My mortgage-free journey

Hi all :) My OH and I bought a house last month, and took out a massive mortgage to go with it! We'd previously managed to pay down the mortgage on our flat to about £10k, so this is a huge change. We're both agreed that we want to overpay it as much as we can, whilst still retaining a good quality of life.

A bit about us - I work full time, he works part-time. We have two children: DD1 (3 1/2 years), DD2 (1 yr). I've just gone back to work from maternity leave. We used to have a lovely pot of savings, but through two maternity leaves, a lease extension on our flat, and paying off the stamp duty on our purchase, we have very little left (except a lovely new house :T).

I'm hoping this thread will help to keep me organised and focussed on our mortgage-free goal. And it would be lovely to meet some other people who are doing the same thing :beer:
Mortgage when started: £330,995

“Two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.”
Arthur C. Clarke
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Replies

  • edited 25 April 2015 at 12:13PM
    LannieDuckLannieDuck Forumite
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    edited 25 April 2015 at 12:13PM
    Our mortgage details:

    Repayment mortgage (24 year term) at 2 year fixed rate of 1.84%
    Amount borrowed: £330,000
    1st monthly payment £1422.53

    We can overpay 10% each year if we want to.
    Mortgage when started: £330,995

    “Two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.”
    Arthur C. Clarke
  • LannieDuckLannieDuck Forumite
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    So... my first question. I've discovered that my mortgage account has an online access facility. I've just checked, and our balance is currently £330,238.41.

    Can anyone explain where this figure comes from??

    AFAIK, I've made one monthly payment of £1422.53 so far.

    I thought maybe it was because they'd added the 1.84% charge for the 2 years upfront. But for £330k, it would be £6072.

    I'm confused, and unfortunately there's no nice account statement online to help me figure it out... :(
    Mortgage when started: £330,995

    “Two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.”
    Arthur C. Clarke
  • edited 25 April 2015 at 1:25PM
    bexster1975bexster1975 Forumite
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    edited 25 April 2015 at 1:25PM
    Hi

    Depending on when the mortgage started could this be interest?
    Or arrangement fees?

    Bexster :)
  • Sounds like it could be interest. I pay £963 mortgage a month and then get charged £430 interest (I'm on 2.84% interest). So effectively I only pay roughly £543 off my mortgage per month.
    Mortgage 22 years £190,419 at 2.84% fixed for 2 years from 1st July 2014

    Mortgage 21 yrs 6 mths £186,059 as of February 2015

    Mortgage 20 years 7 months £178,644.68 February 2016
  • pinkteapotpinkteapot Forumite
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    Hello LannieDuck! I've added you to the list. :)

    I've accidentally saved £18. I'm stripping, repainting and decoupaging my craft desk. I took a sample of a wallpaper from B&Q to see if I wanted to use it for the decoupage part. I've now realised my sample is big enough to get all the bits of paper I need from, so I don't need to actually buy the roll of wallpaper.

    Technically that may have crossed the line from money-saving to stealing. :o
  • LannieDuckLannieDuck Forumite
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    Thanks everyone for commenting. I feel as if my diary is officially underway now :D

    bexster - ohh... perhaps part of the arrangement fee? That's a really good thought. I'll go back over the charges that our broker outlined and check that.

    happydays - my first thought was interest. Does it normally get applied monthly or annually?

    pinkteapot - what a happy accident! lol
    Mortgage when started: £330,995

    “Two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.”
    Arthur C. Clarke
  • I am with the Halifax on 2 year fixed at 2.84% and it is added monthly.
    Mortgage 22 years £190,419 at 2.84% fixed for 2 years from 1st July 2014

    Mortgage 21 yrs 6 mths £186,059 as of February 2015

    Mortgage 20 years 7 months £178,644.68 February 2016
  • LannieDuckLannieDuck Forumite
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    Ah-ha! Mortgage documents say that a product fee of £995 has been added to the mortgage, so the total was £330,995.

    We're now at £330,238.41 so, of the £1422.53 payment, £665.94 went on interest and £756.59 went on paying off the mortgage.

    That's good to know - I don't want to be paying that much interest each month, so it should motivate me to overpay as quickly as possible!
    Mortgage when started: £330,995

    “Two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.”
    Arthur C. Clarke
  • MummyEmMummyEm Forumite
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    Part of the Furniture
    Welcome LannieDuck

    I have read through and subscribed.

    I also have a large mortgage - around £261000 down from £295k originally around 5 years ago. Just started consciously OP'd over the last year or so.

    Looking forward to following your journey.
  • MummyEmMummyEm Forumite
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    Part of the Furniture
    Just to add, don't forget to make sure you have some emergency savings that you can access (though I believe that some mortgages will also allow for OP's to be requested back so this can work as an alternative) before you start OPing.

    Good luck
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