inigma's bimble to mortgage freedom

edited 21 November 2011 at 8:36PM in Mortgage-free wannabe
66 replies 10.5K views
inigmainigma Forumite
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edited 21 November 2011 at 8:36PM in Mortgage-free wannabe
YAY just what this board needs another Mortgage Free Diary!

Ok, for those of you still reading here are the facts:

1) I purchased my flat September 2011
2) After my deposit the total debt is £144,500
3) I am on a 25 year plan.
4) I don't want to be paying my mortgage off in my 50's & 60's (actually nor my 40's)
5) I am on a 5 year fixed rate at 5.04% (£848.10 per month)
6) I have got a lodger (£500 per month)
7) I overpay by £500 per month (The max N'wide will let me)
8) I try to save at least £500 per month for my just in case touch wood
9) I want to be mortgage free by October 2018.
10) Before getting a mortgage I had read the mortgage free board of honour and decided that I wanted to have my name on it ASAP.

So far I have made 1 overpayment of £500, which will happen every month. Using this trend I will be MF by September 2023, good but not good enough. I need to save £45k in 5 years to overpay my mortgage when my fixed term ends.

I make my own packed lunch, avoid starbucks, make a budget.

I'm not tight with my money, I'm just not a k**b with my money. All my colleagues who snigger at me eating my packed lunch rather than spending £5 at Pret like them. I want to be mortgage free before them.

I know what I earn, I know what I spend and I am happy with what I do with MY money.

Oh and I have promised myself something really special as a treat once i have cleared my mortgage... Go to the West Indies to follow England on tour! :D

JUST BRING IT
Original mortgage free date 01/09/2036Current mortgage free date 01/09/2023Dream mortgage free date 27/08/2023 (25 years to the day I failed my GCSEs!)JUST BRING IT
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Replies

  • sweetdaisysweetdaisy Forumite
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    Good luck in your quest to become mortgage-free :).
  • dark^knightdark^knight Forumite
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    You sound like me...packed lunch, never buy from starbucks or anywhere else for that matter. Good luck on your journey, I am sure it will be well worth it.
  • linzlinz Forumite
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    Another one for packed lunches, as well as batch cooking, buying reduced, yellow stickered stuff and shopping around for everything. My workmates all take the mick and call me tight, but I don't care, i'd rather me MF.

    All the best, will follow your thread with interest :)
  • TwiddyTwiddy Forumite
    148 Posts
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    All the best inigma, lovin the JUST BRING IT slogan!!

    Cheers
    T
    Current Mortgage: £113,829
    Standard MF Date: May 2030
    MFW Target Date: Jun 2023
    On Target to complete: Feb 2027
  • lulabelle1lulabelle1 Forumite
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    Welcome and Good Luck!!

    If you decide that you want to overpay more than the £500 that Nationwide allow, then my suggestion would be to ask them to amend your mortgage term. Perhaps ask them to reduce it to 20 years. Your repayments would increase a little bit but maybe this would be better than just stashing it in savings and earning rubbish interest....... Also, this could be a pro or a con, but if you reduce your mortgage term and increase your payments, this money will be stuck in the mortgage, so you won't be tempted to dip in to it........

    I started with a 30 year when I bought this house 5 years ago. I then reduced it to 20 a year or so later and then again down to 20. TBH my payments didn't really increase as much as I thought they would.

    I now overpay the £500 per month. Thankfully my fixed rate is ending so I will have more flexibility as well as a better rate.

    Best of luck and count me in as a subscriber...

    Best, L
  • inigmainigma Forumite
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    Cheers guys and girls,

    I feel as though I'm stood at the bottom of a mountain! I can't wait for that mortgage free moment!

    Lulabelle1 I have indeed got Nationwide reducing my term rather than my payments. I see it as extra overpayments!

    Hope you are well!
    Original mortgage free date 01/09/2036Current mortgage free date 01/09/2023Dream mortgage free date 27/08/2023 (25 years to the day I failed my GCSEs!)JUST BRING IT
  • Sepa74Sepa74 Forumite
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    Hi Inigma, I think Lulabelle means you can ask them to formally decrease the term, which will push your standard payment up, and then you can overpay the £500 on top of that. The effect would be the same as if you were overpaying by more than £500 (whatever the increase in payment is + £500).
    Borrowed £150,000 in an offset tracker mortgage in May 2007 - MFD May 2041 (67)

    Jan 2012 - £125,620.02 / 2,913.87 / Nov 2032 (58) :beer:
    Apr 2012 - £122,901.88 / 3,170.91 / Jul 2032 (58)
    Jul 2012 - £122, 589.02 / 3,507.99 / Sept 2032 (58)
    Oct 2012 - £120,476.31 / 3,889.42 / July 2032 (58)
  • dimbo61dimbo61 Forumite
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    One step at a time !
    See if you can afford the overpayment of £500 a month for the first year and also build up your savings pot!
    In 12 months time then ask for the term to be reduced by 3/4/5 years ( use "whatsthecost" to work out repayments) Good Luck
  • lulabelle1lulabelle1 Forumite
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    You got it sepa!
  • inigmainigma Forumite
    157 Posts
    Part of the Furniture 100 Posts Combo Breaker Debt-free and Proud!
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    Cheers guys, I just got internet log on to view my mortgage... hoping this acts as a motivator!

    Hope you are well.
    Original mortgage free date 01/09/2036Current mortgage free date 01/09/2023Dream mortgage free date 27/08/2023 (25 years to the day I failed my GCSEs!)JUST BRING IT
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