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The Mortgage Free Roll Of Honour

edited 21 February 2014 at 9:02PM in Mortgage-Free Wannabe
758 replies 423.8K views
Dithering_DadDithering_Dad
4.6K posts
Mortgage-free Glee!
edited 21 February 2014 at 9:02PM in Mortgage-Free Wannabe
Welcome to the Mortgage-Free Roll of Honour.

This is for Mortgage-Free Wannabees who are no longer Wannabees.

Please report

a. The date you decided to become a MFW
b. Mortgage Debt at its highest
c. Mortgage-Free Date
d. Your one perl of wisdom.
e. The MSE Mortgage guides and others that helped you
f. And if you had a mortgage freedom diary on MFW, a link to it.

And huge congratulations :)

(I thought that we MFW's deserved a roll of honour too :))

PS Please no one else post - let's keep this a pure record of successes :)


[threadbanner]box[/threadbanner]
Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
[strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
«13456776

Replies

  • nearlyrichnearlyrich Forumite
    13.7K posts
    Hung up my suit! Mortgage-free Glee!
    ✭✭✭✭✭
    This is a great idea for a sticky thread and I'd like to post my info so here goes:

    a. The date you decided to become a MFW

    October 1992 when we decided to buy this house

    b. Mortgage Debt at its highest

    £67000

    c. Mortgage-Free Date

    October 2000

    d. Your one pearl of wisdom.

    Keep chasing the remortgage deals but watch out for tie in's and penalties and you really can shave years off your expected MFD.

    e. And if you had a mortgage freedom diary on MFW, a link to it.

    Sorry MSE was but a twinkle when we decided to do this but if it's any consolation we didn't get a great deal of enthusiasm from some of the people we know, they thought a mortgage was for 25 years LOL and some of them are still paying standard variable rate whilst sitting on substantial savings.


    Come on guys you can do it and you don't have to stop living to make a difference.
    Free impartial debt advice from: National Debtline or Stepchange[/CENTER]
  • Hiya,

    I'm newly mortgage-free (as of yesterday) !!

    In answer to the questions, I decided to become a MFW in May 2001, at which point my mortgage was £129,000.

    I remember thinking how much of an achievement it would be to become mortgage-free before I hit the big '40'. In 2001, my mortgage had been running for 8 years and would have 17 further years left to run.

    I telephoned the bank and asked for the monthly cost of reducing the outstanding mortgage term by 1 year, 2 years, 3 years, 5 years, 7 years & 10 years respectively. I can't remember the actual figures quoted but I do remember that reducing the mortgage by 10 years cost an extra £435 per month; this was the option we decided to go for based on a budget I'd done, which determined that we could afford regular overpayments of about £500. This immediately reduced the term to 7 years, which was very good news!!

    I was tied into a mortgage deal at the time which didn't allow overpayments (but bizarrely allowed me to reduce the term thereby having the same effect). There were of course penalties for making any overpayments during the discount term which would last until February 2003.

    In February 2003, I immediately applied for a more flexible mortgage with a different lender which would allow overpayments, underpayments & drawdowns. Again, during the initial period (through to October 2004), I was restricted to making overpayments which were no more than 10% of the outstanding mortgage per annum.

    Around mid-2003, I discovered 'stoozing'; as I would discover, this was to play a very big part in my clearing the mortgage. In 2003, I applied for my first 0% card and discovered just how easy it was to move the borrowed money into my current account, from where I used it to first clear my wife's car loan (remember, I couldn't overpay the mortgage by more than 10% at this time). Once my wife's car loan was fully on 0% (this took 3 credit cards in both mine & my wife's names), I applied for further 0% cards to clear my own car loan. I then ensured that I paid the full 10% mortgage overpayment by borrowing even more cash, all of it at 0%.

    In fact, once the cars were on 0% and I'd repaid the 10% on the mortgage, I decided to keep going - I maxed out on an increasing number of 0% cards. During 2004, I continued to borrow on 0% cards. In fact, when the 10% overpayment restriction eventually expired on the 1st November 2004, I immediately overpaid an amount totalling £51,500 into my mortgage overpayment fund!! At this point, my outstanding mortgage balance fell to just £6,500 - in other words, I was paying just £58 per month in mortgage interest, compared to the £326 that I should have been paying!! I was saving £268 a month in interest and an extra £3216 was being paid off my mortgage each year as a result of 0% cards!!

    I eventually accrued a stoozing pot of over £100,000. This was in addition to my wife's pot of £37,000. This was quite staggering as my earnings are nothing like this amount. Since the stooz pot hit this amount, it got progressively more difficult to maintain this level, so it was fortunate that as time went on and I was unable to replace some credit cards with fee-free 0% cards, I was in the lucky position of not having to do so, as I was clearing the mortgage pretty quickly and the outstanding balance was reducing at a fair rate of knots meaning that I didn't need access to so much 0% credit. Today, the level of my stoozing pot is less than half of its maximum - mainly because fee-free 0% cards are a thing of the past, but also because the mortgage is gone - I suppose that I was simply a lucky benefactor of cheap credit being made available very easily to me during the time that I wanted to make the greatest impact in cleaing my mortgage.

    As for perls of wisdoms, I simply set myself a target and stuck to it. I designed a realistic budget which still allows me to fund purchases of CDs and meals out. I ensured that if I overspent in any one month, I would need to underspend the following month (or apply for another 0% card ;)).

    The most important thing of all is to stay totally focused. It doesn't matter whether your target is 1 year, 10 years or 20 years. It can be done. Just stick to your goals.

    Good Luck!!
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 69.6% (updated 17 May 2018)
    Save £12K in 2018 Challenger #111 - £10,531.31/£20,000 (updated 31 December 2018)
  • runmartinrunmartin Forumite
    32 posts
    Mortgage-free Glee!
    I decided I wanted to become a MFW on 1st June 2001. I had just moved house and decided I did not want to have a mortgage until I retired.

    My new mortgage was £80000 (this was the debt at its highest) and I wanted to be mortgage free before I was 50 (I was 39 at the time). I arranged the mortgage so the payments were fairly easy to achieve and immediately set up a standing order to overpay by £300 a month.
    I had some other money in ISAs etc but nowhere near enough to pay the mortgage off. Any extra money I accumulated went into the mortgage as lump sum payments.

    My wife was left a few thousand pounds in a will which was left sitting in a bank account for a while. We decided to change the mortgage to an offset mortgage. My current account, joint current account and my wifes inheritance were used to offset the mortgage. I still kept the same overpayments and as the months flew by I was paying less and less interest until I was paying off capital only. It was a good feeling knowing all the money being paid to the bank was actually paying off the capital only!

    I finally paid off my mortgage on 25th May 2007 by cashing in a £6500 investment bond which has always performed badly. It feels great to be mortgage free and I never really thought it would happen so soon. As has been said in these forums, every penny counts when overpaying.

    For me the main help in paying off the mortgage was to keep focussed on the fact that the mortgage is a loan (like a car loan) and needs to be paid off and not just something that everyone has. I still had a holiday every year and ran a car but not expensive ones!!!
  • icecoolbabeicecoolbabe Forumite
    1.4K posts
    1,000 Posts Combo Breaker Mortgage-free Glee!
    ✭✭✭
    I was mortgage free as of 15th June 2007.

    Posted how I did it in

    http://forums.moneysavingexpert.com/showthread.html?t=478718
    If it sounds too good to be true, it probably is.
  • edited 1 January 2010 at 3:33PM
    seven-day-weekendseven-day-weekend Forumite
    36.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    edited 1 January 2010 at 3:33PM
    a. The date you decided to become a MFW
    Some time during the era when interest rates were at 15% - can't remember when that was - and then again on an investment property in 2004
    b. Mortgage Debt at its highest £65.000 (on the investment property)
    c. Mortgage-Free Date Mid-90s on family home; 25th September 2005 on investment property
    d. Your one perl of wisdom. Even a tiny overpayment helps
    e. And if you had a mortgage freedom diary on MFW, a link to it. Mortgage-free before I discovered this site

    We became mortgage-free on our family home (which we still have) simply by continuing to pay the amount we had to pay when the interest rate was 15% even after the interest had gone down again. We were mortgage-free in our early 40s in about 1994.

    The investment property mortgage was just cleared off by selling it, so this doesn't really count! We did benefit from the rise in value though.

    We have never had a mortgage on our Spanish home.

    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • JillinozJillinoz Forumite
    164 posts
    Mortgage-free Glee!
    Never having been a MFW, can I still pass go and post on this thread? I'm happy to forfeit my £200! :D

    Date you decided to be MFW - I bought my first property aged 24 in 1991 and made a pledge to myself that I would be mortgage free by the age of 40. Which I was (I actually beat my own target and managed it by 37). But not on the same property, because I went on to buy and sell a further 6 properties.

    Mortgage debt at its highest - £350K

    Mortgage-free date - I know this should be etched in my memory, but it isn't!

    One pearl of wisdom - I cleared my debt by moving onwards and upwards regularly and consequently achieved proportionately more equity in each property, thanks to increasing property prices. I always bought properties in emerging hot-spots and never had to spend a bean on renovations (Sarah Beeny eat your heart out!) My best ever achievement was buying a property for £125K and selling it 10 months later for £150K, without even redecorating. And before the anti-BTL contingent declare a fatwa against me, this property was occupied as my home. ;)

    Good luck to everyone else. Being mortgage free is SO liberating.
  • keeperbearkeeperbear Forumite
    293 posts
    Mortgage-free Glee!
    ✭✭
    a. February 2000 after a terrible day at work
    b. £65,000
    c. Mortgage free on 4th February 2005 after abusing many 0% credit card offers. Officially one of the best days of my life!
    d. Throw any spare cash at your mortgage and treat it as a game.
    e. I was mortgage free before joining this site.

    Having so much free cashflow is liberating, and coupled with an inheritance, has allowed my girlfriend and I to purchase a mortgage-free 2nd home in the USA.
  • cqdanielscqdaniels Forumite
    48 posts
    Mortgage-free Glee!
    a. 26th February 2001 - the day we purchased our house

    b. £94,000 (the 'dark' days)

    c. 23rd February 2007 - five months on and still on a high!

    d. As runmartin says...think of your mortgage as a loan. It helped that we had a VirginOne account and every month the statement showed that we were overdrawn...really focuses the mind.
  • Nobby1974Nobby1974 Forumite
    11 posts
    Mortgage-free Glee!
    MoneySaving Newbie
    a. Jan 2005
    b. £240,000
    c. Mortgage free on 15th September 2007
    d. Throw anything at your mortgage, lumps of £500+ to make a difference and treat it as a game.
    keeperbear wrote: »
    d. Throw any spare cash at your mortgage and treat it as a game.

    I know this is for those that are there but I'm 2 months off and can't wait to be Mortgage Free.

    I say "Go for It!" I'm so glad I decided to do this and with only 2 months to go, the time has flown by.
  • JBEILBYJBEILBY Forumite
    42 posts
    Mortgage-free Glee!
    Have just paid off my mortgage early with Britannia - had 5 years to go but used some of my redudnancy money to get rid of this debt. So am now mortgage and debt free and taking early retirement at 55. Had to pay £30 to pay off the mortgage and managed to get them to agree no fee to return my deeds.

    Remember you can quit the rat race you just have to make do with a little less cheese.
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