Mortgage Free in Three Yrs

Karmacat

Dithering_Dad wrote: »

Small DD update.

I've just recalculated my 6 month's emergency money in light of my reduced outgoings (mostly due to my mortgage overpayments) and worked out that I only need 16k not 18k to keep us ticking over for 6 months.

Wow! Now *that's* the kind of proof we're after of the effects of overpayment! Well done!

sarahe

Well I've begun to take action. I am hopefully going to get a number and then I will be a proper member. I've even changed my signature - I have read a few of the posts and I will hopefully be checking in once a week toseehow everyone is doing and keep myself in check! We are in a great position - 3 children - one 2 on Thursday, 4 year old and a 6yearold. My partner is a stay at home dad (after getting his phD in engineering a few years ago) and I work 3 days a week (although I'm sure I wouldn't do any more if I was 5 days a week - primary teacher). Family time is the most important thing for us - but we only live in a 2 bedroom house. We have given ourselves 2-3 years to pay off this mortgage (going to be a struggle- but hopefully not a stress) and then we haveto move. Lack of bedrooms and space upsets others more than us. More details later when I've got into the swing ofit.
Sarah

dawnylou

Well we were charged £25 for not taking out insurance with the mortgage so we paid the £25 upfront instead of having it added to the mortgage.
Also we paid £195 off over the telephone.
We made the £195 up by using a £50 cheque from Yougov, a £55 cheque from Northern Rock for charging too much when we changed our prev mortgage, £50 from selling one of our wardrobes and £40 from a car boot sale we held.
So in total we have paid off £220, which doesn't seem much I know - but it is certainly a start!

TallGirl

DawnLou I notice you are not on the chart would you like me to add you on? If so what is your current outstanding balance. Well done for getting so much paid off it is nice to get money for nothing so to speak.

Sarahe welcome onboard. Hopefully DitheringDad will spot your post and you will get your number but have a look at post 1 and 2 (I know it is pages back) but it does explain what this is all about. Once you have your number I can add you onto the chart for next round.

dawnylou

TallGirl wrote: »

DawnLou I notice you are not on the chart would you like me to add you on? If so what is your current outstanding balance. Well done for getting so much paid off it is nice to get money for nothing so to speak.

Sarahe welcome onboard. Hopefully DitheringDad will spot your post and you will get your number but have a look at post 1 and 2 (I know it is pages back) but it does explain what this is all about. Once you have your number I can add you onto the chart for next round.

Oh, I thought I was on the chart sorry TG!
I don't know what my outstanding balance is though, I think I only get one statement a year so I will have to phone and ask them for the balance.
I will do this on Thursday as I am phoning to make another payment on Thursday

mountainlioness

dawnylou wrote: »

So in total we have paid off £220, which doesn't seem much I know - but it is certainly a start!

Don't worry DL, we're in a similar boat.... Our regular payments are about 40% of our total income (and Mr Lion is on commission so his income goes up and down) so we can only overpay by £200-300/month, at least for now... but it really does add up - the snowball calculator really brings that home when it shows you how little capital you're actually paying off over a period of time if you just make your regular payments :eek: Even the odd £50 here and there will have a massive impact down the line (well that's what I'm telling myself as I sell off some of my precious handbag collection in the Great Den Clear-Out :rolleyes: )

kar

Hi everyone, I'm joining the challenge. DD put me on as number 100.

I'm just buying my first house so don't officially have a mortgage at the moment. We move in at the beginning of September but probably wont have an update on figures till the end of October when we hope to make our first overpayment. The mortgage is 167,200 and quite frankly it scares me to have to borrow so much money. Anyway we aim to reduce it to 150,000 or less in three years by making an overpayment of up to £500 a month. This is such a good idea to have people supporting you when your doing this. Well done to everyone whos getting on so well already.

Thanks K

Kaz2904

Kar, a good kick start to your mfw ways is to start saving that money now, so you are already living within your new budget when you get the mortgage and then when you come to drawdown you may not even need the full amount.
Our house purchase took 5 months to go through but we had already started living like paupers to try and save enough to pay the fees without borrowing. We ended up with about £6k in that time which meant we borrowed significantly less and were able t pay for our central heating to be fitted straight away. We also bought our kitchen in that first 2 months of being in the new house!
We didn't start making overpayments until we'd been in for 7 months and then did it wrong as we weren't overpaying much but all of that has shaved our mfd by loads! We will have taken 10 years off an 18 year term if we stick to our current plan but I am throwing everything I can lay my hands on at this!

Tesco have just changed their voucher policy so I am using multiple vouchers when I go in and any money I have saved on shopping would have come out of my budget anyway so I transfer it straight over to the mortgage! (I'm so sad!)

crockpot

Hi

We have an offset mortgage and have savings in offset linked account- with YBS.

At mo we are overpaying £35 a month on atcual payment but what do others do?

Most of saving are spoken for ie savings for annual bills, car insurance,service,road tax etc so will need the money at some point.

However we do have some proper savings, but do not like the idea of say paying £1k lump sum off mortgage if that was all savings as what would we do if boiler blow up?

If it isin offsett account I can see it, but would i be better say keeping £500 in offset and paying £500 off mortgage.

I have 1 mortgage account-can see balance daily online and 3 offsett savings acoounts which are linked to it.

Help

TallGirl

Just out of interest has any of you guys found it easier or more difficult to spend money on things larger things such as home improments, holidays cars etc since trying to be MF.

I need my a small section of my fence replacing (falling down) but I would also like a new patio. Nothing wrong with the old one just a bit small and a bit wobbly. I can't find anyone who will just do the small repair job on the fence so I am finding myself so tempted to get the patio done at the same time.

On one hand MFI3 makes me think I can't spend money as I want to pay off the mortgage but on the other hand I am thinking oh i have done so well and paid off so much I could treat myself.

Also we have that inspection trip booked for August Bankholiday to look at property in Turkey. I am nearly 100% certain it is not for me so don't think I will get tempted.