Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • coxj2901
    • By coxj2901 10th Nov 15, 2:47 PM
    • 186Posts
    • 223Thanks
    coxj2901
    Quarter of a million reasons to be Mortgage Free!
    • #1
    • 10th Nov 15, 2:47 PM
    Quarter of a million reasons to be Mortgage Free! 10th Nov 15 at 2:47 PM
    Hi all,

    Like others, I have read through quite a lot of diaries and think it's time I finally started my own mortgage free quest. We recently bought our dream home 2 years ago with a mortgage of £255,000 over 28 years. The house is currently valued at around £330,000 and the mortgage balance currently sits at £244,671. We have just remortgaged for a 2 year fix of 2.34%.

    I am 38 years of age and live with my wife and three daughters aged 12, 10 and 5. My mother in law has recently moved in with us and we are currently in the process of converting the garage and building an extension which will become an annex for her to live in.

    I started my own business around 6 years ago and we took on a lot of debt during this period which is now almost paid off and the remaining £10,000 we owe is at 0% (£5,000 to my mother in law who wants £100 per month paid until she reaches her pension age) and £5,000 on a credit card which is at 0% until 2018. Therefore these will be paid off before any interest is accrued but I won't be overly focusing on these and will switch my attention to the mortgage instead.

    I am fortunate that the business has steadied itself and organically grown over the 6 years since inception so that our monthly drawings are at a point that I can really start making some decent sized over payments.

    Here is a quick snapshot of our monthly income and expenditure:-

    Statement of Affairs

    Monthly Income Details
    Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 6,200.00
    Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 188.00

    Monthly Expense Details

    In Your Home

    TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
    Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
    Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
    Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
    Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00
    Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
    Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,045.09
    Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.96
    Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00


    Motoring & Public Transport

    Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
    Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.67

    Debt Repayments

    Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.00
    Car Lease Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435.00

    Savings & Investments

    Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240.00
    Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
    Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Childrens Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.00

    Family

    Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00

    Entertainment

    Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    All other entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00

    Clothes, Health & Beauty

    Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00

    Big One-Offs

    Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
    Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.00

    Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,388.00


    Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,862.84

    Total surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,525.16



    My plans are to try and clear the mortgage in around 8 years which would mean overpayments of circa £1,750 per month at current interest rates. We could obviously scale back our outgoings to be more aggressive with the overpayments but after a long period of being in debt and having hardly any money we want to try and enjoy this journey by having a couple of holidays each year and days out as a family.

    Here's to the next 8 years!
    Last edited by coxj2901; 10-11-2015 at 4:38 PM.
Page 5
    • coxj2901
    • By coxj2901 5th Oct 16, 11:53 AM
    • 186 Posts
    • 223 Thanks
    coxj2901
    I've received £8.13 in bank interest today on my Nationwide account so I have paid this off the mortgage. I have also had a play with my excel spreadsheet to come up with a better representation of my house so that I can colour it in each month! This is what I have come up with to represent the equity in my house. I almost own the ground floor of the house

    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 7th Oct 16, 12:14 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    The kitchen quotes have all come in and after a lot of bartering I have come in around £3k under budget which is great. I have therefore paid £400 into my dd's JISA and £400 in my S&S ISA. I have also paid £1,355.84 off the mortgage which means we have broken the £220k barrier

    My daily interest is now sitting at £14.09 so I think we will dip into the £13.xx by next month.

    I have also been going to the gym regularly and I am up to running around 4.5 miles per day (albeit at a pedestrian pace - 10:40 per mile!). I ran a total of 15 miles last week and I've done 17.5 miles this week. I am having a break from the gym for three days now as my legs are killing me and I have a kitchen to rip out over the weekend

    Oct 2016 Target

    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £3,088.97
    (Shortfall) / Surplus . . . . . . . . . . . . . £1,338.97

    2016 Target to date

    2016 overpayment target . . . . . . . £17,500.00
    2016 actual overpayments . . . . . . . £14,873.77
    (Shortfall) / Surplus . . . . . . . . . . . . (£2,626.23)

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £21,000.00
    Cumulative actual overpayments . . . £18,523.77
    (Shortfall) / Surplus . . . . . . . . . . . . (£2,476.23)

    Daily Interest Comparisons
    Oct 2015 Daily Interest . . . . . . . . . . . £15.69
    Oct 2016 Daily Interest . . . . . . . . . . . £14.09
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 10th Oct 16, 2:23 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    Shuffling Funds!
    I've shuffled some money around and reduced some of the cash we had in our 123 account as the interest will be dropping to 1.5% shortly and my mortgage is at 2.34% so I figured it was better to throw a bit more at the mortgage!

    Therefore I've just made an overpayment of £2,500 which allows me to catch up a little bit in the annual targets and takes us below £14 per day in daily interest charges

    Oct 2016 Target

    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £5,588.97
    (Shortfall) / Surplus . . . . . . . . . . . . . £3,838.97

    2016 Target to date

    2016 overpayment target . . . . . . . £17,500.00
    2016 actual overpayments . . . . . . . £17,373.77
    (Shortfall) / Surplus . . . . . . . . . . . . (£126.23)

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £21,000.00
    Cumulative actual overpayments . . . £21,023.77
    (Shortfall) / Surplus . . . . . . . . . . . . . £23.77

    Daily Interest Comparisons
    Oct 2015 Daily Interest . . . . . . . . . . . £15.69
    Oct 2016 Daily Interest . . . . . . . . . . . £13.93
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 12th Oct 16, 11:15 AM
    • 186 Posts
    • 223 Thanks
    coxj2901
    I've just withdrawn the last of my p2p interest which was £8.54 and paid this against the mortgage. I'm now fully divested from p2p loans which feels right given that the reduction in interest rates no longer warrants the increased risk.
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 14th Oct 16, 3:21 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    The 123 account has been playing on my mind so I have taken the last £3,200 out of the account and paid it off against the mortgage. I now only have cash savings of £2.5k left in my n4tionwide account which is still earning 5% at the moment. I believe this stops after 12 months so I need to find a home for that aswell soon.

    The overpayments this month have been huge but obviously falsely inflated due to the withdrawal of the 123 savings.

    Oct 2016 Target

    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £8,797.51
    (Shortfall) / Surplus . . . . . . . . . . . . . £7,047.51

    2016 Target to date

    2016 overpayment target . . . . . . . £17,500.00
    2016 actual overpayments . . . . . . . £20,582.31
    (Shortfall) / Surplus . . . . . . . . . . . . £3,082.31

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £21,000.00
    Cumulative actual overpayments . . . £24,232.31
    (Shortfall) / Surplus . . . . . . . . . . . . . £3,232.31

    Daily Interest Comparisons
    Oct 2015 Daily Interest . . . . . . . . . . . £15.69
    Oct 2016 Daily Interest . . . . . . . . . . . £13.73
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 19th Oct 16, 12:37 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    I've transferred the last £50 from my current account to the mortgage as payday is approaching! There's not much more financial news to report so roll on next month when the overpayments can start again

    Oct 2016 Target


    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £8,847.51
    (Shortfall) / Surplus . . . . . . . . . . . . . £7,097.51

    2016 Target to date

    2016 overpayment target . . . . . . . £17,500.00
    2016 actual overpayments . . . . . . . £20,632.31
    (Shortfall) / Surplus . . . . . . . . . . . . £3,132.31

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £21,000.00
    Cumulative actual overpayments . . . £24,282.31
    (Shortfall) / Surplus . . . . . . . . . . . . . £3,282.31
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 24th Oct 16, 12:12 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    I had a refund today of £54.94 from some extra kitchen stuff that went back. Therefore I've sent this on it's merry way to the mortgage!

    The kitchen is coming along nicely and is nearly done now - The tiling is being done today and the skirting and radiators are being done tomorrow and then it should be finished. I can't wait to have a proper meal again after living on microwave dinners for the last two weeks
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • try harder
    • By try harder 24th Oct 16, 1:15 PM
    • 180 Posts
    • 457 Thanks
    try harder
    Wow ,well done on the great figures ,you will have that mortgage paid off in no time .
    • coxj2901
    • By coxj2901 3rd Nov 16, 1:47 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    A New Month
    My normal payment for £1,045 has left my account by direct plus a standing order for an overpayment of £750. I have a feeling that this month is going to be tight as we have a few extra expenses this month, including a weekend away so let's see how it plays out.

    Nov 2016 Target

    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £750.00
    (Shortfall) / Surplus . . . . . . . . . . . . (£1,000.00)

    2016 Target to date

    2016 overpayment target . . . . . . . £19,250.00
    2016 actual overpayments . . . . . . . £21,937.35
    (Shortfall) / Surplus . . . . . . . . . . . . £2,687.25

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £22,750.00
    Cumulative actual overpayments . . . £25,587.25
    (Shortfall) / Surplus . . . . . . . . . . . . . £2,837.25

    Daily Interest Comparisons
    Nov 2015 Daily Interest . . . . . . . . . . . £15.68
    Nov 2016 Daily Interest . . . . . . . . . . . £13.59
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • coxj2901
    • By coxj2901 5th Dec 16, 1:44 PM
    • 186 Posts
    • 223 Thanks
    coxj2901
    Dec Overpayments
    My normal payment for £1,045 has left my account by direct plus a standing order for an overpayment of £750. I have also paid another £1,000 off the mortgage today. I think that will be my last overpayment for this year but it feels like I've had a good year overall for overpaying the mortgage.

    My mortgage is now £209,620 so not a million miles away from having a 1 in front of it. That will feel like a big milestone! I will do a full review before the end of the year of how things have gone and will sit down and put down my targets for 2017

    Dec 2016 Target

    Monthly overpayment target . . . . . £1,750.00
    Actual monthly overpayments . . . . . £1,750.00
    (Shortfall) / Surplus . . . . . . . . . . . . . £0.00

    2016 Target to date

    2016 overpayment target . . . . . . . £21,000.00
    2016 actual overpayments . . . . . . . £23,687.25
    (Shortfall) / Surplus . . . . . . . . . . . . £2,687.25

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £24,500.00
    Cumulative actual overpayments . . . £27,337.25
    (Shortfall) / Surplus . . . . . . . . . . . . . £2,837.25

    Daily Interest Comparisons

    Dec 2015 Daily Interest . . . . . . . . . . . £15.50
    Dec 2016 Daily Interest . . . . . . . . . . . £13.44
    Nov 2015:- Mortgage Balance £244,671
    Oct 2016:- Mortgage Balance £213,681
    • Kittenkirst
    • By Kittenkirst 5th Dec 16, 9:57 PM
    • 846 Posts
    • 3,770 Thanks
    Kittenkirst
    Such fantastic overpayments you have been making!
    Have you thought about your 2017 plans yet?
    Emergency savings- £701.54 /£1000
    Mortgage Oct '16- £170.995 LTV- 90%
    2016 OP target- £15.06 / £150 -
    Mortgage end date- Nov '41

    NST: 42
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

312Posts Today

2,001Users online

Martin's Twitter