Little Mr T's Mortgage Free Journey

littlemrtinkle

Mortgage Taken out July 2007 with Nationwide for 88500, fixed rate 5 years 5.48% Ouch!! If only i had a tracker sniff sniff sob sob.

After careful consideration, i have decided to ditch saving and pay money off mortgage instead.

2007 No Overpayment
2008 Only £1040 was using isa instead
2009 £1440 to date

Mortgage currently £82500

Be really optomistic i hope to overpay £4000 this year and overall try and reduce mortgage to 15 years.

I have been using quidco, betting, bank offers, pigsback, monitoring groceries to below £200 a month. Considering ditching one car, worked out we'd be £1500 a year better off (still trying to convince OH ).
Any tips or help would be greatly recieved to have the mortgage free dream.:money:

getmore4less

Think like a debt free wanabe, examine every spend and work out what you could cut them back to.

From this low spend you make choices save/payoff the debt or spend.

Extra car is a good start, tv packages, internet, going out examine everything.

You don't have to cut back but this way you know what it costs in years off the mortgage for each one.

I like the relative falue of spends pick the things you like/want a lot and measure other thing relative to that.

eg once a week fancy indian takeaway £25= £1300=one extra holiday or 7 years off the mortgage

littlemrtinkle

thanks will take everything on board, we are finding 500 limit with nationwide a pain already, so also enquired about shortening mortgage term, form from nationwide in post.

RosieTiger

There are also a number of advice threads within MFW which provide all the tips you will ever need.
Personally, I believe you need to strike a balance so would never get hung up about spending on enjoying yourselves - you still need to have a life !

setmefree2

littlemrtinkle wrote: »

After careful consideration, i have decided to ditch saving and pay money off mortgage instead.

Hi lmt,

Does that mean you have no emergency savings?

littlemrtinkle

no still have 12 months emergency funds in isa's, just wish the interest rates were better, currently earning 2.5% with YBS, i am currently considering switching to natwest, just waiting on confirmation what rates will be after BOE rate reduction.

uzubairu

setmefree2 wrote: »

Hi lmt,

Does that mean you have no emergency savings?

With Nationwide, your overpayments are kept in an Overpayment Reserve and you can access that money whenever you want, and you can usually have it within days of requesting it.

I'm planning to move our emergency money to the Overpayment Reserve, so that it helps reduce mortgage/interest while we don't need it.

littlemrtinkle

thanks everyone for all advice.

Just a quick hello and update, half way through this month and spent just £100 on groceries (set our target at 200 for month).

Opened an american express credit card , paying 5% cashback for first 3 months and 1.5% there after. Plan to spend everything on card and pay off in full every month.

Opened ING saving account, just waiting on the £20 to be credited, every little helps.

Plan to downshift food shopping this week to aldis instead of usual morrisons.

Filled out forms to reduce term of nationwide mortgage to 2028, and will carry on paying maximum 500 a month overpayment.

Goodluck everyone.

setmefree2

well done on all that progress :T:T

littlemrtinkle

thanks setmefree2.

Things i did today. Handed in form to nationwide to shorten mortgage term to 2028, moved cash isa to halifax 3% fixed isa from ybs. Opened halifax reward account paying £5 a month in interest. Phew legs were worn out by the time i got back to office lunchtime!!

littlemrtinkle

okay todays cunning plan, just discovered i can have a maximum of three halifax reward accounts, so i am going to open the three each paying a £5 a month. My partner pays me a fixed lump sum towards bills and mortgage.

account number 1 will recieve my salary
account number 2 will recieve lump sum from mrs tinkle
account 3 will recieve money from savings, and also part from 1 & 2.
This sounds complicated by should be manageable

Part 2 of cunning plan, checked scottish power dual capped account and it says i am £180 in credit. Plan to contact them and use money towards overpaying. :-)