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  • FIRST POST
    • fatrab
    • By fatrab 25th Apr 18, 4:38 PM
    • 1,077Posts
    • 3,940Thanks
    fatrab
    7 years remaining, lets do it in 5!
    • #1
    • 25th Apr 18, 4:38 PM
    7 years remaining, lets do it in 5! 25th Apr 18 at 4:38 PM
    Today is the day that I have put the wheels in motion for the mortgage portion of my 5 year plan.

    I'm active over on the DFW section and have my plan laid out over there so wont bore you with the details. Essentially, I wanted to be completely debt free by the end of 2022, but this may spill over to October 2023 depending on which path I choose......

    My current mortgage stats look like this:

    Outstanding balance: 63,466.64
    Repayment method: Repayment 800.29/month
    Remaining term: 7 years 5 months
    Interest rate: 3.14%
    Product end date: 03/10/2018

    This is the current end date for the 5 year fix that I took out in Sept 2013.

    My friend's partner is a mortgage advisor and has today taken my details to see what's available to lock in for 6 months, given that rates are expected to rise in May.

    So the most probable plan as I see it:
    Come October I will have 7 years remaining on existing mortgage.
    Re-mortgage <60,000 over 7 years on another 5 year fixed rate.
    Overpay the maximum allowed per annum
    Save enough to clear the mortgage at the end of the 5 years

    However, I do have one potential matter which may affect this plan. I have been told that in around 2 years time I will be receiving a lump sum from a property that my Mother will be selling. This could potentially bring my end date forward by 2 years, so I was pondering whether to go for a 5 year or a 3 year fix. I have always thought it's better to plan with what you have and not what you might have though.

    I have some unsecured debts which I'm tackling just now, but I'll be in a position to make regular overpayments by mid-to-late next year.

    I'll have a better idea of where things are heading by tomorrow, so for now I just wanted to establish a thread and say hi!

    Cheers
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

Page 1
    • AndyMc.....
    • By AndyMc..... 25th Apr 18, 4:59 PM
    • 2,544 Posts
    • 1,572 Thanks
    AndyMc.....
    • #2
    • 25th Apr 18, 4:59 PM
    • #2
    • 25th Apr 18, 4:59 PM
    What!!!8217;s the interest rate on your other debts?
    • fatrab
    • By fatrab 25th Apr 18, 7:12 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    • #3
    • 25th Apr 18, 7:12 PM
    • #3
    • 25th Apr 18, 7:12 PM
    Car HP 6.9%
    Loan 3.1%
    C.Card 0%

    Currently overpaying car but its currently for sale in favour of a cheaper alternative. Once the re-mortgage is arranged it should slot in just above the credit card in order of priority.

    Credit card minimum payment is set so that it will be paid off by end of 0% period
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • beanielou
    • By beanielou 25th Apr 18, 10:10 PM
    • 58,039 Posts
    • 238,941 Thanks
    beanielou
    • #4
    • 25th Apr 18, 10:10 PM
    • #4
    • 25th Apr 18, 10:10 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 12 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. MFW 2018. No 144
    • sitesafe
    • By sitesafe 26th Apr 18, 7:50 AM
    • 506 Posts
    • 901 Thanks
    sitesafe
    • #5
    • 26th Apr 18, 7:50 AM
    • #5
    • 26th Apr 18, 7:50 AM
    Good luck will watch with interest. Similar plan and situation to yours - I've 7 years left and 3 yrs 3 months left of a 5 year fix. Plan to do the same - overpay the 10% each year and save for what will be the remaining balance where I'll then decide whether to pay it off
    • fatrab
    • By fatrab 26th Apr 18, 3:06 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    • #6
    • 26th Apr 18, 3:06 PM
    • #6
    • 26th Apr 18, 3:06 PM
    Spoke with mortgage advisor today and we're in agreement that a 5 year fixed rate and 7 year term is the way forward.


    I can still over-pay 10% and offset some of the interest in savings if/when I receive anything from my Mother. So my 5 year plan has taken a little set-back but it looks like I'm going to be mortgage free well before my 50th birthday, so I'm happy with that.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • therocket
    • By therocket 27th Apr 18, 9:54 AM
    • 52 Posts
    • 192 Thanks
    therocket
    • #7
    • 27th Apr 18, 9:54 AM
    • #7
    • 27th Apr 18, 9:54 AM
    Happy new diary! Mortgage free before 50 sounds brilliant! I have a similar aim so wish you all the best!

    Rocket
    MFW - diary has finally arrived!
    • fatrab
    • By fatrab 1st May 18, 5:20 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    • #8
    • 1st May 18, 5:20 PM
    • #8
    • 1st May 18, 5:20 PM
    Heard back from mortgage advisor, best deal as she sees it with a 6 month lock-in available is 2.09% with N/wide. It's a 5 year fixed rate on a 7 year mortgage and my payments will be 769.


    I'm thinking with the uncertainty surrounding the imminent rate rises that it sounds like a good deal. Having checked other rates it looks competitive. There are cheaper mortgages out there but not with the 6 month lock-in available over a 5 year term. Santander won't discuss any retention deals until 4 months prior to end date.


    Details are on their way to me as we speak so I'll need to get the forms sent back with the relevant paperwork asap in order to secure that rate.


    Does anyone agree or disagree with the above? Any comments would be very welcomed, thanks
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • Moneyfordreams
    • By Moneyfordreams 2nd May 18, 11:36 PM
    • 1,143 Posts
    • 5,674 Thanks
    Moneyfordreams
    • #9
    • 2nd May 18, 11:36 PM
    • #9
    • 2nd May 18, 11:36 PM
    Its all very personal to you and your needs, but if that's what gives you security and peace of mind its a winner,
    I wanted a 5 year fix last time but couldn't face changing the application at the time. We've since sold so it doesn't matter... however when we are eventually in new place I will look again in 2019.. if that was the best 5 year deal I would go for it .
    Mortgage restart June 2018 119950
    zero personal cc
    6x166 for sofas ending November 2018
    2500 on DD1s car cc
    • fatrab
    • By fatrab 3rd May 18, 11:58 AM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Thanks, I think I'll take that rate. It's going to give me certainty going forwards to plan my debt freedom.


    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • gallygirl
    • By gallygirl 6th May 18, 8:10 AM
    • 16,662 Posts
    • 109,966 Thanks
    gallygirl
    I think if you want a) the security of a five year fix and b) you want to reserve it now rather than wait a few months then that is probably a good deal. The only think that might dissuade me would be a large booking fee but I'm guessing all the alternatives would have one anyway. The alternative would be to look for an offset mortgage - you could then put any payment from your mum in there and be totally offset earlier.

    If your rate is so low, once you have paid your car off, you would be better off opening a number of interest paying bank accounts, e.g. NWide have one paying 5% on 2.5k, FD have a 300 a month regular saver. Leave the money in NWide and count it as unofficially offset against your mortgage and pay the regular saver off the mortgage when it matures, then start another. When interest rates are so low you need to make all your little green soldiers work hard for you (that's an American phrase as their $1 bills are green but saying 'make those little yellow coins work for you' doesn't sound as good ).
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • fatrab
    • By fatrab 8th May 18, 3:10 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Received paperwork from mortgage advisor and have returned it along with all the requested paperwork so will just need to wait and see if I'm accepted. If not I do have a plan B. Sort of...

    What's the worst that could happen??
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 14th May 18, 11:48 AM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    I've now sold the car and the HP has been cleared. I've got enough left over to add to savings and pay off the loan, so it leaves me in a position where I will be able to make significantly more overpayments than the allowed 10% to the mortgage.


    Which leaves me wondering if a 5 year fix is definitely the right thing to go for?
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 25th May 18, 3:10 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Made the first overpayment in quite a long time to the mortgage today - 1670.20.


    Remaining balance 61162.22


    If everything goes to plan I should have it under 60k by end of June and down to around 55k by the time the re-mortgage is due to take effect.


    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 11th Jun 18, 9:19 AM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Just a little update, re-mortgage has been approved for a maximum of 58,000 fixed at 2.14% for 5 years with a 7 year term.


    So all spare cash will be thrown at the existing mortgage between now and October and hopefully I won't need to borrow the full amount.


    Will update this thread as things progress
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • Moneyfordreams
    • By Moneyfordreams 12th Jun 18, 4:45 PM
    • 1,143 Posts
    • 5,674 Thanks
    Moneyfordreams
    Thought I'd say Hi over here too...
    Mortgage restart June 2018 119950
    zero personal cc
    6x166 for sofas ending November 2018
    2500 on DD1s car cc
    • fatrab
    • By fatrab 10th Jul 18, 9:20 AM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Just another wee update, current mortgage dropped below 60k last week when the July payment was applied so I'm very happy with that. Due to a slight change in circumstances I won't be making any further overpayments so currently on target for the 58k in October.


    Ticking along nicely
    Last edited by fatrab; 10-07-2018 at 9:25 AM.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • fatrab
    • By fatrab 1st Oct 18, 9:52 AM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Not posted for a while so thought I better pop up an update!


    Current balance is down to 57,974 so perfectly on target for the re-mortgage to happen this month. I have made a slight change though.


    I've re-mortgaged over 10 years instead of 7. I'm still planning to pay everything off in 5 years, I'm just going to go about it differently. I'm setting up a regular overpayment so that I hit my allowed 10% each year and I will have the funds available at the end of year 5 to clear the debt, I just need the monthly payment to be lower due to a change in circumstances and reduction in take home pay. Annoyingly this should only be the case until the next project starts, but there's no guarantees in the construction industry so I had to make the decision based on my current situation.


    Still, mortgage free before my 50th will be a massive achievement.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

    • FunLovinCriminal
    • By FunLovinCriminal 2nd Oct 18, 7:20 AM
    • 387 Posts
    • 424 Thanks
    FunLovinCriminal
    Good morning

    Just read your thread - I admire you.

    We have 72k left, to pay in 9yrs, but would love to pay it in 7, when we will both be 50.

    However, with two young children and OH made redundant, this looks like a dream rather than your reality.

    Keep up the great work
    Mortgage: 01/02/14 - 108k
    Mortgage: Current - 97k
    Mission: MF by 50
    • fatrab
    • By fatrab 11th Oct 18, 3:07 PM
    • 1,077 Posts
    • 3,940 Thanks
    fatrab
    Just a little update, my lawyer called yesterday to confirm everything is ready to be processed on Friday. There was a shortfall which I was expecting totalling 360 so I paid that yesterday directly to the lawyer.


    So come Friday the main part of my 5 year plan will be in motion!
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

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