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RT's Mortgage Free Quest...
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RTNI
Posts: 817 Forumite
Hi everyone,
I got married late last year and we have returned from honeymoon on NYE. We were deciding what to do with the extra income that we now "appear" to have since there is no more saving needed for the wedding!
We have agreed that we will be making overpayments to the mortgage in order to clear it ASAP.
We bought in NI in September 2009 for £168500, and were able to get a 25% deposit - meaning that we got a repayment mortgage on a fixed rate at 4.5% for 2 years (expiring on 31st July 2011) on a 30 year term. Looking to get the LTV down to 70% by that time so that we can have a look at what deals are on offer!
So today I have just posted a cheque for £5000 to clear off some of the capital, and asked that we keep the same monthly payments that come out of the bank every month.
Plan to hit this mortgage as much as we can over the next few months, and by several spreadsheet calculators, if we overpay by £500 a month, then this should mean we are mortgage free in about another 10 or 11 years!
Wish us luck! :T
I got married late last year and we have returned from honeymoon on NYE. We were deciding what to do with the extra income that we now "appear" to have since there is no more saving needed for the wedding!
We have agreed that we will be making overpayments to the mortgage in order to clear it ASAP.
We bought in NI in September 2009 for £168500, and were able to get a 25% deposit - meaning that we got a repayment mortgage on a fixed rate at 4.5% for 2 years (expiring on 31st July 2011) on a 30 year term. Looking to get the LTV down to 70% by that time so that we can have a look at what deals are on offer!
So today I have just posted a cheque for £5000 to clear off some of the capital, and asked that we keep the same monthly payments that come out of the bank every month.
Plan to hit this mortgage as much as we can over the next few months, and by several spreadsheet calculators, if we overpay by £500 a month, then this should mean we are mortgage free in about another 10 or 11 years!
Wish us luck! :T
Regards, Robin.
2011 MFW # 34Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)
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Comments
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Good luck!
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and keep up the over payments 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 - 20370 -
Welcome to MFW and lots of luck!Currently studying for a Diploma - wish me luck
Phase 1 - Emergency Fund - Complete :j
Phase 2 - £20,000 Mortgage Fund - Underway0 -
Thanks everyone - hoping to keep up the overpayments, I'm sure there will be times when it will be hard, but being both 25, we are both looking forward to not paying the bank more than we need too! First chq for £5000 was sent today - money left over from the wedding fund and presents. That should be good to get us started and hope the OH keeps as positive as I do and does not go spending on ASOS or other fashion related websites too much!!Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
OP,
Aren't there ERC's for paying such a large lump sum off on a fixed rate mortgage???? These should be avoided wherever possible.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
OP,
Aren't there ERC's for paying such a large lump sum off on a fixed rate mortgage???? These should be avoided wherever possible.
Not on this one thankfully. We can overpay up to 10% of the outstanding mortgage balance without charge. Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
End of year mortgage statement came in today - as of the end of Dec 2010 we owe (in total!) a total of £125,051.96! :eek:
The quest to get to 70% LTV (bought house for £168,500) by the end of June/July time continues!Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
Update on this:
Got a letter in on Friday confirming receipt of the £5000 we paid. Also asked them to keep the regular monthly payments the same, which they have done. Letter says that the term has been reduced to 26 years and 8 months. That feels so good!!
Sent another chq for £500 today - it is a bit of a pain that they are not keen on us sending it by BACS, but I suppose they don't want to make it too easy for us to deprive them of more money!
To all the other MFW's - there will be ups and downs along the road, but keep your sights focused on your particular goal whatever it may be. Every journey is made up of little small steps; take your journey one small piece at a time. Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
Received letter yesterday confirming receipt of Feb's £500. Brings term down to 26 years 3 months. Another 6 months closer to being MF! Woop! \o/Regards, Robin.2011 MFW # 34
Mortgage starting balance at Sept 09 - £127,224 on 30 year term. Currently balance approx £116,945 (Updated Jan '12)
Estimated MFD - [STRIKE]Sept 2039[/STRIKE], April 2031 (in progress!)0 -
Well done Robin, on making inroads into your 30 year term - if you keep this up, to go from 30 year mortgage in Sept 2009 down to 26 years in February 2011 means you'll be mortgage free by the end of this year if you keep up the good work
What a great incentive to know that you've taken 3 3/4 years off your mortgage already. Well done!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 - 20370
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