Mortgage free in 10 years

Engeroosi

My wife and I have just got married and I am now making an attempt to be mortgage free in 10 years.

In September 2008 we took a mortgage of 144000 at 6.29% fixed for 5 years.

Monthly is 961
Paid 1000 up until now,
Trying to pay 1300 as of March payment

Wish us luck. Any hints and tips are welcome.

originalmiscellany

a) Well done on getting married.
b) Get your wife on board in terms of money saving.
c) Sit down and actually identify your income and expenditure -
e.g. fill in this if you've not done it before.
http://www.makesenseofcards.co.uk/soacalc.html
d) Post down c) and share it here, and let people identify what you can do to lower your costs.
e) Check you know how much you can overpay each month.
f) Save everything, even little pennies build up over time, like a small change jar, or changing to a cheaper Sky package, but transferring the difference into your savings account.
g) Start a diary here to keep you accountable and focussed.
h) set an end of 2010 target in terms of you overall viewpoint so you have an accessible target rather than a "by 2021, we'll be debt free".
i) Remember 99% people here are lovely and want the best for you
j) Use Locoblade's spreadsheet to see how much you could save by overpaying.

Hope these help,

Engeroosi

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 3600
Monthly Expense Details
Mortgage................................ 961
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 34
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 9
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 19
Internet Services....................... 13
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1628

Assets
Cash.................................... 6500
House value (Gross)..................... 170000
Shares and bonds........................ 500
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 182000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 143000...(961)......6.29
Total secured & HP debts...... 143000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................400.......400.......0
Total unsecured debts..........400.......400.......-

Monthly Budget Summary
Total monthly income.................... 3,600
Expenses (including HP & secured debts). 1,628
Available for debt repayments........... 1,972
Monthly UNsecured debt repayments....... 400
Amount left after debt repayments....... 1,572
Personal Balance Sheet Summary
Total assets (things you own)........... 182,000
Total HP & Secured debt................. -143,000
Total Unsecured debt.................... -400
Net Assets.............................. 38,600
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

dimbo61

You are on a 5 year fix at 6.29% and if I say thats not BAD you may think I am mad with cheap deals of 4% knocking around!
The more you can overpay each month now then the better the LTV when you do remortgage or stay on the followon rate depending whats best for you in 2 years.
Your LTV is about 80% now so try and get it less than 75% before the fix is up.
You have 3 months income in savings now and with an interest rate of 6.29% overpay even penny you can. GOOD LUCK

Engeroosi

Cheers, that was my thoughts. Apart from the thought my rate was on the high side as I fixed before the rates dropped!!

Engeroosi

Ok, today I am arranging for the mortgage payments to increase to 1300 per month from March onwards, hope this can make a difference. Might even pay off a cheeky £100 while I'm at the bank.

Anyone any idea as to how much interest I am saving and how long my term is if I pay 1300/month

Engeroosi

I forgot to add in that I have a flat worth around 90k in the current market which is rented out. mortgage on that in 50k

dimbo61

How long have you owned the flat and is it a buy to let mortgage?
Think capital gains tax if rented out for more than 3 years

Engeroosi

owned the flat since march 2006, got fixed rate mortgage april 2008 5 year fix. then had to move through work and rented out since June 2008 with permission from Nationwide.

Engeroosi

That is the letter delivered, first inroads into getting rid of this mortgage are made!!

katsu

You never buy clothes or presents? I wonder if you might want to revisit your SOA and see if you have been optimistic in your other categories at all?

Very little that I can see on a first pass. Does the leftover monthly cash feel right or is there spending missing?