Seven Year Plan

andy1886

9 months since I last posted , job wise I have been furloughed for 6 weeks in November and again for 3 months from January . Returned to work in April but on reduced hours for 6 weeks , now on full hours but due to some staff being on reduced hours and claiming furlough I have yet to receive a full months wage . Hope this changes shortly !
During this time I have managed to keep my overpayments going , all work planned on the house has been put back , and the new plan is to hopefully put the money set aside for work on the house to be used to pay the mortgage down . 
We were going to change the en-suite , bedroom , radiators and stairs and have been saving up this year to do these jobs . Our current mortgage deal ends at the end of February next year and I believe we can access options 2 months before then , so at the end of this year , so I will see what the balance is and pay as much a single possible off at that point . The current mortgage balance is £20 939 - 89 . By the end of the year it should be around the £18k mark and in savings we won’t be far from that amount . I don’t know how much extra we have to pay as a penalty to finish early but will find that out nearer the time . 
Any advice on how to find the redemption figure and the process would be gratefully appreciated .

South_coast

I called my lender and they sent me a redemption statement. The details about the fees should be included in your offer letter. If you're looking to pay off the full amount then once you're out of your deal there may not be any early repayment fees

andy1886

Current balance £20 498 . 96 , hopefully drop below £20k next month . Slight change of plan as SWMBO does not want to wait until next year to renovate the house , so it looks like getting done later this year which will push back the clearance date into next year . As is her mood things could very likely change . Anyway car passed its mot and service this month and money spent on grandkids holiday , I am well behind with stuff I have to sort out , hopefully back on 100% wages moving on so can get on top of my to do list and give the garden a make over as well .

smetf

Just been reading through your diary, sounds like you're well on schedule. We've got a fair bit more mortgage to pay off than you but doing similar in terms of sorting house. It's been a slow process as tradespeople around us are pretty booked up. Bathroom on the cards for the very end of August and the funds are sat allocated to do that and downstairs flooring (still waiting on quote and joiner says it will be right at end of year for work being done).
Fingers crossed for 100% wages coming back in for you.

andy1886

Balance now at £20 055 . 27 , wages now at 100% . Plan for house now to wait until next year and do everything needed in one long job which could take an horrendous amount of time and run over budget but worry about it when we get to it .
This means that we could possibly use all our current savings and clear the mortgage when the renewal date is due , 28th February next year . Need to speak to the provider and find out how it works and whether it is the right thing to do .

LadyWithAPlan

How exciting to have the end in sight and your focus on OP even on furlough is great to see.

andy1886

I have not updated this diary for 6 months but we will be clearing the balance in March which is currently around £17k , then renovating the house .
I am currently planning how to budget monthly for the bills and transferring everything else over into a savings pot for the renovations , I will be about £600 a month better off without the mortgage , overpayments and insurances we have on the mortgage .
Time to start reading up on home renovations for every room and moving from that how to have a holiday for the first time in our lives .
Hopefully one final post next month to confirm we are mortgage free .

South_coast

Excellent work - the seven year plan became a five year one 😀!

andy1886

Thank you , indeed it did , there have been plenty of occasions when we could have used the funds for other purposes but I now find it hard to purchase stuff I don’t need . Once the house is renovated I hope we can enjoy life together and travel the world a bit .

powerspowers

Brill news! Definitely enjoy a holiday before starting the next round of saving/house improvements