Quarter of a million reasons to be Mortgage Free!

Maximum_Saving

Welcome and well done with your steady progress. I am also trying to overpay on my mortgage to get it as low as possible.

coxj2901

Happy new year to everybody! My monthly payment has gone out today and my standing order for my overpayment has also gone out so time for a quick update. I have also dipped below £240k which is another small milestone achieved. :T

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £546.00
(Shortfall) / Surplus . . . . . . . . . . . . (£1,204.00)

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £4,196.00
(Shortfall) / Surplus . . . . . . . . . (£1,054.00)

Other stats

Cumulative interest saved. . . . . . £3,462.00
New estimated daily interest . . . . . £15.35
New mortgage balance . . . £239,425.00

Annex

The annex that my mother in law is building is nearing completion and will probably be finished by the end of January. The outside is complete now so we are just waiting for the kitchen to be fitted, the bathroom to be installed and tiled, 2nd fix electrics and plumbing plus coving and skirting to be laid. Once that is done it should hopefully be ready for decorating!

coxj2901

I've received a cheque today from N*rthern R*ck for a refund of some interest they owed me on an old loan that was closed earlier last year. It was only for £150 so that has gone straight to the mortgage account

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £696.00
(Shortfall) / Surplus . . . . . . . . . . . . (£1,054.00)

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £4,346.00
(Shortfall) / Surplus . . . . . . . . . (£904.00)

Other stats

Cumulative interest saved. . . . . . £3,587.00
New estimated daily interest . . . . . £15.34
New mortgage balance . . . £239,288

coxj2901

My new years resolutions usually revolve around losing weight so it will be good to have some solid financial goals to work towards! That's not saying that I couldn't do with losing a stone

2016 Financial Goals

1. Overpay £23,000 on my mortgage. This works out to £2,000 more over the year than the monthly amount of £1,750 that I set myself but I want a bit of an extra challenge to see if I can find another £2,000 from other means. I won't include this amount in my monthly targets but it will be reviewed and measured throughout the year at various intervals.

2. Increase emergency fund to £6,000. Before the start of this year I had no emergency fund in place so to have a buffer would give us some comfort in the event of any unexpected changes.

3. Increase my pension pot to £33,000.

4. Increase my wife's pension pot to £5,000.

5. Increase my personal share holding to £1,500.

6. Pay for a new drive. I am expecting this to come in around £3,000 and is something we have wanted to do since we moved into the house as we are constantly driving across our neighbours grass when we reverse off the drive!

7. Pay off my 0% credit card in full. There is currently around £3,900 remaining on this credit card so I would like this to be gone by the end of the year.

In keeping with the primary reason for the diary I have just paid £21 off my mortgage as I had £25 in my wallet but couldn't resist a cheeky couple of lucky dips for tonights £50 million rollover!

coxj2901

I've had half of my dividend for this month so I've decided to make an overpayment of £600 to the mortgage early on rather than wait as that way I'm not tempted to spend it elsewhere!

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £1,317.00
(Shortfall) / Surplus . . . . . . . . . . . . (£433.00)

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £4,967.00
(Shortfall) / Surplus . . . . . . . . . . . . . (£283.00)

Other stats

Cumulative interest saved. . . . . . £4,109.00
New estimated daily interest . . . . . £15.30
New mortgage balance . . . . . . . . . . £238,713

I can really start to see the difference in what daily interest I am being charged and it's encouraging to see if coming down in such a short space of time. I'm really looking forward to seeing this go below £15 per day!

MFW_ASAP

Great work coxj2901!!

I have to say that your thread is very motivating. I've been concentrating on our home renovations (also making a 'granny annex' and some energy efficiency improvements) and my personal pension (making 15% payments into it), but I'm once again getting interested in doing some mortgage OPs because of your sterling efforts.

I'm thinking that I might complete our current renovations and perhaps curtail some others and just get started with some OPs.

Our main mortgage is something like £224k with a further £18k on a second mortgage account that we used to fit our new windows and doors. I'm thinking that as the second mortgage is a nice 'bitesized' chunk and is at a higher rate than the main mortgage, that this would be a good place to start.

I'll work out a decent point to stop our current renovations and them move back into a MFW phase. My company flex benefits choices are in April, so maybe I'll reduce my pension payments down to normal and use the money instead to contribute to the OPS. April is probably a good time to start my MFW journey.

Look out for my diary when I get going!

coxj2901

MFW_ASAP wrote: »

Look out for my diary when I get going!

I will certainly look forward to following your diary when you get going!

coxj2901

I've returned a vinyl record player to Amazon today that wasn't working correctly and have decided to pay the £65 refund onto the mortgage. I think all the small overpayments will really make a difference over the 8 years.

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £1,382.00
(Shortfall) / Surplus . . . . . . . . . . . . (£368.00)

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £5,032.00
(Shortfall) / Surplus . . . . . . . . . . . . . (£218.00)

Other stats

Cumulative interest saved. . . . . . £4,163.00
New estimated daily interest . . . . . £15.30
New mortgage balance . . . . . . . . . . £238,663

coxj2901

I've had my second dividend payment for the month so I have made an overpayment of £500 to the mortgage which means I have exceeded my target for the month

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £1,882.00
(Shortfall) / Surplus . . . . . . . . . . . . £132.00

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £5,532.00
(Shortfall) / Surplus . . . . . . . . . . . . . £282.00

Other stats

Cumulative interest saved. . . . . . £4,580.00
New estimated daily interest . . . . . £15.27
New mortgage balance . . . . . . . . . . £238,209

coxj2901

I'm scraping the barrel now but I've opened my tin this morning that I use to collect coins and there was £130 there. I have duly bagged this up and paid it into the bank on my lunch. I have then made a payment of £130 to the mortgage account. I think this may well be the last payment until next month but a very good month!

Jan 2016 Target

Monthly overpayment target . . . £1,750.00
Actual monthly overpayments . . . £2,012.00
(Shortfall) / Surplus . . . . . . . . . . . . £262.00

Cumulative Targets to date

Cumulative overpayment target . . . £5,250.00
Cumulative actual overpayments . . . £5,662.00
(Shortfall) / Surplus . . . . . . . . . . . . . £412.00

Other stats

Cumulative interest saved. . . . . . £4,688.00
New estimated daily interest . . . . . £15.27
New mortgage balance . . . . . . . . . . £238,095