Freedom is never free; MFW in 2 years?

edited 3 August 2015 at 6:04PM in Mortgage-Free Wannabe
62 replies 6.8K views
Gen_Y_SaverGen_Y_Saver Forumite
61 Posts
edited 3 August 2015 at 6:04PM in Mortgage-Free Wannabe
Hi all,

Long time lurker, first time poster.

I recently purchased my first property with my partner. We have a mortgage of £65,000. We put down £80,000K. Rate is 2.49% tracker. Not the best, but we have a facility for unlimited overpayments.

I am an obsessive saver and hate all debt! Perhaps my parent's old school mentality has rubbed off on me a bit too much (they were MF by the time they were 30!).

Anyway, I'm 27 and my partner is 25. I am planning on engaging in an aggressive strategy of overpaying my mortgage.

I'm a big believer in delayed gratification. A lot of my friends moan about not being able to save for deposits. However, at the time same time, they continue to live lifestyles that prevent them from achieving their aims.

I am planning on paying my mortgage off by the time I am 30. This may be ambitious, but we will see how I get on.

Be great to speak/support other Millennials who are pursuing a similar dream! Good luck! And, as the saying goes, freedom is never free.

Gen_Y_Saver.
MFW! Original loan (Aug 2015) = £65000
Current debt = £43000
Interest saved so far = £13930
«134567

Replies

  • edinburgheredinburgher Forumite
    12.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    I'm a big believer in delayed gratification. A lot of my friends moan about not being able to save for deposits. However, at the time same time, they continue to live lifestyles that prevent them from achieving their aims.

    I suspect you're secretly an old person, all people under the age of 40 go on 8 sunshine holidays and buy an iPhone a year! :rotfl:
  • Ha. No troll.

    Apologies if my above statement appears like a bit of a sweeping generalisation. There's an element of truth in it, though!
    MFW! Original loan (Aug 2015) = £65000
    Current debt = £43000
    Interest saved so far = £13930
  • GoldiegirlGoldiegirl Forumite
    8.8K Posts
    Ninth Anniversary 1,000 Posts Rampant Recycler Hung up my suit!
    ✭✭✭✭
    What does your partner think about your aggressive strategy to clear the mortgage?

    Hopefully they are on same page as you - otherwise an MFW-extreme could cause conflict, if both partners aren't in agreement.

    Perhaps they might want a more balanced approach, to have some gratification now, as well as later

    Just a thought!
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • edited 3 August 2015 at 7:52PM
    Gen_Y_SaverGen_Y_Saver Forumite
    61 Posts
    edited 3 August 2015 at 7:52PM
    Partner is on-board, but not as keen as myself if I'm completely honest. I keep reminding her, however, that life will be a lot easier if we repay the mortgage in 2 years as she can then go part-time at work etc.

    Complete understand your point though, Goldiegirl. Its just my style to be OTT - I annoy myself!

    According to MSE's overpayment calculator, every £100 I overpay I'll save £81 in interest. Its a no-brainer IMO.
    MFW! Original loan (Aug 2015) = £65000
    Current debt = £43000
    Interest saved so far = £13930
  • aznlayeraznlayer Forumite
    36 Posts
    Ninth Anniversary 10 Posts
    Well done and good luck!

    Quick question; how do you work out how much interest you save per £100? Am I not looking right?
  • Hi aznlayer,

    Thanks :)

    1. Insert debt, term and rate
    2. Insert 0 in "re-occurring overpayment"
    3. Insert £100 (or any amount) into "one-off overpayment".

    This should work.
    MFW! Original loan (Aug 2015) = £65000
    Current debt = £43000
    Interest saved so far = £13930
  • SavingRavenSavingRaven Forumite
    63 Posts
    Hi Gen Y! Another millennial here - I'm 32.

    Also OPing our mortgage. We (me and OH) took out a loan of £280k in Sept 2013 as we moved up the ladder.

    We started OPing after extensive renovation and it's now down to £261k - hoping to get it to £100k by the time we remortgage in three years.

    Your target is great - good luck!
    SR
    Target 1: Debt: [STRIKE]4459.02[/STRIKE] Jan'15 [STRIKE]2899[/STRIKE] Feb'15 0
    Target 2: Emergency fund: Feb'15 [STRIKE]1500/6000[/STRIKE] Mar'15 6000/6000
    Target 3: Buy-to-let fund: Mar'15 [STRIKE]1200/4000[/STRIKE] Apr'15 4000/4000
    Target 4: Pay sister back: 9000/40000
    Target 5: Get mortgage to 250k: Jan'15 271,659 Today 259,283.82
  • Hi SavingRaven,

    Thanks :)

    Wow - overpaying 161K in 3 years is an impressive target! You both must have great jobs! Best of luck! Be definitely worth it and will save a lot of £ in the long-run.
    MFW! Original loan (Aug 2015) = £65000
    Current debt = £43000
    Interest saved so far = £13930
  • Hi all,

    A quick update.

    We have managed to reduce our mortgage by £4,250 since my last post (we both got paid + used some of our surplus funds left over from the purchase).

    According to MSE's Overpayment Calculator, that should save us £3,263 in interest and knock c.2 years off the mortgage!

    Good luck to everyone!

    Gen_Y_Saver
    MFW! Original loan (Aug 2015) = £65000
    Current debt = £43000
    Interest saved so far = £13930
  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    ✭✭✭
    amazing well done
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
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