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Average? income overpayer

I've decided to be a mortgage free wannabe from the off. I got married in September and bought our first home together last month. We've borrowed £127,000 and currently the mortgage term is a whopping 30 years! I'm 34 and other half is 27. And really don't want to be paying off mortgage until I I'm 65! (I'm also a early retirement wannabe).
We are in a good position at the moment. I come out with £1550 and wife comes home with £1100. Total - £2650\month. Not massive salaries, but our outgoings are as follows: and

mortgage - 600
utilities + ctax + home ins - 300
food - 300
total: 1200

me:
phone - 31
car ins - 35
fuel - 200 (!)
service + mot - 20
lesuire + contingency - 200
total: 486

wife:
phone - 20
dental plan - 12
car service plan - 10
fuel - 80
lesuire + contingency - 200
total: 322
grand total: £2008

So probably left with about 600 a month. Last month I overpaid by £400 and this will be the minimum. The biggest issue I have at the moment is convincing the missus that this is a worthy endeavour!
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Replies

  • originalmiscellanyoriginalmiscellany Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Forumite
    To win her over:
    Work out how much you pay a day currently in interest and the amount per day including servicing the mortgage.

    Then show how overpaying £400 a month will save thousands and years off over the full length of the mortgage.

    Suddenly I imagine your OH will see the light too :)

    And best of luck.
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
  • Your SOA didn't mention any pension contributions or emergency savings. Do you have these?
  • hebawomhebawom Forumite
    59 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Forumite
    Hi, thanks for the advice. Any tips on how to work this out?
    Some things im going to do that I've read on this forum:
    - Set up a halifax reward account for me, OH and joint to gain a 500 pound pay rise a year!
    - Going to see if I can get a tax rebate for washing my uniform for last 3 years
    - ebay
    - try to reduce monthly spends
  • hebawomhebawom Forumite
    59 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Forumite
    Yeah, both pay into pension. And we have 5k savings.
    Hoping to pay off at least 6k over this year. Because we are planning to try for a family next year and am guessing this may be quite expensive!
  • somethingcorporatesomethingcorporate Forumite
    9.4K Posts
    Forumite
    hebawom wrote: »
    Yeah, both pay into pension. And we have 5k savings.

    This is probably not enough, it is advisable to have 3-6 months expenses in accessible funds for emergencies.

    Plus, you may need some additional to cover the drop in income for maternity leave if and when your wife takes it.

    We've put aside around £6k to cover this and have about £15k in liquid savings to cover almost any eventuality for a drop in income.
    Thinking critically since 1996....
  • hebawom wrote: »
    I'm 34 and other half is 27. And really don't want to be paying off mortgage until I I'm 65! (I'm also a early retirement wannabe).

    If you want to retire early (depending what you mean by 'early'), you'll be better off investing all your spare income into retirement savings. At age 34 with a 30 year mortgage, if you let it go full term then you'll be 64 which will be well before state retirement age.

    With the state pension age moving towards age 70, you will need additional cash to get you from your early retirement age to state retirement age. You can only do this by investing heavily into a pension.

    All financial experts agree that the earlier you start retirement savings, and the more you put in during the early years, the better position you'll be in.

    As far as reducing your mortgage sufficiently in a year to release spare cash for a maternity, unless you start putting tens of thousands away you're not going to manage it. Over the last 3 years I have reduced my IO mortgage by £57k via overpayments. This has reduced my monthly outgoings by just £120 per month.
  • hebawomhebawom Forumite
    59 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Forumite
    You've misunderstood me I think. I'm not overpaying to reduce my payments for a maternity! I'm overpaying to reduce my mortgage term.

    All I'm saying is if we get pregnant our circumstances will change and im guessing I won't be able to overpay as much.

    My works pension is final salary, so hoping this will be sufficient provision for my winter years!
  • KodagirlKodagirl Forumite
    136 Posts
    Hi,Hebawom,
    Welcome to the board!!!!:D

    Show your wife the figures on the overpayment calculator,compare the years of O/P to not O/P,if that doesnt work,.......... Your Doomed!!!:rotfl:

    Honestly,its amazing how addictive it can get!!!:D

    Goodluck!!!:)
    Total Mortgage amount borrowed
    £129,176.55 Dmr 2005/ £90,485.00 :(
    Current savings £3000:T
  • MrsP1983MrsP1983 Forumite
    96 Posts
    Eighth Anniversary Combo Breaker I've been Money Tipped!
    Forumite
    We have a joint income of just under £3k a month after tax, NI and pensions and we save £600 a month as well as paying nursery fees (£400) and the max overpayment allowed on the mortgage which make it £730 monthly), so your figures look reasonable to me OP :)
    Starting Mortgage (May 2012): £116,095, Mortgage at September 2012: £115,677.14
    Mortgage at March 2014: £110,671.08
  • edinburgheredinburgher Forumite
    13K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    - Set up a halifax reward account for me, OH and joint to gain a 500 pound pay rise a year!

    How's that? I thought it was £5/mth like I get? :D
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