Mortgage Free in 5 years?

Maybe!

Hi everyone.

I have been really inspired of late in particular reading diaries on here.

I was a member of the DFW boards a long while ago (I haven't posted in years, so had to get myself a new logon tonight). I left Uni with a lot of debt, but paid it back and then got a mortgage!

Since about 2 months after buying I had been making maximum overpayments (20% of the monthly payment) allowed in the first three years. We then went on to a flexible rate and made bigger overpayments.

I have a good mortgage rate, but hate the millstone of the monthly debt commitment around my neck and have been overpaying quite a bit more since fixed rate ended in March 2009...

Hence:

Mortgage at largest: £250,000 _pale_
Current mortgage (Sept 2011): £178,900 :o
Current term end date as per September 2011 mortgage statement: December 2024 (originally April 2031 :T)
Target term end date: December 2016 :question:

This thread is going to help me be more focused and keep on track with overpayments.

Whilst I work really long hours usually, I have broken a limb recently (!) and so working from home now for at least the next few days. I am going to take it easy for a little while and not kill the hours in work (whether at home or not) while recovering and knock off a few things on my to do list.

First things first though. This month I don't think I will be able to make a big overpayment. Car went kapput this month and we had to pay for a job that was apparently done two months ago. Ended up being twice the price (just short of a grand), but was done properly this time (and I got my money back from the original garage so not too bad at all). We have also had a couple of vets bills and friends weddings this year (and particularly this month so have a big credit card bill to wipe out).

So target this month is to:

1 pay off the mammoth credit card bill
2 look at new credit cards for better reward offers
3 consider changing electricity/gas providers for cheaper deal as haven't switched in a couple of years.

That is it for tonight I think. I will spend some time thinking about it tomorrow and maybe add some more things to the to do list. I have a quiet weekend ahead of me due to injury! :p
Mortgage at largest: £250,000 _pale_ (March 2006)
Current mortgage (May 2014): £152,927.10 :o
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Replies

  • wantabetterlifewantabetterlife Forumite
    1.3K Posts
    Part of the Furniture
    ✭✭✭
    Welcome liki and goodluck with clearing the mortgage :D
    Mortgage [strike]£177,750[/strike]£149,488
    Overpayments 2016 £2053.58 2017 £3417.70 2018 £5180.78 #26 2019 £2435.35
    Daily interest £19.91:eek: £15.28 :eek:£8.94
    BUY TO LET MORTGAGE [STRIKE]£111408 [/STRIKE][STRIKE]£109975[/STRIKE] £94,779
    14.9 % paid
  • PeoniePeonie Forumite
    1.5K Posts
    Good luck Lixi you've already knocked a lot off your mortgage and well done paying off the debt.
    Pots: House £6966/£7100, Rainy day Complete, [STRIKE]Sunny day £0/£700[/STRIKE], IVF £2523/£2523, Car up-keep £135/£135, New car £5000/£5000, Holiday £1000/£1000, MFW #16 £2077/£3120
    MFiT3 #86: Reduce mortgage from £146,800 to £125,000
    Mortgage Sept 2014: £135,500, MF Oct 2035 Peak July 2011: £154,000, MF July 2036
  • Wow, that was a killer mortgage! Well done for making as many in roads into it as you have and good luck for the final load!
    Mini Challenge - Halve 2nd Mortgage by Year End
    Starting: £10,000 Currently £8,142.62
    £3,142.62 to go!
  • edited 24 September 2011 at 1:25PM
    Lixi_2Lixi_2 Forumite
    133 Posts
    edited 24 September 2011 at 1:25PM
    Thanks guys. I realised that at the start of this year the mortgage was at £206k so this year we have paid £27,100 off the capital. That said, at the start of the year, we had £11k savings and with OH starting a new job, we had to dip into that and buy a second (second hand) car so we wiped out those and put the remaining balance off the mortgage. So the overpayment hasn't come entirely out of our earnings this year.

    With having a bad month this month, I just feel like I needed to refocus a bit! I don't feel that good about not having any savings so we have started regular savings accounts recently and we will have £2500 in that at the end of the year. That will make me feel a bit more comfortable. Target in 2012 will be to increase those savings again.

    I had a NSD day yesterday (managed to dissuade OH from renting a movie at blockbuster and having reheated chilli which I made before breaking my limb!). Thursday wasn't bad on the spends... nothing for me but for a taxi ride to and from hospital (£15 each way including tips - must stop tipping really as the price is the price, but they are a lovely local firm who don't rip us off).

    Target for mortgage this year is to get it down to £170k by end of December. My initial (unfocused) target at start of 2011 was to make it £175k at end of 2011 so we will be on track for that taking into account use of savings...

    Worked that out today and feel quite happy about it!

    Will make myself look at credit cards today as per list above! Elec/gas tomorrow I think.
    Mortgage at largest: £250,000 _pale_ (March 2006)
    Current mortgage (May 2014): £152,927.10 :o
  • edited 24 September 2011 at 5:25PM
    Lixi_2Lixi_2 Forumite
    133 Posts
    edited 24 September 2011 at 5:25PM
    I have made the most out of being required to put my feet up today (again) and done the following:
    • closed old cap one credit card account which I never use
    • closed Mr L's M&S ccard which is never used
    • opened new Tesco ccards for me and Mr L (considering stoozing again which is what I used to do when was a DF wannabe :p)
    • checked if I can save money by changing payment method on TV licence (no - best way I have concluded is to pay on reward/cashback ccard which is current method)
    • looked at current gas/elec provider. Definitely need to change this (now on a standard tariff :eek:, but by the time I had sorted myself out it is probably too late this weekend. I had a look at USwitch and Npower looks like best alternative, but I am not sure I want to switch to them. Will call current provider one night next week to see what they can do)
    • realised I haven't had an electricity bill and that is because we haven't submitted a meter reading. Will sort this later (Mr L's job I think!).
    • considered switching from water rates to water meter. Not too keen at the moment - leaking toilet. May consider again once we have sorted that out (although have had a go previously and not fixed on first attempt).
    • reduced mortgage minimum payment from the higher level we had previously set when on fixed rate (£1248) to minimum required by agreement (£879) (This means out repayment date stays at December 2031 - obviously there is no real effect there as that is just the projected date based on £1248 sums and we will continue to overpay either way. Will update signature later as a result).
    • had a bit of a LB moment about overpayments. At current rate we really should be putting money into savings accounts. This is especially apparent if ultimately (and this is what Mr L and I have been talking about recently) the goal is to get ourselves in a position whereby we get a rental property for as part of our long term financial planning. The rates we could get on a mortgage for a buy-to-let would be far higher than what we are paying for our home at present. With that in mind, I am going to speak with Mr L a bit more about this later. We will still be working towards being MF, but effectively offsetting our savings (stoozing will help this too)! :A
    Not going to be a NSD day today. Mr L and I decided we "need" :D a take-away tonight and some wine (but overall spending is down this week on the socialising front as I am virtually immobile anyway so it is not too bad). He is also buying a few DIY bits as tomorrow he is laying a new floor for us (bless him). As I am going to try and have NSDs next week, I have decided to pay for a wedding present for friends who are getting wed next month online today (so it won't spoil my NSDs next week!). That will be the last wedding of the year though (thank goodness on the spends front ;)). Haven't been too splurgy today - talked Mr L out of a blockbuster evening again (I don't mind watching X Factor if we have to... ;)).

    That is my cue to sign off for the night I think (quite hard balancing a laptop on my good leg!). Hope everyone had a lovely evening!

    Lx
    Mortgage at largest: £250,000 _pale_ (March 2006)
    Current mortgage (May 2014): £152,927.10 :o
  • Lixi_2Lixi_2 Forumite
    133 Posts
    So Mr L and I sat down, talked about potentially being MF and how we would adapt our behaviours to be more disciplined and work as a team towards as MFWs. I was really pleased. :j

    I called gas and elec provider with meter readings this evening (couldn't be done online as their "computer said no" to the concept of their estimated readings being higher than actuals). :D

    I had a NSD :T

    Then Mr L calls me and tells me he has agreed to buy a new to him motorbike TODAY and the seller is delivering it this evening. No overpayments this month and with no access to ready savings = no wiping out of mahoosive credit card bill... :eek:

    I think he took the comment that I made to the effect that "we don't need to deprive ourselves of every little luxury until we pay off the mortgage" quite literally... ;)

    To be fair to him, he will be selling a project bike that he was working on to part fund it, so it is only a temporary glitch in finances, but it probably means we won't make our target this year. I will reassess next payday. I make it sound worse than it is too - he did clear it with me before agreeing the purchase...

    In the meantime, he has been landed with the job of cleaning out the fish tank :rotfl:and making me dinner.

    On the plus side, he won't be spending lots of hours tinkering away with a project bike and not spending time with me (or messing with the bike instead of finishing off the endless DIY on the house) and the project bike could really have ended up as a moneypit. The one he has bought is someone else's money pit.

    All that means I have a bit more time to figure out what savings/investments we will be needing to put mortgage money in (as we basically won't have any until November payday!!).

    Off to read some more diaries to keep me inspired when things go a little off track!

    Lx
    Mortgage at largest: £250,000 _pale_ (March 2006)
    Current mortgage (May 2014): £152,927.10 :o
  • Wow Lixi, you are really massacring your mortgage, :T well done, wish we looked like clearing ours anywhere near that soon and we didn't even start with as big a mortgage as you :(
    I should really work out when we look to be clearing ours as it might make me more focused as like you I would hate to have a date and then spend more than thought and see the date move, it is more likely to encourage me to make the saving somewhere else to get back on track.

    Sorry about your leg, hope it is better soon
    Mortgage highest Aug 2007 £200,000
    Mortage now Oct 2014 £143,015
    Offset savings Oct 2014 £51,799
  • Lixi_2Lixi_2 Forumite
    133 Posts
    Thanks HP


    December 2016 is aspirational and is eminently possible if we are good, but does not account for babies which Mr L and I are hoping will thwart our plans :o despite the fact that it would be amazing to pay it off by then. We can only do what we can do though can't we? I work year to year really I might update my signature to show a yearly target here on in.

    Certainly we won't be spending a lot of money on Mr L at Christmas given his recent purchase! :D


    I like to have the December 2016 date in mind as it reminds me that it is possible (and realistic if we are sensible) and actually deters me from spending money on silly things (although it didn't deter me from a little bit of a splurge on the online Monsoon sale earlier today, but I essentially get all my posh party frocks from Monsoon and I love it - a geniune sale where you can scope out the goods and then order online and get pristine items (i.e. not shop soiled like you get in most sales)).


    The leg is much better today, thank you. I am craving company at the moment and so even if it wasn't that bit better I would be hoping to go back to work this week anyway. I am getting MUCH better at crutches too (I am the most unco-ordinated person, which coincidentally is probably why I fell over and broke it in the first place! :rotfl:).

    Lx
    Mortgage at largest: £250,000 _pale_ (March 2006)
    Current mortgage (May 2014): £152,927.10 :o
  • getmore4lessgetmore4less Forumite
    45K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    I think you wouls benifit from a bit of forward planning and contingency funds for things that will come up over the next few years.

    You need to avoid overpaying the mortgage only to be short some months and having to dip into CC that cannot be paid off in full.

    What rates the mortgage, there may be better options just saving
  • Lixi_2Lixi_2 Forumite
    133 Posts
    Thanks GM4L - agreed



    Despite the fact it is a humongous mortgage, it is on a pretty decent rate now (it was originally at 4.99% for 3 years and is now 1% above base - effectively a lifetime tracker).



    We have deliberately been overpaying to get our minumum monthly payments down with a view to us being able to live on reduced incomes if we are (lucky enough) to have kids soon. I think we have done enough to give us the comfort we need on that, so I am thinking that I might look at a split of cash isas and stocks/share isas now. Relatively recently we have both started regular savers again which pay 8% AER.



    I haven't looked at other products yet, but am going to do some proper research over the next couple of weeks and scope it out properly.


    We had about £10k or so as an emergency fund in isas earlier this year, but the fixed rate we had ended and we needed to buy a car for Mr L's new job (we used to car share previously) and so we just chucked the balance off the mortgage again.


    It galls me that saving rates are so low, but I can't have it both ways (1% above base on the mortgage) so I shouldn't really complain :o
    Mortgage at largest: £250,000 _pale_ (March 2006)
    Current mortgage (May 2014): £152,927.10 :o
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