Oh yeah!!!!!

 Hello Dear Reader!

Today is a real ‘Ta dah!’ kind of day. It’s the end of the month, I have not a penny to my name as I’ve cleared out our accounts, bundled it into one place and thrown it all (like monkeys throwing shit!!!!) at Santander! I have made it! I have reduced my mortgage capital by 10% this year! Now it’s time to save for next year’s payments.

There’s no heating on. The lights are off. We’ve eated a slow cooker from stewing lamb and root veg, which cooked in the slow cooker. The clothes have dried again on the indoor rack infront of the window. we have no budget for Christmas, so just a few homemade gifts for close family but OH YEAH….we’ve made it and we’ve a month to go yet and two pay cheques to bank in readiness for next year.

When I first did this, it seemed so hard, depressing and it really wasn’t any fun. Now I dance around when I write another cheque to the building society. I love giving them my money. It’s doing nothing in the savings account (although we do have a contingency fund) so we might as well reduce the huge interest payment we make each month. I plan to get rid of another 10% next year….and some! Does anyone have a brilliant mortage deal they can recommend? Does anyone have an offset mortgage?  

I don’t think any of us can predict the financial future, or even be that prepared for it. All we can do is stuff money (if we’re debt free) any where we can. In my case, whilst I’ve got a mortgage, I may as well keep buyng a few more bricks and try and get myself out of mortgage debt as soon as I can. But Oh Yeah! I actually achieved my financial goal in total today.

Until tomorrow,

Love Froogs xxx

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32 thoughts on “Oh yeah!!!!!

  1. Good for you! I would be a bit wary of offset mortgages – I know lots of people who've found that they don't really work the way you expect and, somehow, the lender always seems to get the better deal…

    Better to keep throwing money at it, and watch your debt go down. Such a good feeling!!

    Jane

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  2. I have 20 years to run on my mortgage but I'm hoping to pay it off in less than 10 – I'm aiming for 6 years when I have a lower interest rate and I change to a mortgage that lets me pay more that 10% a year – I want to pay it off by the time I'm 50

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  3. An offset mortgage is fantastic for those who can beat the banks at their own game. They offer them because most people will draw down what they have repaid so that they end up back at square one deep in debt. Nice little money earner for the banks.

    But if you use them to your advantage (and I know you would Froogs) they really show you the power of compound interest when it works for you. We took out an offset mortgage back in 2002. It was one where you could draw down again if you had made overpayments, but it wasn't the sort that works like a giant overdraft. We threw all our savings at it, which got it down below £100,000. From then on I got a bit obsessive about rounding down the amount each month. Three years later my DH was made redundant. By that time we had paid off so much that his redundancy pay was able to clear the mortgage. It made such a difference not being terrified that we were going to lose everything. What surprised me was how much more quickly it went down than I was expecting – as I say, that is the power of compound interest in reverse especially when you overpay on a monthly basis

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  4. If you go for an offset mortage read the the fine print VERY carefully including the fee part of it.
    There must be some kind of disclosure/ truth-in-lending laws in the u.k. the same as in the u.s. but in the end caveat emptor is the key.
    Try and get a mortgage with no pre-payment penalty even if the interest rate is higher. I took a 15year fixed and paid it off in 9 years refinancing twice. Saved
    $43,000 in interest over the life of the loan.
    No pre-payment penalty here in Illinois- check your usury laws.

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  5. Wow and wow, our mortgage is with Santander and I just did a two year fixed deal, keeping the monthly payment the same but chopped 2 years 7 months off our term. But , inspired by you I am going to try and save to pay that 10% we are allowed! It might only be 1 – 5% in reality as redundancy hit us last month but you really have spurred me on 🙂 !

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  6. Well done on paying off the extra 10% allowed this year. Ya boo to Santander for only allowing this much!!

    I think an offset mortgage would be brilliant for you as you are self motivated enough to clear it quickly , they are only a bad idea if you would be tempted to draw back money to spend on the house/holidays etc….and somehow I think you would beat the banks at their cheeky little game in that department Froogs.

    Well done again.

    Sue xx

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  7. Well done for making your target. That's brilliant. Pity you can only pay an extra 10% off each year. Luckily we can pay as much extra off as we like…when we have the money. Can't give any mortgage advice, but we've been very lucky. We gradually changed over from endowment to full repayment mortgage about 5 years ago and then paid £100 fee to transfer to a low interest tracker. Best £100 ever spent because now the interest rates are so low our payments are less than £300 a month and of that £250 comes off the actual capital. Of course if the rates increase we won't be doing so well and a couple of years ago our payments were £150 more. This is with the Halifax but I don't think anyone could get a deal like this now. Last year we payed double each month to help reduce the term but now we're on really low money that's dropped to just £50 extra, but still making a difference.

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  8. We've been considering an HSBC mortgage – it's a tracker, currently at 2.59% but linked to the BofE base rate for its lifetime. Unlimited overpayments with no penalties and no exit fee. You do have to have a max LTV of 70%.
    Because you are proactive enough to pay any extra you can afford into your mortgage every month anyway, you would probably be better off on whichever one offered the lower interest rate, whether that was offset or not. It's worth a bit of number crunching to find out for sure.

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  9. Great job, froogs! I rent, don't have a mortgage only debt on a car loan (must have a good car for work). I really admire your tenacity and can do attitude. Keep up the good work!

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  10. Congratulations for your mortgage ! Here, we pay each week our mortgage. It helps to reduce the debt, and we will save 5 years (20 years vs 25 years) of payments. When it's possible, we put more money to reduce the debt.

    So, in 15 years max, we will own our house. Just in time to pay big studies for kids ;).

    Killer

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  11. I am in awe of you. Well done.We were fortunate in being able to downsize this year and altho little left in the kitty we owe no-one, its taken me 60 odd years to get into this position. I know you will get there and still be able to enjoy a lot more of your life.

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  12. Fantastico – reading about your own progress is nearly as good as doing it yourself – one debt to go, over paying our small offset mortgage; we'll have a small cash cushion next for contingency plans – yay!! I love the image of throwing poo at Santander lol

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  13. Hi Froogs, When you make an overpayment are you best to take it off the term of the mortgage , ie 25 years or better to reduce the monthly payments. This has been confusing me for sometime. keep up the good work.

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