I WILL be mortgage free by 50!

Skittle

Hi everyone

I thought I would introduce myself as I've been a wannabe MFW - WMFW? - for ages but I've never felt qualified to contribute (being a DFW till just recently)

Anyhow, all that has changed as I'm now officially debt free

Well, apart from the mortgage and HUGE secured loan that is so not really debt free at all but in a far better position than before having paid off all unsecured debt.

I live with my OH and 2 grown up children, DDs boyfriend and 3 cats. So a bit of a houseful at the mo, and about to become more chaotic with the arrival of DDs baby due in December.

Our plan is to OP all of the money that was going to our unsecured debts, into an ISA then to make 1 or 2 mortgage OPs per year. Unfortunately we weren't able to start this till now as I had to buy a new car in October as my last one went kaput.

I know it makes more sense to OP the secured loan first as the interest rate is higher but they won't take any less than 10% of the total outstanding which would take about 18 months to save up and I'm worried that we would need to dip into that money. So, if all goes well and we can overpay enough, we should be able to increase our mortgage in 4-5 years to incorporate the loan.

I've got a day off today so off to Mums for coffee and cake now.

Have a good day all

muddywhitechicken

Hello Skittle :wave:

Congratulations on becoming debt free and good luck with OPing the mortgage.

I also want to be mortgage-free at 50 - 7 years early (I was a late starter!)

MWC

Hurdler

Good luck and welcome

Skittle

Thanks MWC. How close to paying off are you?

I've just been checking out my super duper mortgage payment spreadsheet and it says we owe £99,478 :eek: It's with the big Spanish bank and the interest rate has just gone up to 4.74% svr.

We have 14 years to pay it back if we stick to regular payments which are £825 per month but I hope to save and make O/Ps every 6 or 12 months.

Unfortunately due to me having a poor credit history with defaults only 3 years back, and Mr Skittle declaring bankruptcy in 2010 we have no hope of getting a better deal in the foreseeable future.

The absolute bane of our lives is the Barclays First Plus secured loan which we took 6 years ago. It currently stands at roughly £74,000 and also has 14 years left to run. We had it in order for me to purchase my business and pay off some other debts (all of which would have been paid off now if we had just carried on with them - Doh!)

Happily Mr Skittle is fully on board with the plan to overpay on the mortgage and is ok with me doing whatever needs to be done. We are already very frugal as was necessary to get through the debt management plan so don't have much to cut back on.

I opened an ISA the other day which is what we intend to use to save up for O/Ps, and made my first £10 deposit yesterday At the end of every month we will transfer any left over money into this and any extra income will also go in.

I have another day off tomorrow so plan to do some cooking and also a quick coffee with a friend in the morning.

Skittle

Hurdler wrote: »

Good luck and welcome

Thankyou and thanks for reading

Skittle

Well, my quick coffee with a friend turned into a bit of a shopping spree - we are both charity shop junkies!

I did only spend £10 and came home with two tops, a handbag and an outfit for baby so quite mse really

I'm off to the supermarket in the morning to get the ingredients for the Christmas cake and pudding which will probably cost me a fortune but will be so worth it - yum!

Skittle

I finally finished baking the Christmas cakes at midnight last night and have wrapped them up ready to be decorated in December. I decided to do a Mary Berry recipe this year but didn't want to spend money on a bottle of brandy so have used Jack Daniels instead as that's what we had open - smelt lovely as they were cooking

Mr Skittle did some extra work yesterday so that's some extra money towards Xmas pressies.

Having a chill out day today before a busy week.

Skittle

Back to work today after a week off.

I had a student working with me today so it felt like a long shift! At least she turned up, unlike my last student who kept finding excuses to have time off - strangely all of his illnesses coincided with Mondays and Fridays :rotfl:

My car insurance renewal came through today. £217 which I thought was OK but thought I'd check the comparison sites etc anyway. The best quote I got was for £216 so not worth the hassle of changing for the sake of a few pennies.

I have joined the MFiT Take Three challenge, and have pledged to get the mortgage down to £65k from its current £99k. I really can't wait to get started now :j

haiquach

In such cases always have a real estate agent, he can give you proper advice on this.

Skittle

Well another weekend almost over.

I've had a bit of a lazy one really. I pottered around the house yesterday then we went out for a meal with friends to celebrate their wedding anniversary. The restaurant was a bit ropy but you can take your own wine so managed to save a few pennies there. :beer: It was lovely to get out, a rare treat for us.

Today I did the first of our Christmas shopping whilst OH stayed home and cooked dinner. I've spent the rest of the afternoon messing around with my spreadsheets In the MFiT-T3 challenge my goal is to get the mortgage down to £65k from the current £99k, but with my planned O/Ps of £5k per year I will be short of this target by £1300 so will need to do some work on that.

I joined Quidco earlier this year but didn't start using it until this week so hope to make some extra pennies there. I've also told DDs BF that he is going to have to start paying us some rent from January as we've been keeping him for nowt since September. We were thinking about £100 per month to cover food and bills.

Below is the current state of affairs re the mortgage

Outstanding mortgage: £99,478
Daily interest: £13.16
Daily capital: £14.54

And the loan

Outstanding loan: £74,019
Daily interest: £17.94 :eek:
Daily capital: £7.15

God I can't wait to be rid of that loan!

Skittle

Hooray, I got paid £29.41 more than I had budgeted for today, so just transferred that over to my ISA :j which now holds a grand total of £39.41