1-year in to mortgage free - Small steps make progress

Morning Mortgage Free Wannabe's!

I've been reading up in here quite a lot, started early part of last year and really liked the sound of being mortgage free! So over the last 12months, I have been making small chips into the mortgage by making payments of whatever I have left at the end of the month before payday into the mortgage (after saving some as well). I have been using a mortgage overpayment calculator and recording the payments I make, in the last 12 months I have overpaid approx £670, which doesn't sound like much. However, looking at the calculator I am using, my mortgage outstanding at present is around £1k less than it would be if I hadn't been overpaying, so I have saved just over £300 so far :)

This is great incentive to keep going now and I will be making every effort to pay more! The thing I'm not too sure about is when do you stop saving and start focusing on overpaying more? I manage to save around £250 per month, so should I start lowering that and pile it into the mortgage, or just keep going as I am? I am also using sites like Quidco to get a bit more in and use to put into the mortgage.

I have a long way to go but I am on the road! :D
Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

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Comments

  • norabatty_2
    norabatty_2 Posts: 262
    I've been Money Tipped!
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    edited 18 May 2012 at 9:39AM
    Most experts recommend saving enough money to cover all normal expenses (including standard mortgage payment and all direct debits but not savings) for 3-6 months. Depending on your age, job security, aversion to risk, some people extend this to 9 months. It really depends on how confident you are that you will still have your job for the foreseeable future.

    Once you have a good savings reserve set up, and you have allocated enough for large annual expenses (like car insurance, etc), then I'd put all extra money into the mortgage.

    Well done on your progress so far! Keep it up!
    Overpay Mortgage by £9,100 in 2013 - £9,316.16/£9,100
    Overpay Mortgage by £19,000 in 2014 - £438.72/£19,000

    GC 2014 Feb £120.83/£180 :j Mar £25.47/£140
  • 20vt-rs
    20vt-rs Posts: 674
    Mortgage-free Glee! Name Dropper First Post First Anniversary
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    Thanks, so I will get an emergency pot together of 6-9 months and then hit it hard! I'm alsoabout to re-mortgage potentially as my fixed rate is about to end, so in two minds whether to go into another fix or something else. Eitherway I will make sure that I am allowed to overpay!
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

  • Twiddy
    Twiddy Posts: 148 Forumite
    Hi 20

    Have you thought about going into an offset mortgage? You save your money linking it to the mortgage but having the peace of mind that you can get at your savings if needs be. While you're building up your emergency pot it will be offsetting at the same time.

    All the best in whatever you decide.

    Twiddy
    Current Mortgage: £113,829
    Standard MF Date: May 2030
    MFW Target Date: Jun 2023
    On Target to complete: Feb 2027
  • black_taxi_2
    black_taxi_2 Posts: 1,816
    Debt-free and Proud! Mortgage-free Glee!
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    best of luck on your journey
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
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  • gallygirl
    gallygirl Posts: 17,228
    Name Dropper First Anniversary First Post Mortgage-free Glee!
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    The other thing to consider is 'paying yourself first' - i.e. instead of paying what is LEFT into the mortgage, decide at the START of the month what you are going to pay then do it. That way you are being proactive, rather than passively waiting to see what is left. If you pay £100 then you have £100 less to spend so cut your cloth accordingly.

    Any OP is good though, as long as you have no credit card debt etc, so well done on what you've done so far :T.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • 20vt-rs
    20vt-rs Posts: 674
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    Thanks for your input and encouragement people :)
    Gallygirl, thats a good idea, I may do both and set up a S/O for a regular overpayment and whatever is left at the end of the month bung that in as well!
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

  • joedenise
    joedenise Posts: 16,392
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    20vt-rs wrote: »
    Thanks for your input and encouragement people :)
    Gallygirl, thats a good idea, I may do both and set up a S/O for a regular overpayment and whatever is left at the end of the month bung that in as well!

    That's what I do. I have 2 parts to my mortgage so have a SO set up for £50 to each and then I pay off bits (the odd amounts in the current account so could be £1.62 or £9.99:D). Sometimes I end up paying an additional £50 or so, another month it might just be £25), but every little helps.

    Denise
  • 20vt-rs
    20vt-rs Posts: 674
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    Ok, a yearly update on this one, I re-mortgaged 6 months ago out of my horrible high Halifax fixed rate and am now on a BOE+2.49% rate with the HSBC.

    Been making as many OP's as possible, but been in a position to make a regular big chunk now my rate has decreased by keeping my monthly the same.

    In the last 12 months I have overpaid approx £2400 and since going to HSBC my outstanding debt has gone down approx £5.5k. Still a way to go but have 17 years left and am targeting 12 years to clear it off if not before.

    My OH is finishing work soon as we have a little-un on the way, so for the time being I'm back to base payment as I'll be covering all bills and mortgage. But once I'm settled and used to that hopefully I'll be able to make some more OP's.

    It is very addictive overpaying, my goal is to have some free money at the end of the month and to OP instead of treating myself!
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

  • 20vt-rs
    20vt-rs Posts: 674
    Mortgage-free Glee! Name Dropper First Post First Anniversary
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    edited 25 July 2013 at 9:45AM
    Quick update on my mortgage free quest, junior has arrived in the last month, so has been difficult to overpay as lots of expenditure! Managed £20 in June and hoping for at least the same in July (On top of my fixed £40 OP).

    However I noticed that HSBC have lowered their tracker rates so will be calling them up to see if I can jump onto the new rate of BOE + 2.29%. Any saving on that will go as OP...

    Small progress being made and lots of sleep needed :)
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

  • tea_lover
    tea_lover Posts: 8,261 Forumite
    Congratulations on your new arrival! And on the OP's of course :D.
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