Captain's log to being mortgage free!

captainbarnacles

I would so love to be mortgage-free and thought this would be a good help along the way.

We bought our house back in August 2006 and took out a £210,000 mortgage (repayment) with Nationwide. So we've been enjoying the 2.5% BMR for a few years now and have been overpaying £500 a month since about 2009. A year or two ago we also managed to pay £35k in one big lump so we have been very lucky.

Our mortgage should dip under £100k next month which will be so exciting to see. Ideally we want to pay off the mortgage by 2018/9 which gives us a few years before our oldest would start secondary school as we may move before then.

This is all well and good but I am struggling to work out the over payment calculator. Am I right in thinking that it is skewed now we have been overlaying? When I put in £100k as the mortgage amount, the amount we pay each month (excl. the £500 monthly over payment) and that we will overpay £500 a month then the results assume an interest rate of 9.something %. Can anyone explain how I can work out when we would pay off the mortgage, or is the calculator still correct despite the interest rate assumption? Hope that all makes sense! We may have another lump sum to use this month so it would be good to work this out.

Thanks for reading and all the best to all you other mortgage-free wannabes

LauraJo

Hi. Sorry can't help with you question (if you see my diary and my mess up with numbers you'll understand!!) but just wanted to say a quick welcome and good luck. Regular posting should help

cb4fwh

You sound like you need a copy of Locoblades spreadsheet...

https://forums.moneysavingexpert.com/discussion/1157173

getmore4less

Just use a simple calculator like

www.whatsthecost.com

stick in amount owing, remaining term, interest rate, total payment(as interest only).

captainbarnacles

Thanks for the help. That spreadsheet is great and very motivating. It looks as though we should be able to pay of the remaining mortgage by 2019 which seems a long way off but is a lot closer than 2031 which is when we are due to pay it off officially! If we can do that then we will have saved ourselves 12 years of mortgage payments which is amazing. I keep dreaming of the day it is paid off, but unlike dreaming of winning the lottery, this is something we can actually do and have an influence on!

sweetdaisy

Just wanted to wish you all the best on your MFW journey . I hope to be MF by 2019 too.

tootoo

lots of luck on your journey

captainbarnacles

Just wanted to come back for my own records to remind myself how far we've come. Mortgage now stands at £64k. So that's around £36k paid off in just over a year. Really excited to see the end goal getting closer. Now trying to aim to pay off in 2018 rather than 2019. Amazing to see what a difference overpaying can make.

choccielover

Wow, well done that's excellent work

Good luck with your target

Chocs

captainbarnacles

Thanks Chocs! Looks like you are doing brilliantly as well.

choccielover

Not quite yet but it will kick in towards the end of the year hopefully