FYP's road to MFW!

fiveyearplan

This is my first post on this board however I have been lurking here for the past couple of months! My mortgage currently stands at £283,413.68, I made my first overpayment of £11.40 on Friday and want to start overpaying little and often.

Mortgage is 1.99% above base rate, interest only, with 9 years 11 months left to run. When the mortgage expires my husband will be 67 years old so any re-mortgage at that time will have to be on my salary alone – I’m 45. This is the biggest incentive for me to want to start making overpayments to decrease the amount that I may need to re-mortgage at that time.

I have looked at several overpayment calculators but haven’t found one (or can’t seem to work one) that deals with interest only and ad hoc payments. Does anyone know where I can find one? I’m sure seeing how the overpayments are working for us will give us the motivation to put our spare money into the mortgage.

I’m planning to keep this thread as my MFW diary. I have 2 children ages 17 and 18 both in college. My child tax credits will end in April and CHB will end in July so that will be approximately £200 down per month from then. My job is due to end in June but I don’t foresee getting another one to be a problem (she hopes!). Apart from my full time job, my husband and I run a business that isn’t producing much income at the moment and the cashflow from that just about keeps our heads above water.

I’ve got my son on board with cutting back so now just have to work on my daughter and husband but I’m looking forward to this journey! Any tips most welcome!!

FunnyRabbit

Good luck with your quest

The Egg overpayment calculator is the one I use, as I too am on IO. It lets you calculate monthy overpayments and one off payments, so I dont know if that would help?

pawlala

you must be paying a fortune in monthly payments?

fiveyearplan

Currently my monthly payments are £588.60. It was discounted for th first 2 years and payments were £1196 then when we came out of that deal payments went up to just over £1,600, thankfully a month later BoE put interest rates down.

My current credit file will make it very difficult to re-mortgage for another couple of years.

weezl74

Hiya! Welcome and good luck with your challenge. If you feel brave and candid enough you could post a full SOA to see if there's any cutting down areas that anyone else can see?

Just a thought, if your husband pays into a pension scheme then he may well have a lump sum on retirement, which could help with making a big overpayment at that point?

Weezl xxx

fiveyearplan

Thanks weezl. I will do an SOA soon to make sure it reflects our true expenditure - all those little things that I don't even think about add up!

OH doesn't have a pension - nor do I.

RosieTiger

Good luck and welcome aboard !

dimbo61

Keep up the OP,s and consider selling up and buying a smaller property for your retirement
Unless the company you and your husband runs can make some serious money over the next 9 years

MoneyQueen

Hi fiveyearplan

Just wanted to wish you luck.

Welcome to the MFW Board

MQ

Button21

Hi fiveyearplan,

My mortgage is interest only as well. Are you paying anything into a savings account to try and build up some funds to go towards repaying some of the capital at the end of your term? That is what I am trying to do at the moment. Or do you have another repayment vehicle in place?

Button

fiveyearplan

dimbo61 wrote: »

Keep up the OP,s and consider selling up and buying a smaller property for your retirement
Unless the company you and your husband runs can make some serious money over the next 9 years

That is my plan, we won't need a house the size we have once our kids leave home. I would still want to get the mortgage down to something I could re-mortgage on my own so say pay at least half within the next 9 years 11 months, downsize at that time and have maximum £100k new mortgage - or less.