NOW MORTGAGE FREE! In the big house - here we go again !

Flower1976

It's been at while since we made an overpayment but we decided to do a little work on the kitchen last month so didn't have any funds left! It looks much better now though.

The final payment was made to a works share save last month so we will now have an extra £250 to put towards the mortgage each month. We won't see the proceeds of the savings plan for a few months but that will get put towards the mortgage once we receive the payout.

So today I transferred £1000 across to the mortgage which feels like quite a chunk. The plan for the next 2 months is:

Pay £1000 on 20 June
Pay £1990 on 20 July - husband will be receiving a bonus from work to allow for the additional £990.

This will mean than the full allowance of £9000 will have been paid in year 2 of the mortgage being open.

Plans still going strong but there will be changes to husbands job in the new year so this just puts us in a much better financial position by continuing to reduce the amount we owe.

Enjoying reading everyone's diaries and seeing everyone's success with their overpayments.

Kind regards, Flower

Flower1976

Hi there
Received husbands bonus so £990 paid to the mortgage leaving £1000 to pay both on 20 June and 20 July to reach the maximum overpayment of £9000 for 2nd year.
Balance now is approx £69100 so nice to be below the £70k mark.
Flower

Flower1976

Car is in for mot and full service today. I have no idea how much that is going to cost. We do have money set aside so hopefully there will be enough there.
Just waiting nervously for the garage to call!
Fingers crossed.

Flower1976

Well car was not too bad - always an unknown amount until it's actually done.
But now that's paid for, I have just transferred £800 over to the mortgage taking the balance at the end of June to approx £68400. Really pleased with that cause the overpayments seem to be having a noticeable affect now.

Now need to find £1200 to pay from next months pay to max out the 10% overpayment allowance for year 2 of the mortgage. Very doable but need to be careful not to overspend this month.

Looks like my husband is going to be made redundant at the end of the year so need to make sure we are in the best position we can.

Flower1976

Finally payday arrived and we paid the remaining £1200 to the mortgage to fill the ERC free allowance in year 2. This means that we have overpaid by a total of £18000 in 2 years - that's a lot of money.

The balance at the end of the month will be £66950 and if we just pay the contractural monthly instalment from now on, we will have knocked 6 and a half years off the term - amazing what this has done, don't know how much we've saved in interest but I think it would be quite a bit!

But that's not the plan... We intend to continue to overpay by the following each month between now and the end of the year:

Aug £400 (need to replenish our savings)
Sep £1000
Oct £1000
Nov £1000
Dec £1000

This takes us up to the point when Mr Flower should leave his work due to redundancy so will need to assess everything again at that time because it's a bit of an unknown at the moment.

So if all goes to plan balance at the end of the year will be around £61250 meaning it will have knocked a further 1 year 4 months off the term.

So at least we know what should be happening for the next 5 months!

Flower1976

Hi there
Just returned from holiday yesterday and a bit jetlagged hence not being able to sleep now.
Just transferred the £400 overpayment across to the mortgage so the balance at the end of August should be £66282.
Normal payment due out on 1 September and next overpayment of £1000 planned for 20 September which should take balance to approx £65018.
But as we like round numbers I will find another £18 to take it to a nice £65000.
Savings have also been replenished.
Keep chipping away.
Flower

Cariad71

wow £65000, that's good going Flower. Hope you had a good holiday and are ready to start being money savvy again:)

Flower1976

Thank you for popping in! Yes will be good to get to £65000 by the end of the month.

Just checked and we received some interest on an old isa.
So that £18 transferred straight to the mortgage.

Next payment will be the £1000 which we intend to pay on payday 20 September.

Flower

Cariad71

That's good going. It's just a case of staying focussed isn't it? I tend to get complacent and then I start wasting money on silly stuff. But with my daughter off to uni in 3 weeks I need to tighten my belt;)

Flower1976

It was payday yesterday. Didn't quite manage the target amount of £1000. Mr Flower booked a lovely weekend away for my 40th birthday so we don't have as much spare. Still, a payment of £800 transferred over to the mortgage. Still a good amount to knock off.

Balance at the end of the month will be approx £65200.

Normal payment of £433 due 1 October the next overpayment will be on 20 October, hopefully for £1000.