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  • FIRST POST
    • andy1886
    • By andy1886 4th May 17, 9:59 AM
    • 226Posts
    • 311Thanks
    andy1886
    Seven Year Plan
    • #1
    • 4th May 17, 9:59 AM
    Seven Year Plan 4th May 17 at 9:59 AM
    Hello this is my diary to plot the events along the way to what hopefully will become a journey to mortgage free existence . A little bit about me , I have lived in our current property for 16 years and there are 13 years left on our mortgage with a balance of £45 000 . The previous 2 years we have lived debt free other than the mortgage having being in debt to the tune of £19 000 and on a debt management plan for the 7 years before that . These debts accrued through daily life bringing 3 kids up on one income . During the time on the dmp we cut our spending back and were motivated by the balance falling and the debt free date getting ever nearer . Through the dark days , and there were many , the thoughts of what to spend the surplus money on when debt free kept us going but as of now we have found it hard to justify spending on stuff that we think we want but don't need . This means other than a new suite and decorating , and other jobs that needed doing we are reassessing our future .
    We have thought of moving to a nicer area but the houses and areas we like would put us in a lot higher but manageable position and we still have 2 kids at home and want to move when the requirements are just the 2 of us so I feel the best way to pass time is to overpay on our mortgage . We currently are on a 5 year fix which finishes next leap year day , just under 3 years away . I think we can afford to overpay £200 a month but don't know how to go about this , whether to set up a standing order or just pay over the counter each month . If we can achieve this we are looking at about 7 years to becoming mortgage free and I would like to use this diary to plot the months in the same way as I used a debt free diary to get through the dmp . I apologise for the long post but wanted to give an introduction before listening to any advice and questions from anybody .
Page 2
    • andy1886
    • By andy1886 13th Jun 17, 5:05 AM
    • 226 Posts
    • 311 Thanks
    andy1886
    I went down to my local branch of my mortgage provider yesterday and transferred £250 from my bill account to my mortgage account so total overpayments now stand at £500 .
    I have also got some information about how to access my statements online so I will set this up this week and then be able to have real figures to see the effect of the overpayments , see the balance and have goals of the balance dropping .
    • Jessy103
    • By Jessy103 13th Jun 17, 12:44 PM
    • 467 Posts
    • 1,976 Thanks
    Jessy103
    Congratulations on paying off your debts and I wish you the best of luck with your mortgage free journey! The people on this forum are just amazing at giving support and motivation!
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount Oct 2017 - £61,990.00
    Overpayment Target for 2017 - £5,000 /£4,060.70
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79 July - £849.96 August - £255.11 September - £177.22 October - £381.61
    • andy1886
    • By andy1886 7th Jul 17, 10:13 AM
    • 226 Posts
    • 311 Thanks
    andy1886
    Well finally sorted out my online banking . I went into my local branch to ask about finding out about getting statements but I can only get an annual one , so I found out what I needed to set it up and finally did it . I have made another £250 overpayment and my balance is now £43272 . A full month at work in front of me so spending should be minimal so looking good for this month . No bills due either so another overpayment should be achievable this month .
    • allmannerofthings
    • By allmannerofthings 21st Jul 17, 1:40 PM
    • 90 Posts
    • 520 Thanks
    allmannerofthings
    That's great you've sorted out online banking - I don't know what I would do without it, it's so convenient and I do like to watch the mortgage numbers go down!
    Mortgage March 2017 borrowed £115,000. Balance September 2017 £107867.50
    Overpayments 2017 £3630/Target £5000
    May £1710 June £0 July £900 Aug £505 Sept £515 Oct £ Nov £ Dec £
    • andy1886
    • By andy1886 13th Aug 17, 6:16 AM
    • 226 Posts
    • 311 Thanks
    andy1886
    Got through July and made another overpayment of £250 this week taking my total overpayments to £1000 and my balance to £42815 which is fantastic . I realise it will take a considerable time but looking forward to getting below 40k and targeting the next 1k figure first . Fully motivated and focussed on all spare money for the rest of the year getting the balance down .
    • Jessy103
    • By Jessy103 14th Aug 17, 9:46 AM
    • 467 Posts
    • 1,976 Thanks
    Jessy103
    Great overpayments, well done!!
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount Oct 2017 - £61,990.00
    Overpayment Target for 2017 - £5,000 /£4,060.70
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79 July - £849.96 August - £255.11 September - £177.22 October - £381.61
    • allmannerofthings
    • By allmannerofthings 29th Aug 17, 4:08 PM
    • 90 Posts
    • 520 Thanks
    allmannerofthings
    That's great, well done!
    Mortgage March 2017 borrowed £115,000. Balance September 2017 £107867.50
    Overpayments 2017 £3630/Target £5000
    May £1710 June £0 July £900 Aug £505 Sept £515 Oct £ Nov £ Dec £
    • wildesavings
    • By wildesavings 29th Aug 17, 9:51 PM
    • 170 Posts
    • 475 Thanks
    wildesavings
    Sounds like you're doing a great job and throwing sizable chunks at the mortgage! Well done and good luck! Also I'm with you and prefer one step at a time... once I'm mortgage free I'll begin to look at other ways I can get myself in a better position for retirement. Baby steps but more steps than most make Progress not perfection is always a great rule to follow.
    Started my MFW journey in August 14 : £103,650
    2017 : Mortgage at 1/1/17 - £96,839 - now : £91,342 - capital reduced by £5497 so far this year
    • andy1886
    • By andy1886 8th Sep 17, 4:20 AM
    • 226 Posts
    • 311 Thanks
    andy1886
    Hi , yes I am definitely a small steps and one target at a time person . I like the progress not perfection motto , I am sure my method of paying the mortgage down is not perfect but at least I am doing something which has to be better than doing nothing .
    This month I have managed a £350 overpayment taking the balance to £42216.07 . I have my car due its mot and service which hopefully won't throw up any problems but will still cost about £150 . Hopefully a full month at work with no unexpected expenses due .
    • Madcatgirl
    • By Madcatgirl 8th Sep 17, 3:43 PM
    • 327 Posts
    • 3,956 Thanks
    Madcatgirl
    Hi there - great steps so far! I'm with you on op ing the mortgage for peace of mind rather than s&s. However, I'm trying to slightly hedge my bets by doing a quarterly investment into my s&s and the rest on the mortgage, so I've got a small egg in that basket!

    With my mortgage online banking, I can only see the current balance and not a statement. It's annoying, but at least I know the balance!
    March 2016 - £178,914.59; July 2017 £146,160.38
    Mortgage end Sept 2043; Target - pay off by March 2022, now Sept 2021
    Target balance July 2018 £112,560
    • andy1886
    • By andy1886 3rd Nov 17, 4:54 AM
    • 226 Posts
    • 311 Thanks
    andy1886
    Well no posting during October because I was unsure whether to make an overpayment or not but in the end I stayed disciplined and paid £200 . I had car bills of tax , mot and servicing to pay since the last posting but all sorted . In front of me I have house insurance which I want to pay the annual figure not monthly instalments and my breakdown cover which is less than £50 for the year for 2 cars with auto aid or whatever they call themselves now . At the end of the month we are having our Christmas getaway to London which although done on a budget will still cost a few quid . Moving through the winter there is my phone line rental which I pay in advance as a lump sum and then there will be council tax and water rates due in April to save up for and that is winter over with and the summer to look forward to with enough spare cash each month to enjoy doing stuff .
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 3rd Nov 17, 8:13 AM
    • 590 Posts
    • 2,606 Thanks
    SuperSecretSquirrel
    Good job making an OP this month alongside those lumpy annual expenses!
    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k] £15,667.31
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k]
    48,973.75 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k] £264,504.07 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%] 17.3%
    • greent
    • By greent 5th Nov 17, 9:57 AM
    • 6,439 Posts
    • 64,960 Thanks
    greent
    Great job on the OPs

    I'm another one for whom paying off the mtge was more important than making my money work harder (S&S ISAs, pensions, accounts which paid more than my int costs etc) - I wanted the simplicity of seeing that balance owing decreasing. Now we're MF, we've still not done much else with regards to investments - we've spent on some big house improvements/ work (new doors and windows, new boiler etc) and have just started a tiny contribution through workplace pension. (We both have old final salary schemes from previous employers)

    I think everyone has to take their own path. I acknowledge that ours was not the 'smartest' financial path, but the mental benefits of being wholly MF cannot be underestimated

    You have a plan - and that's the important bit
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) Bal 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    Next: BTL Mtge 12/16 £69786. 2017 OPs (#18) £5034/£3286
    Net sales 2017 £1226.02/£500 PAYDOX17 £11937/£10k Decluttered 1760/2017 items
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