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

LadyGnome · 29 June 2022 at 8:36AM

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.

20vt-rs · 29 June 2022 at 10:17AM

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!

20vt-rs · 11 November 2022 at 4:31PM

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.

IAAM · 12 November 2022 at 4:51AM

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%.

20vt-rs · 14 November 2022 at 3:13PM

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!

20vt-rs · 5 January 2023 at 3:13PM

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

20vt-rs · 1 February 2023 at 11:12AM

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.

20vt-rs · 6 June 2023 at 4:44PM

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!!!

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!