QB Wolf's long and winding road

QB_Wolf

Hello, I’ve spent a lot of this week trying to sort out my finances, cancelling un-needed things, sorting out utilities etc, managed to shave £800 off my debts in a month, credit card balance cleared!! Now I’ve started to think about my mortgage - details in my signature.

I’ve decided on small targets and not to worry too much about the big scary number, so I will get it down to £180K by Christmas. Once I get there I’ll think about a realistic target for the next 6 months. I’ll need to pay some biggish chunks –but I do have some savings so we’ll see.

I’ve just had a promotion at work, so have a bit more cash coming in, so have set up a standing order to overpay £100 a month; this will save me £16,444 in interest and pay it off in full 3 years and 5 months earlier, it’s a small start but it feels good!!! :T

A bit about me I’m 37, married with two kids, a boy who is nearly three and a daughter who is 12 days old!! – So Mrs QBW is working in a different sense for a bit.

bargainlover08

Hi QB Wolf,

Congratulations on birth of baby QBW And on your promotion. It sounds like you are having a good time recently!
Also well done on paying off debts and credit cards. I would pay off all my debts before overpaying the mortgage.
We have just started to overpay our mortgage and also only overpay £100 a month which I think is a good start. Every little helps!
Have you checked with your mortgage provider that they don't charge you for overpayments?

Good luck with your MFW journey!

Bargainlover08

QB_Wolf

Hmm good call on the overpayment charge, I'm not on a deal just on SVR so think I'll be OK, will call later just to check.

sweetdaisy

Good luck on your journey to become Mortgage Free .

QB_Wolf

Have read a lot of inspirational stuff on here - just can't wait for pay day to make my first overpayment and to see what my new salary is and to start planning to make this millstone smaller.

QB_Wolf

Just found a more complex calculator, that allows me to insert yearly lump sums. In summary, to pay off in ten years, I need to overpay 400 a month and put a 10,000 (my annual bonus + dividends) yearly lump sum.

Frightening, but possibly do-able.

financialbliss

Hi QB Wolf,

There's lots of calculators available, eg search for locoblade on these MSE forums, or do an internet search, but I crafted my own. See posts 534 and 536 of my diary. They are linked to from the first post:

http://forums.moneysavingexpert.com/...d.php?t=572849

Allows different standard and overpayments, mortgage rates etc. May be worth a look, even if it only helps you understand your mortgage a bit better.

Don't recall you mentioning your mortgage rate yet - if it's a very low SVR - mine is 2.5% - it may be better to save rather than overpay and review as the rates change.

Financial Bliss.

QB_Wolf

Hi the SVR is 4%, because of my high LTV kind of stuck with it for now, will be looking at other deals as the LTV lowers.

I am saving a little as well though.

QB_Wolf

Just found an old account that had 48.65 in it and paid it into my mortgage -my first OP, not shortened the mortgage, but saved £78 in interest ha ha ha!

QB_Wolf

Just checked my current account and I have £45 to last me 15 days. NSDs are going to be enforced - hurry up pay day!!

Tilly_MFW_in_6_YRS

Hi QBQ, it does get strangely addictive but in a very good way. Good luck, Tilly x