THE PLAN: Mortgage free in three MFiT

PiggyBankShaker

Hello fellow-MFWannabes!

DH and I took a mortgage for £97,500 out in December 2007 with a 25 year term. It was capital repayment. We were fixed at 6.5% for the first two years.

After 7 years we still owe £75,591.88 at 2.5% (linked to the base rate) Our regular payment is £452.21 a month.

I started making small overpayments in 2012, not much really as we were quite skint. I managed to overpay only £219.22.

In 2013, I was out of work for 7 months, but I managed to overpay £1287.67.

This year I overpaid £1345, which also includes DH's first contributions. We will also be making an extra overpayment of £1000 before New Year's Day as we received this as a gift at Christmas.

After much discussion DH and I have finally decided to stop 'playing' at overpaying and attack the mortgage in earnest.

In 2015 we will overpay £9,000 from our salaries and £1,000 from any extra income that we make from selling in eBay, mystery shopping, SwagBucks etc

This should be tight, but manageable if we keep our eye on the ball. We also have debts at 0% ending at various points during 2015 that we will be saving for and paying off at the end of the 0% period.

Providing everything goes according to plan we *should* pay down the mortgage to about £59,960 by December 2015.

We will review our circumstances at that point and work out if we can continue to afford to pay the £1,500 a month overpayments needed to clear the mortgage by April 2018(ish).

Mortgage free in three? Yes please!

PiggyBankShaker

The cheque I paid in isn't going to clear until 5th January

I'll up our 2015 target to £11,000 to account for this, but it is annoying!

I spent bit of time yesterday browsing 'forever' homes... Must remember that three years of discipline will put us in the best position when we are ready to make the leap in about 5 years time.