Mortgage free in 5 years

haras_nosirrah

I have been a member of the 2010 mortgage free wanabee forum and have overpaid a not inconsiderable 5k this year.

I have decided that I want to take this overpaying malarky to a whole new level.

As a mortgage advisor myself I always show my clients the benefits of overpaying. The look on their faces when they see that £100 overpayment can sometimes halve their mortgage term just hi-lites to me what a difference it can make.

Myself and my husband to be (getting married in May 2011) bought our property in Feb 2010. Current mortgage is 112k (was 120k in Feb)

Currently we have a 33k further advance with 9 years left on 4.28% fixed for 1 more year and a 79k original mortgage with 23 years left at 3.03% on a 1% above base tracker for life (Nationwide floor has kicked in so essentially is a fixed rate till base rate hits 2%)

I am hoping to get an 8k payrise in Jan (in line for a double promotion if I hit one more target) and plan to put all of this money into the further advance and reduce the further advance down to 5 years. As this is the higher rate am hitting this one first.

I am allowed to overpay £1,000 a month with Nationwide as we have two products.

I have worked out that if I can keep up the overpayments then we can clear the whole of this mortgage in 5 years.

This will be a huge challenge for us as we need to do some work to the house and also my industry isn't the easiest or safest at the moment. My other half earns considerably less than me so I will be taking this challenge on with my money (but his support). We also plan on starting a family in two years time but it will be my husband who will go part time as we won't be able to survive on his income alone.

Have decided to start a diary to keep me motivated so here goes. My name is Sarah and I want to be mortgage free by Christmas 2015.

Initial target - Get mortgage down to 95,000 by christmas 2011. Wish me luck

adwat

Good luck Sarah! Sounds like you've done the maths, 17k off by next Dec is a great target, all the best for your challenge.

CathT

Good luck Sarah, wishing you all the best.

wantabetterlife

Hi Sarah, goodluck with your plans, i think you are making a great decision as overpayments are so much harder when the little ones come along as their is far less disposable income. Looking forward to reading your progress.

dimbo61

Using "whatsthecost" for both parts of your mortgage and overpaying by the £1000 a month allowed you should be under £95K by xmas 2011.
Thats about £1700 a month so quite a big ask just for the mortgage ( its not an offset product is it ? )

haras_nosirrah

Hi.

Yes it is a huge challenge and reliant on me getting this 8k payrise. If I get the payrise/promotion then I will commit every penny of my payrise to the mortgage so I don't get used to having it. That will be around £400 a month extra (I pay 15% of my salary into my pension) I will also do the £1000 a month overpayment where possible but a definate minimum of £500 a month. Have just cleared my student loan last month so that is an extra £200 a month there I will have too.

Is not offset but it Nationwide where have the option of borrow back so can get back any overpayments if circumstances change. Would have a higher emergency fund if didn't have this facility.

A challenge isn't a challenge if it isn't tough. 17k in 12 months here I go.

golfiematt

good luck with your challenge, im currently trying to clear my mortgage in 5 years but it was only half yours at its highest! Im also with nationwide and find logging into the online balance hugely motivating to keep up the challenge. what age are you aiming to be mf by if you dont mind me asking. We are aiming to be mf by 35

haras_nosirrah

Thanks for your reply

I will be 32 and h2b will be 38 in 5 years

drewwa

Definitely follow your progress with 'interest' Looks like you have similar targets to me.

Cheers,

Drew.

Jock_Tight

Best of luck with you MF challenge!

Carafan

Hi,
Just wanted to say good luck with your challenge, I want to clear 12k in the next 12 months so will be following your progress over the next year!