Dec 2017 Target

Welshdreamer

My LBM occurred in July 2013, I've been an avid lurker, making changes and following advice and taking inspiration from others.

I've lined up my ducks and set myself a target of clearing my £125k mortgage in 4 years or 48 months or 208 weeks or 1460 days.

It's the start of a new year and this diary will keep me on track. In my next post I'll share my overpayment plan.

getmore4less

good luck with this.

£125k over 48 months is min of 2064pm total payment
interest rate will make this more, eg 2.5% £2740.

EchoDelta

Wow! That's quite a target!

Good luck with it. Looking forward to reading about your plans.

Welshdreamer

If I've done my sums correctly
We have 12years 2 months left to run on the mortgage.
Current monthly payments £957
I intend us to overpay £1799 each month
Our monthly mortgage payment including overpayment will be £2756

This sounds like a huge amount but we have no other debt and a combined monthly income of £4775 net. This will leave us with £2019 for all bills and living expenses.

It's time to stop being silly with money and start to think about the future.

getmore4less

what's your rate?

that payment would suggest 1.75%

the full payment will have it paid off in 47months

Welshdreamer

Thanks for your reply Getmoreforless, my lack of financial accument is already showing. I've made an error according to your calculations. My interest rate is actually 2.39%

pennyforthepot

Good luck in your quest. I will follow your journey with interest as I too have a similar amount left to save - £148,000 in just over 5 and a half years. Keeping a diary has helped over the last four months particularly when I take my eye off the ball :eek: Subscribed

PFTP x

getmore4less

£125k @ 2.39 12y 2m payment needs to be around £987.
(Allthough it will vary depending exacly how the lender calculates the interest)

to do it in 4 years £2733

So still on target.

Welshdreamer

Getmore4, thanks for clarifying the figures, I looking at my monthly budget I am determined to give it my best shot.

PFTP, you're inspirational! Your hints and tips from your own experience are going to be invaluable.

Olderbutnotwiser

Hi welshdreamer I'm starting today too, I thought I was ambitious wanting to clear 84k in 5 years but it seems you are crazier than me;)
Good luck and I shall be watching.

Welshdreamer

Thanks Older, we have wasted so much money over the last 10 years, I want us to clear this mortgage so we can approach work slightly differently.
I've spent the afternoon trying to account for every penny and project any expenses. I think the first couple of months I will be feeling my way and learning. There will be no unnecessary spending and I'll have to watch DH like a hawk.