Quest to be mortgage free in 8 years!

Jessikita1983

At my current rate of overpayment, Martin's calculator says it will be 8 years, however, every time I move LTV percentage I switch to a better rate, so hoping it will be sooner!

House valued with current mortgage company at £92000 (That's the figure I use for my LTV)

Original mortgage: £88400

Current mortgage debt: £76900

Standard payment: £373.84

Overpayment: £476.16

Total a month: £850

Technically 360 payment left for mortgage term (30 years) hoping it will be 96!

Explanation of long term and high overpayment.

I work for a local council and my job is not very secure at the moment. Worried if we reduce the term and I go back to earning £19k a year, (presently earn £30k a year, Husband earns £8k a year) we are committed to a high minimum payment. So would rather keep the term long and then overpay. Mortgage is with HSBC and they allow unlimited overpayments etc with no penalties so all good.

Trying to get to £73600 to move to a better interest rate at 80% LTV

I have £120 a week "pocket money", this has to pay for all my social life, clothes, food shopping and toiletries, miscellaneous items, lunches etc.

Hoping to shave some off this and use it OP.

Out of this "pocket money", I have a rule. I check my purse just before I go to bed, and £2 and £1 coins go inside a duck money box, to be counted on last day of the month, and anything less than that goes in a whiskey jar, I do a count every 3 months.

This is then used for one off over payments.

Would really like to over pay more, but want a life too so don't think I can cut anymore!

Good luck to everyone else!

Sepa74

Hi Jessikita, welcome to the MFW forum! You sound like you have your head screwed on pretty soundly. I totally understand about keeping a long term but still overpaying as much as you can - when I took out my mortgage, that was the advice I got from a friend, and it has absolutely paid off for me. I'm in the fortunate position that I have an offset mortgage, so I can easily get at my overpayments / savings when I need them.

Why don't you post an SOA and see if other people can spot any other small savings you and your OH may be able to make.

Jessikita1983

Sepa74 wrote: »

Why don't you post an SOA and see if other people can spot any other small savings you and your OH may be able to make.

Hello, thank you for the warm welcome. What is an SOA? A statement of affairs? xxx

Sepa74

Hi Jessikita, yes, an SOA is a Statement of Affairs. Sorry about the jargon!!

This one is the one most people use. http://www.makesenseofcards.com/soacalc.html

Take your time doing it - an accurate one is very challenging, and you may find you adjust it several times before it actually looks like reality!!

A spending diary is a real help, too. If you have a smartphone there are spending diary apps you can download, otherwise a notebook and pen in your handbag works really well too!!

Jessikita1983

Lol, that's ok! I'm slowly getting used to them! I do think I waste money where shopping is concerned etc, so I am looking to be more disciplined etc. xxx

Jessikita1983

Statement of affairs:

Take home after tax: £1700
Husbands contribution: £350
Husband brings home about £530 (he's self employed so it does get a bit complicated, he gives me £350 and keeps the rest to pay his Child support for his 2 kids by ex and his own bits and bobs)

Mortgage: £373.84
Gas and elec: £71
GMB Union: £11.27
TV licence: £12.37
Water: £46.75
Cat ins: £4.34
Dog ins: £9.67
lottery: £10
Phone: £30
Virgin package: £21
B + C ins: £27.49
Car ins: £70
Love film: £9.99

Savings: £100

Overpayment: £476.16

EQUALS: £1273.88


FORGIVE ME! I have made a mistake on my earlier post, I have £150 a week spending money.

Jessikita1983

Looking at it in black and white, I now have some goals/aims I want to reach:

based on what i have written above, I should still have £176 left over so what am I doing with that??? Even in the weeks that have nearly 5 weeks (I get paid monthly), that is still a lot to be going "missing", without me keeping a track where I am spending it.

Secondly - I am considering cancelling my union membership, that would save me £135.24 a year, without starting a huge political debate, I do feel there isn't really any benefit to me? I just joined because of all the jobs they are cutting in my sector.

The love film has saved us money, we were going to orange weds every week and buying snack (from supermarket) but was still costing us £15 a week, so cut back to this.

My water and council tax bill I pay over 10 months, giving me Feb and March "free" (I know that isn't the case, but you know what I mean). In previous years I have been guilty of putting this amount of Christmas pressies on an interest free card and paying it off with this money. For 2012 I am determined to overpay this money.

The £150 a week goes on fuel, clothes, food shopping, cleaning products and toiletries, socialising (I do quite a lot of this!)

I am looking to cut back. I do all the money savvy stuff for everything with regard to shopping around, getting best deals etc. I am already sorted on that front. It's wasting money buying stuff etc I need to do. This I will do a diary on what I spend daily so I can see where I am wasting money.

I have my mortgage and a post 1998 student loan (£113 out my wages every month). I have used all of Martin's tools and I am better of leaving the student loan alone and concentrating on my mortgage.

Other than that I do not owe anyone a penny.

Any comments/suggestions?

Will start a daily spend diary tomorrow. xxxx