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My MFW Diary

I have been lurking on this forum for many years and have decided to sign up and get my act together.

Hopefully through the use of this diary I can at least track the process, although I will not be mortgage free for decades.

So... a little about me. I am a nearly 30, working in London and am married with a delightful daughter who is the light of my eyes.

My wife and I purchased a house and moved in last September and we have a hefty mortgage... I am almost inclined not to mention how high but lets just say circa £400k. Yes I know. *gulp*

Monthly repayments are currently £1,300 which is manageable.

It dawned on me that I haven't even set up online banking for this. I will sort this out tomorrow morning. At least then I can properly keep track of things.

Well... I doubt I'll even truely be mortgage free but I am to overpay regularly and take it from there.

Here's hoping.

Zeb

Comments

  • Good stuff zeb. It's amazing what even the slightest regular overpayment or offset savings can do to a mortgage. It can be slow going and a bit unglamorous at times, but it's well worth it for the feeling of well being and mid/longer term security. Good luck!
  • Hi Zeb,

    Welcome aboard. Chipping away at a large mortgage has the same effect as a small mortgage - paying less interest.
    Just got to balance that urge to reduce mortgage debt without wishing away your lovely daughters childhood years - am in the same boat with my 1 yr old!

    Good luck

    MIB
    MFW2020 #5 £2,000/2,000 MFW2021 #5 £1,850/3,500MFW2022 #5 £3.001/3,000Sep'12 £233,750 Jan'15 £222,329 Dec’21 £139,584 MFiT T4 #24 £48k/£34k MFiT T5 #24 £22,186/£41k MFiT T6 #24 £4,700/£29k
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 10 February 2015 at 12:25PM
    Looks like you may be interest only or very long term

    (interest only would be 3.9% so the 4% below is close enough)

    30-65 is 420 months

    some simple numbers on the number of months to pay off £400k (999 means never)

    rate 1300..1400..1500..1600....I/O
    0%...308....286....267....251....£0
    1%...356....327....302....281....£334
    2%...432....389....353....324....£667
    3%...588....502....440....398....£1000
    4%...999....915....661....539....£1334
    5%...999....999....999....999....£1667

    To pay off £400k @ 3.9% in 30 years needs closer to £1900pm

    I would be trying hard to find another £600pm or have other plans along side.
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