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

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  • LadyGnome
    LadyGnome Posts: 801 Forumite
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    Best of luck for the next 12 months.  The end is in sight.  It's amazing what a difference small changes make over a long period.  
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
  • 20vt-rs
    20vt-rs Posts: 674 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    LadyGnome said:
    Best of luck for the next 12 months.  The end is in sight.  It's amazing what a difference small changes make over a long period.  
    Thank you :) - I read back in here about my projections and it seems that I have improved the timeframe by a bit, the small overpayments, even if it's a few £ has made that difference as well as the main one I pay each month. (e.g. rounding bank balance and sending the odd over, sending over any Quidco, TCB etc). I will be back in just over 12 months I hope, with the good news!
    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 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    edited 11 November 2022 at 4:32PM
    Hi all - A quick update and a question, as things have changed with the economy as we can see since June this year!...

    My current fix @ 1.94% ends 31st May 2023, and I am currently overpaying the mortgage by approx. £580 per month. Current mortgage balance is around £22k, is there a calculator or a way to work out if I am better off to stop over paying and put it into a savings account just for the next 6months?

    I have a Santander 2.72% eSaver to use, I plan on clearing the mortgage on 1st June 2023 with my savings. Would saving £580 per month for the next 6-months @ 2.72% be better than overpaying the 1.94% on £22k? I see calculators around but they don't consider clearing the mortgage early, maybe I am being dumb and can fool them :)  Thanks!

    Anyway, update on this diary is that I am still on track to clear the mortgage on 1st June 2023, around 9 years earlier than if I hadn't been overpaying / saving.  o:)
    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!!

  • IAAM
    IAAM Posts: 95 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Hi 20vt-rs

    Martin has an overpayment calculator on the MSE site and there’s an option to tick a box and compare the the difference between mortgage overpayments and putting your money into savings. 

    I’m afraid I’m not having much success sharing a link here but if you type Mortgage Overpayment in the search box then it should come up. 

    I used this tool earlier this week and discovered that it’s much better financially (for me) to set up 12 month regular savers account to make my overpayments and then transfer these into my mortgage once the interest is paid at the 12 month point. That’s because I’m currently on a fixed rate of 1.64% and I found regular savers rates as high as 4.5% and 5%. 



    Mortgage Balance: £162,615.84 (December 2022); £163,945 (November 2022)
    Current MF date: Feb 2032.  (Previously: Jan 2033)

    Target MF date: May 2027
    (Overpayments needed to achieve this: £1,750pm!) 

    Joint spend: £391.09 (Nov)
  • 20vt-rs
    20vt-rs Posts: 674 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    IAAM said:
    Hi 20vt-rs

    Martin has an overpayment calculator on the MSE site and there’s an option to tick a box and compare the the difference between mortgage overpayments and putting your money into savings. 

    I’m afraid I’m not having much success sharing a link here but if you type Mortgage Overpayment in the search box then it should come up. 

    I used this tool earlier this week and discovered that it’s much better financially (for me) to set up 12 month regular savers account to make my overpayments and then transfer these into my mortgage once the interest is paid at the 12 month point. That’s because I’m currently on a fixed rate of 1.64% and I found regular savers rates as high as 4.5% and 5%. 



    Hi, thanks for the feedback... I found martins calculator, it doesn't go less than a year and also doesn't have an option to clear outstanding balance in 6 months. But I played with the figures and think I can fool it into knowing what I am trying to achieve. Looks like the is only a few £ difference in going to savings for 6 months vs overpaying. on this basis I will leave it all as is, continue to overpay for the next 6 months. Hopefully I got it right!
    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 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    Happy new-year everyone! - T-Minus-5-Months and this mortgage is toast  :) Here is to 2023 and all the mortgage free wannabe's targeting a zero in 2023  ;)
    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 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    Just hit another nice milestone, outstanding balance has just tipped below £20k, approx £19.3k remains and I am still going for the plan of clearing it all this coming June 2023.
    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 Forumite
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    June 2023 Update: Well I've only gone and done it  :) 
    5-year fix rate ended last week, I have made a final payment to the mortgage of £14.7k to clear the balance and now am officially mortgage free!!!  B)
    I started over-paying in 2012 after reading the mortgage free wannabe board on here, and overall have taken 9.5 years off the original mortgage term. I am going to use the next few months to get my savings back in order, and then who knows (part fun part sensible I think). We were holidaying in Cornwall when it all cleared last week, and celebrated with a glass of proper-cider. Good luck everyone, you can do it!
    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!!

  • Jessy103
    Jessy103 Posts: 1,821 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Congratulations! 🍾
    Mortgage Balance as of Jan 24 £36,500 Starting Mortgage Balance (June 2019) £72,000. 2024 Overpayment Challenge: Jan £558.40, Feb £588.11, Mar £497.32
  • Great work!
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