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  • FIRST POST
    • The Pixi
    • By The Pixi 28th Jul 13, 10:15 AM
    • 298Posts
    • 234Thanks
    The Pixi
    The Pixi Mortgage Free Diary
    • #1
    • 28th Jul 13, 10:15 AM
    The Pixi Mortgage Free Diary 28th Jul 13 at 10:15 AM
    Hi All,

    So in may finally got our house and the subsequent mortgage with it. Having been on MSE for sometime, the idea of overpaying was top of my priority so my partner and I are going to go at it like the clappers and hopefully get it gone as close to 10 years as possible.

    Our mortgage is £258,000 at 85%LTV and we currently have a 5 year fix, its my hope that we get to 50% LTV by the end of the 5years. Its my hope that if by then rates have risen, having 50% LTV should get us a rate that hopefully will be similar to our current 3.98%

    With this in mind we have budgeted to pay £2k a month on the mortgage and this is about £630 a month overpayment. We have also started an saving account that swallows all the monthly savings. So when we get a £4 off a £30 spend coupon from Sainsbury's the £4 goes into the saving account. Last month we got a £50 cash back on our new fridge so combined we added a £180 bonus to the £2k payment.

    I'm going to keep a diary going here with a cumulative overpayment total, if anything keeping it at the front of mind and as a monthly habit will really help.
    Last edited by The Pixi; 28-07-2013 at 10:59 AM.
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
Page 3
    • The Pixi
    • By The Pixi 23rd Jun 16, 11:42 AM
    • 298 Posts
    • 234 Thanks
    The Pixi
    The last few months have been busy for us. We have had some cabinets installed in the alcoves which have now given us some much needed storage space!

    I have also been out and about int he garden growing Tomatoes, Peppers, Chillies, Carrots and Onions. We havenít had a 100% success rate but we have got plenty of plants going in the green house so I am looking forward to harvesting our home grown produce.

    My Brother is getting married this weekend so I have been saving up on the side for a wedding gift. Hopefully they will put it towards a deposit for their own house

    Mortgage wise we are doing good, this month we have £29 bonus overpayments

    £5 from a Harrods voucher
    £24 from Tesco Pizza Express voucher.

    Bad news is that Homebase (where we buy a lot of gardening and paint) is stopping Nectar points after December. this has been netting us, along with bits from Sainsbury's £50 per year geeer

    Next month is going to be a good month for us as we make our last sub £1000 overpayment and start overpaying by £1000+ each month!
    Last edited by The Pixi; 23-06-2016 at 11:47 AM.
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
    • The Pixi
    • By The Pixi 23rd Jun 16, 12:09 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    This years update is a bit late but here goes.

    Three years ago we started on our mortgage and the overpaying route and I am really pleased that we have managed to keep to this years overpayment target of a flat £2100.00 per month and have recently increased this to £2200

    We even manage bonus over payments to the pot as well.

    The numbers breakdown like this

    Outstanding loan total 05/13 £259,250.00
    Outstanding loan total 05/14 £244,336.86
    (5.8% down)
    Outstanding loan total 05/15 £228,925.41
    (6.3% down)
    Outstanding loan total 05/16 £212,082.54
    (7.4% down)

    Actual minimum payments to the Mortgage Company 15-16 £14,948.92
    Actual interest paid £8,865.51
    Actual capital reduction £6,083.41

    Loan Sub Total £238,233.47 (2.5% down)

    Actual basic overpayment total £10,451.08
    Actual bonus overpayment total £153.04

    Actual overpayment £10,604.12

    Total capital paid £16,687.53

    Outstanding loan total 05/16 £212,082.54
    (7.4% down)

    The aim last year was to get the total to sub £210k which has been slightly missed,
    The aim for next year is to be below £200k and preferably as close to £190k as possible.



    Last edited by The Pixi; 23-06-2016 at 12:12 PM.
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
    • The Pixi
    • By The Pixi 16th Sep 16, 4:53 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    We hit a milestone at the end of August, our first overpayment that totalled over £1000!

    We have slowly been chipping away at the min payment and have now got it down £172.76 from the original sum. This reduction has finally pushed our overpayment into the £1000+ per month and we still have 17 months left on the fix... at which point we hope we can get the re-mortgage at a lower rate and push the overpayments up even further.
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
    • The Pixi
    • By The Pixi 5th Dec 16, 10:55 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    With the year almost up were are very near getting the mortgage under £200,000 for January which is £60,000off the initial loan three and a half years ago!

    We also have £50 of Nectar points to get through at Sainsbury's, this will probably be on some champagne

    On an interesting note this month we have noticed our next door but one neighbour have put their house up for sale for £205,000 more than what we paid for ours just three and a half years ago.

    I'm not so sure they would get anywhere near their asking price but I will be keeping an eye out for sold price as that will be a better comparison for a re-mortgage valuation at the end of next year.
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
    • The Pixi
    • By The Pixi 31st Jul 17, 2:18 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    So it has been quite sometime since I last posted but we have been steadily plugging away with the mortgage.
    In February our mortgage fix ends so we will soon be looking around for the re-mortgage rate which I hope will be kind to us as we have managed to overpay a large amount over the last 4 and a bit years so if we can get something under 2% our required monthly payment would only be £800 give or take which is a huge drop from £1300 we started out with.

    Market news here is exciting, the house mentioned in my last post only just sold, given it was a bit of a mess inside I doubt they got the £550,000 they were hoping for however 2 more doors down the house sold in a few weeks this time asking £595,000. This house is in a top notch condition and we are now waiting on the sales prices for both to come through online. exciting as this could represent a paper increase of our house of around 100%

    Anyhow below are the numbers when I posted last year and here are the new numbers as of today.

    End of month 11/2016

    Mortgage Balance £201,421.99 of £259,250.00 Overpayment Total £36,041.01
    Monthly payment down £190.72 Overpaid last month £1021.98

    End of month 07/2017

    Mortgage Balance £177,912 of £259,250.00 Overpayment Total £52,195.58
    Monthly payment down £233.26 Overpaid last month £1070.82
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
    • The Pixi
    • By The Pixi 6th Dec 17, 1:56 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    Christmas update here.

    So it has been 4.5 years since we started our mortgage-free journey.

    We started out with a mortgage of £258,000 at 85% LTV on a five year fix of 3.98%
    At the time we thought we had got a good rate and this allowed us to pay £2000,00 per month (loan and over payment combined)

    We slowly increased this to £2200,00 per month.

    Our current balance is now £182,709.91 and we have over paid £48,847.13!

    Originally we wanted to pay down the mortgage fast in-case rates went UP - we wanted to have as low as possible the mandatory monthly payment, well…We have just now fixed again for another 5 years for 1.69%

    This will make our minimum payment drop and an immediate £350 drop in the monthly accruing interest (it was previously £600)

    We have also swapped to an offset saver mortgage, we can overpay 10% once a year so every Christmas we will empty 10% worth of savings out of the offset account to get it off the mortgage officially.

    We also had some promising news on the house sales a couple of doors down (Identical terrace houses) As predicted the house asking £550,000 failed to achieve that (It needed a lot of work) but it did sell for £483,000. which would mean our house has gone up 58.3% in 4.5 years. I think it would top that as our place is in good order.

    Merry Christmas everyone
    Mortgage Balance £182,789.00 of £259,250.00 Overpayment Total £48,847.13
    Monthly payment down £258.82 Overpaid last month £1096.38
    End of month 11/2017
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