2020 vision. VoucherMan's MFW diary

VoucherMan

I only recently came across this forum, probably less than a week ago, but in that short space of time you've convinced me that I should be a MFW.

Thanks.


I've been making occasional overpayments since base rates dropped to their current levels (couple of years ?). I never discussed with the bank how this would effect the mortgage (reduce the term, or the monthly payments). After my first overpayment I'd expected a recalculated payment schedule with my annual mortgage statement but the payment has remained unchanged until now.

I received my new payment details from the Halifax after the recent rise in their SVR showing that my payment had been reduced, presumably to spread the payment back over the remaining 20 years.


After reading a bit on here I decided to take a firmer approach so I've been to the bank this morning and set up a monthly transfer (O/P) to my mortgage account.

A quick look on the overpayment calculator suggests that my current balance of just over £54000, with a monthly payment of £329 & overpayment of £200 should hopefully be cleared in just over 10 years. With additional overpayments which I will hopefully make when funds allow that should be reduced a bit more.

I presume that the bank will periodically recalculate payments to return the mortgage to it's original term unless I contact them to fix the payments and alter the term. Up until now this hadn't been necessary and I'd not wanted to do anything as I assumed there'd be a charge but this could be a good time to get it sorted.

Hopefully within 10 years I'll be able to look back at this from the MF roll of honour.

Until then if anyone has any suggestions to make the ride smoother all advice is welcome.

Thanks for reading.

newgirly

Morning, welcome to the mfw board, I see you have been a member for a few years but have only just spotted us! Its not a very busy board compared to some of the others but a nice supportive group of people with the same aim, best of luck with overpaying your mortgage once you start it soon becomes addictive.

gallygirl

I've got it in my head that Halifax only recalculate once a year which would give you plenty of time to contact them, but I am probably wrong .

Well done on your progress so far. I suggest you keep a good record of all overpayments and what your pay-off date is. Every time you make a payment which knocks a month off (and sometimes it will just be that extra £10 which does it) you will find it really motivating and get you aiming for the next month. Or is that just me .

VoucherMan

gallygirl wrote: »

I suggest you keep a good record of all overpayments and what your pay-off date is.

I've seen a few links to spreadsheets but is there a simple one out there set up for this, or will I need to design my own?

ecoelle

*subscribed*

Hi, i recently joined the MF mission, and although i don't think we'll do it i'd love to be MF in 10 years time:) My goal would coincide with my little one going to secondary school, so it would be nice to be able to work less, or bring in more money than we need to then be able to plan for our and her future:)

I have a spreadsheet i use for working out where i'm at. I constructed it using some instructions on here. I can post a link if you like, i am rubbish with computer programmes but even i managed to follow them, any problems just ask:)

coldcazzie

Well... that depends on how technical you want to get with it. If you search for Locoblades spreadsheet, that one is excellent, but quite technical. FinancialBliss also has one (plus instructions on how to make your own) - it's not quite as complex, but also not as accurate (sorry fb, that's not meant as a slight I promise! )

ecoelle

http://forums.moneysavingexpert.com/showpost.html?p=14965035&postcount=534

This is financial bliss's one, i find it a good motivational tool, but accept that it might not be as accurate as locoblades, but i found his too complicated:)

Hurdler

Welcome Voucherman - all the best in your endeavours

VoucherMan

Thanks.
I'll give Locoblade's a try first. Although it seems I may have already tried it already. I went to click the Thanks button, but it seems that I already have back in November 2008. I may have dismissed it before as 'too much like hard work' but now I've got a good reason for studying it.

Had some unusually entertaining thoughts while cleaning this morning.
Mortgage free by 50:) was the main one. (6 years)

While this would be possible - the MSE overpayment calculator indicates that an additional £300/month would pretty much do it - it wouldn't leave much spare for holiday/entertainment/home improvements, not to mention general savings.

The plan, until I discovered this, had been to split any spare money fairly evenly between saving, overpayment and 'other spending'. The 'other spending' being anything I class as non-essential. Holidays, new TV, decorating etc.

This year is pretty much taken care of. Some planned home improvements, holiday activities and some new TV related toys, will hopefully leave £1000 or so for an extra O/P. So I've plenty of time to think how I want to continue.

If I go for extra payments I think I'd prefer regular monthly ones. Less temptation to spend it on something I don't need. A quick look on the calcultor suggests that an addional £100/month would knock another 2 years off the mortgage, the next two £100's would knock off an extra year each (down to the Finish at 50 mark).

Plenty to think about.

VoucherMan

Well I've had a play with Locoblade's calculator.

With the £200 / month overpayment that I've just set up I should be mortgage free by September 2022.

If I manage the extra £1100 that Spiggle's put me down for before the year end that should bring the MF date forward to June 2022.

I'd love to be MF by 2018 but unless there's a major change in the income department that's unlikely.

2020 though seems quite doable.



Did I hear someone say this can get addictive?

VoucherMan

gallygirl wrote: »

I've got it in my head that Halifax only recalculate once a year

Finally got round to phoning the Halifax.

Apparently they only recalculate when there's an interest change, or when you ask them to. So I just need to remember to phone them next time rates go up (hopefully not for a few years).