We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Free in Three

Options
marycanary
marycanary Posts: 313 Forumite
Part of the Furniture 100 Posts Name Dropper
edited 26 September 2015 at 9:51PM in Mortgage-free wannabe
Hi

A couple of months ago I managed to pay off my unsecured debt which I had trailed around with me in one form or another for about 30 years. Since then I have managed to save an emergency fund so I have now decided to turn my attention to my mortgage. I am on a five year fix rate which ends in February 2019 and I would like to have paid all the mortgage off when the fixed rate ends in three and a half years.

Currently the mortgage is £45,500. To pay this off I think I will need to overpay by £1,000 per month. However, the rules of the fix rate allow me to overpay by only 10% per year so I am going to save the rest in a linked offset savings account.

During this time I would also like to build up a larger emergency fund. I have about £4,000 saved at the moment but I would like to increase this to at least £6,000. So in the next 41 months I would like to save £47,500 plus the interest which will be added on the way.

So here we go
«1

Comments

  • Hi,
    I use YNAB, You Need a Budget. I love it, particularly the process of telling your money what to do. I call it giving every pound a purpose. So last night I went through my spending during September as recorded on YNAB. No big surprises because, after all, I told the wage I received on the last banking day of August what I wanted it to do. I get paid again on the last banking day of September (30th) so on Wednesday, when I know exactly how much I've made in the month, I will be back on YNAB to tell my money what to do during October.

    It hasn't always been like that, until I got started on setting a budget and sticking to it I had no idea where my money went. The first month I set a budget I allocated £50 to eating out and takeaways. Boy was I in for a shock! I found I was spending closer to £150. Setting and sticking to a budget helped me pay off unsecured debt I've carried round for 30 years. Just madness really.

    Mary
  • Budget defiantly will help in life with MF and saving

    money is so easy to spend yet so hard to earn

    Personally i just give myself a fixed amount for petrol food and treats this could be cloths game what ever but i dont always spent it all so next month i give myself less and save the rest

    How long have you had the mortgage for ?
    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
  • Hi Luckyinlife,

    Thank you for relying. I've had the mortgage since March 2014. It started at £50,000 and I have paid it down to £45,500 and I now want to get serious and get rid of it by the time the 5 year fix is up.

    You seem to be doing really well attacking your mortgage plus you have a great emergency fund

    Good luck

    Mary
  • Ah right thats a great mortgage figure to start with i guess you had a deposit :]
    5 years is a great target im aiming for 5-10 Ya im remortgaging myself at the moment and fully renovating the house so need all these things to settle down and then see what i can pay off the mortgage :]

    Good luck on your journey
    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
  • Considering the current saving account rates aren't that great - how much is the penalty if you overpay more than the 10%? I'm with YBS and the penalty is 1% of the overpayment, so I keep overpaying that as the interest charged on mortgage v savings accounts (except rainyday funds I have in TSB and Lloyds) is poor and the interest charged is reduced as soon as they receive OP. (Monthly payments kept the same)
  • marycanary
    marycanary Posts: 313 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Hi

    Yes I'm no longer a young woman and I have owned property before with my ex partner so I've starting over again on my own with my share of the equity in a joint property.
    Also I am saving in a linked off set savings account so the effective interest rate is the same as the mortgage

    mary
  • Good luck Mary. I also had to,start again after selling up the family home and giving half to ex oh. It was hard when my friends all seemed so much further down the road but I soon caught up again and I am sure you will too.
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • lippy1923
    lippy1923 Posts: 1,374 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Good Luck. Great goals you have set yourself. I look forward to reading your progress.

    Lippy
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • shangaijimmy
    shangaijimmy Posts: 3,803 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Welcome onboard the mad house!
    MFW: Was: £136,000.......Now: £47,736.58......
  • Hi :hello:

    Welcome. Look forward to following your journey with great interest as I have similar mortgage/goals (slightly less/slightly more) but just a fraction of your aim for op.


    Good Luck
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.