How I'm doing it....

9 years ago I took out a 25 year mortgage for £157,500, today my mortgage is down to £68,000. Still a huge amount of money but not as bad as some people. House value is £300,000.

This is how I did it, I hope it provides some motivation to others who are looking to get rid of their mortgage.

Bonus money - my job pays bonus money from time to time. Sometimes a lot but sometimes nothing for 21 months (both have happened). Any bonus money I received I have put on my mortgage.

Type of mortgage - interest calculated daily, unlimited overpayments and the ability to reduce your monthly payments in line with your overpayments. Capital and repayment obviously.

Keep chipping away - every month I aim to overpay at least £50. My standard payments are £425 a month so that works out at nearly 13.5 payments a year. That alone takes 3 years off a 25 year term mortgage. Some months I've overpaid £300 or more.

Interest rate - I'm on a variable rate - base rate +0.69%. Get the best deal you can but be aware of 'arrangement fees' which bump the cost up.

I've had to replace my car so can't overpay as much each month as I want to at the moment but once I've paid off the car (on a super low finance rate of 2%APR) I will be back to making much bigger payments on the mortgage.

I'm 47, I want my mortgage gone in 5 years.

I hope this gives everyone some motivation to keep up the good work.


  • jodles16jodles16 Forumite
    1.5K Posts
    Car Insurance Carver!
    Some great advice thank you! Best of luck for your 5 year blitz!

    MFW2020 #115 250/3000 J-250
    1% challenge- /1525
    Save 1k in 2020- /3000

    Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
  • cooksoncookson Forumite
    42 Posts
    Thanks for sharing and good luck from me also! ;)

    That's fantastic discipline putting your bonus straight into mortgage overpayments.
    Current Debt:
    31/12/12 - £78,075.68, 31/12/13 - £76,149.82
    01/02/15 - £66,356.11 :j , 01/07/15 - £39,900 (woooooooooo)
    Target mortgage free date: 1st May 2019. Funds to pay it by December 2017 (but would have to pay tax back on some shares).
  • ThistlewhistleThistlewhistle Forumite
    1.1K Posts
    Hi Tallguy,

    I do the same as you with my bonuses but not quite as disciplined in that I keep a little bit back to reward myself for my hard work, and put the rest to the mortgage. The promise of a reward motivates me to put the steps in to achieve the bonus in the first place.

    I admire you for committing 100% of your bonus to your mortgage - I might get there one day.

    I do, however, already overpay by £102 per month as a matter of course so don't feel so bad about enjoying my little reward!!

    Good luck on becoming mortgage free.

    Mortgage at end 05/2007: £90200
    Mortgage at end 08/2018: £71646 paid £18354 (20.5%)
    MFD: :eek:Original:05/2042:eek:
    Car Finance: £8225 : £6392 (22.2% paid off)
    CC Debt (0% until 06/2020): £5640 : £4400 (21.7% paid off)

    Age of Money at 31/08/2018 = 23 days

    YNAB is changing the way I live my life....and spend my money!!
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