It's a sprint not a marathon!

PusscatT · 16 October 2016 at 2:15PM

So, this is my journey to paying off one of my mortgages (!) in 4 years. For me it is a sprint, as this mortgage is a buy-to-let and, as a higher rate taxpayer, I will be hit hard by the tax changes coming next April. Here is a bit about me / us and the grand plan...

I work full-time and have a home I live in with the family and a cottage that is rented out. Mortgage info is as follows:

Main Home
Value: Approx £375,000
Mortgage: £202,000
Mortgage rate: Offset lifetime tracker 0.6% above BoE base rate so currently 0.85%.
Payment type: Repayment (until 2032)
Monthly payment: £996
Overpayments: Unlimited, no penalties

BTL Cottage
Value: Approx £215,000
Mortgage: £134,400
Mortgage rate: 3.09% fixed for 5 years until 2021.
Payment type: Interest only on 32 year term.
Monthly payment: £346
Rental income: £800 pcm
Overpayments: Unlimited, no penalties

With the interest rates on savings now pitiful and such a cheap mortgage deal on our main home, we have decided to throw as much money as possible at the BTL in order to have it paid off completely by the end of 2020.
As I'm the money person in our house, this will be my story I guess, although I won't be able to do this on my own! I look forward to sharing my journey with anyone interested enough to read it. :rotfl:

Pusscat.

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Moneyfordreams · 16 October 2016 at 3:03PM

Welcome

PusscatT · 16 October 2016 at 4:02PM

Thanks Moneyfordreams! I've been a lurker for a long time and thought I'd better bite the bullet and commit it to the ether so I can't make excuses for not getting on with getting mortgage free...

Katzen · 16 October 2016 at 6:01PM

Hello!
Do love a new diary so I shall be settling in to see how you get on. Interested to hear what your plan is...

try_harder · 17 October 2016 at 5:04AM

Hi ,looking forward to following your journey;and welcome on board.

Tropically · 17 October 2016 at 10:35AM

Welcome and good luck!

PusscatT · 22 October 2016 at 2:16PM

Thanks for the welcome all!
Well, this week I have paid another £2k off the BTL mortgage and got a letter from the lender saying the balance is now at £130,899.18.
However, I forgot to tell them to keep the repayments the same so the monthly mortgage payment has dropped. I don't know about anyone else but ringing the lender and getting through a million security questions isn't high on my 'enjoy doing' list. It's positively painful but not something I can do online unfortunately.

I'm really annoyed with myself at having to spend out £60 repairing a wheel after I misjudged where the kerb was (oops), that's nearly a week's food shopping!

It's only just over a week until payday (hurray!) and I can see what's spare to add into the mortgage next month. However, the builders are in at home and we're away for the Halloween weekend so too much spending going on and not enough saving. I am trying though. I've done packed lunches for work all week, reduced travel to a minimum and switched both the broadband and utilities at home to save some cash. Haven't been anywhere other than work and home though, so no social life to speak of.

How are you all doing?

PusscatT · 22 October 2016 at 2:48PM

Good old moneysavingexpert! I switched the broadband and gas/electric a couple of weeks back but had forgotten the broadband had a cashback deal until I read the weekly email today. Claim submitted - £100 prepaid card and £50 cheque coming which will really help with the overpayments.

Jessy103 · 22 October 2016 at 4:10PM

Well done on your progress so far and the best of luck with your MF journey! I have subscribed so will be willing you on!
Jess x

giblet1979 · 23 October 2016 at 7:00AM

Welcome puss. Sounds like you've got a great plan and I'll look forward to seeing your progress

Gib x

Katzen · 23 October 2016 at 9:22AM

Morning Puss, does it make much difference if the monthly payment comes down? Does it not mean that you just have to manually transfer the difference with other OPs? Or are you wanting them to reduce the term instead?

It's a sprint not a marathon!

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