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

turtlemoose

Woohoo! OH started the new job yesterday and came home in his shiny new (and MASSIVE) van. The sooner we sell his car, the sooner I can get a refund on the tax and insurance. OH bought the car with his own personal money so whatever it sells for is his too - but I'm hoping he'll give me some to put towards wedding costs as really that means less money from monthly budget being used so ultimately will end up in an OP And then of course the £200 a month saved in running costs woohoo!

choccielover

2 shiny new Santander accounts and a santander credit card applied for this morning. Just need to cancel one oft other cards too whilst I'm at it. I don't use it and there isn't a balance on it so why have the temptation ��

audigex

Hopefully this is my thread too, then First time buyer at 25.

Initial MF date: 2040 (25 years - 50 years old)
1) Overly-Ambitious MF date: 2023 (8 years 5 months - 33/34 years old - in fact, just about on my birthday) saving £17,000
2) Realistic ambitious MF date: 2026 (11 years 3 months, 36 years old) saving £15,000
3) Realistic minimum MF date: 2028 (exactly 14 years - 39 years old) saving £12,000

My initial payment is £320/month

In an ideal world plan (1) I could more than double this to £700/month, which would allow me to cut my 25 year term down to 8 and a half years! In theory I could actually pull this off sustainably and put a small amount into savings each month. This is my ultimate aim but I suspect I'll miss it

Realistically, I suspect I'll only manage to overpay around 3/4 of the time assuming all goes well. There are other costs, and I'll probably need to top my savings back up occasionally. So plan (2) is my real target. If I can better it, great. This would involve me overpaying 3 months out of 4

And if (as happens) life turns more expensive than I thought, plan (3) is my backup target with a more modest overpayment. It would still save me a lot of money and hits my original goal of mortgage free by 40! (or maybe 33)

choccielover

Wow, Santander don't hang around. Credit card approved and on its way and I can already see it in my online account.

Am I right in thinking that I can spend up to my credit limit with this card and there is no interest for 2 years so as long as I make the minimum monthly payment I can put the money I would use to pay it off in a high interest savings account.....

audigex

Yes, pretty much - they don't charge you any interest, you earn interest on the amount you'd repay. As long as you leave it in a savings account, you can't lose out. The only trap is if you spend or "borrow" the money from the savings account and can't repay the card in full before the 0% runs out.

NorthernMonkey1

OK, I guess I can join now. I signed on the dotted line today. I now owe £102,000


Initial MF date: 2033 (18 year initial period, taking me to 55)


1) Overly-Ambitious MF date: Don't have one, don't want one.


2) Realistic MF date: 2025 May (10 years from the 1st payment)


So, 120 months to pay £102,000


Goal - To pay of mortgage so I can start building a second home on the isle of skye to retire into

choccielover

Thanks Audigex, thought so but always best to check these things!!

Love your plans, I think it's good to give yourself options, then if you miss a month you won't feel like it's never going to happen and give up.

Good luck with it. And congrats on your new home.

Chocs

audigex

Thanks, I'm definitely a contingency type person

I like to have three options for anything - the safe one in case things go wrong, expected one that will probably happen and the target to aim for so I don't get complacent and stick with what I know I can do. Maybe I'm just weird

turtlemoose

not weird audigex, not at all. I like to plan plan plan plan plan and plan some more. If things change.... I update all my versions of the plans OH thinks I'm nuts.

gallygirl

turtlemoose wrote: »

not weird audigex, not at all. I like to plan plan plan plan plan and plan some more. If things change.... I update all my versions of the plans OH thinks I'm nuts.

We're going through a lot of upheaval at the moment. I had to get OH to agree to a possible/likely scenario with timings just so I had something to deviate from when things changed again :rotfl:. OH thinks I'm nuts also . I just think of it as covering all bases .