Inspiration perhaps...

northum

Hi all, I've been lurking a long time, even posted my intention/timescale to be mortgage free many moons ago. I thought my story of how I got to my current situation, mortgage 'free', might provide some encouragement, or just amusement.

I was on board with the idea of overpaying a mortgage before I took one out, so I chose an Abbey flexible plus. It allows any overpayments you like, has (I think) a decent rate (variable, so not good for everyone, but not much more than the base rate) and crucially (for me) can be viewed and administered online. Although I didn't overpay straightaway, I was confident that I would.

Borrowed 80,000 (about 3.2 times my salary) on a 89,000 house in december 2003 (first time buyer), I'd been saving for the deposit for the previous few years. In retrospect, at that time I'd have been better off just buying immediately without a deposit as while I was saving prices rocketed. Can't be helped though, just glad I got in when I did.

My original statement was to try and be mortgage free while I was still 30 (just) march 2010. This involved a huge level of overpaying. I had a few decent payrises at work and was overpaying generally about 100% per month (i.e. if my payment was £500 I was paying another £500 on top). This still wasn't going to get me there on target. I paid the odd bonus that I got in as well, usually about £1000 once a year. In early 2007 I crashed and wrote off my motorbike (which I had a cheap loan on), instead of replacing it or paying off the loan I overpaid the mortgage. I'd saved quite a bit altogether.

The big breakthrough came early this year when I, at the second time of asking was accepted for voluntary redundancy from my job. I left with no job to go to (scary) but a nice wodge of cash. It all went in the mortgage, it took 3 months to get another job, similar to before. The new job has no parking but better transport links so I sold my car and put that in the mortgage. As a result within a few months of working again, the mortgage is wiped out, about a year and a half before my original target and only about 4.5 years into the 25 year term.

My attitude to saving this way has been fairly single minded I guess. I often wonder where I fit in with the 'live for now' V's 'pay off mortgage' debate. I have made some sacrifices. I love cars and bikes so having neither is weird. Although that is more to do with petrol prices than overpaying the mortgage, and for most of the time I was overpaying I had both a sports bike and sportscar. I don't spend much money at all on consumer goods, clothes, big tv's etc. However, I like to go abroad a fair bit, probably 3-4 times a year on average.

Question is what to do with my new found mortgage freedom! I'm thinking of combining my passions and packing in the new job after a while to ride a motorbike across Asia.

So, I'll stop waffling. I hope all that helps someone somehow. Overpay and take some risks?! Worked for me

poppyoscar_3

Great story northum......can't wait to have mortgage freedom......nice that the positives came out of the negatives!

Well done!

PO xx

Di-Dough

Well done northum:beer: I love hearing about how people paid off their mortgage :j I do try and overpay each month but when I hear about people paying theirs off it makes me want to sqeeeeeze that little bit extra out of the pay packet and makes me a little bit more determined that it can be done:D

Well done you must be so proud:D

Di

moanymoany

northum wrote: »

Hi all, I've been lurking a long time, even posted my intention/timescale to be mortgage free many moons ago. I thought my story of how I got to my current situation, mortgage 'free', might provide some encouragement, or just amusement.

I was on board with the idea of overpaying a mortgage before I took one out, so I chose an Abbey flexible plus. It allows any overpayments you like, has (I think) a decent rate (variable, so not good for everyone, but not much more than the base rate) and crucially (for me) can be viewed and administered online. Although I didn't overpay straightaway, I was confident that I would.

Borrowed 80,000 (about 3.2 times my salary) on a 89,000 house in december 2003 (first time buyer), I'd been saving for the deposit for the previous few years. In retrospect, at that time I'd have been better off just buying immediately without a deposit as while I was saving prices rocketed. Can't be helped though, just glad I got in when I did.

My original statement was to try and be mortgage free while I was still 30 (just) march 2010. This involved a huge level of overpaying. I had a few decent payrises at work and was overpaying generally about 100% per month (i.e. if my payment was £500 I was paying another £500 on top). This still wasn't going to get me there on target. I paid the odd bonus that I got in as well, usually about £1000 once a year. In early 2007 I crashed and wrote off my motorbike (which I had a cheap loan on), instead of replacing it or paying off the loan I overpaid the mortgage. I'd saved quite a bit altogether.

The big breakthrough came early this year when I, at the second time of asking was accepted for voluntary redundancy from my job. I left with no job to go to (scary) but a nice wodge of cash. It all went in the mortgage, it took 3 months to get another job, similar to before. The new job has no parking but better transport links so I sold my car and put that in the mortgage. As a result within a few months of working again, the mortgage is wiped out, about a year and a half before my original target and only about 4.5 years into the 25 year term.

My attitude to saving this way has been fairly single minded I guess. I often wonder where I fit in with the 'live for now' V's 'pay off mortgage' debate. I have made some sacrifices. I love cars and bikes so having neither is weird. Although that is more to do with petrol prices than overpaying the mortgage, and for most of the time I was overpaying I had both a sports bike and sportscar. I don't spend much money at all on consumer goods, clothes, big tv's etc. However, I like to go abroad a fair bit, probably 3-4 times a year on average.

Question is what to do with my new found mortgage freedom! I'm thinking of combining my passions and packing in the new job after a while to ride a motorbike across Asia.

So, I'll stop waffling. I hope all that helps someone somehow. Overpay and take some risks?! Worked for me

I wish I'd taken this attitude twenty years ago. Congratulations, it's amazing what single mindedness can achieve. We've cut back massively on what we spend on groceries etc and - most importantly - put the savings in the bank!

setmefree2

Well done:j:j:j:j

bet you had a few of these :beer::beer::beer:

princessdaisy2k

Your mortgage free story was really informative and shows how the twists and turns of life can be worked to your own advantages. I am currently aiming to be mortgage free by end of 2011 and have started to think about that actually scary idea of what to do when I do not have pay for a mortgage each week. It is the freedom it will provide which is such a novelty. I want to do something really life changing such as renting out the house that will no longer have a mortgage and living in a warm country and working the odd bit here and there to make ends meet. Well thanks for the story and it encourages all of us out there still working at it.

ernie_3

nice one mate..its good to see, and like all the visitors to these pages very motivating..with regards to the bike trip.."will it be the wrong or right way round"

suzybrown

It is a great story Northum and what a great age to do it at. We paid our first mortgage off by the time we were 31/32 cannot remember exactly. We then remortgaged a bit of it for a property abroad. We moved up the ladder considerably when we had our two children. We sold the property abroad (florida) just in the nick of time. Put the proceeds toward paying off this mortgage and along with dividends and another savings managed to pay our mortgage off at the end of last year. It has been a great feeling! The only thing is now i am determined to get X amount of savings by next year which is another challenge. Why? I am looking for extra security - just in case.

The good thing for us now is that we are mortgage free and with us working in Construction we really feel that should things get quiet we will be okay whilst others are worrying how they are going to pay off the mortgages. I know we are very luck to be in the position and do not ever take it for granted.

I hope your story inspire many others to do the same as you. Well done!

jackie_w

Well done Northum, you must be so proud. What a great feeling.

ive just posted about starting for pay my mortgage off early although it is going to take me an awful long time, however, every little helps.

You go and treat yourself and take your bike ride across Asia you deserve it.


Jackie