Week 4 - The Great Re-mortgage Debate

Week 4 : Friday 18th April 2008
The Great Re-mortgage Debate

Mortgages are simply large loans over a longer period of time that typically we use to buy a house ( or houses ) with. For whatever reason, we tend to think of them as some sort of thing that "everyone" has and therefore do not add it in to our personal debt total or indeed think of it as a debt in it's own right.

With the worry factor starting to kick in, you need to be aware that the savings to be made by remortgaging to a better deal can make a huge difference to your monthly finances. You can easily release £ 80 to £100 a month or more, depending on the size of your mortgage. Plus you save oodles in the long term interest savings.

Now this is where opinions differ to mine as most people looking to save money on their mortgage are looking to go aaaaaaaaahhhhhh! & breathe a little bit easier, after all utilities are rising, so is food, and now so are some mortgage deals!

The reason this challenge is ongoing is to show you week by week how you can use the savings you make to repay your mortgage in less than 3 years BUT to do this for the short time required ANY savings you make MUST be used to pay off your outstanding debts or the whole process will be wasted.

Those savings will sneak back into your current or bills account and be used on other things, you are not controlling the savings and directing them towards the whole aim of the challenge. Which deal? What Rate? It doesn't really matter if your goal is to:-

1. Save money by getting a better deal and .......
2. Use the savings you make to make additional payments.

The ultimate challenge is to add any extra money you make to the pot aswell and then you really start to see the some big figures.

For the purpose of this challenge I will use an average of £100 per month saved by getting a better mortgage deal. Whatever deal you choose should be one you can make extra payments to to reduce your mortgage and the interest charges being applied.

This whole challenge is being carried out week after week to show you that everyone can achieve success in their own mortgage freedom. It's not a "magic" formula, nor does it rely on eating baked beans on toast everyday.

It is perfectly within the reach of anyone who commits themselves to completing the challenge, arms themselves with the plan and simply implements the step by step formula that will lead to mortgage freedom.