Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • VDOT47
    • By VDOT47 30th Oct 17, 1:32 PM
    • 64Posts
    • 71Thanks
    VDOT47
    Mortgage Free by 55
    • #1
    • 30th Oct 17, 1:32 PM
    Mortgage Free by 55 30th Oct 17 at 1:32 PM
    Hi all,


    As the title would suggest, my aim is to be mortgage free by 55! Having read through a few diaries on here, I thought that starting my own might help me to keep focussed.


    Right, background info! I am 35, OH 32 and DD 2. We moved house earlier this year, with a mortgage of £269,995 (with fees). We are on a 25 year mortgage with an initial 5 year fix at 2.19%, meaning repayments of £1169.xx per month.


    I have just registered for online banking, so once the passcodes come through in the post I will find out the exact balance, but I estimate we are currently on c.£264,000 with a repayment date of Feb 2042!!


    I don't intend to do a full SOA at this stage (maybe in the future) but will say that we are in the fortunate position that we can currently put £550 pcm into regular savers and have current easy access savings of c£7000.


    The aim over the next 12 months is to get the savings up to £15,000 (from the regular savings accounts maturing and also from a bonus I should get from work next summer) and keep that as our emergency fund. From that point, whenever a regular saver matures (or I get a bonus) I intend to stick that directly into a lump sum overpayment, unless the emergency fund needs topping up of course (which it will do, as we need to do a couple of bits and pieces to the house still over the next couple of years).


    In the meantime, I intend to make ad hoc overpayments as and when possible, hopefully averaging about £100pcm.


    My motivation for this is of course to be mortgage free by 55 in order to then make saving for retirement easier (I have a work pension but not much else, although OH runs her own business which hopefully would have value when we reach retirement or could be passed to DD if she wanted to run it), but in the interim it is to allow us to build up as much equity as possible so as to be able to move again within 5 years.


    The reason for this is twofold:
    1) We always intended that this move was another step on the ladder, rather than our 'forever' home, and we originally thought we would live here for 10 years then move;
    2) However, we (well, I in particular) are not happy where we have moved to. The area is SO noisy throughout the day (and during the evening over the summer too) with children shouting and screaming and frankly the noise is doing my head in! Also, we are in a semi so there is some noise through the wall too.


    Think that is enough to start with, any comments would be welcomed and I will hopefully post a little more in due course!
Page 4
    • greent
    • By greent 10th Jan 18, 4:23 PM
    • 6,653 Posts
    • 67,700 Thanks
    greent
    Our SVR when we dropped off our fix was considerably lower than the fix
    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
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £0/£4000
    Net sales 2018 £17.38/£1000 PAYDOX18 £0/£30k ?? Decluttered 136/2018 items
    • VDOT47
    • By VDOT47 11th Jan 18, 12:39 PM
    • 64 Posts
    • 71 Thanks
    VDOT47
    I've been having a little look at our emergency savings pot and think it can be rounded down a little. That, in addition to the fact that a regular saver has expired thus freeing up £250 this month, should see me make an overpayment of about £900 at payday later this month.


    I think that this should mean that by the first anniversary of taking out the mortgage in February, our balance should be below £250,000! (It started at £270,000). I know a lot of that is from the money transfer, but it is still nice to see the balance start with a 24x!

    The amount that has previously been going into the regular saver will, from next month, have to be used to pay PCP for a new car so there is no point using this month's £250 for anything other than an overpayment!

    Taking the future monthly PCP payments into account, and the minimum repayments to the money transfer CC, from next month I hope to be able to overpay about £200-250 pcm, although this may be a bit higher initially and then drop to this level once my auto-enrolment pension contributions are required to increase in April.

    I will keep up the £300 pcm into another regular saver (and will probably renew when it expires later this year, as the rate is good) and decide what to do with the lump sum when it expires.

    I am constantly in a state of flux when deciding how much to have in easy access emergency savings! You read about needing 6 months' expenses, but that seems like quite a lot to me.
    Last edited by VDOT47; 11-01-2018 at 12:42 PM.
    Mortgage (Feb 17) £269,995 Mortgage (12/01/18) £250,735
    End Date Oct 2040 Original End Date February 2042
    • greent
    • By greent 11th Jan 18, 1:06 PM
    • 6,653 Posts
    • 67,700 Thanks
    greent
    Six months does seem a lot - but my husband has had 2 periods without work of around 11 months each time (he was in the stupid position of being too well qualified to be offered lower paid jobs - he tried!) - at which point those savings start to come in very handy! The second time around we were mf, so our outgoings are obviously considerably less.
    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
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £0/£4000
    Net sales 2018 £17.38/£1000 PAYDOX18 £0/£30k ?? Decluttered 136/2018 items
    • RetireASAP
    • By RetireASAP 11th Jan 18, 1:28 PM
    • 2 Posts
    • 0 Thanks
    RetireASAP
    If you're looking at balance transfer cards why not look at one that charges no fees and no interest. Is it worth paying a 3% fee when you can get one for nothing?
    • VDOT47
    • By VDOT47 11th Jan 18, 2:21 PM
    • 64 Posts
    • 71 Thanks
    VDOT47
    Its not a balance transfer, it was a money transfer, and there aren't any cards out there that don't charge an upfront fee (at least, not so far as I am aware of).
    Mortgage (Feb 17) £269,995 Mortgage (12/01/18) £250,735
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 12th Jan 18, 9:07 AM
    • 64 Posts
    • 71 Thanks
    VDOT47
    Signature updated to show the up to date balance! Definitely plan to have this below £250,000 by the end of the month.


    Going to investigate 0% purchase cards in order to stooze some of the costs of the porch extension this year (and the balance of the costs from a new bathroom that we had installed last year on 0% from a well known bathroom company and which is due to be paid in May).
    Mortgage (Feb 17) £269,995 Mortgage (12/01/18) £250,735
    End Date Oct 2040 Original End Date February 2042
    • RetireASAP
    • By RetireASAP 13th Jan 18, 7:09 PM
    • 2 Posts
    • 0 Thanks
    RetireASAP
    We used the Halifax card - 0% interest, no fee, 29 months to pay (you have 90 days after opening the account to do free transfers, after which there is a fee). When the deal comes to an end you can find another 0% interest no fee deal - that way your funds can be sat elsewhere earning you a decent amount of interest or used to pay your mortgage down - unfortunately as a new user I'm unable to post the link to the card site - but it's detailed in the MSE weekly email.
    • VDOT47
    • By VDOT47 15th Jan 18, 9:49 AM
    • 64 Posts
    • 71 Thanks
    VDOT47
    Ah ok, didn't spot that one. Too late now though as the money is now in the mortgage account!


    Went for the new car, so that will deplete mortgage overpayment capability quite a bit. Will have to find other ways to keep the overpayments up (cashback, surveys etc).
    Mortgage (Feb 17) £269,995 Mortgage (12/01/18) £250,735
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 16th Jan 18, 10:28 AM
    • 64 Posts
    • 71 Thanks
    VDOT47
    Received the written confirmation from mortgagee that the recent overpayment has been received, and that this now reduces the remaining term to 22 years and 9 months, which I calculate to be October 2040. At the outset, the mortgage would have run to February 2042, so the overpayment so far seem to have brought this forward by 16 months :-)


    Target for 2018 is to get the balance below £235,000 (about £8000 of the reduction through overpayments, the rest through the natural capital reduction through the repayment schedule).


    First thing, to complete the home insurance renewal in the next 2 weeks and do so using Quidco for some cashback which can then go into the pot once it is received.


    Car insurance will need to be changed onto the new car in the next week too, and then renewed in April, so will be doing price comparisons there and claiming cashback if possible too.
    Mortgage (Feb 17) £269,995 Mortgage (12/01/18) £250,735
    End Date Oct 2040 Original End Date February 2042
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,680Posts Today

8,290Users online

Martin's Twitter