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  • FIRST POST
    • thewalrussaid
    • By thewalrussaid 14th Aug 15, 4:02 PM
    • 99Posts
    • 431Thanks
    thewalrussaid
    the time has come...to get the mortgage below £200k
    • #1
    • 14th Aug 15, 4:02 PM
    the time has come...to get the mortgage below £200k 14th Aug 15 at 4:02 PM
    Hello all on the MFW board!

    It is a bit scary to start a diary so do bear with me if I start rambling. I have been a long term lurker on this forum and this board in particular for years. I have been inspired by everyone but especially Gally Girl, Tilly, GreenT, HelenDaveKids & Edinburgher, in fact it was Edinburgher and Pennyforthepot who introduced me to the idea of FIRE and MMMís blog. Reading MMM and other blogs focussing on FI really opened my mind to possibilities I hadnít previously considered. I suppose in a way it distracted me because previously I had thought that to pay off the mortgage was the sole goal. The thought of FI widened my horizons and got me thinking about other long term investments. Anyway I wonít bore on for too long but suffice to say that it gave me a massive amount of food for thought.

    Some brief details, DH and I purchased our home two years ago with a £270k mortgage this currently stands at £245,990.00. The original mortgage period was 20 years and is now 18 (which is kinda stating the obvious but just confirming). The rate for the first two years was 2.74% and we have just opted for a Halifax retention product and fixed for 2 years at 1.69%.

    Why do we want to be mortgage free? Well maybe that should be why do I want to be mortgage free? Not that DH isnít on board, he is, but more in the sense the he doesnít really spend too much anyway and is quite happy for me to get on with it. I suppose the driving factors are time and peace of mind, whilst I am not long out of my twenties DH is somewhat older, and while people are living and working for longer I think it is better to get rid of the mortgage as early possible as opposed to assuming that he will continue to earn his current salary for the next 18 years! The positive flip side is that hopefully my earnings will increase over time but I donít want to rely on that Ė hence we have limited time to get rid of this mortgage.

    Peace of mind is the other factor because shortly after marrying DH lost his job and was out of work for 6 months. This was incredibly stressful because I had also made the dumb mistake of building up credit card debt due to the wedding and we had £10k to pay off (hence why I started a DFW diary). The debt is thankfully now all gone and DH has been in his permanent role for over a year Ė but even that process was stressful with his probation period being extended before being signed off. While we were going through these events my biggest fear was losing the house, a lot of it was pride and wanting to save face but it also made me think about how amazing it would feel to completely own the roof over our heads and not be beholden to a lender. This and some advice I read on MyBestJumperís diary from Secret Saving Squirrel made me realise that I might be overcomplicating matters in the short term with thoughts and plans for ever more complicated investments/BTLs etc and that there was nothing wrong with simply aiming to pay off the mortgage early.

    Things change and none of us know what is around the corner, I am hoping we will have children at some point in the future (DH has a child from his previous marriage) and if that happens it will seriously alter our current budget. Therefore as the title suggest the aim over the next two years is to get the mortgage balance below £200k before we remortgage. I am hoping that we can then reduce the term and fix for a longer period, say 5 years.

    My first aim is to get our savings back up to £9,000 Ė this year should have been all about saving but to be perfectly honest we have been on two holidays, which after last year were needed. All holidays have been planned and saved for so we are still debt free. The savings goal will be achieved by 01.01.16 with final savings from Decemberís pay packet.

    From February we are going to start overpaying the mortgage whilst continuing to save. I have calculated that we will need to overpay the mortgage by £1,200 a month to get down to the target by September 2017 (our current deals expires on 31.10.17).

    In an ideal world I would simply love to have the mortgage gone by 2023 but that would be a very tall order therefore for now I am going to focus on achieving this first goal.

    Anyway if anyone has read this far thank you so much for not falling asleep, I will leave it there for now!

    Walrus
    Aiming to get the mortgage below £200k by 30th September 2017

    Current mortgage as at start of diary 14.08.15 - £245,990.00
    Mortgage balance as at 10.10.17- £206,296.85
Page 6
    • Firegirl
    • By Firegirl 31st Dec 16, 4:59 PM
    • 722 Posts
    • 2,902 Thanks
    Firegirl
    Wow- you're doing fantastic with the overpayments!!! Well done!!!

    Don't worry about your boss- through my career I've had people who think I'm the most amazing, proactive, forward thinking person who has the drive and determination to get the most stagnant projects moving AND I've had people who think I'm crap at my job and belittled me so much for being a part time staff member that I actually nearly believed it!

    Just make sure your happy because your manager will move on soon enough or else you will and you'll be with someone again who fits your style. Be true to yourself and don't bother changing to please others who will never be happy!

    Happy New Year!
    Last edited by Firegirl; 31-12-2016 at 5:04 PM.
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £197, 495
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
    • thewalrussaid
    • By thewalrussaid 9th Feb 17, 3:12 PM
    • 99 Posts
    • 431 Thanks
    thewalrussaid
    Hi All,

    Just been having a read of my favourite diaries and thinking that I really should update mine more often to keep me focussed. I am still going out too much and paying City prices for food and drink!

    As my diary title suggests the aim is to get the mortgage below £200k.

    As at 01.01.17 the mortgage balance was £219,314.30 meaning that we can over pay £21,931.43 in this calendar year. Our 2 yr fix is up on the 31st of October so in reality we just have to stay within this limit until then.

    Hence my goal this year is to OP £21k by the end of October. Our monthly payments reduce the capital by about £1k a month so by the 1st of November I hope our balance will be circa £188k. Then I want to remortgage onto a 5 year fix hopefully with a lender who will allow unlimited OPs so that we can have the mortgage gone shortly after the fix ends.

    My budget is proving to be a bit ambitious so far (I keep falling into the bad habit of saving and then stealing bits back) however I am really hoping that our bonuses will give us a bit of leeway. Obviously this is a risky strategy so I'd better work on cutting back the budget!

    That's enough of my rambling for now, just wanted to write down my goals.

    Have a good day all.
    Aiming to get the mortgage below £200k by 30th September 2017

    Current mortgage as at start of diary 14.08.15 - £245,990.00
    Mortgage balance as at 10.10.17- £206,296.85
    • Firegirl
    • By Firegirl 5th Apr 17, 2:41 AM
    • 722 Posts
    • 2,902 Thanks
    Firegirl
    Looking forward to seeing your journey!!!! Sounds like you'll smash it!!!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £197, 495
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
    • thewalrussaid
    • By thewalrussaid 10th Oct 17, 5:49 PM
    • 99 Posts
    • 431 Thanks
    thewalrussaid
    So again I have been away forever but we have been saving and getting ready to reduce the mortgage after the end of the fix on the 31.10.17.

    We have a new 5 year fix with FD lined up which I am happy about because even though we are reducing the term to 12 years and 9 months our payments will go down by £300.

    I have to be completely honest at this point and admit that whilst we will have over paid about £14k this year ourselves, my parents have given me another £50k to throw at the mortgage, which obviously is going to make a massive difference. Believe me I know how lucky I am.

    Will be back to update figures.
    Aiming to get the mortgage below £200k by 30th September 2017

    Current mortgage as at start of diary 14.08.15 - £245,990.00
    Mortgage balance as at 10.10.17- £206,296.85
    • Moneyfordreams
    • By Moneyfordreams 14th Oct 17, 1:48 PM
    • 902 Posts
    • 4,420 Thanks
    Moneyfordreams
    wow what a gift
    Mortgage Feb '13 £200000, end 2038. Aiming for before March 2025 (crunched to 2034)
    January 16 £182800 : minimum £360 OP but needs to be £600 to achieve 2025
    Current mortgage £158200
    h@lifax CC £4300 0% until May 2018.. will pay minimum for now, slow stooze
    CC daughter gift and holiday spends £2200
    • Firegirl
    • By Firegirl 16th Oct 17, 9:03 PM
    • 722 Posts
    • 2,902 Thanks
    Firegirl
    Wow so exciting your parents giving you 50k and isn’t it lovely for them to see you putting the money to good use and making a difference to your life!!! Yay!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £197, 495
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
    • thewalrussaid
    • By thewalrussaid 24th Oct 17, 8:55 PM
    • 99 Posts
    • 431 Thanks
    thewalrussaid
    Thank you for the positive replies. Believe me i know how lucky I/we are

    We have now overpaid £10k ourselves so the mortgage is at £196k

    Mission accomplished!!!!!!

    Onto the next challenge, which I think would benefit from more regular posting.
    Aiming to get the mortgage below £200k by 30th September 2017

    Current mortgage as at start of diary 14.08.15 - £245,990.00
    Mortgage balance as at 10.10.17- £206,296.85
    • Firegirl
    • By Firegirl 7th Nov 17, 8:58 PM
    • 722 Posts
    • 2,902 Thanks
    Firegirl
    We are very close in our amounts!!!! Race ya?!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £197, 495
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
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