30th Birthday challenge

Hi MFWs
I have been following the posts on this forum for a few weeks now and think it’s finally time I got down to it and joined in.
I have to agree with all the people who say that being a mfw is addictive as I have found that without even starting a diary.
My situation is that I bought a flat in 2007 for £100,000 and put down a deposit of £20,000 so took on a mortgage for the remaining 80k.
I have been fortunate on a number of fronts – I took out my mortgage before the financial squeeze kicked in and was able to borrow four times my salary on a flexible mortgage which tracks at 0.59% above the base rate.
Obviously this means the amount I am required to pay has almost halved. I also got a new job 18 months ago paying 10k more than I was earning previously and my partner has moved in so have more free cash!
As a result, I have been overpaying my mortgage, firstly by £300 a month and in the last six months by £400.
I’m 29 now and currently owe approx £63,500 on the mortgage. I thought I’d start my challenge by seeing if I can get it to under 60k (for some reason 50-something sounds like a massive milestone!) before I turn 30 in February.
Now I just need to work out how to get a pretty signature with the figures in it to keep me motivated!:j
MB
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Replies

  • dimbo61dimbo61 Forumite
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    Thats a big ask to clear £13500 in 3 months maybe 4 pay days but go for it just dont expect a big birthday present or even a card so Happy Birthday from all at MSE!
    Getting below 60% will help when you do remortgage and the more you pay off the more equity you can put down on your next property.
  • Thanks for the reply dimbo61 but I'm not quite that ambitious - aleady at £63,500 so as long as it reads £59,999 I'll be happy!
  • dimbo61dimbo61 Forumite
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    After the same sort of thing myself want it under £45k by 1-1-2011 and then my mrtgage goes onto a tracker so pay even less interest
  • Definitely something psychological about those landmark figures!

    Basically I think I need to find another £1000 to throw at the mortgage in the next three months. Maybe not the best time with Christmas coming up but hopefully find a way with a bit of belt tightening!
  • CathTCathT Forumite
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    Good luck MB, hitting the 50's would be fab. Then it wouldn't be long till you hit the 40's etc!
    Dec 2021 - part 1 - £49,741 part 2 - £33,296
    Total - £83,037
    71 months to go!

  • cha97michellecha97michelle Forumite
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    Sounds like a good little challenge to get you thoroughly addicted to paying it off.

    You are obviously better at spreading christmas costs than me. I know this month and January are going to be pretty hard for the overpaying.
  • Get the targets on to your signature and they will stay as a constant reminder, if you need it. Otherwise get a spreadsheet running and it will give you the motivation to get to the next level.
    RosieTiger - Highest £242,000 Feb 2004 :mad:
    Lightbulb Dec 2008 £146,000 by March 2026:eek:
    MFi3T2 and T3 No 28 - Dec 2009 Start Balance £117,000
    Current Position-Fully off set by savings since March 2013
  • originalmiscellanyoriginalmiscellany Forumite
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    I agree, just logging your thoughts is a really useful process in terms of keeping you accountable and getting support from people here.
    You're right though to have hammered the mortgage down when you've had the chance to; Overpaying really is the best thing one can ever do...
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
  • Thanks for all your responses. I have already been doing quite well with the overpayments on the monthly direct debit but reading everything here there is definitely more I could do - and really should now as I'm never going to get such a low interest rate again!

    Think what would really help would be setting it up so I can make transfers from my bank account, that way I can throw the small savings I make in day-to-day life (thanks to many of the tips on here) straight at it. I'm with the Woolwich - does anyone know how you find out what my sort code etc is to set it up? Sorry, sure I have seen a thread about this at some point but can't find it now! MB
  • SpiggleSpiggle Forumite
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    MilneBay wrote: »
    Thanks for all your responses. I have already been doing quite well with the overpayments on the monthly direct debit but reading everything here there is definitely more I could do - and really should now as I'm never going to get such a low interest rate again!

    Think what would really help would be setting it up so I can make transfers from my bank account, that way I can throw the small savings I make in day-to-day life (thanks to many of the tips on here) straight at it. I'm with the Woolwich - does anyone know how you find out what my sort code etc is to set it up? Sorry, sure I have seen a thread about this at some point but can't find it now! MB

    Hi MB and welcome!

    I'm with Woolwich (now Barclays of course). I OP by making a set payment each month on top of the required amount and so rang Woolwich to find the best way. Cut a long story short we cancelled the DD and I set up SO to go out of basic + OP amount. Give them a ring and they're more than willing to give you the sort code and account numbers to pay.

    I just decided to pull my file out.

    What I have is Sort Code 23.88.92.

    The Account No is your account number without the 92 or 96 or what ever other two digit suffix your mortgage has.

    You must put your full account number (including the suffix) in the Reference box when making a payment. (This could be called Notes or something similar depending on who you're with.)

    These are what I'm using for my SO and haven't encountered any problems. But it really is worth a call to them to check. The problem is they are difficult to get hold of out of normal office hours.

    Anyway, hope that helps,
    Spigs
    Mortgage Free October 2013 :T
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