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    • sweetdaisy
    • By sweetdaisy 28th Oct 11, 3:08 PM
    • 1,245Posts
    • 5,257Thanks
    sweetdaisy
    Sweetdaisy's aim to be mortgage-free
    • #1
    • 28th Oct 11, 3:08 PM
    Sweetdaisy's aim to be mortgage-free 28th Oct 11 at 3:08 PM
    Hi everyone

    I have been reading the 'Mortgage-free wannabe' threads for quite a while and want to start my MFW journey. I want to keep a diary so that it keeps me motivated to work towards my aim of being Mortgage Free.

    I am married and we have two young Sons. We originally took out a 25 year mortgage for £61,500 in February 2001, however we had an extension to our house 3 years ago and our mortgage balance is just over £84,000 and we have 14 years and 3 months remaining on the term.

    Ideally, I would like to repay the mortgage at least 4 years early - in 10 years time, so I will be 42 years old.

    We have a Natwest Offset Mortgage with an interest rate of 3.75%. The repayments are capital and interest repayments and I am offsetting one current account and 3 savings accounts against the mortgage, so I don't get any interest paid on these accounts. At the moment, as we have only been paying the minimum mortgage repayments we are set to repay our mortgage 1 month early.

    I have just increased my monthly mortgage payments by £59 a month - to make a start on overpaying . I know it's not much, but as I am on Maternity Leave (until April 2012), this is all I can do at the moment.

    Even though we aim to reduce the term of the mortgage by a few years, I am not going to be too frugal as we have two young Sons and want to enjoy life .

    Look forward to being active on here and hopefully this will motivate me to save/overpay more so that we can reduce the term of our mortgage .
    Last edited by sweetdaisy; 08-11-2011 at 9:21 AM.
Page 37
    • sweetdaisy
    • By sweetdaisy 9th Oct 16, 10:13 AM
    • 1,245 Posts
    • 5,257 Thanks
    sweetdaisy
    I’ve not posted for a long time – a lot has happened which has resulted in us having to re-evaluate our finances. Just as I was in touching distance of becoming fully Offset (managed to get to 98%), DH was initially told that his job was safe and then a fortnight later, we received the news that we were both potentially facing redundancy. This is an ongoing and long process, but for the time being things are looking positive and we are still in our jobs.

    As much as we wanted to be fully Offset, we had to be sensible and decided that we needed to reduce our monthly outgoings as much as we could in the prospect of us both losing our jobs.

    So, over the past 6 months or so I’ve been like a busy bee haggling my car breakdown cover and reduced this by £58; repaid my car loan in full at a cost of £7,400 out of Savings, which has saved us £1,110 in interest and reduced our monthly outgoings by £240; I also repaid £4,700 which I had on a Virgin Credit Card (interest free) as I did a balance transfer to stooze the money so that we could save interest on the mortgage - this saved us £47 a month; and I have shaved £10 a week from our weekly spending money.

    All in all, we have gone from being 98% Offset and only paying £4 mortgage interest a month to now being 66% Offset . This is very disheartening, however on the positive side we have reduced our monthly outgoings and I can honestly say that without having an Emergency Fund behind us, we would be in a much bleaker situation.
    For the time being I have kept my Mortgage payments as they are as it is manageable. We currently pay £750 a month, however the minimum payment reduced to £433 in June, so we are automatically overpaying by £317 per month. The mortgage balance is now £38,200 and it is a great feeling to be in the £30,000s.

    At present, I am not making any additional Mortgage Overpayments as I am building up my Emergency Fund again, however according to my spreadsheet we could be 100% fully Offset by November 2017 – if all continues well on the job front.

    I am also going to try and post once a month to keep up the motivation .
    25 year Mortgage started February 2001 (end date January 2026)
    Offset Mortgage Balance December 2016 £30,950
    On target to repay 5 years and 5 months early (August 2020)
    • gallygirl
    • By gallygirl 9th Oct 16, 10:32 AM
    • 16,425 Posts
    • 107,655 Thanks
    gallygirl
    Being 100% offset would have been great but it's only one tool in the great money saving box . I would probably have done what you have done - simplifying your finances at the same time . Good luck to both of you.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Oct 16, 8:03 AM
    • 582 Posts
    • 2,566 Thanks
    SuperSecretSquirrel
    Sounds like you've done the best thing for you under the new uncertain circumstances. That's what I like most about this savings business - the luxury of calmly dealing with what could otherwise be a disastrous scenario, no stress

    To be fully offset in just 12 months time while benefiting from increased cashflow on the way there is pretty great too!
    Mortgage [2013 £64k|2014 £51k|2015 £38k|2016 £26k] £16,426.36
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k] +£47,033.30 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k] £259,115.08 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%] 16.5%
    • sweetdaisy
    • By sweetdaisy 30th Oct 16, 9:46 AM
    • 1,245 Posts
    • 5,257 Thanks
    sweetdaisy
    Not much to report at the end of this month. Monthly mortgage interest was £29.10, therefore made an Overpayment of this amount, which bring balance to £37,450. Slowly building up my Savings again and according to my spreadsheet, could be 100% fully Offset by next October.

    Done around 60% of my Christmas shopping (mostly done online) and used cashback sites where I can. I have an Exam the week before Christmas so I need to get organised and do some wrapping now, otherwise I am not going to have much time the closer I get to my exam.
    25 year Mortgage started February 2001 (end date January 2026)
    Offset Mortgage Balance December 2016 £30,950
    On target to repay 5 years and 5 months early (August 2020)
    • slowlyfading
    • By slowlyfading 30th Oct 16, 1:52 PM
    • 12,861 Posts
    • 73,807 Thanks
    slowlyfading
    Ooh, your mortgage interest is enviously low!
    Be who you are and say what you feel because those who mind don't matter and those who matter don't mind - Dr Seuss
    Personal Finance Blogger / Oct NSD - 10 / Ultimate Dream Fund - £19,661.40/£306,000
    Engaged 14/08/10 // Married 31/03/12 // DS born August 15 // Baby #2 Due Dec 17
    • sweetdaisy
    • By sweetdaisy 30th Oct 16, 9:04 PM
    • 1,245 Posts
    • 5,257 Thanks
    sweetdaisy
    Hi slowlyfading

    When I started my MFW spreadsheet 3 years ago, we were paying around £186 a month interest. I'm so happy that all the hard work over the past few years is paying off, despite really scaling back our overpayments for the past year.

    Looking forward to going into 2017 and hopefully we will become fully Offset. I have a few things that need doing to the house: decorating, new kitchen, back garden to be re-done etc that will cost a lot, but looking forward to not having to pay the bank any interest .
    25 year Mortgage started February 2001 (end date January 2026)
    Offset Mortgage Balance December 2016 £30,950
    On target to repay 5 years and 5 months early (August 2020)
    • Tilly MFW in 6 YRS
    • By Tilly MFW in 6 YRS 30th Oct 16, 9:43 PM
    • 7,746 Posts
    • 86,445 Thanks
    Tilly MFW in 6 YRS
    Hi Sweet Daisy, sorry to hear that you're going through the mill but really pleased to see how close you are to being fully offset.

    I really admire the way you have kept your focus and 'done it'.

    Best wishes Tilly xxx
    2004 £387k 29 years - MF March 2033
    2011 £309k 10 years - MF March 2021.
    Achieved Goal: 28/08/15
    • Secret Saving Squirrel
    • By Secret Saving Squirrel 31st Oct 16, 9:27 PM
    • 3,867 Posts
    • 35,850 Thanks
    Secret Saving Squirrel
    Hello,

    It seems like you have really retained your focus, and by paying off those oddments you can keep your head clear should the worst happen. However, chances are it won't and you will very soon be mf. Good luck to you all!

    Squirrel x
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years
    • sweetdaisy
    • By sweetdaisy 31st Dec 16, 10:44 AM
    • 1,245 Posts
    • 5,257 Thanks
    sweetdaisy
    In 2016, I have been quite absent but hopefully in 2017 I will be a lot more active. I have been very busy - I’m 14 months into my new career after a change of direction and love it; I am continuing with my ACCA studies and passed an exam just before Christmas and have 2 exams to do by June/July for my current course; Children’s school work has increased lots so evenings spent supporting them with reading/writing/school work etc., then as soon as they go to bed I start my studying for around 2 hours an evening then somewhere in between, I manage to make tea and do the usual housework!!!

    Overpayments in 2016 were £8,854, which included a large overpayment of £5,000 in December. As of today (based on Offset Savings accounts) we are 80% Offset and we only paid £10.20 this month in interest .

    In 2017 I have quite a few things that need doing around the house which are going to be costly, so not sure if we will become fully Offset, as I need to get the back garden dug out, build a retaining wall, new patio, decorating etc which is going to cost a fortune.

    Therefore, no ambitious finance plans for me in 2017. I just want to build on Savings so that I can try to get as close to 100% Offset as I can. Whilst it has always been my aim to pay off the mortgage as quickly as I can, I have my sensible hat firmly on my head as I know that it takes a long long time to build up Savings and I want to keep that safety net there for whatever comes our way, whilst continuing to do fun things as a Family and building memories .
    Last edited by sweetdaisy; 31-12-2016 at 10:47 AM.
    25 year Mortgage started February 2001 (end date January 2026)
    Offset Mortgage Balance December 2016 £30,950
    On target to repay 5 years and 5 months early (August 2020)
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