The "Mortgage-free in 2025-30" club!

Luckyinlife

Baby_Angel wrote: »

LuckinLife, we do not have any fees for overpaying, at least not for any amount less than 10% of the outstanding amount (that would be a whopping 20k or more for me a year :eek:).

If you had worked out the interest vs the fees and it is still worth it, then you should overpay. A lot of people overpay even little amounts of money, I believe they all don't pay any such fees like you.

I see ya my mortgage packages where limited when i got the offer due to history from 3-4 years ago but hay we all do stuff wrong in life sometimes

Ya ill be overpaying with a fee dude to high interest by today's standards :]

Brokeattheminute

Can i join your page?My Mortgage Free Date is Feb 2028 but am aiming for August 2025 taking 2yrs 6mths off it

choccielover

So the plan....

Quite simple really and in my head I think I can do this without really noticing :rotfl:

So we remortgaged very recently, locking in our rate for the next 5 years.

Balance at time of remortgage £180k. Monthly payment £825

I'm currently paying £25 automatically each month as i kept the payment at the same level as pre remortgage.

Now there isn't a great deal I can do in the next few months but it gets interesting about the end of August.

At that point I stop paying £500 per month against my 0% credit card and they will be paid off with savings.
As I have been paying this for months now I can easily divert the £500 to the mortgage and not even feel the pain :T
At the end of September the payment I make on our car loan, circa £250 comes to an end :j so more cash I can divert to mortgage without trying too hard.

So right there I'm up to £775. I think I need to be in the region of £900 pm to get where I want to be.

So I need to find £125 pm in addition.

The remainder of our disposable income goes into savings currently, 5 pots currently which will be built up over time - and some spent...
Christmas - taking lump sums out of our savings this year but from next year will save weekly for this
Holidays - we spend a lot on holidays, but equally we work really hard so our family time is important.
Emergency savings - target £1000 (boiler repairs, car repairs, new washer etc etc)
School fees - paid termly so will save monthly
Do not touch WCS fund (worst case scenario) - Target £8k initially
We have a fair amount of disposable income to be fair so these pots will be filled by the end of 2016 so I don't think it would be too hard to divert £125 pm from our disposable income to top up the overpayments from this point.

It's important to me not to impact our quality of life too much whilst we do this. If it gets too painful and the need to make savings bites too hard we will give in.

So to find an extra £125 up until the end of 2016 is the challenge.

Called Halifax to talk about changing our account to a reward one (can't believe I haven't done this sooner!) and will have OH change his one over too, it's just sitting there doing absolutely nothing currently.....
Also changing our "bills account" from Halifax over to Santander 123 which will get us about £93 per year.

Any other bright ideas??

Wow, war and peace there to start with.....good luck if you are still reading!

Chocs

shangaijimmy

Great plan Chocs.

Just thought i'd add in a technique that is proving very useful for us. Alongside our standard standing order overpayment of £423, i also aim to make a small payment each week.

So far these have ranged from £5.05 from a current account tidy, to £173 from the usual March council tax. We've found that the payment per week keeps us really focused towards maximising our money without drifting and forgetting about the overall goal.

We receive a lovely text message every Sunday morning with a mortgage mini statement and its fantastic seeing that balance come down each week, even by a few quid.

choccielover

Excellent suggestion SJ, and I am in fact trying to do that very same thing at the moment till the big overpayments kick in! But there is no reason I can't continue this and hopefully tot up some extra overpayments along the way.

Every little does really help!

Chocs

Firegirl

I have a santander 123 bills joint account and also a personal 123 account my wages are paid into. I actually have savings in there I earn 3% interest on. To make sure I don't spend it, I transfer my monthly spending to another account with Halifax and use Amex cash back card.

Oh my whole set up is a bit complicated actually now I type it but it works for me. Interest in santander and cash back on Amex card.

Firegirl

In short 123 account is really good. Cash back and interest

choccielover

Sounds good, I may open one in my name too and chuck our current savings in there, probably better interest than my FD saving account currently!! Will have a look.

Which is the best cash ack credit card? I spen a fortune on petrol etc so was thinking about starting to spend on CC for cashback and clearing it as I go....

Any opinions?

Chocs

miltarytwins

I made our first OP yesterday - only £54 (money from ebay sales & quidco) but it felt good!
Selling my car and buying my mum's old one so that should give me £5k to use as an OP which i am very excited about!
I am also selling a few bits on Ebay this week which might give me another £100.
As we have an off-set account I am weighing up paying some more into that account each month against actually overpaying. We currently have a good stack of savings in the off-set (emergency money, and for holidays) but I want to make sure we can access some of it for Christmas stuff etc. I think I will split our aimed for £600 per month OP into two and put half in the off-set account and pay half off the mortgage itself. We have only had the offset for 6 months so I am still getting used to it!

Luckyinlife

miltarytwins wrote: »

I made our first OP yesterday - only £54 (money from ebay sales & quidco) but it felt good!
Selling my car and buying my mum's old one so that should give me £5k to use as an OP which i am very excited about!
I am also selling a few bits on Ebay this week which might give me another £100.
As we have an off-set account I am weighing up paying some more into that account each month against actually overpaying. We currently have a good stack of savings in the off-set (emergency money, and for holidays) but I want to make sure we can access some of it for Christmas stuff etc. I think I will split our aimed for £600 per month OP into two and put half in the off-set account and pay half off the mortgage itself. We have only had the offset for 6 months so I am still getting used to it!

Great stuff 5k will knock a massive chuck of interest and time of the term i bet let us know how much :]