Can I realistical pay off from huge £225,000 mortgage in 12 years

ziopin

I am intending to overpay my mortgage by £500 a month. Have just remortgaged, and am paying just under £1300 a month on a tracker mortgage. I hope Im not being too ambitious, but have made some serious changes to my day to day living.

No 1. My husband and myslef and both teachers, and have a cooked meal at lunch every day. The 2 adorable children are also in full time education and have school meals. So as from last month we reduced our meal at night to something smaller, beans on toast, small bowl of pasta with salad, small jacket with tune etc. This has reduced my food bill by a whooping £300 a month.

2. We have also sold out juice guzzling people carrier and bought a small £30 a year TAX diesel car, which does on average 70 miles to a gallon! One tank of fuel last month £76.00, compared to 3 tanks of petrol at £60.00 a go! Another saving of £104.

I have become obsessed with saving money :rotfl:m I'm constantly thinking of more ways to cut costs.

Any other ideas greatly received x

ziopin

Oops, sorry my spelling was terrible in that first post!

lincoln-potter

Hello Zio,

Welcome to MFW, sounds like you have made a nice start to saving money.

Posting an SOA would help us suggest other areas.

hcb42

What's the term now - £1300 looks like you have a great deal!

ziopin

Hi, lincoln-potter, thanks for the welcome, what does SOA mean? Sorry to be a dimwit! x

hch42 - Term is 19 years - HSBC lifetime tracker at 2.89%

£1284.00 a month - any good?

lincoln-potter

ziopin wrote: »

Hi, lincoln-potter, thanks for the welcome, what does SOA mean? Sorry to be a dimwit! x

hch42 - Term is 19 years - HSBC lifetime tracker at 2.89%

£1284.00 a month - any good?

Sorry SOA is statement of account (i should have thought, i said the exact same thing when I got asked to put one up)

I used this format

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2256.36
Partners monthly income after tax....... 532.07
Benefits................................ 171.20
Other income............................ 0
Total monthly income.................... 2959.63
Monthly Expense Details
Mortgage................................ 796.52
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 210.00
Electricity............................. 31.50
Gas..................................... 0
Oil..................................... 200 (400 lasted us two months over xmas)
Water rates............................. 30
Telephone (land line)................... 15
Mobile phone............................ 20
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... inc with phone
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 0 (pay annually)
Car Insurance........................... 0 (pay annuall)
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 25
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 55.40
Contents insurance...................... combined
Life assurance ......................... 34.68
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2200.47 (the oil will drop obviously in summer)

Assets
Cash.................................... 2000
House value (Gross)..................... 335000
Shares and bonds........................ n/a
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 352000

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage.......................195500....796.52.....2.95
Total secured & HP debts...... 195500....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2959.63
Expenses (including HP & secured debts). 2200.47
Available for debt repayments........... 759.16
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 759.16
Personal Balance Sheet Summary
Total assets (things you own)........... 352,000
Total HP & Secured debt................. -195,500
Total Unsecured debt.................... -0
Net Assets.............................. 156,500

dimbo61

£500 a month is a good start play with "whatsthecost" website and see how long it would take to clear that amount.
I worked out that OP,s of £500 a month would knock 15 years off my mortgage

dimbo61

You dont have much in the way of savings for an emergency so split the money 50/50% into savings in cash ISA,s and overpaying until you have £16K in savings

stedwell

Hi Ziopin
We too are both teachers (I think you will find a few of us here) although a bit older than you I think!
I also overpay £500 a month and aim to clear £110 in 7 years so similar ratio of figures to you.
Good luck!

originalmiscellany

Hi Ziopin
We too are both teachers (I think you will find a few of us here) possibly the same age as you I think!
We also overpay a bit more - a few k a month and will be aiming to clear £82k in 2 years - we're over 1 year through the plan...
Good luck!