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Planning ahead for freedom

Hi

Time to get serious and pay off my mortgage. I have until June 2030 to pay off the remaining 30K. My plan is to overpay in the next 3-5 years and as I have a offset mortgage there are no limits to over payments.

I intend is to use overtime / pay increases / cut backs in spending towards the over payment.

In the next two years I hope to reach the position of having enough saved up to cover the remaining mortgage.

This diary will keep me motivated and track where I am up to.

I will complete a SOA over the next few days to see where the best areas for savings are.

:):):)
:j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
Retirement date planned May 2023
«13

Comments

  • Kittenkirst
    Kittenkirst Posts: 2,468 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Welcome onboard the mortgage free wannabe train :)
    First home- Oct’16 until June’21: £170.995- Overpayments made £13,784 (25% extra!).
    New forever home- Sep’21 £309,449 @ 2.05%. Plan to clear it before 30 years!!!!!!
  • Where can I find a SOA template? Seen loads while lurking but can't find one now.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • Planning_ahead
    Planning_ahead Posts: 92 Forumite
    Sixth Anniversary
    edited 21 May 2016 at 6:29PM
    I am looking to find ways to maximise over payment of mortgage. At the moment using all overtime to over pay. Thanks

    Household Information[/b]
    Number of adults in household........... 4
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2700


    Monthly Expense Details

    Mortgage................................ 327
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 108
    Electricity............................. 54
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 50
    Telephone (land line)................... 0
    Mobile phone............................ 100
    TV Licence.............................. 12
    Satellite/Cable TV...................... 66
    Internet Services....................... 0
    Groceries etc. ......................... 600
    Clothing................................ 10
    Petrol/diesel........................... 20
    Road tax................................ 30
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 60
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 34
    Pet insurance/vet bills................. 10
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 10
    Entertainment........................... 60
    Holiday................................. 170
    Emergency fund.......................... 0
    Isa..................................... 100
    savings................................. 300
    Misc.................................... 300
    Professional fees....................... 10
    Total monthly expenses.................. 2576



    Assets

    Cash.................................... 16000
    House value (Gross)..................... 150000
    Shares and bonds........................ 3000
    Car(s).................................. 5000
    Other assets............................ 0
    Total Assets............................ 174000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 30000....(327)......3.9
    Total secured & HP debts...... 30000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Sainsbury......................7000......370.......0
    Sofa...........................1000......47........0
    Total unsecured debts..........8000......417.......-



    Monthly Budget Summary

    Total monthly income.................... 2,700
    Expenses (including HP & secured debts). 2,576
    Available for debt repayments........... 124
    Monthly UNsecured debt repayments....... 417
    Amount short for making debt repayments. -293


    Personal Balance Sheet Summary
    Total assets (things you own)........... 174,000
    Total HP & Secured debt................. -30,000
    Total Unsecured debt.................... -8,000
    Net Assets.............................. 136,000


    The other three adults are studying at uni and living at home.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • What are your ideas on using savings to pay down mortgage?
    I am thinking of using my savings to pay the mortgage down next year, but worry that I will have no backup.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • Decided to keep the savings and not pay towards mortgage. This ensures I have an emergency fund if anything happens with work etc.

    Checking my credit card statement found a payment to Curry's which was not authorised. The credit card was well aware of this scam where they put on insurance cover when declined at the till. I have stopped it now and am waiting for a refund of the money already taken. looking on line this is a common occurrence.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • A_Frayed_Knot
    A_Frayed_Knot Posts: 3,308 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    :hello: and welcome aboard :D

    You have a similar mortgage amount and time goal as I have. Shame I don't have your salary, but then again I don't have 4 adults living in the house :eek:
    I noted that 3 adults are students, this may mean, if you haven't already - get a reduction on council tax.

    Mobile phone - is this for 4 !!!

    House contents insurance - seems high

    Groceries - biggest culprit :eek: savings can be made here, i'm sure
    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
  • HelenDaveKids
    HelenDaveKids Posts: 3,177 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    edited 2 July 2016 at 10:57PM
    Decided to keep the savings and not pay towards mortgage. This ensures I have an emergency fund if anything happens with work etc.

    Checking my credit card statement found a payment to Curry's which was not authorised. The credit card was well aware of this scam where they put on insurance cover when declined at the till. I have stopped it now and am waiting for a refund of the money already taken. looking on line this is a common occurrence.

    That's the good thing about this process, you are far more aware of your bank statement and when its not right...

    TBH my savings are very low... but 1 month to go..

    I have 3 teens... 14,15, 17 .... its a challenge..

    Welcome to MFW and good luck on your journey xx
    Morgage till Nov 30 GOAL MFW Sept 2016
    Aug 11 - £100k Aug 2016.... It's GONE!!!!!
    2014 GOAL HIT 5 Stone! 2016 GOAL to be a MF marathon runner.
    "A goal without a plan is just a wish"
  • Hi Thanks for your comments
    I will double check house contents insurance
    i pay for all phones (part of birthday presents) this should go down once they all leave uni and get full time employment.
    Food is a challenge as it includes lunches for all of us. Don't want them to get into habit of eating out at lunch. Trying to shop once a week, but it keeps getting eaten lol.
    Need to set up a fund for house repairs little jobs starting to build up.
    Yes I get discount for council tax.
    HKD - you have nearly made it bet you are excited weeks to go

    x
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • I have checked my house insurance it is £10 not £100.
    Due for a pay rise this month this will go towards mortgage payments.
    Not managed an over payment this month as under taking essential house repairs - shower screen / toilet seat / leaking pipe / broken door lock.it's a shame to have no over payment,but sorting out household niggles is as satisfying.
    August brings plans to eat down the stock pile and decorate two bedrooms. This gives me chance to have a good declutter both kitchen and bedrooms, plenty of tip runs.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
  • September brings a small over payment on my mortgage. The bedrooms are all decorated and have new furniture.
    I have reduced the stockpile in the kitchen and can see what I have now.
    The declutter took many tip runs alongside donations to charity shop or giving away items for others to use. Also led to daughter number 1 stating she had too much stuff, the irony was not lost when she went to get a parcel of the postman two minutes later!!!
    Every one goes bad to uni in the next week or so so need to get back into routines.
    Planning low spend September/ October to boost mortgage over payments.
    :j:£12,000 / £28,000 Mortgage free date planned May 2023 Actual mortgage free date June 2030
    Retirement date planned May 2023
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