A long slow journey to mortgage freedom

A question about : A long slow journey to mortgage freedom

Hi,

I have been reading these threads over the last few days and I'm completely addicted!!

So approx 10 years ago we bought a flat for Ј83k sold for Ј115k. Overplayed that by Ј50 a month. Moved to house in 2007 we bought for 183k and recently sold for Ј180k in April 2014. The house I'm in now we bought for Ј295k and that is our final 'Jump'.

To save for our forever home we pretended we were paying the bigger mortgage for 3 years. This allowed us to save up and also then knew we could afford repayments.

Now I want to start chipping away at this mortgage, but enjoy life with my hubby and kids. So I want to do it in ways that don't overtly effect out lifestyle.

This week I posted 11 items on eBay and skipped 2 coffee and cake trips! Might help my waist line to. I brought back a pair of trousers I bought in the sales that I didn't really need. So that's a start.

I have a flex mortgage on an amazing rate for the term of the mortgage so I'm very lucky. Will post details in a mo.

Best answers:

• Mortgage graphs show normal mortgage without current arrangements being taken into account and then it gives details taking in current arrangements
  Normal
  Total repayments 204271.88
  Total interest 18867.91
  Loan term 19 years
  Current arrangements
  Total repayments 200658.07
  Total interest 15254.10
  Loan term 17 years 6 months
  -------------------------------------
  Current figures
  Original mortgage 250750
  Mortgage balance 245316.06
  Savings balance offset 59912.09
  Rate 0.99 - tracker 0.49 above base life time tracker
  Normal payment should be 858.52 per month. We choose to pay 1216 per month
• Good luck Sque x
• I just started one for myself to :] great way to get some support and keep a record of stuff :]
  Good luck
• Original mortgage 250750
  Mortgage balance 245316.06
  Savings balance offset 59912.09
  Rate 0.99 - tracker 0.49 above base life time tracker
  Normal payment should be 858.52 per month. We choose to pay 1216 per month
  With that rate you should have the savings somewhere else earning more interest than you are paying.
  Not sure what calculator you are using but those numbers don't look right.
  you can't pay off a Ј245k mortgage with Ј204k/Ј200k, you will be using those savings as well and then the payment/terms look wrong.
  Ј245,316 @ 0.99% over 19 years Ј1118pm
  net after offset.
  Ј185404 @ 0.99% over 19 years Ј893pm
  paying Ј1216pm 100% offset/paid off in 13y 8m.
• I pulled the calculations and figures straight off my online mortgage account so hope they are right!!! I'll check that out!
  I know I should have the 60k somewhere else but it's for the security I have it there. I have 40k in 'high end off medium' risk investments savings and investments and don't want any more risk. Also we moved into a new build so we used some of this money. I think by June all the things we need to buy/do will be done and I can think of tying up a bit more of the savings.
  Exciting times!!! So determined to get mortgage down.
• Good luck lucky in life!!!! We can motivate eachother!!
  So I did these calcs in jan just so I'd know what my mortgage balance would need to be to pay off in 20 years or 15 years:
  20 years- Ј234794 is end of 2015 target
  15 years- Ј230684 is end 2015 target- need to pay extra Ј216 a month to pay off in 15 years
  Does this look more like it? I think the graphs on the banks website make various assumptions that change the figures.
• Just called the bank and my Mortgage term is 27 years and 2 months. I remember actually I took it out for the max term to have full flexibility encase out circumstances change. So hopefully that's my figures sorted!!!!
• I really like your target and it seems easily possible in your situation
  How do your investments do ? do you ever take money out of them if you make any or anything ?
• I've recently transferred my investment and it's now being actively managed and is doing much better than previously. My IFA is down to earth, realistic and very knowledgable! I work in finance and never thought I would trust an IFA!!!
  I'm very aware reading other posts that my mortgage is HUGE!!!!
• I see its all relative to the household income
  I know people who own 100k with less than 15k coming in a year so thats massive to them and hard work
• If you want to keep the savings and pay down the full debt then one way to do the calcs is to split the loan in two, one part interest free,
  eg Ј245k Ј185@0.99% Ј60k @ 0%
  to pay that off in 15 years Ј1108pm + Ј333=Ј1441
  but because your rate is so low it is not much less than if you just did the full amount at 0.99% Ј1467.
  What savings rate does your current lender have?
  The thing is the chances of the rate staying the same for the full term is low so the aim is to have a figure that will do the job and try to manage that.
  I think I would work on numbers that don't include the offset and that is a small bonus/safetynet.
• Get more for less- Yes I'll calc the figures without savings and the more I think about what you said earlier I really need to move some funds out of the offset and into an account with higher interest.
  Lucky in life - your right about household income, but the actual number!!!! Lol I need to remember my Dads last mortgage payment was Ј9 and he said that was a fortune when he started!!!! Lol
• Get more for less!!!! I'm starting to get the same figures as you now! That's a start. Thanks.
  So I think I'll change my regular payment to be Ј1240 per month. That aims for being paid off in 18 years. (When interest rates change ill rethink)
  Target for end of 2015 I'm going to set at Ј232000. So I need to make approx Ј800 by selling things and overpayments.
  Hope I'm not setting my target too high!!!!!
• So I've now change mortgage to overpay by 381.57 until further notice so if rates go up and I've taken the eye off the ball my payments will increase too.
• Welcome to the boards
  MCI
• Thanks everyone for their advise and welcomes already. Was looking after a sick wee boy today so when hubby came home I popped out for a cuppa to clear the head. Used costa card for coffee but spend a tenner on valentines present!!!!
  Can't give up romance for the mortgage reductions!!!
• Can anyone tell me how to set up the footer? So my goals come up when I type?
• go into your user control pannel user cp on the green bar at the top then go to signature :]
  you can also change the picture as avatar :]
  Happy v day hehe