Hello Dear Reader and welcome to all new followers and readers xxxxxx
Times are hard. No one need to worry about not having any money as no one has any! If you have any, you could save it and get sod all in return! Once you’ve paid off any debts, if you have any, the next step is the mortgage. We’ve been paying back nothing more than the minimum repayment of the capital, in our case nothing more than asked, for the past two years. Now, we’re going to take every penny we previously snowballed into debts and add that to a monthly payment.
I don’t make a regular payment, I actually go into Santander and pay them a cheque each month. Some months, I pay more and some times less. I can pay up to 10% of the balance a year and not incur extra financial penalties. Can you believe those blood suckers actually get away with charging you more for paying off your mortgage at more than 10% a year! Well I’m fixed into that stupid deal until 9/9/2012, when I will be telling them in no uncertain terms where to get off! I’ll tart my payments from bank to bank in the future without being tied in, whilst looking for the best deal as it arises.
By overpaying my mortgage to the point at which I was paying debts each month, means we will be left with exactly what we had to live on when we were in debt. Life won’t change. We’ll still use second hand water, won’t turn the heating on, will still use the shower timer, will still grow food to supplement our diet, still have a small food budget and still not go out to eat. It won’t kill us. It will though reduce our mortgage by 11.4 years and save us £42,759 in interest payments. That will rid me of the shackles I have to the bank.
Whilst I’m on the stinky high interest rate and stuck into a deal with penalties, we only pay off 10% a year but there are mortgage deals out there that don’t have penalty charges and I will keep my eyes open for one.
I’m off now to read my meters and record what I’ve used or not used. We’ve also had great success with solar re-chargables and will look into some more for the house. There’s no way I’m going to commit to PV whilst I don’t own my own home, but I can have stand alone and re-chargable lighting for snuggly winter evenings where a warm glow will do. I can always throw a switch if I need ‘day light’. I know some people who read this are literally on your financial arse and my thoughts and prayers are with you. I know some of you, through prudence and being careful have worked your way to debt freedom. If that’s the case, then why not have a look at how much you could save if you over paid your mortgage.
I may live a simple life but it’s worth it to pay off my mortgage in 8 years and 6 months! (So, stuff that you bankers!)
Love Froogs xxxxx