Mortgage free by September 2014 (or before!)

SmileyG_2

Hi everyone

Just coming down from the highs of the Olympics. Managed to see three events, two of them free (very MSE!).

Having said that, when you factor in train fares and the additional costs (12" hot dogs in Hyde Park were £6.00 a go:eek:); the credit card took a bit of a hammering.

It was my treat to me and my daughter for the last 11 years and my journey to reach mortgage freedom.

On that subject, the investments have continued to rise and I have set new targets for September 2013...

Previous September 2013 targets (14/08/12) are ....
Outstanding Mortgage at September 2012: -£45,523
Predicted endowment value at September 2012: £31,950
Predicted investment value at September 2012: £20,487
Estimated surplus: £6,914


New September 2013 targets (today) are ....
Outstanding Mortgage at September 2012: -£45,523
Predicted endowment value at September 2012: £31,950
Predicted investment value at September 2012: £22,404
Estimated surplus: £8,831

Current surplus is £1,728 so looking to increase the surplus by £7,103 over the next 12 months...

Well done to Team GB over the last couple of weeks. Although I didn't make it to Olympic Park, the atmosphere in the West End was awesome over the final week and was something to be remembered.

Also a big thank you to the guy who passed us two wristbands for the BT Golden Circle in Hyde Park on the night of the Mens 100m and to the Jamaicans in the massive crowd who turned it into a carnival....

Now back to reality...

SmileyG

Mortgage_Reduction_Novice

SmileyG wrote: »

Just coming down from the highs of the Olympics. Managed to see three events, two of them free (very MSE!).

Having said that, when you factor in train fares and the additional costs (12" hot dogs in Hyde Park were £6.00 a go:eek:); the credit card took a bit of a hammering.

It was my treat to me and my daughter for the last 11 years and my journey to reach mortgage freedom.

It was a once in a lifetime... I don't think anyone would scold you for letting your MFW guard down for the Olympics and to treat you and your daughter. Plus compared to a couple, we met at a BBQ, who'd spent £17k on tickets and another few £k on flights from New Zealand to see the Olympics.... you did yours on a shoe string!

SmileyG_2

Signature updated with latest news.

More to follow, but a healthy surplus now developing whilst my interest bill heads towards £90pm....

SmileyG_2

Hi everyone

Here's my update for Sep/Oct 2012

Previous September 2013 targets (today) are ....
Outstanding Mortgage at September 2013: -£45,523
Predicted endowment value at September 2013: £31,950
Predicted investment value at September 2013: £22,404
Estimated surplus: £8,831

New September 2013 targets (today) are ....
Outstanding Mortgage at September 2013: -£43,863
Predicted endowment value at September 2013: £31,950
Predicted investment value at September 2013: £20,801
Estimated surplus: £8,431

The current strategy is working but now I have a surplus and I'm weighing up a number of options,,,

Firstly I purchased some shares in GlaxoSmithKline. They currently yield 5%, so even if the share price goes nowhere for the next 8 years, the dividends at least cover the mortgage interest payments.

The current Cash/Shares ratio in my investments is 53%/47%. (All my major cash investments are returning more than 2.5%)

The endowment revaluation came in at £29,891. It looks like I'll be hanging on to the endowment until maturity all the time that interest rates remain this low (currently paying 2.5%). Last years return worked out at 6%

No overpayments this month.

Her's the interesting bit....

I want to get the mortgage down to £40,000, Do I do it slowly or quickly?

I've decided to divert some of my fixed amount of £500 pm to the mortgage as follows from January 2013...

Endowment £68.60 (no change)
Mortgage payments £390.30 (up by £235.54)
Investments £41.10

At my September 2014 date this will leave me with..
Mortgage £40,470
Endowment £33,800
Investments £21,989 (assuming no change in capital value)
Surplus £15,319

Lots of figures, but in essence I miss reducing the mortgage debt! The problem is with so many strategies available to me (including paying the whole thing off!) you just want to try and come up with different ideas abnd bounce them off people.

What do you think?

Getting even more impatient.....:p:angry:

SmileyG

gallygirl

I know, this is a perennial question in this house as well. Well, between me and me, Mr GG just lets me get on with it .

I satisfy myself by counting the savings as OP's so my net balance still goes down on my spreadsheets. I WILL carry on doing this as long as the return is better than the mortgage rate (the WILL shows how often I have the same argument with myself :rotfl:). We have only just started saving though.

I think having more in savings gives more options. I wouldn't choose to invest in shares etc as part of my mortgage payoff strategy. They are still fairly liquid (actually, with the penalty clauses on some savings accounts, probably more liquid), but I'd be worried they would drop in value precisely when I wanted to sell. I have money in pensions and that is volatile enough for me .

Whatever you choose, the important thing is you are increasing your net worth :T.

Please keep asking the question regularly so we can all doubt our own strategies .

SmileyG_2

gallygirl wrote: »

I know, this is a perennial question in this house as well. Well, between me and me, Mr GG just lets me get on with it .

I satisfy myself by counting the savings as OP's so my net balance still goes down on my spreadsheets. I WILL carry on doing this as long as the return is better than the mortgage rate (the WILL shows how often I have the same argument with myself :rotfl:). We have only just started saving though.

I think having more in savings gives more options. I wouldn't choose to invest in shares etc as part of my mortgage payoff strategy. They are still fairly liquid (actually, with the penalty clauses on some savings accounts, probably more liquid), but I'd be worried they would drop in value precisely when I wanted to sell. I have money in pensions and that is volatile enough for me .

Whatever you choose, the important thing is you are increasing your net worth :T.

Please keep asking the question regularly so we can all doubt our own strategies .

Hi GG

I agree with everything you say, but the -£46,000 figure still nags away at you, doesn't it?:undecided

SmileyG

gallygirl

SmileyG wrote: »

Hi GG

I agree with everything you say, but the -£46,000 figure still nags away at you, doesn't it?:undecided

SmileyG

Nope, it doesn't actually...... I just it's v impressive to have money in savings for the 1st time in my life :rotfl:.

SmileyG_2

Finally decided I need anew challenge, so I'm going to start training for a 10K run in 2013.

(There, I've said it now!)

For someone who gave up the challenge of the roads over 25 years ago as a mere 26 yo, its almost doing it from nothing, so it'll be a long build up, but I can't spend the rest of my evenings looking at spreadsheets, it's driving me nuts!

I'll have somthing else to talk about and become a proper person.

Wish me luck!

SmileyG_2

gallygirl wrote: »

Nope, it doesn't actually...... I just it's v impressive to have money in savings for the 1st time in my life :rotfl:.

That was said with the confidence of someone who's in control of their finances, rather than having the finances controlling them!

SmileyG_2

Made a start on my 10K training...

31/10/2012 Did 0.5 miles in the swimming pool...
01/11/2012 Did a gentle 15 mins on the exercise bike with 6x60sec sprints...

Now looking at running shoes and a cheap digital watch with chronograph...