Pawlala's MFW diary (Part II now underway in earnest!)

pawlala

UPDATE 31/12/2016

OK I’m resurrecting my diary because...

I’m no longer mortgage free :rotfl: and I predicted this moment would come!

pawlala wrote: »

I haven't joined MFW2014 but who knows in the future, I might be joining MFW2017 or something

If you are not aware of my journey since 2009 I have paid off two mortgages before. The first 8 years ago and the most recent was four years ago today when I paid off the mortgage of my current property (New Year’s Eve 2013 )

Since then, I have saved up a deposit to purchase an investment property locally, which will be rented out in the new year. Apart from a lick of paint and the relevant safety checks and certificates, it is ready to move into.

My current mortgage is now approximately £150,000 and I aim to pay it off by end-December 2019. This will be a very tight deadline, but I like pushing myself to achieve stuff quickly, so I will be giving it my all. For 2017 and 2018 I can only pay off 10% per year so I will continue to invest money elsewhere until the shackles of a fixed term rate are removed. Hopefully rental income will also help me achieve my goal much quicker.

My overpayment target for 2017 is £23k, which included some overpayments for this week before the 10% restriction kicks in on 1st Jan.

Happy new year everyone! :beer:

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UPDATE 31/12/2013

Morning + happy new year everyone,

Firstly, well done to everyone on MFW2013, we reached a million! :beer:

Secondly, I'm mortgage free!

I made my last payment this morning after ringing to find out closing balance. I have cleared my £71,000 mortgage in 12 months after some careful money management involving high interest accounts, ISAs, reward accounts, lots of money saving coupons, glitches, ditching and/or switching, frugal (but not overly so) living, one or two successful parking appeals :rotfl: and overpayments.

What my MFW2013 payment calculations haven't taken into account are the monthly payments less interest, which reduced my mortgage by £1619.69 before overpayments. This leaves required overpayment for December of £6233.39 which I completed this morning with a final overpayment of approx £350. Spreadsheet updated, target reached 100%.

This has been my second mortgage I have cleared. I haven't joined MFW2014 but who knows in the future, I might be joining MFW2017 or something - I don't consider this house as my forever home so I may climb the housing ladder yet further. But I intend to save a fair bit over the next few years before that happens. And even do things I've never done before like dabbling in stocks and shares. Improving my pension is a must too.

Hope everyone has a great night for NYE, I might grab some bubbly from stressco's, I'm sure I have a money off coupon somewhere........ _party_

P.

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UPDATE 23/11/2009

I don't know where to start so I guess I'll do the figures first.

Mortgage remaining as of start Jan 2009: £61,900
OP made in 2009: £52,400
Mortage remaining as of end Nov 2009: £9500 with a further OP of between £2400-3600 to come on 1st December.
Anticipated 'MF' date (part 1): 1st February 2010 (part 2: 31st December 2013)

However, this is currently very much part 1 of 2. I want to keep this mortgage open (i.e. retain a very small amount remaining with negligable interest payments) in anticipation of a further loan of approximately £80-90,000 to the existing mortgage for a second house move I hope to take place sometime in 2010. The two variables here are 1) the amount being borrowed for part 2; and 2) the date of the move which may or may not take place next year!

Because of the large OPs made in Autumn 2009 the monthly repayments are currently £350 less than they were in the summer (nice to know its an equivalent saving of over £10 a day!) and every penny of the repayments saved will be ploughed back into OPs up until February. After this it turns into solid savings. After February, the longer a house move takes (including all the time it takes for these things to go through) the more opportunity there will be to build a further deposit, and make initial OPs on second home. Essentially with the current housing climate, it could be any time between Jan/Feb 2010 and 12/2012 (or beyond) before a move takes place!

I am adding myself to the very excellent MFiT-T2 campaign in the hope of paying off Part 1+2 of the mortgage by 12/12/12. This will be a very hard target to achieve in paying off 80-90k in just less than three years, but I'm hoping that the means are there and if the last three years are anything to go by, I will get very near. I will know more about how close I am to reaching the target at the beginning of 2012.

I guess this diary will provide updates and any other monetary tidbits along the way to a journey into the MFW unknown. All comments and queries on the initial briefing very welcome!

PL

weezl74

congrats on huge OPs so far :beer::j

Welcome, I shall read with interest...

Weezl

setmefree2

on your fantastic progress so far and

pawlala

thanks for the support!! sharing this with nobody in real life makes it feel like a lottery win!!

SmlSave

Just popping in t say hi:

Hi Pawlala

pawlala

new signature! :dance:

evab_2

Fantastic overpayments, hope your remaining few months go to plan! x

setmefree2

Nice signature

wynnvegas

Hi Pawlala,

Sorry to be nosey but, well, in this instance, I just am!

I'm a wee bit behind you in financial terms but we're thinking along the same lines by paying the current house off then moving. Do you think it would be better buying a new house in the short-term in anticipation of the market increasing (and thus getting saddled with a new mortgage) or, as we're currently planning, saving the difference between the value of the current house and any new one to avoid the additional borrowing? Being mortgage-free is such a big deal to me that I'd hate to even think about getting another one. Whatever your route, I wish you the very best of luck.

Cheers,

Billy

zebedy

Hi, Congrats on your huge OPs during 2009.
Any hints and tips of how you've managed such big OPs.
My mortgage is similar to how yours started at the beginning of 2009.
I've been working hard at it and have managed to pay off nearly £7000 this year, but like you I want to move next year.

All hints are appreciated,

I'll follow your story with interest

pawlala

£1500 extra OP confirmed as of today