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  • FIRST POST
    • debtfreeforlife
    • By debtfreeforlife 7th Oct 17, 11:29 AM
    • 55Posts
    • 197Thanks
    debtfreeforlife
    A long journey ahead...
    • #1
    • 7th Oct 17, 11:29 AM
    A long journey ahead... 7th Oct 17 at 11:29 AM
    I am biting the bullet and creating my first journal on this site, dedicated to my goal of becoming mortgage free and retiring at 60 - hoping to record my progress and pick up some tips along the way!

    Both my mortgage free status and retirement status are around 20-30 years away - I am 31, single, living in a mortgaged flat in a relatively expensive part of the country (although thankfully not London prices!). I earn a good salary but am in the civil service so no pay rises any time soon. I want to start overpaying into my pension and have just paid £5k onto my mortgage thanks to a generous family gift. I think I am now hooked on the MFW journey...
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
Page 1
    • bexster1975
    • By bexster1975 7th Oct 17, 11:42 AM
    • 1,045 Posts
    • 4,819 Thanks
    bexster1975
    • #2
    • 7th Oct 17, 11:42 AM
    • #2
    • 7th Oct 17, 11:42 AM
    Best of luck. I'm about ten years further down the road than you!

    Bexster
    • louloubelle79
    • By louloubelle79 7th Oct 17, 6:51 PM
    • 203 Posts
    • 93 Thanks
    louloubelle79
    • #3
    • 7th Oct 17, 6:51 PM
    • #3
    • 7th Oct 17, 6:51 PM
    All the best on your journey
    Hoping to be mortgage free by 2026 age 47
    Current rate 2.79% fixed for 10 years
    Current mortgage end date: 03/10/2043
    MFW Starting Mortgage Jan 17 - £114,703
    • beanielou
    • By beanielou 7th Oct 17, 9:59 PM
    • 47,771 Posts
    • 173,350 Thanks
    beanielou
    • #4
    • 7th Oct 17, 9:59 PM
    • #4
    • 7th Oct 17, 9:59 PM
    Happy 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***
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 8th Oct 17, 3:55 AM
    • 460 Posts
    • 1,781 Thanks
    wishingthemortgaheaway
    • #5
    • 8th Oct 17, 3:55 AM
    • #5
    • 8th Oct 17, 3:55 AM
    Best of luck with your journey. You have got plenty of time to do this so I hope you manage to balance mortgage freeness and retiring with a good, comfortable life now.
    You are only a few years younger than me, your 20-30 year plan is my 15-25 year plan and you've helped me realise today that it's not the head long urgency it sometimes feels (hubby is pushing 40 which makes things seem more urgent somehow, but that's still another 20 years)

    We're in a different position to you currently, I'm taking a career break to look after our little one, so pulling in the purse strings a bit now so as not to derail the long term plans later.

    It's all a balance, but find your happy.

    Wish.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 August: £36,411.85 8/100 September: £35,945.66 10/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • enthusiasticsaver
    • By enthusiasticsaver 8th Oct 17, 8:03 AM
    • 4,431 Posts
    • 8,240 Thanks
    enthusiasticsaver
    • #6
    • 8th Oct 17, 8:03 AM
    • #6
    • 8th Oct 17, 8:03 AM
    Good luck on your journey. It is good to set goals at your age and getting rid of the mortgage is a great thing to aim for. I look forward to seeing your progress.
    Countdown to early retirement on 21.12.17 2 months to go.
    • debtfreeforlife
    • By debtfreeforlife 8th Oct 17, 6:03 PM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    • #7
    • 8th Oct 17, 6:03 PM
    • #7
    • 8th Oct 17, 6:03 PM
    Thanks all for the welcomes! I'm planning on making another overpayment on the mortgage tomorrow. I currently have two mortgage products. One of them, I used to purchase a house up in the Midlands a few years back, remortgaged in August 2016 and ported across to my flat which I bought this February. The flat's more expensive than the house was so I also purchased a top-up product which is currently at 4.89% interest. My priority is to pay as much as possible off of that top-up product and then either pay down the other product (2.34% interest) or put additional money onto my pension. If I make my planned payment tomorrow then I can reach the 10% limit for this year on that product, and pay more off in February when that limit renews.

    Wish - I am slightly the same as you in that I feel like I should be putting everything I can towards this! But I don't want to run towards retirement and being mortgage free and then get to the end of it with a good pension and my own house but also a lot of memories of all the things I didn't do. So I'm looking for a balance of taking care of "tomorrow's me" whilst enjoying the things I love today. Since some of those things I love involve seeing friends and family (who live a way away, and so requires petrol), watching theatre shows, experimenting with cooking etc, they also require money. I want to appreciate the use of every penny, regardless of where it goes - I work flipping hard for those pennies Good luck with your own journey, sounds like you have a solid plan in place and I'm glad that my post helped! Will definitely be checking out your diary to help keep my own on track.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • debtfreeforlife
    • By debtfreeforlife 11th Oct 17, 8:10 AM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    • #8
    • 11th Oct 17, 8:10 AM
    • #8
    • 11th Oct 17, 8:10 AM
    Haven't paid my additional payment yet but that's because my first payment hasn't shown up in my online account yet. As I paid that on Saturday, that's making me a bit nervous. Will phone them tomorrow as have a day off, make sure all is good and make the additional payment.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • Betterthanever
    • By Betterthanever 11th Oct 17, 8:13 AM
    • 280 Posts
    • 1,103 Thanks
    Betterthanever
    • #9
    • 11th Oct 17, 8:13 AM
    • #9
    • 11th Oct 17, 8:13 AM
    Welcome aboard - It's definitely good to start overpaying sooner rather than later. I was on interest-only for the majority of my mortgage life, and it was only when I got divorced and took over the house and the mortgage a few years ago that I suddenly realised the damage that paying off no capital had done. Now I am on catch up big time in order to get the mortgage cleared by a reasonable age. So I would definitely encourage even the smallest of overpayments early on - they will cumulatively make a huge difference!


    But, yes, getting that balance right is so important. I look forward to following your journey!
    Former DFW Nerd 230. Determined to be MF.
    Current balance £116,149.98. Offset £1,236. £114,913.98 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22

    Bring it on!
    • Escapar2020
    • By Escapar2020 11th Oct 17, 7:59 PM
    • 20 Posts
    • 19 Thanks
    Escapar2020
    Good luck on your journey!

    Wish I'd be as organised as you at your age, im catching up now though :-)
    Mortgage Jan 2017: £45,460___Current mortgage (Sep 2017): £33,989
    Scheduled end: July 2028_______Planned MF day: Sept 2020
    • debtfreeforlife
    • By debtfreeforlife 11th Oct 17, 8:13 PM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    Just made the final extra payment on the first product! So that's all I can pay on that one until February. I asked my building society to ensure that they were taking time off the term not the monthly payments, and they said that they review all accounts in December and decide amounts for the next year then. Not quite sure how to works. I might try and get an appointment with my local branch to discuss my plans for overpaying and see the best way to do it. I was thoroughly impressed with the customer service when I chose them as a mortgage provider so hoping that will be helpful. In the meantime, I will be putting overpayments into an envelope in clearcheckbook and making them against the other product.

    Have also been advised that I will be getting a 1% pay rise at the end of this month (ah, civil service) so want to try and redirect that to my pension.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • debtfreeforlife
    • By debtfreeforlife 11th Oct 17, 8:18 PM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    Escapar - I'm motivated right now by my parents - my mum has been OPing since my age and is now about to retire early. I don't think I can go at 31, but I'd like to have a choice to go early if I have a chance! And as a perpetual singleton, I feel like I need to plan in advance as it's only my salary I can rely on.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 17, 2:53 PM
    • 4,431 Posts
    • 8,240 Thanks
    enthusiasticsaver
    Well done on making another overpayment. You should be able to tell on your annual statement how much you have reduced the term by hopefully. That is a great motivator.

    I also think setting up a savings pot (or clear checkbook envelope) is a good idea and then do lump sums when they reach a certain point. Easier to keep track rather than small bits and pieces although I know some people do that. It is all much easier now with internet banking. When we used to do overpayments we had to make an appointment, send a cheque off and wait for three weeks while they processed it.
    Countdown to early retirement on 21.12.17 2 months to go.
    • debtfreeforlife
    • By debtfreeforlife 12th Oct 17, 4:51 PM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    enthusiasticsaver yes I will be making payments in lump sums - they have said that the interest doesn't come off daily so no reason why not to. Plus my online banking isn't particularly clear about when amounts have come off, so easier to keep track with larger lump sums.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • debtfreeforlife
    • By debtfreeforlife 14th Oct 17, 7:55 AM
    • 55 Posts
    • 197 Thanks
    debtfreeforlife
    Argh, Life has gotten in the way of a planned beautiful overpayment. I have plans to pay up to the 10% on the smaller product in February and will still do that, but I had also been eyeing up my 'electricity envelope'. I decided for the first year of living in the flat I wanted to pay water and electricity by quarter rather than by direct debit, and have been putting aside money each month to pay for that. I've now switched to direct debit as I have a better sense of my usage, and there's a nice hoard in the electricity envelope that I'd planned to reallocate to the other product...

    ...until I got an email today telling me that a legal inquiry has now been resolved and so my managing agents are backdating the estate service charge to April 2016 as that was when it was last paid across the estate. And the apartment service charge came in at the same time. I have money aside for that and the next estate service charge payments but wasn't expecting the back pay requests. So I have an email into my solicitor asking if any money from the sale was withheld to address this - hoping this might be the case! If not, that will need to be covered by that extra from the electricity envelope. Very annoying!!! I am increasingly convinced that houses are in fact cheaper than flats...

    However I have been told that I will be getting a small bonus at the end of this month so that will be split in half between my treat find envelope and the mop envelope.
    GC Oct 17: £137.65/£200
    2017 MFW #130 £6599.86/£250
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 14th Oct 17, 8:57 AM
    • 460 Posts
    • 1,781 Thanks
    wishingthemortgaheaway
    Urghhh. I don't really understand the service and estate charges associated with flats, but that is a piggin pain in the whatsit. Grrrrr.
    Hopefully someone else's owes at least some of it.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 August: £36,411.85 8/100 September: £35,945.66 10/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • enthusiasticsaver
    • By enthusiasticsaver 15th Oct 17, 8:55 PM
    • 4,431 Posts
    • 8,240 Thanks
    enthusiasticsaver
    How annoying about the backdated service charge. Hope it does not upset your plans too much.
    Countdown to early retirement on 21.12.17 2 months to go.
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