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  • FIRST POST
    • Escapar2020
    • By Escapar2020 8th Sep 17, 9:43 PM
    • 63Posts
    • 132Thanks
    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 2
    • beanielou
    • By beanielou 24th Oct 17, 9:31 PM
    • 50,702 Posts
    • 194,294 Thanks
    beanielou
    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.
    Originally posted by Escapar2020
    Excellent
    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 28th Oct 17, 9:21 AM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Down to £32,908 this month :-) my orginal target was to finish by july 2022, I revised that to September 2020 when I started this diary. At the moment, I'm on track to finish a bit before then, but will keep the september target to allow for anything unexpected!

    Escapar2020
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • beanielou
    • By beanielou 28th Oct 17, 6:10 PM
    • 50,702 Posts
    • 194,294 Thanks
    beanielou
    Sounding good
    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 31st Oct 17, 8:32 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    It's a day of small numbers and big numbers.....

    Received my first payout from topcashback, which has gone straight to my mortgage and reduced it by £3.55 !!!!

    Its also a year since I took on a new job (that I don't really enjoy) at a higher salary in order to speed up my MFW journey. Since this time last year, the mortgage has reduced from £44016 to £32904 :-) I increased my recurring OP amount during the year, so hope to do a bit better again in the next 12 months!

    Escapar2020
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • beanielou
    • By beanielou 31st Oct 17, 8:37 PM
    • 50,702 Posts
    • 194,294 Thanks
    beanielou
    Great end of the month for you.
    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 7th Nov 17, 6:19 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Recieved my rate rise letter from the bank today. Despite the base rate rise, my standard payment has reduced from £358pm to £288pm because of my op this year, which is nice to see. Ive already inceased my monthly op to account for the difference and keep me on track ;-)
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • obay
    • By obay 7th Nov 17, 7:13 PM
    • 454 Posts
    • 337 Thanks
    obay
    Recieved my rate rise letter from the bank today. Despite the base rate rise, my standard payment has reduced from £358pm to £288pm because of my op this year, which is nice to see. Ive already inceased my monthly op to account for the difference and keep me on track ;-)
    Originally posted by Escapar2020
    Could you save even more if you got some 0% interest rate cards to move the amount owed from secured to unsecured?

    It would seem low enough to actually move a portion of your mortgage over to a 32-38m card?
    1/12/16 - £152,599.00
    11/11/17 - £145,990.00
    Two Credit agreements to pay off - £13653! (inc interest).
    Sofa (DFS) (0%)£923/£923 - Paid off 7th November!
    Barclays Boiler (18.9%!)£400/£3021.36
    Barclays Car (5.99%)£0/£8,832.37
    • Escapar2020
    • By Escapar2020 7th Nov 17, 7:58 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Could you save even more if you got some 0% interest rate cards to move the amount owed from secured to unsecured?

    It would seem low enough to actually move a portion of your mortgage over to a 32-38m card?
    Originally posted by obay
    Potentially I could, but think I feel more comfortable knowing I can revert to the standard payment and longer repayment term if I ever need to. I suspect there might be some reductions coming at work, so hedging my bets!
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • obay
    • By obay 7th Nov 17, 8:05 PM
    • 454 Posts
    • 337 Thanks
    obay
    Potentially I could, but think I feel more comfortable knowing I can revert to the standard payment and longer repayment term if I ever need to. I suspect there might be some reductions coming at work, so hedging my bets!
    Originally posted by Escapar2020

    I do not know, I just saw another diary on here that a guy put £15,000 on a 0% credit card to save a bunch of money on his mortgage, he did pay his £15k back when the term ended or the house sold, I am not sure, but he did save around £200-250 a month while he was paying £130-140/mo for the interest on that card... So it worked out for him in a major way, got me thinking to do it when I get below 100k.
    1/12/16 - £152,599.00
    11/11/17 - £145,990.00
    Two Credit agreements to pay off - £13653! (inc interest).
    Sofa (DFS) (0%)£923/£923 - Paid off 7th November!
    Barclays Boiler (18.9%!)£400/£3021.36
    Barclays Car (5.99%)£0/£8,832.37
    • Escapar2020
    • By Escapar2020 7th Nov 17, 8:39 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    I do not know, I just saw another diary on here that a guy put £15,000 on a 0% credit card to save a bunch of money on his mortgage, he did pay his £15k back when the term ended or the house sold, I am not sure, but he did save around £200-250 a month while he was paying £130-140/mo for the interest on that card... So it worked out for him in a major way, got me thinking to do it when I get below 100k.
    Originally posted by obay
    Interesting. I'd thought about doing it when I get to the final 10k, maybe worth considering earlier
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 17th Nov 17, 9:23 AM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Switched another of my current accounts, so at least another £130 cash back to come plus decent interest on balance upto £1500

    Also moved my savings from am account paying 0.01% to one with 1.35% and easy access

    Next will be switching my mobile contract to sim only, which should save about £20 per month. Who really needs a new handset antway!?

    I'm already op signifcantly on the mortgage, so will start putting extra small amounts into savings. I want to do some home improvements so the extra cash will be handy, and if I don't need it, I can move it to the mortgage later !!!128515;

    Escapar 2020
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 24th Nov 17, 6:38 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Ditched my mobile contract for a sim only deal, saving £23 per month even with more data and more minutes!

    Dread to think how much contracts have cost me over the years!?
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 30th Nov 17, 7:48 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Well, November has been interesting...

    I knew it was going to be a tight month after some car bills in October and more car work was expected in November. When I say car, I mean camper van, so it's a holiday investment really!

    Anyway with these costs, I expected to be overdrawn at the end of November as I wanted to maintain my mortgage op rate. So I started the month intending to keep a closer control on other spending.

    Firstly I missed out on stoptober, so no alcohol for November was part of the plan, which was harder than expected but I feel better for it :-) I made it almost to the end when I was given a bottle of wine, so no cost! Although I enjoyed drinking it, I felt quie lethargic the next day, so I don't think I'll be returning to previous levels for a while ;-)

    Next, I used up all my supermarket points so didn!!!8217;t by spend on groceries in the first half of november.

    I also planned more meals and cooked more from scratch, which was quite enjoyable at the weekends, and was helpful to freeze leftovers for midweek meals - I hate cooking after work, just want to relax!

    I haven't exactly been monitoring spend, just trying to avoid spending. Somehow, I've finished the month with £200 in the bank! I'm tempted to use it for the mortgage, but will keep hold of it until the Christmas excesses have passed, oh, and I have more work to do on the van :-)

    So, it's been an interesting month, and I'll be wanting to see if I can make it more normal in future as I want to work out what level of income I'll actually need once the mortgage is finished so I don't have to be tied to my job.

    Hope you did better than you expected at something this month too!

    Escapar2020
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 1st Jan 18, 11:05 AM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Happy 2018 everyone!

    I've now been seriously overpaying my mortgage for just over a year, having been paying smaller amounts in previous years.

    On 1st January 2017, my balance was £42,898.

    As of today, it's now £30,835, which is better than I thought I could achieve so I'm feeling really pleased

    I was tempted to take £836 from savings to bring the mortgage under £30k for the start of the year, but decided not too after some big purchases in the boxing day sales (with some decent reductions plus cashback to come!)

    My target is still to be MF in 2020. If I can maintain my current payment rate, my calculations are that I could be finished in 998 days time!

    It feels good to finally be under 1,000 days to go However, there might be a slight change of plans ahead. I had thought about setting an OP target for 2018, but I'm looking at paying extra into my pension, which will bring me back into the lower income tax rate. I'm waiting for my LGPS office to tell me how much this would mean, but by my calculations paying double pension will only cost me £200 per month take home. So, by either making some further spending reductions, or extending my MFW date by a few months, I hope paying more into pension won't make that much difference in the short term and mean I can still achieve my 2020 target (even if it's the end of 2020!)

    The other thing I'm thinking about is switching from mortgage OP to saving to become mortgage neutral within the same timescale. I really can't make up my mind about this! I like the idea of having a pot of cash in 2-3 years time, that I could decide to pay the mortgage or do something else with. On the other hand, I've become addicted to watching my mortgage balance reduce every month, and worry that having a pot of cash might be too tempting to spend on stuff! I hope to decide before the end of January, and will see what difference op pension will make before deciding.

    I wonder what I'll be writing in January 2019!?

    Escapar2020
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 23rd Jan 18, 7:04 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    I've made a slight change to my plans. I've switched from overpayments to saving for mortgage neutrality. The amounts are the same, I'm just putting the money in a different place, which I feel gives me more flexibility. I should still achieve neutrality in 2020 as planned, but will then be able to choose to either pay off the mortgage, hold onto the pot, or invest it somehow.
    There is a slight difference between my mortgage and savings rates, which I can live with for the next couple of years if it gives me more flexibility. I will need to seperate my savings for mortgage from general savings to avoid the temptation to spend it.
    I'm still looking at making extra pension contributions to reduce my tax rate, which might also reduce my savings ability slightly, but we'll see how that goes. My LGPS office hasn't been helpful with advice on ? issue, so I'll ask around on the MSE pension forum!
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Escapar2020
    • By Escapar2020 11th Feb 18, 7:01 PM
    • 63 Posts
    • 132 Thanks
    Escapar2020
    Project Neutral underway
    I hope this displays ok....

    I've recently switched from making direct over payments to saving for mortgage neutrality. The plan is still to be free in 2020, but with a pot of cash I can either finish to mortgage with, keep saving, or do something else with.

    This is going to require more self control if I'm not to be tempted to spend my op. For now, op are going into my main easy access saving account, so i've created a tracker to help me keep things separate in my head.

    At some point, the red and blue lines should cross, then I'll be fully mortgage neutral.

    Previously, I was motivated to see my actual mortgage balance decline by big chunks each month. So, the green line gives me a theoretical mortgage balance, to help me feel more positive as it should decline more quickly after taking into account my op. It's this balance I'll put in my signature. Finally under £30k

    The pink dotted line takes my other savings into account, which will show when I'm !!!8221;technically!!!8221; mortgage neutral. I haven't included these before as I occasionally dip into them, which is why it went up instead of down last month. I'm planning some home improvements this year, so expect this line will fluctuate a bit.

    Seeing the months laid out makes it feel like a long time, but it should pass quickly!
    Last edited by Escapar2020; 12-02-2018 at 8:25 PM.
    Mortgage 01/01/17: £42,898___ 01/02/18: £29,885
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • Blibble
    • By Blibble 11th Feb 18, 8:03 PM
    • 359 Posts
    • 502 Thanks
    Blibble
    Good read so far Escapar2020 - particularly a fan of laying out your target graphically like that . Mortgage neutral is a great goal, as you get better flexibility and the rate is similar. Best of luck over the year
    Wedding fund - £1505.92
    OP fund - £629.47 (£505.23)
    Emergency fund - £160.00
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