mf by 40, thats in 9 yrs ! - its time to try

oh_know

Mortgage free by the age of 40 that’s 9 years (2020) – ish !
SOA: Statement of affairs
In 2010 I got married, hit 30 and now in 2011 am thinking of trying to start a family. I have a good job a lovely home and feel the time is right to overpay. If I don’t I know that at 40 I will look back with regret! – so its time to set myself some tough targets and see where we are at when I hit 40.

So the Plan: Pay the mortgage in 9-10 years

FINANCIAL OVERVIEW: MORTGAGE AT START OF YEAR 210K, 3.7%, 24 YRS REMAINING

EMERGENCY FUNDS: 13.5K – not to go on the mortgage and not to drop below 10k. Some of this will need to go on a replacement car (its done 250,000 miles now – but hopefully still plenty more left)

COMBINED INCOME £4,736

TOTAL OUTGOINGS £2,702

LEFTOVER £2,004 (we will see though !)

Basically my intentions are to pay off in lumps of 500 quid.

I realise that my wife could be cutting down on work possibly to zero when (fingers crossed) we have children - but I think we can still do it as I am the main bread winner.

oh_know

I have been fortunate enough to be able to over pay by 3k.
I have a spreadsheet calculator that I am using to note down the overpayments and see the impacts.

The spreadsheet assumes that my existing rate of 3.7% will last the life of the mortgage.

Anyway this first OP has:

Reduced the term by 4 months
Reduced the total amount of interest to be paid to the bank by £2,672

I also have created a picture of a house, made out of blocks eahc representing £500, the bits coloured in are what we have bought and paid for - so I have filled in 6 blocks

Its a good feeling this
Intention is to wait until pay day and whats left in the account goes to the mortgage. I am fairly frugal so this plan should work fine - but this on line diary thread should also help

originalmiscellany

Wow - 3k overpayment in 5 minutes!? You'll be mortgage free in a few weeks at this rate
Well done on making steady inroads into your mortgage already. Sounds like a good, steady start.

You sound quite alike to me in terms of being frugal and on top of figures - I like the idea of creating a chart/picture you fill in when you meet your overpayments, like a child getting stars for being well behaved.

Well done.

SeriouslySeekingtoSave

Oh that colouring in bits of the house as you pay it off is a great idea. Hmmm. Maybe I could manage something like that....

Welcome!

uzubairu

SeriouslySeekingtoSave wrote: »

Oh that colouring in bits of the house as you pay it off is a great idea. Hmmm. Maybe I could manage something like that....

Welcome!

We took a photo of our house and had it made into a 15 piece magnetic jigsaw puzzle that is on the fridge door.
It is a great motivator.

Recently added a 7th piece to the puzzle.

Link:- http://www.yourjigsaw.co.uk/magnetic.htm

oh_know

Overpaid a further 2k this month (I am calling it the feb op - although its early March!)

Targeted OP for year 20k, OP so far 5k

MORTGAGE AT START OF YEAR 210K, 3.7%, 24 YRS REMAINING
(5k op'd in 2010 thus far)

One thing thats slighlty annoying is Natwest adjust our monthly contribution when we OP ! - but I dont care it just means we can overpay more. My preference would be for them to keep the monthly amount the same. But Hey ho.

getmore4less

£210k @ 3.7% 24 years = £1,101.27
£210k @ 3.7% 9 years = £2,289.10

Target overpayment £1188pm or £14,256py

TOTAL OUTGOINGS £2,702

or £1600 after mortgage, any room to trip that back?


Looking good so far.

oh_know

A family debt was just paid back to me - hence I Just Overpaid a further 2.5k

Targeted OP for year 20k, OP so far 7.5k

MORTGAGE AT START OF YEAR 210K, 3.7%, 24 YRS REMAINING
(7.5k op'd in 2010 thus far)

My OP's thus far have saved us 9 months and 5.5k in interest (assuming rate stays as is for the whole period which wont happen but is good for giving numerical representation and motivation)

Am going to try my best next month to do another 2.5k - just to hit the big 10k ! - but we shall see

lincoln-potter

Hello and welcome to MFW.

ANother new thread for me to read :j

I wish you all the best with your challenge (going really well so far!)

misscousinitt

What a great start...hello and welcome.

You will find lots of help and support on this forum.

Look forward to following your journey...

oh_know

Just did another 3.5 k !
Thinking of going on hols in August which might hamper some overpayments but am really hoping to still hit the 20k target for end of year ! - we shall see

Targeted OP for year 20k, OP so far 11k

MORTGAGE AT START OF YEAR 210K, 3.7%, 24 YRS REMAINING
(11k op'd in 2010 thus far)

Loving it