Forever Home Fund

katep23

We are in the 250s - woohoo!

Another chunk taken out of the debt so getting back to OPing is getting closer.  Hopefully be debt free by February / March.

powerspowers

Well done on working on your debts, sounds like you’ll be back on track with OPs soon. 

I like your approach of refreshing your original mortgage figures, it just shows how far you’ve come which is important for a big mortgage! 

katep23

Thanks powerspowers, that's exactly the reason.

Can feel a bit overwhelming sometimes but once I get back to OPing the milestones soon come round to keep me motivated - £10k in 7 or 8 months etc. 

Under £250k will be a big one - from 1/3 of a million to a mere 1/4 of a million 

powerspowers

Wow, I’d drop the word million from my vocabulary, £250,000 sounds a lot but 1/4 million sounds even more!!! 

savingholmes

Just read your diary - you have achieved so much in a short space of time - particularly given all the renovations that were required. 

katep23

December 2014 .
Mortgage £346,545.00
Mortgage free date 2044
LTV 86.64%

4th January 2022
Mortgage £258,698.48
Capital paid off capital last month £931.86
Total paid off capital   £87,896.52
LTV: 57.49%

katep23

So we should be debt neutral at the end of this month and my plan is to reinstate the OP from February.  I've had really itchy feet not OPing but clearing the debt was a priority psychologically (although everything was at 0% so there was no financial benefit).

We are keen to retire as early as possible so, whilst we need to make sure that the mortgage is ticking down as quickly as possible, we also need to consider pensions and other investments.  As well as finishing refurbing this place!  Which is taking a lot longer than we anticipated.

By my reckoning, with our £500 a month OP we should be down to about £126k in Feb 2028 when our fix ends.  On a similar interest rate and with a similar monthly, the mortgage should be paid off in June 2033 when I will be 56 - so a year between my desired and intended retirement dates (55 and 57).  So that works well, even if it's not as exciting as thinking we could clear huge chunks and me MF in 5 years or something more dramatic!

And I promise not to use the word "million" - it just amuses me that someone from my background could own a house which is worth a fraction of a million pounds!

katep23

December 2014 .
Mortgage £346,545.00
Mortgage free date 2044
LTV 86.64%

2nd February 2022
Mortgage £257,709.49
Capital paid off capital last month £988.99
Total paid off capital   £88,885.51
LTV: 57.27%

katep23

An expensive month means we are not quite debt neutral so I have delayed reinstating the OPs.  Hope to do so from April.  Disappointing but no point delaying debt neutral any further.

Really need to have a less spendy few months to get on top of the debt and get back to being a mortgage-free wannabe!

savingholmes

You will get there. Great progress