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  • FIRST POST
    • VDOT47
    • By VDOT47 30th Oct 17, 1:32 PM
    • 97Posts
    • 219Thanks
    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 5
    • VDOT47
    • By VDOT47 1st Feb 18, 12:27 PM
    • 97 Posts
    • 219 Thanks
    VDOT47
    Greent - home counties, which probably explains the costs for everything!


    Just done a calculation and (I think) daily interest is down to £14.99. It was £16.19 at the start of the mortgage, so in theory we are saving about £36 of interest in an average month compared to a year ago.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 5th Feb 18, 11:16 AM
    • 97 Posts
    • 219 Thanks
    VDOT47
    So, having scrapped the idea of the porch extension, we are going to get a handyman in (probably not completely MSE, but if I was to do the jobs myself we'd be waiting months for me to get round to doing them!) to do a few bits and pieces to just make our existing porch a bit nicer and a bit warmer. Costs of materials will go on the stooze CC, so the only cost will be cash to the handyman for his time.


    Weekend was low spend, with just a £10 top up shop in Tescos and buying an item from a DIY store for £9 on stooze CC.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 6th Feb 18, 8:47 AM
    • 643 Posts
    • 2,838 Thanks
    SuperSecretSquirrel
    Costs of materials will go on the stooze CC, so the only cost will be cash to the handyman for his time.
    Originally posted by VDOT47
    Sounds like the right move on the porch. The above sentence is a little alarming though. The only immediate cost will be to pay the handyman, but you will of course need to pay off the stooze eventually, so the materials aren't free!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£51,713.71 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £270,817.92 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 29.1% (exc SP)
    • VDOT47
    • By VDOT47 7th Feb 18, 10:13 AM
    • 97 Posts
    • 219 Thanks
    VDOT47
    Yes, good point! I suppose the fact I don't have to think about paying it off/finding a free or very cheap balance transfer for over 2 years is making my approach a little blas!! But you are correct.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 12th Feb 18, 3:24 PM
    • 97 Posts
    • 219 Thanks
    VDOT47
    Pretty good weekend cash wise, but spent a few bits on the CC including for a new door between the porch and living room which will hopefully keep the house a little warmer then the current door which has a large single paned window in it, which cannot have any thermal or acoustic properties!


    Mortgage payment went out today, so I will check online and update the signature tonight - expecting a balance around £249,500, which will be just over £20,000 less than the starting mortgage in one year.


    PS - my notional target is to reduce the balance by £25,000 p.a. on average, through a combination of natural capital reduction and overpayments, so that by Feb 2021 the balance is below £169,995 (which would be £100,000 lower than when we took the mortgage out). It is a very tall order, but aim for the stars ....
    Last edited by VDOT47; 12-02-2018 at 3:27 PM.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 14th Feb 18, 9:33 AM
    • 97 Posts
    • 219 Thanks
    VDOT47
    Signature updated - balance down to £249,117. Should manage a small overpayment at the end of this month to take it below £249,000.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 22nd Feb 18, 1:05 PM
    • 97 Posts
    • 219 Thanks
    VDOT47
    Not much to report over the past week or so.


    Have been sticking to budget (largely) and even saved a little bit here and there, so with only a week to go until payday I am hopeful of being able to make a decent overpayment. This will be boosted by the fact I have decided to slowly reduce my emergency fund by £1000 over the next few months, so will probably 'release' £300-400 of that this month to boost the overpayment.


    Ultimately, we will then have £5000 in savings accounts earning 5% p.a. which is easily accessible in an emergency, and a further £1000 in a cheap easy-access savings account for smaller emergency items. This £6000 total would cover maybe 3-4 months of expenses in the event of redundancy, and could be topped up very quickly if I felt the need to by accessing regular saver accounts.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 22nd Feb 18, 1:06 PM
    • 97 Posts
    • 219 Thanks
    VDOT47
    PS - handyman came on Sunday and did a very good job on the various bits and bobs we asked him to do. £100 cash for him, and about a further £100 in materials which went on the CC.
    Mortgage (Feb 17) £269,995 Mortgage (14/02/18) £249,117.64
    End Date Oct 2040 Original End Date February 2042
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