MFW: Next step towards total freedom!

caeler

I've been a long time lurker and finally decided to start my own diary.

My current repayment mortgage of £106,895 was taken out in December 2010 over 25 years at 3.54% (2 year tracker). [EDIT/SPOILER ALERT: This later grew to £169,000 in December 2012 with a new 25 year term due to unexpectedly moving house!].

I became single a few years ago so had to get back on my feet and I finally managed a suitable deposit to get a mortgage on a place of my own. I told myself every month I would try to overpay a little something even if it is only £1! I have kept to my challenge! My deal allows an overpayment of no more than £500 each month. I've also been adding to my savings with the view to making a large overpayment at the end of the term, I didn't want to pay each month as I wanted the security of having the money in the bank just in case.

In the last 18 months I've only managed a small overpayment of £487 but the MSE overpayment calculator tells me I've shaved 3 months off the term. That is powerful stuff.

My latest goal is at the end of my deal, to overpay a chuck then look for a deal for the far lower amount over a shorter term. The aim is to get the mortgage down to £90K by January 2013. My overall aim is to be Mortgage Free before I am 40!

I'm on the road to total freedom. Wish me luck!

[EDIT: Repaid on 20 April 2021!]

pawlala

good luck!

lulabelle1

Best of luck with your MF journey

Lois_E

Hi caeler and welcome to MFW. :wave:

Well done for getting back on your feet now you're on your own. Sometimes us single MFWs have it easier than the people who have OHs who are not on board! There's a thread for single and childfree MFWs that's usually on the first page or few pages of the forum, or if you've got kids, there are some of us single parents with diaries too that you might find worth a read - me, pammyj74, ally18 and juliff, among others. (My diary is here.) One way or another, there are plenty of us doing this MFW thing on our own.

There's also a thread for people with mortgages over £100k, but it sounds like you may be below that already.

Good luck on your journey, and enjoy the ride.

caeler

Thank you for the warm welcome!

I'm feeling pretty positive today because this weekend I had a mini spa break, the trip itself has been paid for over the last few months but I was a bit nervous about the extra spending money but I kept it below £25! Result! All this really means is the weekend goes against my monthly 'pocket money' rather than having to diminish my savings.

I've also decided on my 'overpayment' goal. When my tracker deal expires I'm going to pay off £10K. I've been saving like crazy this year and it looks like I'm on track. Back in January I decided I wanted to pay off £10K but saying it aloud makes it sound unachievably scary.

£3K left to save from 5 months worth of pay days till Mortgage Overpayment Day (1 January 2013).

Lois_E

Sounds like it's all going well. £10k will be a huge boost to your journey.

caeler

Not a great deal to update, but don't they say every penny counts? I'm half way through the month and I'm still in budget although likely to spend more on fuel due to driving hundreds of miles at the weekend. I've managed 2 NSDs so far this week and I can't see me needing to spend any money until next week which is ideal! Seeing that I've only got to save another £3K to reach my goal is starting to feel motivating now. Once that is saved I can start saving for a holiday!

caeler

So I'm a little bit closer to my goal which feels good. However I'm feeling conflicted. There are a couple of jobs at home that I'd like to spend money on, but these of course detract from the goal of paying off the lump sum from the mortage.

I want to get the loft boarded with a ladder installed. I've had a quote of £250 which I think is really reasonable. I'd like to get the kitchen tiled (just splash back) which I think its about couple of hundred, no quote yet, I want to buy a freestanding cupboard for the kitchen to improve storage and the one I love is very expensive (solid oak!) and finally I want to sort out the front garden which all in will cost £130 + plants. These things will improve the value of my home and make life more comfortable but added up I'm probably looking at £1200+ which my head tells me could be spent elsewhere.

I think I hate spending money! ;-)

lvm

Hi Caeler!

Looks like you've made a good start already!

I know how you feel about hating spending once you get this saving brain on - it does get rather boring though, doesn't it?!

Anyway...just a thought, from the things you want to do - wy don't you do the things you'll get most benefit out of just now and leave the others til you've had time to save up. The garden stuff doesn't seem too pricey (could you do some of it yourself?). And for the kitchen tiling, is this something you could have a go at if you watched some youtube videos maybe? Or why don't you list the job on one of these sites that let tradesmen send you quotes (can't remember the name of it!). And maybe leave the loft til later. And could you maybe just move some things around in your kitchen or organise things a bit better so you feel like to have more space?

Anyways, just my tuppence worth!

Good luck getting mortgage free! x

caeler

Thanks for your thoughts! I don't really need to spend any money, it is all want not need. The kitchen is perfectly fine I just thought it would look nicer tiled and a new cupboard. There garden looks pretty messy and I'm sure I could it myself so the cost is just for materials (gravel is expensive who knew!) and as for the loft, I've managed so far with out it!

I suppose it is all about prioritising. I could save up for these things but then I'd just want to spend the money paying off some mortage!

caeler

So the paying off my mortgage thing has taken an unexpected turn! I think I've found a bigger house I'd like to buy! I really wasn't looking and too good an opportunity has come up in the road opposite mine to get a slightly bigger house! So I either stay put and have a sub £100K mortgage OR I upgrade and deplete my savings again and extend my mortgage by £35K!