Starting the mortgage free path

bownyboy

Another month gone by now at £130k ish which is £126.5k with ISA savings.

Still Avnet managed to get kitchen refresh done, so we're stuck with 4m of oak worktop through our house!

Expensive month and we've decided we really need a break and just booked 2 week break to Greek island, saved a packet booking online, just counting down the weeks now!

bownyboy

So end of the year update due I think:

Jan 1st 2012
Mortgage balance - £140,000
Daily interest - £15.58
Percentage owned - 10.14%

Dec 2012
Mortgage balance - £126,400
Daily interest - £14.04
Percentage owned - 19.34%

Pretty happy with progress although the end date seems so far away at times! I get to make a yearly overpayment up up to 10% in January so will be down to £118k in two weeks once I've transferred some savings over.

Plan is to get to be mortgage free December 2018.

We got the kitchen refresh completed, only cost us £1k or so and the difference is amazing. Will keep us going for a few years until we save up for complete refit.

Here's to a great 2013.

bownyboy

Happy new year everyone.

It's January which means 10% overpayment window and I've just transferred the ISA savings over from 2012 to the mortgage of £6,643.

Felt good paying off a decent chunk, which brings the balance down to £118k.

Edging ever nearer to the psychological £100k mark, which should be at the end of this year.

More details to follow for plans for 2013.

bownyboy

So my original target for paying off the mortgage was December 2018.

No particular reason for this date other than it was when the overpayment spreadsheet said it would be paid off if I continued paying £499 a month and £6k every January.

Today I thought that as its my birthday at the end of August it would be good to bring it forward to August 2018, what a great birthday present that would be! Champagne and the deeds to the house.

So a small tweak to the overpayments schedule from Jan 2017 mean I can make that date.

bownyboy

So new year and more work to be done on the house that doesn't distract from paying down the mortgage.

I finally got round to ripping up the old blue carpet in the hallway and stairs which was bright blue and had been there since we moved in nearly 4 years ago. All around we have replastered, painted and rewired and it stuck out like a sore thumb.

Plan is eventually to recarpet hallway and upstairs (once we've done boiler and replaced all pipework) so for now a tin of white floor paint did the job and it looks much better.

Total MSE cost - £20

bownyboy

So using the excel spreadsheet listed on here, I've created targets for each January of where I should be if I carry on with regular overpayments of £500 topped up with extra capital payment every January.

• January 2013 - £118k
• January 2014 - £100k
• January 2015 - £80k
• January 2016 - £59k
• January 2017 - £48k
• January 2018 - £14k
• August 2018 - £0k!

This would result in the mortgage being paid off 16 years early from the original 25 year plan.

Next mini target is February 2013 when I'll finally get under £400 a month interest!

bownyboy

Finally got round to music magpie-ing my DVDs. Took about 30mins and £70 earnt, not bad but I daren't try and calculate how much I spent on them!

As soon as the £70 comes in it will be transferred to the mortgage account (as long as its before 31st January) otherwise it goes into the ISA account for next January overpayment.

Now looking at my CD tower and wondering when I actually last played a CD and if I should get rid...

bownyboy

So big spend for the year is looking like a new boiler and replacement pipework for whole house. We've been putting it off for 4 years since we moved in.

Estimates are coming in around £3.2k+vat so not small change! We'd like a new radiator in the bedroom as its so cold but can't do this until we get new boiler. Also the boiler struggles to heat the whole house as well as costing a fortune as its so old.

Trying to minimise the impact on the overpayments and decide when it wold be best to it, or if we muddle on for another year.

bownyboy

Received a letter from Alliance & Leicester confirming my January capital overpayment and that my mortgage has 16 years left to run. Felt good seeing the hard work to-date actually written down on paper. If I hadn't been overpaying then there would still be 21 years remaining.

Re-reading some of Financal Bliss old posts for inspiration especially as his original thread was from 2007 to be mortgage free in just over 5 years which is what my target is now.

Starting to imagine what I will do with the additional funds each month. Career change? Sort out pension/savings?

VICSH

HI BB

Well done on the overpayments, I have subscribed to your diary now. I think when I finally pay our mortgage off I will either end up buying somewhere bigger and pay that mortgage off, then extra money if I am still working then will go straight into my pension or maybe save up and buy another smaller house for BTL.