MFW: Next step towards total freedom!

caeler

Nothing much to report. Overpayments continue. I'd quite like to hit my up to 10% allowable overpayment so I'm going to try and put together a little extra in addition to my budgeted overpayment. Is it sad to admit it is quite addictive when you receive a letter telling you your mortgage term has reduced further!

caeler

JUNE 2024! 
So this is the date I’m targeting to be mortgage free. It’s ambitious. It’s a bit crazy but I’m up for it! 

So you’ll recall I started my MFW journey some years ago, then decided to extend my mortgage to move house! In 2013 my new mortgage was £169k.  After a couple of years I was ready to resume the journey so I started overpaying as much as I could every month. I’ve got a nationwide mortgage that allows overpayments of up to 10% which I’m trying to take advantage of. Today my mortgage is £102K which IMHO is a pretty incredible reduction in just 7 years!  It won’t be long until I’m under £100K which I’m very excited about. I’ve got 2 parts to my mortgage, both on the same fairly decent fixed rate, each ending at different times. I’m targeting the slightly smaller one that in 18 months when the fix ends I’ll have enough independently saved to make a lump sum payment to finish it. This is also ambitious but all I can think about is being mortgage free. Some people tell me I need to have fun too, I do, but I want to be mortgage free more! 

I was keen to share an update as it’s been a while. Wish me not luck, but continued focus and no distractions! 

caeler

Wasn’t COVID a surprise! Not what I anticipated when I wrote my last entry! 

Very fortunately I’ve been able to keep up with my overpayments and savings and I’m on track with the plan. In fact I think I will be able to repay a little earlier. There will be an ERC to pay which I’d rather avoid but the idea of being mortgage free and being completely done is too enticing. As an additional commitment I have cut my monthly spending budget and stopped most frivolous spending so I can save as much of my income as possible.  

Next big milestone is paying off the first mortgage (I have 2, the original and further advance I used to buy this house) in June 2021. 

caeler

I’ve just requested and received a mortgage redemption statement! It was quite thrilling to even ask. Amusingly up until recently I’d also misunderstood my early repayment charge too. I assumed it was the max £% listed in the paperwork. Actually read it to find out that’s a maximum charge and actually it’s the listed % of the amount I pay. That changes everything!  

So I’ve decided I’m going to make a substantial payment next month which will rid me of the further advance I took out.  I’ve got the savings and given I’m getting very limited interest I thought I might as well. Then it’s all about continued overpayments on what’s left and saving until I can repay it in full. 

Very exciting. 

caeler

I’ve been thinking a lot about the overpayment now. Next month will be here before we know it! I’m planning the overpayment on 2 November so I’m on count down.  I’m so excited, it feels like I’m making real progress. 

Coffeekup

Good for you. I enjoyed your diary, you've done well sticking to your word and yes that's a nice chunk paid off in 7 year's.
I find it hard to stick to my word on overpaying the mortgage. Something financially unforseen happens and it can put me down and I loose 3-6 month's of payments. Happened 3 times in last 4 year's. Fortunately I'm on track for last few months, I just need to stay focused for next 2 year's and pay as much as possible. Because in 3 year's I'll hit the max 10% limit easier as the 10% is on balance owing.
Best of luck for next 3 years

caeler

@Coffeekup it’s tough isn’t it, I’ve had ups and downs over the last few years and haven’t always been able to over pay however much I’ve wanted to. But the way I see it, if I can, I should and right now I can. I read another thread on here which reminded me paying off a mortgage is a marathon not a sprint so best advice is to just pace yourself I think. 

caeler

17 days to go until I plan to repay the further advance in full. Excited is an understatement. Had some unexpected spend today but I’m still in track for the month if spend carefully until pay day. The further advance was £69K which I took out on 17 December 2012 so even contemplating finishing it next month means I’ll be 17 years early!  Obviously still got the rest of the mortgage to carry on with but I'm going to enjoy this moment! 

caeler

14 days to go. I got a new redemption figure today because I paid an extra £800 this month which zeros out my max overpayment allowance which resets on 1 November. It’s saved me a few quid in the ERC I’ll pay which was a bonus. I’m still very focused on the redemption on 2 November. I have however started thinking about Christmas. I’ve got most of my close family to agree to modest gifts this year. I’ve made a good list and I’ve been price checking. After this month is done I’ll start buying things, potentially with what I don’t spend of my spending allowance this month, as I’ve done really well on reducing grocery spending this month although do have a hair cut (first since January) booked on 31 October. 

Grogged

What a great position to be in and well done!
Do you plan to keep your mortgage payments the same once you've made THE payment?
That way you can stealth OP every month and not notice?
ATB,
G.