PaddyPaws peruses the possibility...

PaddyPaws

...of being mortgage free


Well, I’ve been lurking on here longer than I’ve been a member and thought it was about time I joined in properly. Also a lot has changed for us in the last couple of years so I want somewhere to keep track and help keep me focussed on getting MF.


There’s me and Mr PP, along with our very grumpy cat and a dog shaped hole (we had to say good-bye to our little old man at the beginning of December). By the end of the year we will probably be back to four of us.


I’ve signed up for the MFW2013 challenge and I’ve registered for the MFiT take 3 challenge (although I’ve not had confirmation back on that one yet) and I’ve made our first OP of the year of £80.



Currently contemplating OPing another £265 but just need to check a couple of things first.


Alongside OPing the mortgage we are saving up to replace Mr PP’s car, saving for a holiday and I need to put my thinking cap on about our emergency fund and also our retirement fund.


And in addition to the money stuff I would like 2013 to be the year that I actually get fitter, declutter our house and get more organised.:rotfl:


Will post more info on the mortgage shortly
PP

PaddyPaws

We bought our current house back in 2001 on a 25yr repayment mortgage, originally on a 5 year deal which I changed every time the Coventry brought out a better deal (base rate tracker with cap and collar, did my research in 2001 and thought we’d never hit the collar!!!). Finally, our deal was due to expire in 2009 so we went for an off-set mortgage, base rate tracker, lifetime deal, with FD and moved our current account to them at the same time.



When we remortgaged we owed about £73k and also had a loan of just over £11k which we added to the mortgage. Yes, I know, don’t move an unsecured loan to being an secured loan, but the difference in interest rates was over 4% so a definite saving to be had provided we paid it off against the original loan schedule (you guessed, we didn’t)


Anyhow, so May 2009 we had a new mortgage owing the grand total of £84,740.10 to be repaid in 17 years (keeping to the original 25 yr term date). Our first payment was taken in June 09 so I’ve always based our calculations on the last payment being due May 2026.


The mortgage is IO but we elected to pay it as if it were a repayment mortgage. So the monthly payt was calculated at £518 and we setup our DD for £600 so OP’ing £80/month from the start.


We also have 2 savings accounts and our joint current account off-set so are currently saving about £30/month in interest on the mortgage/loan. The savings account includes the money saved for holiday and Mr PP’s new car so the off set interest saved will may drop later this year.


Summary of 2009 – 2012
2009 - OP’d usual OP of £960 plus ad hoc OPs of £1,566.38
2010 - OP’d usual OP of £960 plus ad hoc OPs of £1,230.
2011 - OP’d usual OP of £960 plus ad hoc OPs of £48.39
2012 - OP’d usual OP of £960 plus ad hoc OPs of £21.78


Dec 2012 mortgage plus loan = £61,274.16
MFdate = Feb 2022 (this assumes monthly payts of £600 and that interest rate doesn’t change:rotfl:)
Daily interest = £3.12
Next goals are to get the total under £60k and the daily interest under £3


Sorry, that was a bit of a long post
PP

linz

Welcome PP, is that your pooch in your pic. He looks lovely

Good luck with your goals

PaddyPaws

Thank you linz

Yes, that's my little old man in the piccie, he was a real sweetie pie and we miss him loads

PP

PaddyPaws

So after paying this month's usual payment our balance stands at £60,765.39. The interest for Dec will be calculated and published to me on 12th (and then gets debited to the account on the 3rd of next month).

Due to working some extra hours before christmas I've got some unallocated money in the savings so I can afford to pay the £265. If I make this OP I will hit my goal of being sub £60k in Feb (instead of March) and it brings my MFD forward from Feb 22 to Jan 22.

BUT I didn't work at all christmas week so no wages to come this week. The week off was planned so we've budgetted for no wages from me. Hmmm...

Think I'll sleep on it and decide after work tomorrow.
PP

Lois_E

Welcome PP. :wave:

Agree with the others that your dog looks delightful.

Best wishes for your mortgage journey.

PaddyPaws

Thanks Lois_E :wave:

Well, I am going to OP that extra bit of funds. Will update properly when I get back from work.

Off for some breakfast now then off to work
PP

PaddyPaws

£265.39 OP'd :j

So we'll be under £60k and under £3/day interest in Feb
And MFD is now Jan 2022 :j

woo-hoo!
Best go an update my signature
PP

PaddyPaws

Dear diary

I've spent so much time reading everyone else's diaries I've not done anything towards my own. So to try and motivate me I need some short term goals..

...hmmm <wanders off looking thoughtful>

Lois_E

Go on, set some goals. Not too easy, not too hard, just enough to stretch you a bit.

Tilly_MFW_in_6_YRS

Hi Paddy, no idea whether you take lunches to work, but if you don't, how about joining Mortgage Reduction Novice's Take your Lunch challenge. I'll copy the link over in a moment.

https://forums.moneysavingexpert.com/discussion/4353343

It's just something to help the focus.

You could do little a/c tidies like I do. I know they don't help a great deal but it just my focus and motivation going.

You could aim to get your daily interest down to x% or own a certain % of your home.

Good luck and Lois is right, a few goals will help

Tilly x