Quarter of a million reasons to be Mortgage Free!
coxj2901
Forumite 207 Posts
Hi all,
Like others, I have read through quite a lot of diaries and think it's time I finally started my own mortgage free quest. We recently bought our dream home 2 years ago with a mortgage of £255,000 over 28 years. The house is currently valued at around £330,000 and the mortgage balance currently sits at £244,671. We have just remortgaged for a 2 year fix of 2.34%.
I am 38 years of age and live with my wife and three daughters aged 12, 10 and 5. My mother in law has recently moved in with us and we are currently in the process of converting the garage and building an extension which will become an annex for her to live in.
I started my own business around 6 years ago and we took on a lot of debt during this period which is now almost paid off and the remaining £10,000 we owe is at 0% (£5,000 to my mother in law who wants £100 per month paid until she reaches her pension age) and £5,000 on a credit card which is at 0% until 2018. Therefore these will be paid off before any interest is accrued but I won't be overly focusing on these and will switch my attention to the mortgage instead.
I am fortunate that the business has steadied itself and organically grown over the 6 years since inception so that our monthly drawings are at a point that I can really start making some decent sized over payments.
Here is a quick snapshot of our monthly income and expenditure:-
Statement of Affairs
Monthly Income Details
Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 6,200.00
Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 188.00
Monthly Expense Details
In Your Home
TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00
Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,045.09
Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.96
Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
Motoring & Public Transport
Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.67
Debt Repayments
Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.00
Car Lease Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435.00
Savings & Investments
Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240.00
Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Childrens Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.00
Family
Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00
Entertainment
Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
All other entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
Clothes, Health & Beauty
Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00
Big One-Offs
Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.00
Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,388.00
Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,862.84
Total surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,525.16
My plans are to try and clear the mortgage in around 8 years which would mean overpayments of circa £1,750 per month at current interest rates. We could obviously scale back our outgoings to be more aggressive with the overpayments but after a long period of being in debt and having hardly any money we want to try and enjoy this journey by having a couple of holidays each year and days out as a family.
Here's to the next 8 years! :beer:
Like others, I have read through quite a lot of diaries and think it's time I finally started my own mortgage free quest. We recently bought our dream home 2 years ago with a mortgage of £255,000 over 28 years. The house is currently valued at around £330,000 and the mortgage balance currently sits at £244,671. We have just remortgaged for a 2 year fix of 2.34%.
I am 38 years of age and live with my wife and three daughters aged 12, 10 and 5. My mother in law has recently moved in with us and we are currently in the process of converting the garage and building an extension which will become an annex for her to live in.
I started my own business around 6 years ago and we took on a lot of debt during this period which is now almost paid off and the remaining £10,000 we owe is at 0% (£5,000 to my mother in law who wants £100 per month paid until she reaches her pension age) and £5,000 on a credit card which is at 0% until 2018. Therefore these will be paid off before any interest is accrued but I won't be overly focusing on these and will switch my attention to the mortgage instead.
I am fortunate that the business has steadied itself and organically grown over the 6 years since inception so that our monthly drawings are at a point that I can really start making some decent sized over payments.
Here is a quick snapshot of our monthly income and expenditure:-
Statement of Affairs
Monthly Income Details
Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 6,200.00
Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 188.00
Monthly Expense Details
In Your Home
TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00
Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,045.09
Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.96
Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
Motoring & Public Transport
Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.67
Debt Repayments
Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.00
Car Lease Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435.00
Savings & Investments
Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240.00
Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Childrens Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.00
Family
Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00
Entertainment
Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
All other entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.00
Clothes, Health & Beauty
Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180.00
Big One-Offs
Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.00
Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,388.00
Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,862.84
Total surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,525.16
My plans are to try and clear the mortgage in around 8 years which would mean overpayments of circa £1,750 per month at current interest rates. We could obviously scale back our outgoings to be more aggressive with the overpayments but after a long period of being in debt and having hardly any money we want to try and enjoy this journey by having a couple of holidays each year and days out as a family.
Here's to the next 8 years! :beer:
Nov 2015:- Mortgage Balance £244,671
Aug 2017:- Mortgage Balance £183,832
Aug 2017:- Mortgage Balance £183,832
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Replies
I see it now, your income is over by £1,000
Thanks for spotting that, I have edited it now to show the correct amount
Aug 2017:- Mortgage Balance £183,832
Mortgage Oct '17: £305,399
Daily interest at start: £38.23
Daily interest Sep '17: £12.09
SLM
Balances updated
Old Mortgage Balance . . . £244,670
Overpayment . . . . . . . . . £180.00
New Mortgage Balance . . £244,490
Interest Saved . . . . . . . . . £150.00
Targets
Monthly Overpayment Target . . . £1750.00
Actual Monthly Overpayments . . . £226.00
Shortfall / Surplus . . . . . . . . . (£1524.00)
2015 Targets (Only 2 months!)
2015 Overpayment Target . . . £3500.00
2015 Actual Overpayments . . . £226.00
Shortfall / Surplus . . . . . . . . . . (£3274.00)
Total Summary - Nov 2015 to present
Cumulative Overpayments . . . £180.00
Cumulative Interest Saved. . . £150.00
New Daily Interest . . . . . . . . £15.68
In other news work continues on the annex and the workmen have taken off the garage doors and started bricking up the openings for the windows to be put in.
They have finished putting the footings in for the extension and they are now up to damp course level so hopefully they will start erecting the walls over the next day or two, so we should start seeing the shell come together.
Aug 2017:- Mortgage Balance £183,832
A quarter of a million pound mortgage is a large and unwieldy amount of money and can sometimes be a bit dispiriting when you drop a couple of thousand into it and it disappears with barely a ripple.
I find that setting myself some short-term goals really helps. My previous goal was to own more than 50% of the home. I achieved this, but then re-borrowed money and went back over the 50%. The current aim is to blitz the remortgage loan ASAP.
Anyway, good luck with you MFW journey.
Balances updated
10th Nov-15 Mortgage Bal . . £244,670
Overpayment . . . . . . . . . £30.00
New Mortgage Balance . . £244,460
Interest Saved . . . . . . . . . £25.00
Nov 2015 Target
Monthly Overpayment Target . . . £1750.00
Actual Monthly Overpayments . . . £256.00
Shortfall / Surplus . . . . . . . . . (£1494.00)
2015 Targets (Only 2 months!)
2015 Overpayment Target . . . £3500.00
2015 Actual Overpayments . . . £256.00
Shortfall / Surplus . . . . . . . . . . (£3244.00)
Total Summary - Nov 2015 to present
Cumulative Overpayments . . . £256.00
Cumulative Interest Saved. . . £175.00
New Daily Interest . . . . . . . . £15.68
Aug 2017:- Mortgage Balance £183,832
Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
1% Mortgage Challenge 2022 - £157.59 of £650