The Pixi Mortgage Free Diary

The_Pixi

This years update is a bit late but here goes.

Three years ago we started on our mortgage and the overpaying route and I am really pleased that we have managed to keep to this years overpayment target of a flat £2100.00 per month and have recently increased this to £2200

We even manage bonus over payments to the pot as well.

The numbers breakdown like this

Outstanding loan total 05/13 £259,250.00
Outstanding loan total 05/14 £244,336.86 (5.8% down)
Outstanding loan total 05/15 £228,925.41 (6.3% down)
Outstanding loan total 05/16 £212,082.54 (7.4% down)

Actual minimum payments to the Mortgage Company 15-16 £14,948.92
Actual interest paid £8,865.51
Actual capital reduction £6,083.41

Loan Sub Total £238,233.47 (2.5% down)

Actual basic overpayment total £10,451.08
Actual bonus overpayment total £153.04

Actual overpayment £10,604.12

Total capital paid £16,687.53

Outstanding loan total 05/16 £212,082.54 (7.4% down)

The aim last year was to get the total to sub £210k which has been slightly missed,
The aim for next year is to be below £200k and preferably as close to £190k as possible.


:T

The_Pixi

We hit a milestone at the end of August, our first overpayment that totalled over £1000!

We have slowly been chipping away at the min payment and have now got it down £172.76 from the original sum. This reduction has finally pushed our overpayment into the £1000+ per month and we still have 17 months left on the fix... :T at which point we hope we can get the re-mortgage at a lower rate and push the overpayments up even further.

The_Pixi

With the year almost up were are very near getting the mortgage under £200,000 for January which is £60,000off the initial loan three and a half years ago!

We also have £50 of Nectar points to get through at Sainsbury's, this will probably be on some champagne:)

On an interesting note this month we have noticed our next door but one neighbour have put their house up for sale for £205,000 more than what we paid for ours just three and a half years ago.

I'm not so sure they would get anywhere near their asking price but I will be keeping an eye out for sold price as that will be a better comparison for a re-mortgage valuation at the end of next year.

The_Pixi

So it has been quite sometime since I last posted but we have been steadily plugging away with the mortgage.
In February our mortgage fix ends so we will soon be looking around for the re-mortgage rate which I hope will be kind to us as we have managed to overpay a large amount over the last 4 and a bit years so if we can get something under 2% our required monthly payment would only be £800 give or take which is a huge drop from £1300 we started out with.

Market news here is exciting, the house mentioned in my last post only just sold, given it was a bit of a mess inside I doubt they got the £550,000 they were hoping for however 2 more doors down the house sold in a few weeks this time asking £595,000. This house is in a top notch condition and we are now waiting on the sales prices for both to come through online. exciting as this could represent a paper increase of our house of around 100%

Anyhow below are the numbers when I posted last year and here are the new numbers as of today.

End of month 11/2016

Mortgage Balance £201,421.99 of £259,250.00 Overpayment Total £36,041.01
Monthly payment down £190.72 Overpaid last month £1021.98

End of month 07/2017

Mortgage Balance £177,912 of £259,250.00 Overpayment Total £52,195.58
Monthly payment down £233.26 Overpaid last month £1070.82

The_Pixi

Christmas update here.

So it has been 4.5 years since we started our mortgage-free journey.

We started out with a mortgage of £258,000 at 85% LTV on a five year fix of 3.98%
At the time we thought we had got a good rate and this allowed us to pay £2000,00 per month (loan and over payment combined)

We slowly increased this to £2200,00 per month.

Our current balance is now £182,709.91 and we have over paid £48,847.13!

Originally we wanted to pay down the mortgage fast in-case rates went UP - we wanted to have as low as possible the mandatory monthly payment, well…We have just now fixed again for another 5 years for 1.69%:T

This will make our minimum payment drop and an immediate £350 drop in the monthly accruing interest (it was previously £600) :beer:

We have also swapped to an offset saver mortgage, we can overpay 10% once a year so every Christmas we will empty 10% worth of savings out of the offset account to get it off the mortgage officially.

We also had some promising news on the house sales a couple of doors down (Identical terrace houses) As predicted the house asking £550,000 failed to achieve that (It needed a lot of work) but it did sell for £483,000. which would mean our house has gone up 58.3% in 4.5 years. I think it would top that as our place is in good order.

Merry Christmas everyone :beer: