HEG 2010 - Once upon a time ......I want to be a mortgage free queen of my castle

herewegoagain2010

Our first proper overpayment was made yesterday:j It feels great that we've paid an extra £202.41 off our mortgage. It's only a drop in the ocean, but it's still a great boost to see.
Our o/s mortgage today is £95515.75 and I can't wait to see if drop below 95K. I think I've got the bug!

I've started clearing our some of the children's old toys and bits and have so far made £15 on an old bed and have another £25 of things being collected tonight and tomorrow. It's all extra money that I'd love to throw at the mortgage, but I'm planning to use it for Christmas pressies. The master plan is to have finished buying everything for the children without spending any of our normal income. It's a sort of 'free' christmas for them and it's helping clear the house too. My mortgage pig is filling up slowly with 20pences, but it's all progress not matter how slow it is!

Onwards and downwards! x

herewegoagain2010

:eek::eek::eek::eek::eek:I've just checked my on-line banking and something has just hit home.:eek::eek::eek::eek::eek:

When yesterday's payment was made the oustanding balance was £95500.25..........which is exactly £12000 less than we borrowed in Jan 05.

OMG :mad:We've only paid 12k off in 70 months we've been paying the mortgage.....it works out at £171.42 a month. All the rest has been swallowed up with interest and an arrangement fee! I'm so pleased we overpaid £1000 last year or that could have been a lot less. I need to get my bottom into gear or the shock of the balance next year might turn me completely grey!

mennie

Hey, its these shocks that really spur us on isnt it?

My mortage spreadsheet, just seeing where our money is going - mostly interest:eek:, is what motivates me!!!

You are doing so well

herewegoagain2010

Shock is a wonderful motivator Mennie. It's the realisation that we've got it easy at the minute. My hubby is in the forces and we rent out house out, so someone covers the basic mortgage. We've got really cheap rent at the minute, but our bubble will soon burst when he gets out. The house we own is a tiny 3 bed and no-way big enough for our growing children. Looking at the housing market at the minute, we need another 50K to move upto something we could live in. We need to clear as much much of the mortgage as we can, before his exit date. He will get a lump sum and a monthly pension, but I don't want either of these to be swallowed up for a house. It's going to be a long slog and I think I may be lurking for a long time yet!

CathT

It is shocking but a great motivator! You often hear people say "oh, you only pay your mortgage off in the last few years, the rest is just interest" and why should we accept that!!!

My spreadsheet is fab for helping me set goals and see the difference my OP's make.

herewegoagain2010

It's true Cath. I've had a house since the age of 18 and have always tried to overpay even if a couple of pounds every other month. My parents were lucky enough to be mortgage free before I was born. I'd love to be in that position, but life seems more complicated for our generation. As war babies, they had nothing and wanted nothing. There seems so much pressure now to have the holidays, new cars and stuffed wardrobe. Don't get me wrong I love shiny new things, but we've made the decision time with the children is more important. I've been a sahm since they were both born and financially we have struggled. However, I look at my children and think I've moulded them into the people they are and I get more happiness from that than I would a new car. x

herewegoagain2010

It's mortgage payment day and another £202.41 overpayment made today :j and our o/s balance today is £95110.26. I've moved my payment date from the 11th to the 5th so the money isn't sitting in the account for nearly a week. I've also arranged for another £40 a month to be added to our overpayment with effect from next month. It means that our monthly payment will be a lovely round £900 inc the £9 house insurance. It's knocked our term down to just under 12years 7months (now 151payments saving 10months)

The extra £40 a month will mean we'll definately hit our 3.5K target in OP's by Dec2011.

I'm not telling DH as he'll only moan about never havig enough money ..blah blah blah! I've added this extra because I cancelled my milkman . Our milk bill was just getting silly and my last monthly bill was over £40, but I had to still buy the odd pint here and there. It was lovely having it delivered, but lidl is so much cheaper. I've saved at least half my normal milk bill, so I think the inconvenience is worth it.

herewegoagain2010

Another payment (OP of £242.41) and another month closer and only 150payments left. It brings our outstanding balance to £94,587.07....finally under the 95k:j which feels amazing. We're well on target for paying off 3.5k before the end of 2011!

herewegoagain2010

Another month and another payment OP £242.41 and 149 payments left. Not much news, apart from had an expensive repair to the house this month which has left us a little skint. DH pays been messed up for another month, so may drift into the free overdraft a couple of days before pay day. I've set a budget and am keeping a spending diary which is really helping. Today is another NSD (5th of the year) so am trying really hard. I want to start saving for a holiday, but there's nothing spare this month :-( DH did suggest we reduce the OP for a couple of months, but I won't let him. If we get used to that money we'll only spend it!

Catslovelycats

Good luck with your MF plan, herewegoagain2010!