MFW - 2015 - £200k mortgage

Well,

I've been on here a while, but I've worked out a target and I thought by signing up it would keep me motivated.

Have a 5 bed house in Kent bought in 2005 for £280k. Probably worth about the same now! :rotfl:

Initial mortgage in August 2005 was £202,000. We have an offset mortgage 0.95% above base rate (!) and our current stats are:

Mortgage = £173,508
Offset fund = £42,690
Interest saved to date = £7,285.40
Effective mortgage = £130,817

Paying DD monthly of £1,394.07 regardless of interest rate, (Interest on mortgage last month was only £254 due to drop in interest rates) and paying £500 into the offset fund.

My overpayment target was therefore 12x500 = £6,000 per year. Due to the interest rate fluctuations it's hard to peg down an overpayment target as right now we're knocking over £1500 off our effective mortgage a month.

My excel spreadsheet informs me that we're not going to make 2014 unless there is a miracle, but 2018 will be easily beaten. Therefore I've set August 2015 as my target, which happens to be my 45 birthday.

Look forward to the voyage! Wish us luck!

Cheers,

Drew.
Original Mortgage : £202,360.00 (August 2005 to August 2028)
Current Mortgage : £47,471 (January 2012)
Target MF : Spring 2013 (15 years early)
Projected MF : Spring/Summer 2013 (15 years early)
«134

Replies

  • drewwadrewwa Forumite
    106 Posts
    Just thought I'd add my money saving tips...

    1. Biggest one - don't buy new cars (duh, well obviously). We have two cars, both made in the year 2000 (w-reg). Mine has now done 160k miles, and my wifes has done 70k. Both bought at two years old. Neither has ever broken down, and both still look reasonably modern (Audi A4 and VW Passat Estate respectively.). Both worth peanuts now, but over 9+ years = cheap, quality and reliable motoring. Don't plan on replacing until mortgage is paid off.

    2. Separate accounts for different tasks. We have a clearing account where all our money goes in. Salaries go in and all DDs come from this account and nothing else. We have our own accounts for day to day living and expenses.

    3. Budget, budget, budget. We account for everything, plan in advance and save until we can afford it (other than mortgage obviously). We have yearly and monthly 'finance checks' - sounds dull but actually we almost look forward to it - to see how effective we've been over the last month in cost cutting.

    4. Understand the difference between 'brands' and 'quality'. Some brands are tat, some are worth the extra.

    5. Don't keep up with the Joneses. We have no need for an HD TV, so we haven't got one. Our laptops are 8+ years old, and work fine. Likewise kitchen, bathroom etc...

    6. As found on this forum, play the game to your advantage! We got a free weekend trip to Paris, hotel, first class travel and dinner included just by using a cashback credit card.

    7. Get educated. When I started out on this I didn't have a clue about pensions, offsets, interest rates etc... it was overwhelming. But I sat down and worked it through, realised how much money I was giving to the banks and decided that wasn't good enough.

    And we're still learning - and this forum is a fantastic way to make sure you're not missing out on an opportunity!

    Cheers,

    Drew.
    Original Mortgage : £202,360.00 (August 2005 to August 2028)
    Current Mortgage : £47,471 (January 2012)
    Target MF : Spring 2013 (15 years early)
    Projected MF : Spring/Summer 2013 (15 years early)
  • SmlSaveSmlSave Forumite
    4.9K Posts
    Part of the Furniture Combo Breaker
    Welcome Drew!
    Currently studying for a Diploma - wish me luck :)

    Phase 1 - Emergency Fund - Complete :j
    Phase 2 - £20,000 Mortgage Fund - Underway
  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Mr Jones here !!!
    I also have an offset mortgage but its fixed till 2010 so better for me to have my savings in the offset rather than the ISA,s.
    Barclays have a regular saver 6% before tax £250 a month max ! but on the news this morning might be going to the government ( cap in hand for bailout ! )
    Do you use quidco ?
    Took out my mortgage after I turned 45 BUT hope to be MF before i am 51!
    or at least fully offset GOOD LUCK
  • drewwadrewwa Forumite
    106 Posts
    Thanks!!!

    My upsides and downsides so far this year...

    Good :j

    Wife managed to get a supply teaching job this year. £123 per day on an irregular basis. Almost £1k due to us in April! :beer:
    Interest rate has made a huge difference to mortgage interest. Dropped from 700 down to 280 or so. Means we're overpaying a lot more at the moment! :T

    Bad :mad:

    Pension crashed! Still have 25 years to work on that though...:(
    Unexpected £900 car bill on VW Passat - all brakes and other exhaust gubbins needed replacing.:think:

    Cheers,

    Drew.
    Original Mortgage : £202,360.00 (August 2005 to August 2028)
    Current Mortgage : £47,471 (January 2012)
    Target MF : Spring 2013 (15 years early)
    Projected MF : Spring/Summer 2013 (15 years early)
  • drewwadrewwa Forumite
    106 Posts
    Hi Mr Jones,

    Quidco - no ...what's that then?

    Cheers,

    Drew.
    Original Mortgage : £202,360.00 (August 2005 to August 2028)
    Current Mortgage : £47,471 (January 2012)
    Target MF : Spring 2013 (15 years early)
    Projected MF : Spring/Summer 2013 (15 years early)
  • gallygirlgallygirl Forumite
    17.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
    Forumite
    drewwa wrote: »
    My excel spreadsheet informs me that we're not going to make 2014 unless there is a miracle,
    drewwa wrote: »
    Quidco - no ...what's that then?

    That would be the miracle you're looking for Pot_of_gold_2.gif !!!!

    Quidco, topcashback & lots of others, cash back sites where you get, surprise surprise, cash back for products you buy. Ranges from £0.05 to £75 or more, house insurance particularly lucrative. You can sometimes get lucky & find a 3 mags for £1 deal, with £5 cash back :T. Also, if you travel with work, Intercontinental Hotels, Ramada Jarvis etc are on there. Can be small amounts but all add up. The way I do it is:
    1. Use moneysupermarket.com on Firefox to look for best deal.
    2. Use http://www.cashbackguide.org/ebay.co.uk/offers.aspx or the calculator on MSE's home page to check or best cash back, also using Firefox
    3. Log onto quidco or whatever on Internet Explorer & click through to best deal.

    You ned to keep searches separate from cash back as if you go direct to a site or use a price comparison site they'll drop a cookie on your browser. You only get cash back if you're referred from the cash abck site, not if you're already tagged. The alternative is to clear your cookies all the time, or even use a different computer. & because I'm paranoid when I do the price comprison search I'll tweak the house number or month of birth so they don't recognise me that way :o.

    The cash back is never guaranteed but over 3 years I've received over £1900 and only 'lost out' on about £20 :j.

    Good luck :beer:
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • setmefree2setmefree2 Forumite
    9.1K Posts
    Mortgage-free Glee!
    RolandChayer-WelcomeSmiley.gif and well done on your progress so far :T
  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Quidco is a cashback website very good if you have car/house/life insurance.
    lots of other companies now signed up as well!
  • edited 5 July 2010 at 12:36PM
    drewwadrewwa Forumite
    106 Posts
    edited 5 July 2010 at 12:36PM
    An update, it's been a bit too long! I'd forgotten my own thread!

    Quite a lot further a long with this, but some ups and downs.

    Bad:

    Not paid as much
    Wife's previous income dried up due to cost cutting on Education
    Endowments performing really badly

    Good:

    Got a far less stressful job, happier at home and much less travel
    Interest rates v. low, meaning we are hammering the capital on our offset tracker mortgage
    Cashed in the endowments and am now offsetting/ISA-ing the proceeds!
    Additional monthly payment now redirected to the offset!

    End result is I'm only overpaying by £300 a month now, not £500, but am considerably further ahead based on the endowments than I expected to be.

    Target remains August 2015, but I hope to beat that by a considerable margin. My wife has an erratic income stream and I also get occasional bonuses. Given the erratic amount of money that I overpay, predicting the MF date is difficult and will be hugely affected by the BoE interest rate.

    If that stays very low we might end up in 2014 or even 2013, but if it goes back up to historical norms that could easily go back out to 2016 or 2017. Still, it will be nice to have a much smaller sum to be paying interest on, regardless!

    For reference I have an offset at 0.95% on top of the baserate. Currently still paying the original monthly mortgage amount of £1398.04. My last payment was £1248 capital, and only £140 interest!

    So I'm currently knocking about £1500 a month off the capital, which is a nice feeling.

    £84k to go!

    Cheers,

    Drew.
    Original Mortgage : £202,360.00 (August 2005 to August 2028)
    Current Mortgage : £47,471 (January 2012)
    Target MF : Spring 2013 (15 years early)
    Projected MF : Spring/Summer 2013 (15 years early)
  • You guys are so motivating, I think I am going to start overpaying my mortgage even though I have been saying this for ages. It's a complete no brainer especially while I'm on a tracker and paying less per month as the interest rates are lower than when I took on the mortgage.

    I'm not great at saving money and am guilty of buying new cars but there is no reason why I can't pay off lump sums. Feeling excited about this now so going to ring my lender now, thanks guys!
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