Mortgage Free ASAP

Queen-Bee_2

December has been a hard slog, which resulted in fewer diary updates that I’d have liked.

I’m still wrestling with my MA assignment, and am finding it so hard I'm starting to wonder if I'm up to it. Teaching these days bears little resemblance to when I was last at university twenty years ago, and I'm really struggling. My assignment was originally due on 11th December and I have an extension until 4th January, but if it’s not done by then, it’s going to become a real problem… so wish me luck…

OK. FIGURES… My favourite time of the month! As at 31 December 2009, the numbers are as follows:
- Total payments (Year To Date) £34,140
- Total interest charged (YTD) £3,430
- Current balance outstanding £55,022

If I’d paid in accordance with my original mortgage payment schedule (with a September 2025 end date), my balance would be in the region of £86,270. This means that I’ve paid off just under £26,400 than I would have done prior to my MFW days. At least, I think so… it’s late, and I’m never 100% sure of my figures, but at least they are going in the right direction.

2009 saw an awful lot of changes, which turned my life upside down mid year. I am now back studying, using my savings to try and reduce my mortgage asap and have adopted a shoestring budget to help it happen. If I can get rid of - or at least massively reduce - my mortgage, I will be free to pursue a lesser paid, but more rewarding career with reasonable hours. My last job was a utter nightmare in terms of hours and [lack of] support, and left me completely burnt out... Time to Do Something Different.

My resolutions for 2010? Well, I suspect it might be another tough year, but at least I am now in the swing of living on less.
- Firstly, I want to carry on paying a high monthly mortgage amount for as long as possible. My current mortgage is with Nationwide and overpayments are limited to 5% per year during a fixed rate period ending in March 2011. The original length of my total mortgage term was September 2025, and my monthly payments during this period were £645 pcm. By shortening the term to an end date of March 2011 however, I could increase the monthly payment to just under £4k pcm, thereby reducing the capital balance much more swiftly. Of course I don’t build up an overpayment reserve in this way and I can’t afford to carry on paying at this rate for too long, but it didn’t cost me anything to shorten the term and won’t cost anything to extend it again. Until the year unfurls, I am not sure for how long I can keep up the £4k pcm, but hopefully I should be good for at least another 6x months, and thereafter extend it again. My aim for 2010 is therefore to reduce my mortgage by £27,000.
- My second aim is to become more organized and disciplined, particularly with regard to my studies. In September, I changed my aspirations from a complete career change, which would have involved 3x full years at university, to a part time MA which builds on my existing knowledge but takes me in a different direction. I think I’ve made the right choice, but I’m finding the study process very challenging. I can’t afford to prejudice my future by not being focused enough, so its essential I develop better skills in this area over the next couple of months. Until then, fitting in paid work around my studies is going to be very difficult[
- Thirdly, I need to loose the excess weight I’ve piled on round my middle. I know this is a MFW diary, not a diet thread, but cutting my grocery budget led to my changing my diet and eating far more starchy foods instead of meat. My weight has rocketed as a consequence (though to be fair, lack of exercise and medication and stress have not helped either). If any of you know of MSE ways to loose weight, please share them!!

I think that’s all for now. I’d intended this to be a short post, but time has flown and I need to crack on with my studies tomorrow, so I’m going to defer posting an updated graph showing my progress until next week.

Happy New Year everyone!
QB

uzubairu

Thanks for the update.

You've achieved a lot this year, so don't be too hard on yourself.

Career change, returning to education and still attacking your mortgage successfully are all things you should be proud of.

I hope 2010 continues to produce good results for you.

Good luck with the assignment.
Your determination to succeed should see you through.

uzubairu

Queen-Bee wrote: »

. My current mortgage is with Nationwide and overpayments are limited to 5% per year during a fixed rate period ending in March 2011.

I'm with the Nationwide and on a fixed rate too.

I thought that they allowed a £500 per month overpayment, which is the limit on mine (taken out in 2006).

setmefree2

with all your plans

Queen-Bee_2

uzubairu wrote: »

I'm with the Nationwide and on a fixed rate too.
I thought that they allowed a £500 per month overpayment, which is the limit on mine (taken out in 2006).

It's an ex-Portman mortgage, so the provisions may be a little different - there's an annual overpayment provision which I pay off in a lump sum as promptly as possible!

Queen-Bee_2

Just checked my mortgage account again this morning (obsessive? me??) and see that my interest charge for today is £6.92. Given that my average over 2009 was nine pounds something, that's not bad, is it?
QB

moneysavermum_2

Queen-Bee wrote: »

Just checked my mortgage account again this morning (obsessive? me??) and see that my interest charge for today is £6.92. Given that my average over 2009 was nine pounds something, that's not bad, is it?
QB

Queen bee anything you can knock off that mortgage the better. Hope you can continue to chip away at it in 2010.:T

Pea-pod

Hi Queen-Bee, looks like you're doing well from your figs and congratulations on your change in direction - you might not have chosen it, but from the sound of things the new lifestyle suits you better.

Have you worked out how much interest you're set to save by paying the mortgage off early?

Queen-Bee_2

I have been fiddling around on my Mac to update my 6 monthly mortgage progress chart. Hopefully, I've managed the technology and it should appear below.

As you can see, so far, the purple line (which represents my Actual Payments) is bang in line with my most optimistic scenario and there is a very satisfying gap between my current position and where I would have been had I stuck with Nationwide's original repayment schedule!

Pea-pod, somewhere I have a spreadsheet from which I ought to be able to derive the interest saved. Watch this space...

[URL="[IMG]http://i541.photobucket.com/albums/gg387/alisonjfoy/MortgageJan10.jpg[/IMG]"][/URL]

gallygirl

:T I love it when a plan comes together, well done :T