Sandrock's MF Plan

Sandrock

I've been on MSE for a while but have not yet found my way to this section. I'm writing down my own circumstances mainly for my own benefit to record my achievement over the next few years, but hopefully others will find it useful at some point! :beer:

My story

When I finished university in 2007, I moved into a rented flat with my girlfriend. My girlfriend and I did not earn much at the time, but over two years I managed to save £25k between us to put down a deposit on our first house.

We purchased our first place in August 2009.

I've overpaid the mortgage from the word go, and the forecast is currently predicting a mortgage-free date of July 2017 - just under 8 years after taking out the mortgage.

• In the first 12 months, I overpaid £175/month.
• In the second 12 months, I over paid £300/month.
• Since August this year, I have been making overpayments of £475/month.
• I'm planning on making £600/month overpayments as from August 2012.

I am also putting money away into a fund which will be used to make lump sum overpayments at various intervals. Currently this fund is being added to at £700/month so is building up quite fast. I could use these funds to overpay but I prefer some flexibility to have an amount of liquid cash should I need it for any reason.

The mortgage was £131,325 when I took it out. It now stands at £116,500.

I'm on a fixed rate until August 2014. My plan is to have the mortgage down to circa £90k by this date, with a further £20-£25k in savings to offset/pay down on this amount.

I'm then intending to take out a ~£65-70k mortgage over 20 years (for flexibility), but with the intention to overpay or more likely take out an Offset mortgage and use the savings to offset. Who knows what interest rates will be like then, but at the current market value of our house we'd be looking at an LTV of about 60% and salary multiple of 1.3, so hopefully we will have access to good market rates. (I've budgeted for 5.5%, so anything less than this will be a bonus!)

My main life priority is to have our mortgage paid off as soon as possible. Despite pay rises, bonuses and new jobs I have managed to keep our outgoings in line with our expenditure when we were starting out together after University. If I achieve the target date, based on the figures available to me, I will be 33 once it is paid off.

I should add that I am a Financial Analyst by trade so these figures are more of a hobby than anything else! :cool:

dark^knight

Hi,

Thanks for posting. You've started off very well.

Mc_Marty

Hi Sandrock, good luck with you plan. I am in similar position in terms of age and goals (my mfw thread is Trying to be Mortgage free in 5yrs(ish)) Looking forward to hearing your about your mfw success in 2012.

Sandstone

Hello Sandrock!

I am in a similar position in terms of age and targets, so I will be following your thread closely! Best of luck.

Also, we seem to have similar names!

Sandstone

Any update, Sandrock?