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Average? income overpayer
hebawom
Forumite 59 Posts
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!
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
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.
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
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
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!
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.
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.
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!
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!!!:)
£129,176.55 Dmr 2005/ £90,485.00
Current savings £3000:T
Mortgage at March 2014: £110,671.08
How's that? I thought it was £5/mth like I get?