Baby steps to being mortgage free

pammyj74

The first week of the GC is always shocking, last month I had spent £60 on first week out of my £120 budget but came through only spending £115 so the rest of the month was mostly topping up.

Baby_steps_2

Well not doing so well on the old food shopping front:mad:. However will wait and see how I do for the month before I start being to hard on myself!!.

I have worked out today that the £200 I have paid off will save me £1073 in interest over the term of my mortgage. :T. I aim to overpay a total of £500 by the time my fixed rate ends which will save me..............wait for it.................... £2648. That is massive motivation for me to clear my mortgage as shows even "baby steps!!" make a massive difference.

Although this is great it really made me wonder about my daily interest for me to be saving so much so i have calculated it, and well its not pretty!! Every day I pay £24.85 in interest:eek:. I can't quite believe its so high, but hey that explains the savings I'm making by overpaying.

All I can say is that reviewing these figures has just made me want to shift the mortgage even more. At the moment my end date is 2043. I know I will bring this forward, but at the moment I haae no idea when this will be. Plus this is our first house, and I know it won't be our forever home so we will move which will more than likely increase the mortgage again.

I think i just need to focus on my key aim, reduce this mortgage as much as possible so when we do come to sell we have the biggest possible deposit for the new house.

Sorry for rambling, believe it or not this is the first time I have really looked at the figures in this much detail!!

InaPickle

Baby_steps wrote: »

Sorry for rambling, believe it or not this is the first time I have really looked at the figures in this much detail!!

I can see why as we always look on mortgages as 'cheap' and 'necessary' debt, but it's still quite scary when you look on it that way. Just think about how much interest you will save yourself over the length of the mortgage and smile with glee!

Baby_steps_2

InaPickle wrote: »

I can see why as we always look on mortgages as 'cheap' and 'necessary' debt, but it's still quite scary when you look on it that way.

I have to admit that this has really made me look at the mortgagedebt. Before this I did kind of think it the way u described:eek:

If only we had started a couple of years ago, we could have paid off a bit extra already:mad:

pammyj74

I feel exactly the same, if only I had done this from the start I'd be free now :mad:
you dont see if as a loan, more just a normal bill like gas and electric!

I had a mortgage for 9 years but for 4 years on my own, and 3 years ago i remortgaged and started again at 21 as ex left me with a huge loan :eek:

WE WILL BE FREE!!!!!

boysma

Hi babysteps

I have just finished reading your diary. I too hope to start paying 100.00 a month OP this month. I still have outstanding cc debts and an overdraft:eek: and the original plan was to wait until i got them sorted. However after playing with the OP mortgage calculator it really is a case of the sooner i start the better. When the cards get paid off i can then increase the OP.:)

Can i ask how you make your OP please? Also how do you get access to your mortgage online? I am with Leeds.

Good luck with the mortgage OPs and all your challenges. I have subscribed to your diary to keep up with your progress.

pammyj74

sorry to jump in and answer your question
Have you joined the MFW 2010 thread boysma?

I OP by doing it online, if you ring your mortgage provider they can tell you the account details to set it up with your bank. Also ask them if you can check your mortgage account online and get that set up if they do.
I am with the halifax and my mortgage balance only gets updated once a month after the payment comes out but I can OP at any time with my online banking.
I also have a spreadsheet to see how my OP effects the balance

You would be wise to start a diary on here too to see how far you have come and to keep track of it all, and get advice from people in the same boat.

propertyangel_2

Great to see the steps you are taking. Inspirational! Suggest trackers not a great idea as interest rates will go rapidly up at some point. Perhaps stay on standard variable rate for a while and when interest rates start to rise, look for a fix then? Its great you are overpaying your mortgage now and reducing the debt.

boysma

pammyj74 wrote: »

sorry to jump in and answer your question
Have you joined the MFW 2010 thread boysma?

I OP by doing it online, if you ring your mortgage provider they can tell you the account details to set it up with your bank. Also ask them if you can check your mortgage account online and get that set up if they do.
I am with the halifax and my mortgage balance only gets updated once a month after the payment comes out but I can OP at any time with my online banking.
I also have a spreadsheet to see how my OP effects the balance

You would be wise to start a diary on here too to see how far you have come and to keep track of it all, and get advice from people in the same boat.

Thx Pammy for advice. I will look at the MFW 2010 thread but dont know if i will keep a diary - never say never tho. At the minute i get an annual statement in February but it would be great to keep track of it especially if i am OP. Sorry Babysteps for hijacking your thread:o I do appreciate the help:A

Baby_steps_2

boysma wrote: »

Sorry Babysteps for hijacking your thread:o I do appreciate the help:A

The more the merrier i always say!! Its nice to know people are out there and reading.

I am also with hallifax who only show the balance online, not payments etc. As I know I can always overpay by £100 I have increased my DD so the extra comes out with mortgage payment. I just rang tham and asked them to do this.:D

I know some companies don't have an online facility (from reading diaries on hear) but from what people have said they ring up every month and ask for the balance. You could always do this, at the end of the day you are paying them enough in interest. The least they can do is provide you with a service!!

Good luck with everything. feel free to pop in and say hello whenever you want.