The Mortgage Free in Three - Take 3 challenge (MFiT-T3)

hoobydoobydoo

Have just registered and am hoping to get the same number as before - 49, if at all possible?

Thanks for all of your hard work and good luck everyone
Hooby
x

tjp70

I have just registered and am all geared up for this challenge, and am hoping to be mortgage free by 12/12/15.

My progress will seem quite slow at first as the vast majority of my mortgage will be paid by two (underperforming :mad:) endowments that mature in 2015, so I envisage that I will be in the red for most of the time.

Thank you FB for running this challenge.

SHOULDI

Hi

I have just registered and looking firward to continuing my mortgage free journey from MFi3 T2. Am hoping to be mortgage free by 12/12/15.

New Challenge number 34.

Thanks for continuing all your hard work FB.

Shouldi

HelenDaveKids

Feeling quite inspired. Thanks FB.

Bought dream "big house" after paying off morgage about 2 years earlier. Renovation and difference took us up to £100,000,00 morgage (last year) which scares me and started paying bits off after Christmas.

Have set self goal of £500 overpayment a month, which will be challenging. Hadn't really thought about putting other savings towards OP till reading this, which has made me add an extra £28 to the pot this month. Can't wait... will need at least another three years tho after as goal is to go from £93,000,00 to £60,000,00 (hope thats the right number of zeros!) then endowment should pay in Nov 2016 £31,100,00 (projected) so fingers crossed goal is 5 yrs (then oldest will need uni fees!). Will update exact figure left when get to December.
Also have a saving pot, anything earn extra in the month. As have 2 old cars and not sure how long will last.

Im number 38.
Good luck everyone, really enjoying reading your stories

financialbliss

Slower take up today, but I guess that's to be expected:

41. puddle96. Build up my savings from £0 to £1,800.
42. tjp70. Completely clear my £52,000 mortgage.
43. beachie. Reduce my mortgage from £85,750 to £42,875.
49. hoobydoobydoo. Reduce my mortgage from £99,999 to £49,999.

If there's anything incorrect there, please post here or PM. About to send a PM to each of you now.

Thanks,
FB.

gallygirl

I was going to wait to set my target later but obviously couldn't wait .

I have looked at how much the mortgages will reduce over the 3 years. Added my planned overpayments. Assumed I will be able to find a little more (not a lot as it is very tight). Assumed I will get payrises and prices will stop rising so all the extra can be op'd (welcome to my fantasy world ). Estimated those extra op's will be eaten up by holidays, repairs etc. That gives me an overall target (mortgage balance reduction + savings) of £96,880.35. No, NOT 100k. £96,880. OK, round it up to £96,881 . NOT 100k.

Target sent, NO SLIP OF FINGERS. £96,881. Exactly .

financialbliss

If you browse back to post #1, if you supplied a diary link in the registration / updates form (if you spotted the bit for the link), then you'll find post #1 now links to your diary.

Gulp. gallygirl has put out a target. Going to have to do the same now.

FB.

SuperSecretSquirrel

I'm up for this

We bought our house a couple of years ago. Both me and my better half were already in the habit of saving, managed to save a good deposit and bought with a 75% ltv mortgage. We got a great deal on a house that should easily last us the next ten years (and beyond).

We've been making small overpayments of £50 a month for the past six months or so. From October I'll be stepping that up to £250 per month.

Predicted mortgage balance Dec 2012 is approx 81.5k. If I've got my sums right, without any overpayments the mortgage balance would have been over 76k in Dec 2015. Slow progress... We can do better than that!

Target for this challenge is to get the mortgage balance below 60k by Dec 2015. That should mean that five years from purchase we'd own more of the house than the bank (this depends on what happens to house prices I guess, but I'm pretty confident the house will be worth over 120k in Dec 2015). Sounds like a good aim to me.

Our mortgage is fixed for 10 years with early repayment charges applicable before then. Beyond this challenge, the long term target is to be in a position to settle mortgage balance when the fixed period comes to an end - meaning we'd own outright ten years after purchase. To achieve this a combination of overpayments and long term savings will be needed, a lump sum from savings can then be used to settle balance once the early repayment period ends.

Well... that's the theory! A lot can happen in ten years - work, family, "life", but we have a target for now, if circumstances change and the target is not met, so be it, we'll still be in a better position than we would have been had we not made any overpayments in the first place Right now though, I'm feeling confident.

Bring it on!

financialbliss

Well I’m pretty much 100% certain now that I’ll be leaving the second challenge being mortgage free. Have always aimed for 12/12/12 as this was a date I had in mind for 5+ years, and I will be mortgage free before that.

Still not going to cough to an exact date, but I expect to be transferring £14,500 or so of savings into the mortgage account sometime in October 2012 to become mortgage free.

Haven’t decided if I break the news here on MSE first or tell Mrs Bliss, but that’s perhaps one for my own diary.

So my third challenge is definitely a savings goal.

Three major issues:
1) The mortgage is required spending. Default and you risk loosing your home. Savings is entirely discretionary.
2) I’ve over £12,500 of credit card debt – ok at 0% - slow stoozing but needs repaying in 2013
3) I’m going to Florida in 2013 and this needs paying for.

My mortgage payment is £887.41 – 36 x £887.41 is £31,946.76, so theoretically I should be able to afford this over three years. Isn’t going to happen because of ‘2’ and ‘3’.

But I think I can afford to save £25,000 and as a bit of a stretch, I’m going to add a further £5k on to make £30,000 - a nice round £10,000 per year.

Expect to make practically no impact into the £30k in year one, but bounce back in years two and three.

Well that’s the plan for the moment at least.

Financial Bliss.

TallGirl

That is an excellent goal with space for enjoying yourself which is important too. For me it felt a bit like an anticlimax when we paid our mortgage off I think difference was the following month when no mortgage payment went out.

Thank you so much for starting the new challenge I feel really inspired to build up my savings I have done very little in the last two years so this will be a great help.