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  • FIRST POST
    • coxj2901
    • By coxj2901 10th Nov 15, 2:47 PM
    • 206Posts
    • 244Thanks
    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 6
    • coxj2901
    • By coxj2901 6th Apr 17, 4:04 PM
    • 206 Posts
    • 244 Thanks
    coxj2901
    Apr-2017 Overpayment
    I have made another overpayment today of £1,600. I'm feeling very focused at the moment and really want to hit the 10% overpayment limit as soon as I can so I can top up the ISA again.

    We go on holiday next week to Lanzarote for 10 days and I can't wait as it's been a busy few months at work and I feel like I need a break.

    Apr 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . . £1,700.00
    (Shortfall) / Surplus . . . . . . . . . . . . . £33.33

    2017 Target to date

    2017 overpayment target to date . . . . £6,666.68
    2017 actual overpayments . . . . . . . . . £13,776.89
    (Shortfall) / Surplus . . . . . . . . . . . . . . . £7,110.21

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £31,166.68
    Cumulative actual overpayments . . . £41,114.14
    (Shortfall) / Surplus . . . . . . . . . . . . . £9,947.46

    Daily Interest Comparisons

    Apr 2016 Daily Interest . . . . . . . . . . . £14.76
    Mar 2017 Daily Interest . . . . . . . . . . . £12.39
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 7th Apr 17, 11:26 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    Apr 2017
    There may be some exciting financial news on the horizon. We have been approached to sell a 20% equity stake in our business. I would qualify for entrepreneurs relief so the amount I would receive after tax would be in the region of £75k.

    The deal in principal has been agreed and is with our accountants and solicitors at the moment who are drawing up the paperwork. My equity stake would be diluted from 33.33% to 26.67%.

    On the assumption that it all goes through I should receive the funds within the next 4-6 weeks. I cannot pay it all of my mortgage as I am only around £6k away from this years 10% limit so would have to hold onto the funds until Jan 2018 when I am due to re-mortgage and pay a lump sum off then. I guess I could max out my ISA for this tax year and top up my pension aswell.

    I will keep you informed if it all goes through....

    P.S I've also just overpaid another £1k off the mortgage whilst it is fresh in the mind!
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 27th Apr 17, 12:52 PM
    • 206 Posts
    • 244 Thanks
    coxj2901
    Back from holiday
    We have just returned from a wonderful 10 day break to Lanzarote and it has made me more determined than ever to get my mortgage paid off, retire from work and enjoy life!

    I have therefore made another overpayment today of £2,600. In other news the sale of some of my shares in my business looks like it is going ahead so I should hear more within the next 7 days.

    Apr 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . . £5,300.00
    (Shortfall) / Surplus . . . . . . . . . . . . . £3,633.33

    2017 Target to date

    2017 overpayment target to date . . . . £6,666.68
    2017 actual overpayments . . . . . . . . . £17,376.89
    (Shortfall) / Surplus . . . . . . . . . . . . . . . £10,710.21

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £31,166.68
    Cumulative actual overpayments . . . £44,714.14
    (Shortfall) / Surplus . . . . . . . . . . . . . £13,547.46

    Daily Interest Comparisons

    Apr 2016 Daily Interest . . . . . . . . . . . £14.76
    Apr 2017 Daily Interest . . . . . . . . . . . £12.18

    Mortgage Balance

    Starting Balance (Dec 2013) . . . . . . . . £255,000
    Current Balance (Apr 2017) . . . . . . . . . £189,976
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 3rd May 17, 9:57 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    May 2017
    My May direct debit payment of £1,045 has left the bank plus an overpayment via standing order of £100. This brings the mortgage balance down to £188,880.

    May 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . . £100.00
    (Shortfall) / Surplus . . . . . . . . . . . . . (£1,566.67)

    2017 Target to date

    2017 overpayment target to date . . . . £8,333.35
    2017 actual overpayments . . . . . . . . . £17,476.89
    (Shortfall) / Surplus . . . . . . . . . . . . . . . £9,143.54

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £32,833.35
    Cumulative actual overpayments . . . £44,814.14
    (Shortfall) / Surplus . . . . . . . . . . . . . £11,980.79

    Daily Interest Comparisons

    May 2016 Daily Interest . . . . . . . . . . . £14.76
    May 2017 Daily Interest . . . . . . . . . . . £12.18

    Mortgage Balance

    Starting Balance (Dec 2013) . . . . . . . . £255,000
    Current Balance (May 2017) . . . . . . . . . £188,880
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 16th May 17, 1:07 PM
    • 206 Posts
    • 244 Thanks
    coxj2901
    I've just sent £700 to my ISA and have made an overpayment of £500 against the mortgage.

    May 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . . £600.00
    (Shortfall) / Surplus . . . . . . . . . . . . . (£1,066.67)

    2017 Target to date

    2017 overpayment target to date . . . . £8,333.35
    2017 actual overpayments . . . . . . . . . £17,976.89
    (Shortfall) / Surplus . . . . . . . . . . . . . . . £9,643.54

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £32,833.35
    Cumulative actual overpayments . . . £45,314.14
    (Shortfall) / Surplus . . . . . . . . . . . . . £12,480.79

    Daily Interest Comparisons

    May 2016 Daily Interest . . . . . . . . . . . £14.76
    May 2017 Daily Interest . . . . . . . . . . . £12.09

    Mortgage Balance

    Starting Balance (Dec 2013) . . . . . . . . £255,000
    Current Balance (May 2017) . . . . . . . . . £188,549
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • hanb
    • By hanb 16th May 17, 1:39 PM
    • 437 Posts
    • 1,048 Thanks
    hanb
    All looks great!


    Didn't want to just read and run as usual. I'm also getting jealous of others' diaries after making the max 10% OP already and now I have to wait til Jan to be able to pay another 10%. Still, at least I've paid it!


    Hope your exciting news is becoming reality!
    • coxj2901
    • By coxj2901 17th May 17, 11:05 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    All looks great!


    Didn't want to just read and run as usual. I'm also getting jealous of others' diaries after making the max 10% OP already and now I have to wait til Jan to be able to pay another 10%. Still, at least I've paid it!


    Hope your exciting news is becoming reality!
    Originally posted by hanb
    The share deal is still with the Solicitors at the moment as they had to work out some re-structuring of the existing class of shares to ensure that entrepreneurs relief would still apply following this first sale. They have told us that the documents should be ready by the end of next week so hopefully we are now looking at the end of the month for it all to go through.
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 22nd May 17, 4:38 PM
    • 206 Posts
    • 244 Thanks
    coxj2901
    The small things add up
    I've noticed that I've taken my eye of the pennies. When I started this diary I was good at making small regular overpayments aswell as the bigger one off amounts. Whilst I have continued to make big one off payments I haven't been making the smaller payments and I think it's these that will really add up over the period of ~ 8 years.

    Therefore I have just checked my bank account and added up the small amounts that have gone in my bank over the last 30 days. Bank Interest, Cashback and my account reward added up to £21.63 so I have just sent this off towards the mortgage and I feel all the better for it

    I've also updated my Excel house and have realised that I nearly own 50% of my house!

    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 5th Jun 17, 10:08 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    June 2017
    My direct debit of £1,045 has left the account plus a standing order for an overpayment of £100.

    Jun 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . £100.00
    (Shortfall) / Surplus . . . . . . . . . . . (£1,566.67)

    2017 Target to date

    2017 overpayment target to date . . . . £10,000.02
    2017 actual overpayments . . . . . . . . . £18,098.52
    (Shortfall) / Surplus . . . . . . . . . . . . . . £8,098.50

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £34,500.02
    Cumulative actual overpayments . . . £45,435.77
    (Shortfall) / Surplus . . . . . . . . . . . . £10,935.75

    Daily Interest Comparisons

    Jun 2016 Daily Interest . . . . . . . . . . . £14.76
    May 2017 Daily Interest . . . . . . . . . . . £12.03

    Mortgage Balance

    Starting Balance (Dec 2013) . . . . . . . . £255,000
    Current Balance (Jun 2017) . . . . . . . . . £187,636
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • try harder
    • By try harder 5th Jun 17, 10:34 AM
    • 522 Posts
    • 1,667 Thanks
    try harder
    Wow ,you are doing amazingly well keep up the good work.
    • coxj2901
    • By coxj2901 6th Jun 17, 9:37 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    I've just been paid so I have made an overpayment of £700 to the mortgage and sent £800 to my ISA. I've just calculated that my daily interest has dropped below £12 per day to £11.98 so that is another small victory to celebrate

    In other good news my employer pension contribution has been increased to £1,000 per month and in addition to that my wife also now has £1,000 per month going in. I have also set up a standing order from my bank for a further employee contribution of £250 per month so I'm hoping my pension fund can start clawing back all those lost years.
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 20th Jun 17, 11:52 AM
    • 206 Posts
    • 244 Thanks
    coxj2901
    Overpayment
    I've just made another overpayment of £700 to the mortgage and also topped up my ISA with £500. Updated figures are as follows:-

    Jun 2017 Target

    Monthly overpayment target . . . . . £1,666.67
    Actual monthly overpayments . . . . £1,500.00
    (Shortfall) / Surplus . . . . . . . . . . . (£166.67)

    2017 Target to date

    2017 overpayment target to date . . . . £10,000.02
    2017 actual overpayments . . . . . . . . . £19,498.52
    (Shortfall) / Surplus . . . . . . . . . . . . . . £9,498.50

    Cumulative Targets since Nov-15

    Cumulative overpayment target . . . £34,500.02
    Cumulative actual overpayments . . . £46,835.77
    (Shortfall) / Surplus . . . . . . . . . . . . £12,335.75

    Daily Interest Comparisons

    Jun 2016 Daily Interest . . . . . . . . . . . £14.76
    Jun 2017 Daily Interest . . . . . . . . . . . £11.96

    Mortgage Balance

    Starting Balance (Dec 2013) . . . . . . . . £255,000
    Current Balance (Jun 2017) . . . . . . . . . £186,404
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
    • coxj2901
    • By coxj2901 3rd Oct 17, 1:31 PM
    • 206 Posts
    • 244 Thanks
    coxj2901
    A long overdue update!
    I thought I would post a quick update on where we are with our finances. I had reached my 10% over payment limit earlier this summer so I won't be able to make any further over payments until 1st Jan 2018.

    In terms of the share sale the first payment of £40k came through about a month ago and the remaining £38k will come through in two payments around Dec 2017 and Apr 2018. I filled my stocks and shares ISA for the year and then paid off some credit card debt with the rest as we had changed both cars over the summer (lease deals ending) and also booked Disneyland florida for the summer of 2018.

    To say it was an expensive summer would be an understatement!

    In other news the company pension payments have increased to £1,500 per month so we are playing catch up a lot quicker than I thought we would.

    My mortgage is due to be renewed in Jan 2018 so I'm thinking that I might leave it on a variable rate for a couple of months to try and make some decent over payments before I fix in again for a couple of years. I will be below 60% LTV so my rate should decrease quite a bit from the 2.34% I am currently paying.

    Here is a quick snapshot of our finances

    Assets
    My Pension £52,934
    Spouses pension £15,856
    S&S ISA £31,910

    Liabilities
    Mortgage £183,832
    Unsec Debt £8,491
    Nov 2015:- Mortgage Balance £244,671
    Aug 2017:- Mortgage Balance £183,832
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