By Rosie D 11th Feb 18, 12:29 PM
    • 99Posts
    • 247Thanks
    Rosie D
    8 Years & Counting....
    • #1
    • 11th Feb 18, 12:29 PM
    8 Years & Counting.... 11th Feb 18 at 12:29 PM
    Hi there!

    I'm a long time lurker on MSE, especially this page. We used to have a repayment mortgage until our daughter was born 10 years ago, when we (stupidly) changed to an interest only mortgage. It was only supposed to be a short term thing but then 4 years after that our son came along too & we've just plodded on..... until now!

    We still have our mortgage on interest only, as it's an offset mortgage, but I've just set up a standing order for £100 per week to be transferred into it & also for £100 per week to be transferred into one of the offset savings accounts too. Hopefully this should start to make a dent in the mortgage!

    We have 16 years to run but are aiming at halving this as it will bring us back in line with the 25 years we originally took the mortgage out for.

    Here we go...!
Page 1
    • A Frayed Knot
    • By A Frayed Knot 11th Feb 18, 1:29 PM
    • 2,319 Posts
    • 10,393 Thanks
    A Frayed Knot
    • #2
    • 11th Feb 18, 1:29 PM
    • #2
    • 11th Feb 18, 1:29 PM
    Welcome, you probably know us by now.

    It's never too late to start o/p your mortgage.

    Good Luck.
    Always have 00.00 at the end of your mortgage balance and one day it will all be 0's
    Target 20 months 4/24
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69, 2016/£3186.80, 2017 £4068.97

    • vetstudent
    • By vetstudent 11th Feb 18, 2:55 PM
    • 144 Posts
    • 288 Thanks
    vetstudent
    • #3
    • 11th Feb 18, 2:55 PM
    • #3
    • 11th Feb 18, 2:55 PM
    Best of luck!
    Mortgage start date 19 January 2018, end Jan 2043.
    Owed £38,000/£38,000
    • beanielou
    • By beanielou 11th Feb 18, 5:20 PM
    • 52,748 Posts
    • 207,262 Thanks
    beanielou
    • #4
    • 11th Feb 18, 5:20 PM
    • #4
    • 11th Feb 18, 5:20 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • Rosie D
    • By Rosie D 12th Feb 18, 7:26 PM
    • 99 Posts
    • 247 Thanks
    Rosie D
    • #5
    • 12th Feb 18, 7:26 PM
    • #5
    • 12th Feb 18, 7:26 PM
    Awww thanks everyone! You're all very kind.

    With us having an Offset Mortgage, we are trying to work out if we will be better off paying the money straight into the mortgage or putting the money in the Offset savings account. I have heard that they both have exactly the same effect. Not sure what to do for the best really.

    Thanks

    Rosie D x
    • greent
    • By greent 13th Feb 18, 8:03 PM
    • 6,913 Posts
    • 70,744 Thanks
    greent
    • #6
    • 13th Feb 18, 8:03 PM
    • #6
    • 13th Feb 18, 8:03 PM
    Hello and welcome!

    I suppose with an offset it depends if you have any other savings/ emergency fund? If not, then I'd say definitely have a reasonable amount in the offset account, as at least you could draw on that if you needed to.
    x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £577.06/£4000
    Net sales 2018 £362.51/£1000 PAYDOX18 (#15) £12808.40/£18694.38
    • utopiah
    • By utopiah 13th Feb 18, 8:05 PM
    • 271 Posts
    • 936 Thanks
    utopiah
    • #7
    • 13th Feb 18, 8:05 PM
    • #7
    • 13th Feb 18, 8:05 PM
    Welcome and good luck on your journey.
    Mortgage Jan 2015 £66,737.98 Now £23505.40
    MFW 2018 target £10000/£5505

    MFD was JUNE 2028 now Dec 2021
    • newgirly
    • By newgirly 14th Feb 18, 6:44 AM
    • 6,222 Posts
    • 42,960 Thanks
    newgirly
    • #8
    • 14th Feb 18, 6:44 AM
    • #8
    • 14th Feb 18, 6:44 AM
    Hi and welcome, we also did exactly get same as you years ago re the offset. We switched to a virgin one offset account after seeing the ads to pay it all off faster, instead lack a of money and bringing up kids on a low wage took over and we didn't pay anying off for years

    Joining the mfw board changed everything and everybody on here has been fantastic and very motivating so I'm sure it will be the same for you now you have started a diary

    Our offset is with Chelsea and I tend to sometimes pay it off the balance and sometimes pay to the offset pot, the only thing you may have to check is your LTV when you remortgage as I think the balance owing will not include the offset pot for the purposes of which bracket you will be in - hope that makes sense , I've just woken up

    Anyway best of luck!
    MFW 21
    Target for 2018 £40k/£9,626 paid so far

    Mortgage £39,159.44 -4yrs 2 mths left. Total owed £52,364 plan to clear in 14 months
    • Happier Me
    • By Happier Me 14th Feb 18, 6:46 AM
    • 425 Posts
    • 920 Thanks
    Happier Me
    • #9
    • 14th Feb 18, 6:46 AM
    • #9
    • 14th Feb 18, 6:46 AM
    Depending on the type of offset, if you pay money directly off the mortgage you may be able to access this again in the future by requesting the return of overpayments. But this may be classed as a separate part of your mortgage, possibly on a repayment basis and there may be an admin fee (this is how my offset works anyway although interest rates are the same on each section of my mortgage).

    Paying into an offset savings account saves you the same in interest but means you can still access the funds. Great if you need an emergency fund, not so good though if you have a tendency to dip in to your savings for wants.

    I personally like having a large pot of accessible savings, knowing this is earmarked to pay off the mortgage but my mortgage is on a repayment basis so I also see a reduction in the capital each month. It's sound like you are doing a bit of both, which is probably a good balance.
    • shangaijimmy
    • By shangaijimmy 14th Feb 18, 8:32 AM
    • 2,592 Posts
    • 12,574 Thanks
    shangaijimmy
    In times of indecision...go fo a bit of both and the evaluate as you go along. Aftrer a 12 months of being a MFWer you'll make so many changes. When i look back to the start of my diary, the things i do now seema world away. And i've only been at it a smidge under 3yrs.
    MFW: Turning June 2036 into March 2023... 37//120 Payments Challenge, Diary Reduction £39,897.62
    Aug 2009: £163,051 // Current: £96,102.38 // Avg Daily Interest £4.32
    MFiT-T4 #8 - 64.95% of £41,000
    • louloubelle79
    • By louloubelle79 14th Feb 18, 4:46 PM
    • 319 Posts
    • 162 Thanks
    louloubelle79
    Im hoping to be MF in 8 years also. Good luck
    • Rosie D
    • By Rosie D 14th Feb 18, 10:42 PM
    • 99 Posts
    • 247 Thanks
    Rosie D
    Wow, thanks for all your replies & welcomes, it's a really friendly place here!

    I've had a chat with hubby & we have decided for the time being to pay all the money into the Offset account rather than the mortgage, this is because it will be good to feel like we have got some access to it if we need it (although not going to touch it).

    We have decided that we'll pay £800 per month into it for the minute, but will increase this by £100 pm every year, so for example next year it'll be £900 pm etc. We have a Yorkshire Building Society Offset so the only 'overpayments' we can get back is by stopping paying the mortgage until it's caught up (hope this makes sense).

    Tomorrow I'll transfer the first £800 into the account & then set up a standing order to transfer £800 every month after that, so hopefully it'll soon start to build up! Can't wait to see it going up!

    Thanks

    Rosie D x
    • shangaijimmy
    • By shangaijimmy 15th Feb 18, 7:45 AM
    • 2,592 Posts
    • 12,574 Thanks
    shangaijimmy
    Standing Order is first step. Next step (and the most addicitve one) is to get spreadsheeting...and forecasting....
    MFW: Turning June 2036 into March 2023... 37//120 Payments Challenge, Diary Reduction £39,897.62
    Aug 2009: £163,051 // Current: £96,102.38 // Avg Daily Interest £4.32
    MFiT-T4 #8 - 64.95% of £41,000
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