Mortgage Free by 30 (5 years -ish)

edited 23 May 2012 at 1:29PM in Mortgage-Free Wannabe
24 replies 2.6K views
foxbladefoxblade Forumite
81 Posts
edited 23 May 2012 at 1:29PM in Mortgage-Free Wannabe
2012 - UPDATE PAGE TWO



Original post 2009:

Hi,

I thought I would join you all in wanting to be mortgage free. My goal is to achieve it by the time I am 30 years old(around 4 years 9 months time). So far we have been paying off the maximum amount (around 10k a year) we are aloud, how we have done this is pretend I don't have a job, so we are living off a one wage income, but actually bring home two, but...we were wondering if it would be better to pay the 10k off in one lump sum every January? rather than doing the monthly payments?

We are also saving up the little bits that we can that we can't put on the mortgage (cause of penalties) and would like to pay off a lump sum at some stage (though this would incur a cost of 1% on the current total) which we hope to help alot!

Anyway, that's it for now, I will be looking around more cause I am desperate to saving more pennies on bills (£800 per month!- if you minus the mortgage) etc etc that we can put more into the mortgage savings fund :rotfl: is there any that you have cut out so that you can get to your goal quicker? Any ideas welcome!

:j


Thought I would add bills, just in case you can help! (This is monthly)

Water (sewage) 12.62
House Insurance 20.78
Water 13.9
Elec/Gas 83

NASUWT 13.33
Unison 14
Petrol 200

Council Tax 106
Mortgage 430.39
Food
200
Internet 34.69
SpecSavers 15
Pet Plan
14.58
Mobile
15
OverDraft 6.5
«13

Replies

  • dimbo61dimbo61 Forumite
    12.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    You dont give your mortgage interest rate but I think that its easier to overpay monthly and the effect is that you save paying the interest each month is better than waiting until Jan each year.
    The only real way to pay off the mortgage in 4 years and 9months is to reduce the term to say 5 years and overpay a little on that BUT !!!!!
    This will force you to pay a large mortgage payment each and every month so consider this VERY carefully.
    Consider offset mortgages when your existing deal ends GOOD LUCK
  • Good luck, I love this forum, everyone is so helpful here, they will also give you a kick up the bum if you need it...or perhaps its just me they do that with!:rotfl:

    Your internet looks very expensive, what exactly does this cover? We pay £9.99 for unlimited access. Our phone and line rental are done through BT at a cost of £17 a month whch includes calls 24/7. Aslo you put down overdraft as £6.50??

    Do you know about Topcashback and Quidco? They are great for getting money for nothing:j

    Anyway good luck, MF at 30 would be a fantastic achievment, I only just bought my first house at 30:rotfl:I am hoping to be MF by 40:T

    TPAx
    MFW - We've only gone and blooming done it!
    May 2013:j
  • edited 31 August 2009 at 5:50PM
    foxbladefoxblade Forumite
    81 Posts
    edited 31 August 2009 at 5:50PM
    Hi,

    Thanks for your replies! :T

    I will give you a little more details (sorry for the teasing!)

    Our mortgage is with Skipton Building Society, it is a 2yr Discount First Step account, for £107,000 for 30 years, we are now on £79,000 with 25 years to go. The interest is on 3.5% we pay £430.39 per month, we are over paying by £850 per month. This is within the £10,000 per year limit, we can pay more but get charged 1% per overpayment on the total of the mortgage left. (So £80,000 mortgage would cost us £800 if we paid £1 or even £10,000 over, doesn't matter how much).

    Hope this helps you help me! :A

    TPA, thanks for your post! The internet includes phone, it is that high because it is XL Virgin broadband, we use it for game playing as well as uploading items for our jobs, so it is needed, it is less than we were paying before at a previous provider, but I will have another look at other options! (ps. We don't have a TV so use this as the main entertainment)

    Ahhh the £6.50 overdraft....never ever used it, basically we have an overdraft with our Barclay current account for £500 for this they charge us £6.50 a month, they didn't say that they just asked us if we wanted one!, I can't get rid of it online, so I think we will have to go into town to get rid of it, that would help save a few pennies, thanks!

    So, now I have bared my soul :eek: anymore ideas!

    pps... Thanks for the sites TPA, will check them out.
  • Queen-Bee_2Queen-Bee_2 Forumite
    828 Posts
    Mortgage-free Glee!
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    Hi Foxblade - wish I'd been of a MFW mind set when I was your age, 'cos I'd be there by now!

    Anyway, re your internet and phone charges, I posted in early August that my own were costing me a whopping £537.94 a year, or nearly 45 quid a month!!

    By combining the services and signing up with TalkTalk - an 18 month contract at £17.74 pcm - I've reduced my annual bill to £164.50, or £13.71 pcm Signing up for the paperless billing saves a further £1.25 pcm (£15 a year). And by going through Simply Digital, there was a further £50 cashback up for grabs. I think there are deals to be done through the cashback sites (Quidco, Top Cash Back etc).

    The service has worked fine so far - in fact the internet connection is better than before, and I like being able to make unlimited calls anywhere in the UK (I've also taken the £4 pcm 'anytime' boost).

    Anyway, whatever you decide, good luck and I look forward to reading your diary!
    QB
  • setmefree2setmefree2 Forumite
    9.1K Posts
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  • Nice_guyNice_guy Forumite
    124 Posts
    Hi Foxblade!

    It seems like we are on the same quest my friend, we too are aiming to be mortgage free by the age of 30! You should post up details of your mortgage arrangements, i.e. interest rate etc

    I have taken out an offset mortgage to help us achieve our goal. You can make as many lump sum payments as you like AND get access to them at any time during the term of the mortgage. There is a lot more involved to offset mortgages and it may not be for you, but it's worth looking into!

    Good luck!
  • Nice_guyNice_guy Forumite
    124 Posts
    ^^^^ I see you have posted details about your mortgage! DOH! ^^^^
  • Hey Nice_Guy, read your thread and thanks for the info about offset mortgages will take a look, hopefully being on a similar goal we can motivate each other :D

    I have already taken the first step and found that I can save £200 on the car insurance by changing insurer this month (we pay it in one lump sum, hence why it is not under by bills section). So that will go straight into the savings.

    One thing that I have been doing that may help others is paying money into the saving when we would of bought somethings, so for example, say that we fancy a bottle of wine and decide not to, I put £5 into the savings as if we actually had bought it, or say that we would normally go eat out but decide to stay in I put £40 into the savings. It soon adds up :A
  • Hi Foxblade. I'm with you 100% on the goal - it was always my intention to get shot of the mortgage by 30 and we're on course to get there with 6 or 7 months to spare.

    When we got our first mortgage, we had a similarly restrictive deal on overpayments but we moved in the middle of last year to a penalty free overpayment mortgage with HSBC - the £70,000 in August 2008 is now down to £39,375 and will be all gone in December 2010. If and when you switch your mortgage you'll have the chance to pay off as big a lump sum as you want to so keep on saving!

    Personally, I wouldn't bother with the Union memberships, unless you foresee any specific risks to either you or your partner's job in the near future. That being said, I know a lot of people who have become integrally involved with their trades unions and they get amaxing expenses - it's the plain old members in the middle that pay for it all!

    Best of luck.
    Mortgage Free: 28/10/2010
    Time / Interest Saved: 18.5 years / £61,866.50
  • getmore4lessgetmore4less Forumite
    45K Posts
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    check these virgin retention threads to see what you can do to reduce the internet costs.
    http://forums.moneysavingexpert.com/showthread.html?t=1021885
    http://www.avforums.com/forums/virgin-media/885035-virgin-media-retentions-discussion-part-2-a.html

    Barclays pay accounts.

    If you have car breakdown cover and annual travel insurance check out the additions active account.

    If the extras are not worth it to you then frop to a normal account with no charges, you can still have an OD just it will be at a higher rate.

    Don't forget the barclays regular saver for some of your extra savings, pays 4.17% as a customer allready easy to set up on-line.
    http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=homefreegroup&value=14937&target=_self&site=pfs

    I would also start to make use of the ISA allowances these are tax free for life so can be better long term than paying off all the mortgage.
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