My journey towards mortgage freedom

galadriel

After reading many inspirational diaries, I have decided to take the plunge and start my own.

I took out my mortgage of £25,000 in March 2004, over 20 years to end in February 2024. Not a high figure compared to some, but at the time I was a single parent, starting over following a divorce. I was lucky enough to have a good deposit following the sale of my previous home and had lived in rented accommodation for several years and managed to save a little.

I originally planned to pay my mortgage off before the 20 year term, as I was due to reach retirement age in 2020, however the goal posts have been moved on that one, but my original plan to be mortgage free before I reach 60 still stands. Then I will have the option to reduce my hours if necessary. I also need to consider the possibility of caring responsibilities as my mum will then be in her eighties. Clearing my mortgage will give me some peace of mind for the future.

In the beginning, I wasn't aware you could overpay a mortgage, my plan was to save as much until I had enough to clear the balance, then I discovered this site and learned about the value of overpayments.

I can only make lump sum payments of £500 which reduce my term, and over the last three years have managed to knock quite a bit off, my current balance is just under £15,000 with a term of 10 years, 7 months.

My plan for 2011 is to make two £500 payments, which will reduce my repayment date to September 2020, just three months short of my first target of June 2020.

golfiematt

welcome and gl with your challenge

Spiggle

Hi and welcome,

Good luck on your journey.

Take care,
Spigs

RosieTiger

Good luck, it's more than doable if you work at it.

galadriel

As payday approaches, I have looked closely at my budget.

I can only make overpayments of £500+ so am transferring my overpayments into a savings account until I can make a payment.

My total for January is £264, this is made up as follows:

Dec and Jan - no water rates to pay - £68
Left in current a/c at end of Dec - £16
Closed an old savings a/c -£180

Have spent very little so far throughout January as I am trying to work my way through the mountain of food in the freezer and pantry. I can't really allocate this to mortgage freedom as my OH wants to go on holiday and I need to contribute to this, will also need a new passport and summer clothes. Also have expenses next month as it is his birthday.

I closed an old bank account which was making zero interest which has bumped up my overpayment savings for this month, which means I am already over a quarter of the way to my target.

galadriel

After a final reckoning I have £22 left unaccounted for at the end of the month, so have transferred this to the mortgage savings a/c, will transfer the Feb water rates payment of £34 when I get paid on monday, making total so far for Feb - £56 and a total so far of £320 .

Have also managed to save £200 from the grocery and petrol budgets as I have been cooking my way through the mountain of food we already have and haven't driven much through Dec and Jan due to the weather and having two weeks off work over Christmas. Won't be able to save as much next month but it's a good start and has been transferred to a separate account hopefully for a holiday.

tootallulah

Hi good luck, you are doing really well on the savings towards overpayment.