Mortgage Free by 50!

One_step_forward

Hi to all you fellow MFW's, after reading through some of these truly inspirational diaries I thought I would get my butt well and truly into gear and get organised to pay off my mortgage, as the title says, hopefully before I am 50. Dec 2014!

A little about me, am 40 something female (sure you can work the maths out from above info if you need to), living with DH and we are lucky to be in the position of having no debt apart from the mortgage.

Mortgage bal as of today is £77,119, currently on a fixed rate with First Active til July 2011 of 3.65%. Current payments £946 per month with 7 yrs and 8 months left on the original term. Taking us to Jun 2018.

With a little bit of juggling I plan to overpay by £554 per month which, according to the mortgage calculator makes me mortgage free in Apr 2015.

Obviously I need to work a little harder at killing of an extra four months to achieve my target.

So my action plan for today is to set up extra payment to start in September and set up D/D from personal acc to mortgage acc.

I so wish I had started overpaying years ago when a small amount would have made a difference but hindsight is a wonderful thing!

l33na

Hi
I have recently joined the mFw and made my first overpayment yesterday:j.
I too left it late but hey better late then never.
I look forward to reading your journey.
Good luck.

alanobrien

The best of luck to you !
Thats been my aim for the last 6 years (132k starting point :eek:) and i am happy to say that i expect to pay it off on my 50th next April. Which will make me a very happy bunny

Keep focussed and above all keep at it, its amazing how much you can save over the term even with the smallest of regular overpayments.

alwaystryyourbest

:)Welcome and good luck,,,,you have got the same target as me dec 14,,seems ages away doesn't it,,

One_step_forward

Can I ask the best way to throw any additional monies at the mortgage?

Have spoken to my mortgage company and have arranged an extra D/D for the £554 overpayments, but say I had an extra £100 or something one month?

Do you write a cheque and send in or what? any info gratefully received!

Am looking forward to making my first overpayment on 3rd Sept!

Jonbvn

One_step_forward wrote: »

Mortgage bal as of today is £77,119, currently on a fixed rate with First Active til July 2011 of 3.65%. Current payments £946 per month with 7 yrs and 8 months left on the original term.

With a fixed rate mtg, make sure you do not overpay so much that you incur early repayment charges (ERC's).

One_step_forward

Thanks Jonbvn,

I am aware of that thanks .... but am not going over the 10% of current bal.

(work in financial services)

One_step_forward

First overpayment of £554 has gone to mortgage company :T:T
Have been reading through my mortgage offer and have found out that I am limited to overpayments of 10% per year throughout the term of the mortgage, not just til the fixed rate ends in July.

Obviously this is not going to be a problem in this first year but in subsequent years what I can afford to overpay may be more than this.

Is the best option to just save the difference in a normal savings account until I can build enough up to pay off at end?

What would you suggest?

One_step_forward

Am impatient, waiting for my next overpayment to go out of the bank, but not until 10th of the month!

I notice several people on this forum have shortened their mortgage term. I presume I would have to wait til the end of my fixed rate in July before I can do this?

Has anyone any experience of this with First Active?

RenovationMan

Good luck with your challenge!

getmore4less

To hit the Dec 2014 target based on the £77k from this month payments of around £1635 will do it so not a lot more to find.

So an acheavable goal, which is good.

What does the rate change to in July 2011?