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  • FIRST POST
    • Escapar2020
    • By Escapar2020 8th Sep 17, 9:43 PM
    • 33Posts
    • 45Thanks
    Escapar2020
    On my way!
    • #1
    • 8th Sep 17, 9:43 PM
    On my way! 8th Sep 17 at 9:43 PM
    Hi all

    I've recently found this forum, but have been wanting to finish my mortgage early for ages!

    I started my 25-year mortgage back in 2003. So, expected to finish in 2028.

    I bought my first house near the height of the property boom in 2003, using a fixed rate mortgage. My plan was to stay for 5-years and then move-up the property ladder. Then we all know what happened to the economy, and 5-years soon passed, and before I knew it I was settled.

    Each time the fixed rate period ended, I'd go into another fixed rate, it felt like the safest thing to do, then interest rates started to go down! Eventually, I let my mortgage transfer to the standard variable tracker, currently 2.04% inlcuding the base rate. Not long after switching to the tracker, I started to pay of a little bit extra, without really having a plan.

    Couple of things happened last year that made me think about the future more. My dad had some health problems (he's ok now), but made him think about downsizing the family home which was getting expensive and difficult to manage (he's still there and I doubt he'll ever move!). I made contact with an elderly uncle, who I hadn't seen for years. Unlike my dad, my uncle had lived in the same house all of his adult life, never feeling the need to climb the property ladder. Finally, I had the chance of a promotion, to a job I'd knew I'd never love but would make my income jump.

    So the thought entered by mind, stay in this house, go for the job, put even more income into paying the mortgage (I know other people might think I should invest in something else, but the thought never occured to me and I wouldn't know where to start).

    So, having got the job, my mortgage stood at £45,460 in January this year, and had 11 years and 6 months to run. My plan was to pay it off within 5 years, so July 2022.

    As well as my extra salary, I've moved any spare cash into the mortgage too, and will have a clearout and sell some stuff I don't need. I haven't really made any sacrifices yet, and even managed to by a camper van with savings this year.

    Anyway, as of today, 8 September 2017, the balance of my mortgage is down to £34,998, and I think I'm on track to be mortgage free by September 2020 . Three years still feels like a long time, I was right about not loving the job, but its a means to an end! Planning ahead feels like I've finally grown-up! I'm breaking up the challenge in my mind, by thinking about where I should be in 12-month blocks.

    I feel a bit anxious about what I will do if and when I become an ex-wannabe. I'd like to either reduce my hours or do something more fulfilling, but the opportunities in a quiet rural area aren't obvious yet. We'll see what happens!

    I thought this was going to be a short post, so well done if you've made it this far! I'll try to provide some updates as I go.

    Escapar2020
    Last edited by Escapar2020; 08-09-2017 at 10:40 PM.
Page 1
    • Betterthanever
    • By Betterthanever 8th Sep 17, 9:44 PM
    • 365 Posts
    • 1,511 Thanks
    Betterthanever
    • #2
    • 8th Sep 17, 9:44 PM
    • #2
    • 8th Sep 17, 9:44 PM
    Welcome! I look forward to seeing your journey unfold!

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • Madcatgirl
    • By Madcatgirl 8th Sep 17, 10:12 PM
    • 327 Posts
    • 3,956 Thanks
    Madcatgirl
    • #3
    • 8th Sep 17, 10:12 PM
    • #3
    • 8th Sep 17, 10:12 PM
    Hi there - good luck, looks like you've already taken years off the finish date!
    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
    • fiona100
    • By fiona100 11th Sep 17, 12:20 AM
    • 20 Posts
    • 29 Thanks
    fiona100
    • #4
    • 11th Sep 17, 12:20 AM
    • #4
    • 11th Sep 17, 12:20 AM
    Just beginning the process, but I am now feeling more confident that I will be able to get started properly. Thanks for posting and encouraging me.

    fiona100
    • beanielou
    • By beanielou 12th Sep 17, 9:42 PM
    • 48,510 Posts
    • 178,553 Thanks
    beanielou
    • #5
    • 12th Sep 17, 9:42 PM
    • #5
    • 12th Sep 17, 9:42 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • Skinnylatte
    • By Skinnylatte 12th Sep 17, 10:22 PM
    • 1,100 Posts
    • 4,617 Thanks
    Skinnylatte
    • #6
    • 12th Sep 17, 10:22 PM
    • #6
    • 12th Sep 17, 10:22 PM
    I've subscribed, keep posting and I'll keep plodding!
    Mortgage @ 12/04/2015 £136121 £120,525 11.45% DI £9.13 £6.48
    Mortgage free day 06/03/33 07/12/2032
    Emergency/Offset Account £
    3365/£6000
    CC Balance £6100
    £3690 Paid 39.5%
    1st LBM 02/06/2013 £21595 Debt Free Day 27/03/2015


    • Escapar2020
    • By Escapar2020 23rd Sep 17, 11:03 AM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    • #7
    • 23rd Sep 17, 11:03 AM
    • #7
    • 23rd Sep 17, 11:03 AM
    My latest good news is that I've increased the standing order for my overpayment to what I think is the maximum I can afford. So, my standard payment is £350 per month and I'll now be overpaying by £600 on top. If I can maintain that, I will hit my 2020 target :-) I do have a big trip and some home improvements planned in the next 12-months, but will try to keep to my target by searching for bargains!

    The bad news is that I thought I found a bargain that turned out to be a scam :-S so, I may have lost £160. If the bank give me a refund, I'll put it into the mortgage and learn my lesson!

    Escapar2020
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • squirrelgirl
    • By squirrelgirl 23rd Sep 17, 3:16 PM
    • 130 Posts
    • 633 Thanks
    squirrelgirl
    • #8
    • 23rd Sep 17, 3:16 PM
    • #8
    • 23rd Sep 17, 3:16 PM
    Good luck on your journey... I'll be following you
    MFW £3510.00/£22968.96: October GC £30/£300
    • SavvySaver007
    • By SavvySaver007 24th Sep 17, 12:49 PM
    • 15 Posts
    • 52 Thanks
    SavvySaver007
    • #9
    • 24th Sep 17, 12:49 PM
    • #9
    • 24th Sep 17, 12:49 PM
    Just dropping by to subscribe & to wish you luck with your overpayment journey, I am aiming to overpay about the same very month. I find these forums a brilliant source of motivation and inspiration, we'll be reducing these pesky mortgages in no time at all!
    Target: Pay off mortgage in 2017!
    As at 31.10.17: £12,500/£66,000 left to pay
    Emergency Fund: £1,600/£3,000 - Swagbucks: £15.00 earned since 08.10.17
    • Escapar2020
    • By Escapar2020 25th Sep 17, 3:54 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Staying motivated.....
    (this will be different for everyone!)

    I started a countdown app back in december, when I was planning to be MF within 5 years. I quickly got that down too less than 4 years by increasing regular overpayments to where I was comfortable and moving other spare cash when ever it wasnt needed. I don't feel like I've scrimped on anything in the meantime, just asked myself if I really needed something before making a irregular purchase (I've got too much stuff already)

    Anyway, my countdown app turned a milestone and now starts withh the number 2 :-) It actually reads 2 years, 11 months, and 31 days (which I think is 3 years in most people's books, but I was very happy to see the 2 anyway!). Not bad for 10 months effort. Of course this is only a target, and could get pushed back or brought forwards depending on circumstances. The plan is to finish early (shceduled end is in 2028), not stress about the exact date of becoming MF.

    I have a couple of other countdowns running, one for the number of payments left, and one for the number of days left. My next big milestone will be getting under 1,000 days left, which should happen in around 3 months time.

    Sometimes, the countdowns don't feel that helpful. If I'm having a hard time at work, they seem to move too slowly and I find myself looking at them often and wishing they'd reduce faster! But when I combine them with managing my mortgage balance on mobile banking, I've found myself a few times noticing if I pay just a bit more (£50ish) then the balance figure drops into the next £1000 bracket (e.g. From £35,049 to £34,999), which also has a great pyschological impact :-D

    I'd be interested to know what milestones keep you motivated?

    Escapar2020
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 29th Sep 17, 8:13 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Despite some car repairs and a european city break in September, I managed a £700 overpayment, reducing the balance by £1k :-)

    If I could do that every month, I could be finished by July 2020, but we shall see!

    I saw HSBC are offering £200 to switch current accounts. I haven't swithced for ages, so maybe an opportunity to make another OP ;-)
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • wildesavings
    • By wildesavings 29th Sep 17, 9:57 PM
    • 170 Posts
    • 475 Thanks
    wildesavings
    Oh that sounds so close! We've got double the journey and double the time scale. so trying for the same goal! Thank you for mentioning the hsbc switch! I might check those out x

    Good luck with it all
    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
    • Escapar2020
    • By Escapar2020 10th Oct 17, 8:32 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    I recently fell for an internet scam, paying £180 for a couple of bargain bikes :'( just goes to prove that if something looks to good to be true, it probably is!

    Good news is that my bank has refunded the money, so as I thought I'd lost it already, I've moved it straight into another OP :-)
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • fiona100
    • By fiona100 17th Oct 17, 1:10 PM
    • 20 Posts
    • 29 Thanks
    fiona100
    Hiya,


    Just dropping by to subscribe. Paying your mortgage off 8 years early sounds a wonderful thing to aim for.


    Thanks for the example.


    Fiona100
    • Escapar2020
    • By Escapar2020 18th Oct 17, 7:37 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Hi all

    I'd appreciate your thoughts on this.....

    I see that rates are expected to start rising again soon and people are thinking about fixing.

    I moved onto a SVR a few years ago while rates were low and there are no penalties for op or finishing early. My current rate is 2.04% which includes the base rate, and im expecting to finish 8 years early. My current Ltv is around 25%.

    When I consider set up costs, I cant see much or any benefit in remortgaging. Plus I'd either need to match my current term and face op penalities, or reduce the term to increase the standard payment, which I might want to reduce for unforseen circumstances in future, such a possible redundancy.
    So, should I stick or switch!?

    Thanks in advance

    Escapar2020
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • beanielou
    • By beanielou 18th Oct 17, 9:00 PM
    • 48,510 Posts
    • 178,553 Thanks
    beanielou
    I would tend to agree with you that there is little benefit in changing.
    However, I am no expert it has to be said.
    But if it was me I would stick.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • Escapar2020
    • By Escapar2020 20th Oct 17, 7:57 AM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Wise words beanielou :-)
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 24th Oct 17, 7:24 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Switched my current account today to hsbc so should recieve £150 soon and another £50 in a year, which will go to pay the mortgage. Makes me feel good as its an hsbc mortgage!

    I see clydesdale is now offerring £250 to switch, so I might move my other current account too.
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • jodles16
    • By jodles16 24th Oct 17, 8:40 PM
    • 1,315 Posts
    • 3,960 Thanks
    jodles16
    Hi Escapar,

    What a marvelous challenge and amazingly well done on the massive OP this month! It does seem that for yourself it makes more sense to have unlimited OPs...is there an independent advisor who might be able to offer solid advice? I am definitely no expert!

    All the best, I will be popping in again soon!

    Jodles
    MFW2017 #29 1200.24/4524
    MFiT #66
    Overall aim 10,124.20/21,743 (£156,000)
    2016- Jan-£177,472, Apr-£173,195.04, July- £171,417.47 Oct- 169,366
    2017- Jan- 167,347.80 Apr- July- Oct-

    • Escapar2020
    • By Escapar2020 24th Oct 17, 8:54 PM
    • 33 Posts
    • 45 Thanks
    Escapar2020
    Thanks Jodles, I think I prefer nonexpert opinons sometimes!
    Mortgage Jan 2017: £45,460___Current mortgage (Oct 2017): £32,908
    Scheduled end: July 2028_______Planned MF day: Sept 2020
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