Freedom is never free; MFW in 2 years?

ecoelle

Hi Gen, firstly, what a fab job you are doing on the mortgage, we made it under the 90K mark at the end of 2015 and were so pleased, it is very satisfying.

I think in terms of savings Vs OPing, it depends a lot on the rate you can find for a savings account, there are some good deals out there but a lot of them make you tie in for longer than 12 months. The other thing is about how the interest on your mortgage is calculated, ours is calculated daily so we pay our OP's as soon as possible. If your interest is calculated annually on outstanding balance then you may be better putting it away for a year to earn the interest then OPing the day before interest calculation day. Hope that make sense.

Gen_Y_Saver

Thanks, ecoelle - that's very clear.

I'll probably just continue what I am currently doing then (mortgage interest is calculated daily).

January was a hard month to save! At least February is only 4 weeks...

Gen_Y_Saver

PS: thanks again for everyone's support out there. I've been getting a bit down by the whole process recently, so its nice to speak to people who are undertaking a similar challenge.

All the best,

Gen_Y

Gen_Y_Saver

Hi all,

Not posted on here for a while. We have managed to hack around 3.5K off the mortgage since my last post (Jan 16).

Currently on track to pay off within 2 years. After 6 months we have reduced the mortgaged from 65K to 46ish. So we have paid 27% off the original loan and saved approximately 11K in interest.

Over and out.

Gen_Y

Gen_Y_Saver

Hi all,

I haven't posted on here for a while.

I have reduced my mortgage further to £43,000. This bring my total equity to c£100,000.

I recently decided, however, to stop overpaying for a few months as I have become nervous about tying all my money up in the house. I have therefore been putting my money into high-interest accounts.

Current cash in savings is around £26,000.

This hypothetically means I have around £18,000 left on the mortgage if I were to put all my money in the house.

Re: my psychological welfare, I have become increasingly down by the whole process. I am now 28 and have started to develop significant feelings of failure. I recently left a relatively high-paying job for less money due to stress and have now feeling incredibly guilty over that decision. Hopefully, it will pass.

Anyway, apologies for the ramble.

Peace all x

pathtofreedom

It is brilliant you are doing so well. I wish I'd been in your position to do it at your age, or to have the discipline. One thing I would say is though don't OP to the point you're not investing in pensions / other retirement savings too. Especially if the mrs might go part time eventually, as the younger you start, the less you have to pay in in a way. So it might be worth thinking going more mortgage neutral - so you have the savings to pay it off, but they are also earning more money than what you're paying in interest. Might be worth running your figures past the people on the pensions board, and checking out how much you need for you both to have a full LISA from next year too and how that impacts your OP's.

Gen_Y_Saver

Thanks for your kind words, pathtofreedom.

Just got to get over this present hump of depression and I think I'll be fine.

I'll contact the pensions board, as suggested.

Best of luck with your mortgage free journey.

Gen_Y

biglass

Hi Gen Y! You are doing amazingly well,you've just hit a slump,I've no doubt you'll be on the up soon!
For what it's worth,I'd go with paying off the mortgage ,it's going to be gone soon at the rate you're going and then you can concentrate on pensions as you are so young still. Paying off the mortgage was the best thing we ever did- the freedom to take risks such as changing jobs and such like was life changing for us,knowing the roof over our head is ours completely. And if you start a family in the future,you will feel so secure in that knowledge.You never know what life can throw at you and not having that mortgage to pay is such a fab way to future proof.
Wishing you the very best of luck!:beer:

MissCreative

Hi Gen_Y_Saver :hello:

You kind of remind me of my DH and I :rotfl:

I'm 25 and have £144,700 ish on my mortgage. We've overpaid almost £6000 in 1.5 years, but now DH has a better job I'm hoping to overpay by about £1000 a month from September
The overpayment calculator says just one lot of £1000 will take 4 months off my mortgage and save me £2,652 - not sure I did that right haha, but I know it will save me a LOT anyway!

It's great that your partner is really onboard with what you're doing - I wish my DH was!
He's more instant gratification whereas I'm like you - overpay now to get more security and gratification in the future.

Well done on your journey so far - I'm sure you'll make it on time for your goal :T

Gen_Y_Saver

Hi MissCreative,

Congrats on your progress!

I love fiddling with the overpayment calculator - very motivating.

My partner is probably more like yours tbh. She thinks I take things too far, but its just the way I am I guess.

£1,000 p/m overpayment is a massive achievement. Stick to that and you'll kill the mortgage in no time.

I suppose the key to my progress has been to replace the things that usually cost me money (drinks, cinema, clothes, gadgets etc) with things that are free. I cycle to work, workout at the weekends and have specials meals (home cooked) at the weekends. Its amazing how much you save.

Good luck!