Starting the long road to mortgage freedom

originalmiscellany

Hi Mr Rush - Congrats on the prize for the biggest mortgage I've seen here currently. It's certainly a belter. How encouraging that you've already saved £20 a month by overpaying. Like you I think we're in the doldrums for a long time yet, so interest rates super low - what better a time to overpay and eat into your mortgage. The targets you set seem challenging but £290k target is certainly something to aspire to.

The very best to you in your pursuit of Mortgage Freedom.

mr_rush

Overpayment increased by £100 to £925/month now.

mr_rush

I've got some interest-free payment on furniture from Habitat which will finish in a couple of months. Will raise overpayments to £1000 until the summer and then to £1100 from August when pay rise kicks in.

edinburgher

We are not killing all luxuries - holidays remain a must - but we are trying to save on other areas - taking lunch into work. grocery shopping from larger Tesco rather than Sainsbury local etc etc...

Those sound like manageable sacrifices - I like your approach, disciplined but realistic

mr_rush

£11K on a new (2nd hand) car last month didn't help!

mr_rush

A year since we took out our mortgage.

£19K paid off from lump sum. Now a little over £360K.

Increased overpayments to £1K/month.

Aim is £25-27K off the lump sum in total over the next 12 months - £12-15K overpayment.

gallygirl

mr_rush wrote: »

We are not killing all luxuries - holidays remain a must - but we are trying to save on other areas - taking lunch into work. grocery shopping from larger Tesco rather than Sainsbury local etc etc...

:T completely agree with this approach, still live a good life, but as cheaply as possible :T

Well done on what you've achieved so far, great result

mr_rush

Morning all

Today I took out £10K from our mortgage - basically all of what we've overpaid.

But don't worry, it's not to spend, but to invest elsewhere.

I hold bank accounts in India - at the moment the rupee is very weak - getting 86.3 rupees to a pound - hasn't been so low for a long time. Fixed interest accounts will give me a 9.5% gross return.

It makes more sense making a lump sum investment there.

Clearly the indian rupee could continue to weaken but I am happy with this risk as I travel regularly to India and I will always be able to use up a 'lump' of money there.

My monthly overpayments will continue at £1000/month.