Mortgage free by 2023 (!)

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  • Been messing about with the mortgage overpayment calculator and bearing in mind very little will get overpaid on the mortgage this year, I'm looking at £525 per month overpayment to be able to clear the mortgage in time.. that's a big ask every month on top of the £921 that we already pay.. however £300 a month will be easy as we stop paying nursery fees, plus the £164 loan repayment, plus £25 from the child benefit that I usually save bringing me to £489 so in theory we could probably do it..

    However I can't start these overpayments until the loan is gone this year, then I need to clear the credit card (6 mths I reckon), plus I also want to stop flinging every spare penny at the debt and start building emergency funds, car replacement funds etc..

    At the moment in time, I can't see how to make the money spread as there is very little else we spend our money on..

    Feel we are destined to be skint forever!

    That said, overpaying our mortgage by just £250 this year knocks a month off the length and saves us £193 in interest, so that is the aim for this year.. £40 already paid, leaving £210 left to pay..

    I'm also toying with the idea of just increasing the mortgage payment by £20 on a permanent basis, it's not much, but it knocks 5 mths off the length and I'm thinking every time we get a payrise we do the same so we don't miss the money.. that's my thoughts tonight anyway!
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
  • That's a great idea, I have just done it in fact. :D sounds like we are in a similar position. :o

    We remortgaged bringing our payments down £25 pm due to a more favourable rate so I arranged for my old payment to remain the same, thereby automatically op'ing each month (stayed with same lender so nice and easy)

    Seems like nothing but over time it adds up, add to that our drop in nursery fees due to the free 15 hours that's imminant, some cash that comes free once a loan is paid off in September and suddenly the overpayment is much bigger, and we haven't even noticed it in our pockets :beer:
    Stealth OP's :rotfl:

    If I add to that the £500 I am paying off our CC too then pretty soon I am paying double my mortgage payment and not even feeling it!
  • I did in fact set up a £20 regular overpayment to the mortgage last night choccielover.. feel like I do need to start somewhere, no matter how small. April is our next pay rise and so I'll increase it again then.. will still aim to pay off £250 over the year separate to the monthly overpayment..
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
  • Well done :)

    It's the small things that count too, I think that there is a lovely feeling about making a random op too, gets the happy vibes going so your aim to make £250 on top is great.

    Good luck!

    I'm committed to doing well this year and should smash my target but it will be back end loaded for me as I have some cc debt (on 0%) to clear then our holiday to pay for. Not very MSE at £6k but I work exceptionally hard and this is my only real family time.
    The good news is that I am also building up savings this year too, a safety net pot with an aim of £8k initially, an emergency pot of £1k and will start putting £500 pm towards our holiday fund for next year. Won't fill all the pots this year but should make a good start and will have the funds to prevent me needing the cc for big things in the future and thereby requiring paying off.

    Phew, I have gone on a bit there...sorry
  • You know as much as you are focussed on debt and the long haul, you can't let life go by without living it, so a holiday now and again isn't a bad thing.. you know you will clear the cost and you have some really good goals this year - so don't beat yourself up - I think you are doing fab!
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
  • newgirly
    newgirly Posts: 8,893
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    Hi, I just wanted to say good luck with the diary, that's a lot of debt you have cleared already :)
    2022 MFW 67 - 33 month challenge to clear mortgage, month 17 completed and and extra 2 knocked off 🙂MFI3 No.12
  • Thank you new girly..

    So I've been jiggling figures again today in YNAB and have allocated pennies to a number of different pots each month.. short version being I've allocated another £20 a month to the mortgage overpayment.. what I can't decide is whether to let that pot build or up the overpayment to £40 a month..

    Letting it build and paying off £20 a month means I take off 5 months of the mortgage term and save £1314 in interest.. Crazy stuff!

    I'm assuming I'm better off upping the regular overpayment so there is less money to pay interest on?
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
  • kitjos
    kitjos Posts: 223
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    Your doing so well! Still stalking from page 1 ;).


    Just an extra £20 OP per months equates to a big interest saving - amazing isn't it?! Most people are in the frame of mind that it has to be a large OP amount to make a difference, but small ones also add up.


    Keep up the good work! I OP'd £800 last month and probably about £300 this month, slow and steady wins the race.


    xx
    "Don't underestimate the value of financial security"


    Wanting to be mortgage free by 45. £155,000 start / £86,880 currently

  • Hi debtfreeoneday, just checking out your diary. So impressed you have managed to do so well with paying off debt so far! I'm sure you will kick the mortgage's @ss!
    2018 wins: Aspinal of London jewellery box, Boudavida gym outfit, HP Pavilion laptop, The List party tickets, All Points East festival tickets, Kiehls moisturiser, By Terry cc serum, Nars Liquid Bronzer, Benefit highlighter, Nars illuminator, Fresh advanced lip trio set, Cetaphil sample set, signed copy of My Absolute Darling by Gabriel Tallent
  • Thank you kitjos and velocity!

    Mortgage overpayment of £20 confirmed... I'm going to save the other £20 this month and then up the regular overpayment to £40 next month.. will maybe look to do another £5 when my pay increase gets applies in April..
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
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