Mortgage-Free Wannabe

A question about : New House, New Mortgage!

I will start off by telling you a little about me! Just over three years ago my lovely husband and I bought our first home, we love our house but it no longer suits our needs! In this time we have changed jobs and got pay rises which has meant we can afford to move a big step closer to our dream home! So not only have we changed jobs and had promotions, we adopted two rescue dogs (my babies), got engaged and married, went on an amazing honeymoon and are just waiting to exchange contracts and complete on the next phase!

A question about : All I want to be...is Free!

I've never posted on a forum before so please bear with me.

I bought my flat in 2010. I took a Ј66k mortgage and a 0% Ј15k loan from my parents. I also have my student loan to repay Ј5k left. My goal is to have all these debts paid by Dec 2018. Or at least have enough money in savings to be able to pay off all these debts if I want to by Dec 2018 (will depend on the interest rates etc at the time).

A question about : Any threads that should be moved here?

As this is a new board some of these discussions have probably taken place elsewhere on the site. If you know of any threads that would better fit here. Please can you post a link in response to this

Martin

Best answers:

A question about : Overpayment on Endowment or Repayment

We have a mortgage of Ј96,000,
Ј75,000 is on an endowment basis and
Ј21,000 is on a repayment basis.
Interest rate is 5.49% on both.
We have Ј7,000 to make an overpayment.
Can anyone advise whether it would be more efficient to pay off capital from the endowment or the repayment. Or does it not matter?

A question about : Loan Amortization in Excel

A good tip for those that want to investigate the effects of overpayments and interest rate changes is to look at the 'Loan Amortization' template in your copy of excel. This will reveal that doubling you payment will cut the repayment time to 1/3. Also, Ј2k spent in the first year would save you ~Ј5000 over the 25yr period of the loan. Makes you think twice about that new sofa doesn't it and shows the downside of extending your mortgage as a cheap personal loan (ie low rate, but long timescale). Very interesting

A question about : Mortgage annual repayment calc broken down into monthly repayments

Hi, I am looking for a decent calculator/spreadsheet to show mortgage repayments over a year - broken down, each calculation shown:

example:

Ј95000 x 4% = Ј3800 divided by 12 = Ј670 (Ј316.67 interest, Ј353.33 capital) so, Ј95000 - Ј353.33 = Ј94646.67, and do the same again to work out monthly repayment.
and so forth for another 11 months.

A question about : Capital growth v mortgage debt

We took a mortgage of Ј105,000 out with A+L in May 2004. This is half repayment and half interest only. We have friends provident endowments on previous mortgages which were to cover Ј45000 (who knows what we'll get) and are due to finish in 2012.

We have inherited shareholdings which were worth at best Ј65000 in May 2004 and currently Ј95000.

Mortgage is up for review in May 2006.

A question about : Pay Off Mortage

I would like to pay off my mortage early as I have an extra Ј500 per month available. I am unsure which account to pay the Ј500 into or doesn't it really matter?

Main Mortgage - Ј15600 - 5.49% - Ends 6/2011 - current payment Ј287 pm
F Adv - 10400 - 5.89% - 3/2012 - Ј177
F Adv - 7000 - 5.49 - 10 /2011 - Ј122

The two 5.49% are fixed for 3 years

Any help would be much appreciated.