Freedom is never free; MFW in 2 years?

Gen_Y_Saver

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.

edinburgher

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:

Gen_Y_Saver

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!

Goldiegirl

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!

Gen_Y_Saver

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.

aznlayer

Well done and good luck!

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

Gen_Y_Saver

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.

SavingRaven

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

Gen_Y_Saver

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.

Gen_Y_Saver

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

Luckyinlife

amazing well done