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Isca's Shrinking Mortgage
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Isca
Posts: 39 Forumite
Hi everyone.
3 weeks ago we moved house into our forever home. We are in a very lucky position to have a reasonably small mortgage, far smaller than at any previous point in our lives. The chance to be mortgage free is in our sights, and with a young growing family, this kind of financial freedom would be amazing!
Our mortgage is around £50k and this has included some work we had to have done on the house when we moved in. We have a One Account (love it or hate it) and it works really well for us. If you don't know what the One Account is about, basically the important thing to grasp is that we can make unlimited overpayments on the mortgage (which we are able to take back at any point in case of emergency!).
I've decided to break down the mortgage into £500 pots which each represent 1% of the mortgage balance. I'll be recording my progress as I try to save/make each 1%.
We don't have a huge amount of money around each month as I am a SAHM to my daughter (22 months) and hubby brings in around 2k per month. Its enough though, for now, but my £500 savings pots will have to come from other sources, rather than our monthly budget.
As we have just moved into a new house, the budget will take a few months to settle down as we work out the cost of bills etc. Its a 3 storey Victorian terrace so quite different to run from our previous house which we bought from new 7 years ago.
I've drawn up a rough budget which we are sticking to from today, so hopefully this mortgage is on its way out!
3 weeks ago we moved house into our forever home. We are in a very lucky position to have a reasonably small mortgage, far smaller than at any previous point in our lives. The chance to be mortgage free is in our sights, and with a young growing family, this kind of financial freedom would be amazing!
Our mortgage is around £50k and this has included some work we had to have done on the house when we moved in. We have a One Account (love it or hate it) and it works really well for us. If you don't know what the One Account is about, basically the important thing to grasp is that we can make unlimited overpayments on the mortgage (which we are able to take back at any point in case of emergency!).
I've decided to break down the mortgage into £500 pots which each represent 1% of the mortgage balance. I'll be recording my progress as I try to save/make each 1%.
We don't have a huge amount of money around each month as I am a SAHM to my daughter (22 months) and hubby brings in around 2k per month. Its enough though, for now, but my £500 savings pots will have to come from other sources, rather than our monthly budget.
As we have just moved into a new house, the budget will take a few months to settle down as we work out the cost of bills etc. Its a 3 storey Victorian terrace so quite different to run from our previous house which we bought from new 7 years ago.
I've drawn up a rough budget which we are sticking to from today, so hopefully this mortgage is on its way out!
Mum to DD born Nov 10
Trying to look after the pennies...
Now in our forever home, tackling the mortgage 1% at a time
Total overpaid 0%
Next % £235/£500
Total overpaid 0%
Next % £235/£500
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Comments
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Just been thinking about how to manage my savings for this challenge. While I'm hoping for some big wins, a lot of it will be a couple of pounds here and there from selling the clutter around my house etc. I've been doing quite well so far on local Facebook selling sites, especially for baby items so I've decided to get a lidded box and keep all my cash savings in there. Once it is put in the box it will be added to my totals, and I can pay it in every couple of weeks when I'm in town.
Will go and have a look at how much is in there so far so I can start updating!Mum to DD born Nov 10Trying to look after the pennies...Now in our forever home, tackling the mortgage 1% at a time
Total overpaid 0%
Next % £235/£5000 -
Hi there :wave: welcome to the board. I am at the beginning of this journey and have about £83k to pay off. I wouldn't say we are in our forever home but that won't be possible for a few years
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Good luck and I look forward to hearing about your journey.Fashion on a ration 0 of 660 -
Very good luck to you. But do hide your cash box in case of burglars!
SquirrelPaid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
Still thrifty though, after all these years:D0 -
Good luck to you all.Morgage till Nov 30 GOAL MFW Sept 2016Aug 11 - £100k Aug 2016.... It's GONE!!!!!
2014 GOAL HIT 5 Stone! 2016 GOAL to be a MF marathon runner.
"A goal without a plan is just a wish"0 -
Secret_Saving_Squirrel wrote: »Very good luck to you. But do hide your cash box in case of burglars!
Squirrel
I will Squirrel! Just to be clear, I don't plan to keep loads of cash lying around at home, but will count it for the challenge when I receive it rather than when I pay it in!!
Just counted up what I have sold on Facebook recently and it comes in at £235 so that is straight into the pot. Almost halfway to my first 1%!! That came from selling a pushchair and some furniture on a selling site. Got another £7 to come this week from a couple more sales and will try and get up in the spare room soon to find some more bits to list!Mum to DD born Nov 10Trying to look after the pennies...Now in our forever home, tackling the mortgage 1% at a time
Total overpaid 0%
Next % £235/£5000 -
Good luck on your challenge, Isca! :j
Dividing it into pots of 1% is a really good idea to keep motivated.Mortgage - £105,5000 -
PrincessLou wrote: »Good luck on your challenge, Isca! :j
Dividing it into pots of 1% is a really good idea to keep motivated.
Thanks PrincessLou,
Not sure its a very unique technique, but I think it will help me keep focused!Mum to DD born Nov 10Trying to look after the pennies...Now in our forever home, tackling the mortgage 1% at a time
Total overpaid 0%
Next % £235/£5000
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