MFW Diary: paying it off a second time
Number75
Forumite 205 Posts
Love reading your diaries!
Time to start my own - to pay my mortgage off a second time...
I got divorced some years ago but only just now received the money I was owed from the sale of my old house. It's equal to my current mortgage. But... I don't want to pay it off because:
⁃ the money received is my safety net and I want it to be accessible
⁃ I think it can be better worked in my pension /ISA
Much of it is offset against my mortgage currently as I've maxed out ISA for this year and enough pension to avoid HRT.
So I want to forget that I have that money and continue to try to pay off my mortgage early. It has 21 years to run, but I'd like to pay it off in 12 years, to tie in with turning 55.
I am increasing my monthly mortgage payment from June to make that happen.
In addition, I'm planning to use any "extra" money - basically a rule that if it isn't my salary, in it goes. Then any month left at the end of the month too (I don't expect this to be much, as I save better when it goes out straight away - hence the overpayment!)
I'm hoping this diary, and recording my "extra money" will help me stay committed to it! This month has been lucky for extras.
May 2017:
⁃ £150 regular overpayment. This will increase from June, but I've just remortgaged to a different rate so this is the excess from still paying old rate
⁃ £60 in USD from an old holiday
⁃ £120 quarterly shares dividend
⁃ £125 broadband swap incentive
⁃ £80 child benefit
⁃ £100 from ex for childcare costs (I pay these from salary sacrifice CCVs so his share feels like non salary money if that makes sense. There's no maintenance)
Total mortgage: £110,000
Current month overpayment: £635
Total overpayment: £635
Time to start my own - to pay my mortgage off a second time...
I got divorced some years ago but only just now received the money I was owed from the sale of my old house. It's equal to my current mortgage. But... I don't want to pay it off because:
⁃ the money received is my safety net and I want it to be accessible
⁃ I think it can be better worked in my pension /ISA
Much of it is offset against my mortgage currently as I've maxed out ISA for this year and enough pension to avoid HRT.
So I want to forget that I have that money and continue to try to pay off my mortgage early. It has 21 years to run, but I'd like to pay it off in 12 years, to tie in with turning 55.
I am increasing my monthly mortgage payment from June to make that happen.
In addition, I'm planning to use any "extra" money - basically a rule that if it isn't my salary, in it goes. Then any month left at the end of the month too (I don't expect this to be much, as I save better when it goes out straight away - hence the overpayment!)
I'm hoping this diary, and recording my "extra money" will help me stay committed to it! This month has been lucky for extras.
May 2017:
⁃ £150 regular overpayment. This will increase from June, but I've just remortgaged to a different rate so this is the excess from still paying old rate
⁃ £60 in USD from an old holiday
⁃ £120 quarterly shares dividend
⁃ £125 broadband swap incentive
⁃ £80 child benefit
⁃ £100 from ex for childcare costs (I pay these from salary sacrifice CCVs so his share feels like non salary money if that makes sense. There's no maintenance)
Total mortgage: £110,000
Current month overpayment: £635
Total overpayment: £635
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I think the gods are with me on this...
Last year my work started a Share Save scheme. I didn't realise they were dividend shares - a cheque for £25 turned up this morning! A little bit more to go in!
Just popping in to wish you luck on your MF journey - it looks like you are off to a great start!
But today I unexpectedly got given £20 - my sister was visiting and brought it from my dad. I'm 42!
Total mortgage £110000
New overpayment to add £20
Current month overpayment £655
Total overpayment £655
I just had my birthday and though I never do cards or presents for anyone, mum always give me £30 and dad £50. Bless them. In their eyes, you're always their baby.
I'm shy, but grateful. And like mum said to me yesterday, one day she won't be there to give it.
Crikey I'm about to blub now!
MvM x
Baby Step 2 - Pay off all debts except the Mortgage - £9,326 to go
Baby Step 3 - Save 6 months of expenses into full Emergency Fund - £4,300 to go
Baby Step 4 - Put 15% into Pension
Baby Step 6 - Pay off the Mortgage early
Baby Step 7 - Live like no-one else
I find it embarrassing to be given £20 by a pensioner whose income is half mine... (although, they're mortgage free!) But more offence taken to refuse it, so into the pot it goes!