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  1. #1

    Mortgage free? It's still a dream but I'm getting there

    I thought I would document my efforts to pay off my mortgage here and also hopefully take advantage of the wealth of knowledge on these forums to make sure I do the best thing with regards to mortgage finances.


    • Borrowed 171000 (90% LTV) in June 2005 at 4.89% fixed for three years
    • Switched to five year Nationwide fix in June 2008 at 5.83% 1075 per month)
    • Started overpaying by 500 each month in March 2009, which we have managed to keep up now for 42 consecutive months which means we have shaved 4 years and 6 months off the term

    Am now trying to prepare for what to do in May 2013 when the 5 year fix comes to an end.

    On a side note - what ridiculous timing to take out a five year mortgage? (Just a couple of months before the banking crisis hit.)


    That's why I am so delighted that we have been able to mitigate the effects of the awful 5.83% rate by overpaying by 21000 so far

    When the current mortgage finishes, I estimate that there will be roughly 110000 to pay and our mortgage will drop to 950 if rates stay the same. However, we are so used to overpaying now, that I think we can safely aim to pay off the entire thing in 5 years from June 2013 - maybe less. That's the plan anyway.

  2. #2
    I took out a fixed rate at over 6% in 2008
    It was only fixed for 2 years though, and I could (and did) overpay 10% per year. It is now on svr of 2.5% with no restrictions on overpayments, and I am aiming to pay what is left of it off this year.

    Looking back, I could kick myself as well, but it was an unprecedented time, and interest rates could just as easily have shot up. We shouldn't beat ourselves up for not being able to see into the future.

  3. #3
    Well done so far and just think that each time you OP by 500 you are saving 5.83% TAX FREE,
    When you current deal finishes please check what interest rate you would get from a Cash ISA and if more than your mortgage rate then fill a cash ISA in both Names if you have a partner.
    I took out a 5 year fix at 4.74% in 2006 but happy for the security at the time

  4. #4
    Thanks for your replies DawnW and dimbo61 and for your encouragement and words of advice

    The monthly 500 OP we have now made for the past 42 months is the maximum allowed under the terms of the mortgage. I wish it were more!

  5. #5
    I am another one who was in a five year fix at 5.35% which ended in March this year. It was amazing to see our daily interest drop by over 50% overnight.

    I used to kick myself often for our ridulous attitude to money and the struggles with the Spanish bank, but slowly this has reduced. I occasionally have a whinge when I see the numbers but I can also see that things are getting better.

    Well done for continuing to OP for so many months consecutively


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