Operation mortgage free at 31.

darrrren

Hi everyone, been on here a year as a reader so thought id start my own thread. Im 26 years old, bought my house a year and a half ago now, in South Wales. Was looking at Bristol but couldn't justify a two bed house in wales for half the price of a one bed flat in Bristol. Ive overpaid my max allowance every month bar one or two, and recently started saving and paying lump sums instead. My mortgage is currently left at £46,650. Mortgage is £321 a month but im paying my 10percent overpayment a year off. Bought for 70k, with a 12grand deposit. As I havnt overpaid for a few months as I planned on saving and doing it in lump sums incase I need the money, so I overpaid 3grand yesterday.


Stands at £46,650
I have £1700 left that I can overpay by July, then its refreshed for the year. I have just had to spend 2grand getting a new door and the back of the house double glazed. It had a new roof 4 months ago. I am aiming for a wood burner stove fitted (to live my simple life when its paid), new bathroom and then its all good .

Luckyinlife

Hi darren

Great stuff Your not far from me :] im 2 years older tho haha

Great over payment of 3k
What kind of mortgage rate do you have currently ? and how long is left on the term ?

darrrren

Ah cool where about's are you at? Yes I was doing 500 a month more but at least if I save it and pay it in lumps, money is there if I need it.
Its a repayment mortgage, of 25 years, but its about to change the term as I did the 3k payment. The interest is 4.4% fixed for 4 years.


If I didn't ring the bank before overpaying they would of lowered my monthly payments and kept the term the same, which wouldn't of benefited me, as it would of been less each year getting paid of. So its worth ringing and asking them to just reduce the term, if your wanting to pay quickly.


Any questions fire away

Luckyinlife

I cant really say where i am on a open forum like this but on the south coast :]

Ah right i was kind of in the same situation as you was on 6.4% rate then remortgaged payed a fee to get a 2.4% rate saved myself around 4-5k over 2 years in interest alone

Do you know your current LTV ? if its under 80% or even better 75% maby it be worth looking at what other deals are around to get a lower rate just an idea as the fee wouldn't be massive as u only ow 40k

I think aiming to be MF around 30 is amazing tho and would free up so much of your life if u can stay there for a good few years after :]

freshcotton

Hi Darren.


Well done on the progress you have made so far, to be mortgage free by 31 is pretty impressive.


Its always a challenge trying to balance mortgage overpayments with savings and home improvements. As your mortgage interest is higher than the average, you have more to gain by over paying and of course, if interest is calculated daily, the sooner the payment is made the better. But saying that, you need to have some savings put away for obvious reasons.

darrrren

no worries I know what you mean. well im still waiting on the letter ffrom bank with the new details. I own three vehicles though im a car junky lol, but still have my savings etc. quit smoking three years ago so that my excuse haha.

Gen_Y_Saver

Hi Darren

Well done on your progress! The sacrifices you are making now will be well worth it!

I think I want to move up to Wales. £70,000 for a 2 bed house is amazing!

I'm on a similar mortgage free journey. I hope to be mortgage free by 30!

Best of luck.

Gen_Y

Luckyinlife

Haha im a car junky myself darren i have tryed to put that on hold by buying a £30 tax 50+ mpg car tho which is saveing me about £40 a week compared to the audi i just sold so i just keep my mpg gauge on

some great houses can be bought in wales for under 100k what iv noticed over the last 5 years is tinny new builds are popping up everywhere at 140k for a 2 bed crazy when the older houses are perfectly fine

darrrren

I know I'm not keen on new builds, I prefer the older stone cottages etc, so much more character. There are some real good deals to be had I wales, I just think the job prospects is what keeps prices down in the valley areas. So on Sunday day before driving back to work for the week the bank card got swallowed. Lucky my car was full and I had twenty quid on me. Most week I eat in less than a tenner then a treat on the weekend, so I've managed ok. Also claimed my two quid back off a free scratch card from Christmas. I have a few mess bills to pay next week but going to try and put a few more pennies in the pig. May start putting some things on ebay too, I have alot of stuff that never gets used or worn.

Petal88

Wow darrrren, good work on the OPs! Would be amazing to be mortgage free by 31 Does this mean you intend on making this your forever home or do you reckon you'll move to a slightly bigger place once kids are on the plan?

darrrren

Well to be honest its a lovely cottage in a great location so ill be holding onto this one. I have had a new roof put on, and I just paid £2k for a new back door and three windows on the rear of the house to be double glazed with a great company local to me. Then all it needs is a new bathroom and its done as the rest has been re decorated. I also would like a wood burner fitted downstairs.

I dont think much about having kids really,and I said to myself never buy a place I wouldn't live in myself. The plan is pay it, save hard and maybe get another one down the road. I think with my background having worked for everything I have then rental property is the best way to become wealthy. I have shares and mutual fund investments but these are long term. Apart from cars and holiday I'm pretty frugal and quite attatched to my money.