The Journey Begins...

Thriftmaster1973

Well it just goes to show how much money can go to waste when u take your eye off the ball.
She was shocked when she looked at the amount wasted over several years.

Thriftmaster1973

Noticed some outgoings are now on the up.
My broadband/line rental with sky going up from £18.99 to £20
Also had the council tax bill, up near 6% on last year, about £6 per month.
Gas and electric increasing around 6%.
Noticed food even in Aldi is slowly creeping up.
I know the value of the pound has fallen but I'm sure many businesses are cashing in and using Brexit as an excuse to ramp up the price of everything.

Thriftmaster1973

Well, hasn't time flown. Its a year now since I started my mortgage free diary and with a few ups and downs I have managed to hand £4050 to Nationwide building society as overpayments.

Started off last year with £52,365 owing, mortgage debt now stands at £42,498.

Still looks a huge number for me even though I know it's really peanuts compared to what some people owe.

The mortgage free wannabe way of living was tough for the first few months, but I've tried to make it a habit / way of life rather than a chore.

Handing over £1000 chunks to Nationwide throughout the year was getting me down a bit, after all, I am doing without things to accomplish the goal. I have told myself it's for the best and I always think how things will be so much better once I am totally mortgage free and not having that monthly payout to make.

Anyone else get a bit down when they make the overpayments? I always think what I could do with the £1000 I am about to hand over.

zcrat41

A little bit. I also think that in the big scheme of things it's going to make such a little impact.

But then I do the overpayment calculator and change my mind. I also o/p less than I could and make sure that within reason I still have what I want. Eg we still eat out but more like once every 8 weeks not twice a month like we used to.

Thriftmaster1973

Well, February 2021 and it's been a while since posting.
Things have gone well on the journey so far - yes there have been setbacks too.
To date the mortgage balance is £28,809
Believe it or not the pandemic has actually had a positive effect on the overpayments.
Employment hasn't stopped (has even been busier than usual over past 12 months).
The current situation means there isn't any temptation to spend unnecessarily.
I am managing £500 overpayment per month - on top of the £537 normal mortgage payment meaning the debt is currently dropping fast.

Thriftmaster1973

By the way, negotiated a three year interest rate fix last year of 1.74% - no fees.

FtbDreaming

Ooh well done! I like reading through diaries that aren’t too long in pages but cover a significant timespan! 

I’m at the start of my journey (5 months in) and not doing too bad. I have a DP and 3 kids and I’m the only earner. I have done as you did and cut out 90% of non essential direct debits however there are some things I keep for the kids sake such as faster broadband and Netflix subscription. 

So are you knocking near enough £1000 a month off the capital? Will you make your initial MFW target? 

Thriftmaster1973

Hi dreaming, I was hoping to be mortgage free by 50, I am 50 in April 2023.
I am forcasting by the end of 2022 there will be around £3000 mortgage debt so yes it's certainly doable.
The problem I come across is trying to beat household inflation with the bills / food etc.
I definitely feel that household costs are on the up, don't know if this is a combination of Brexit, Covid 19 or both , but running costs are going in the wrong direction.
There's one thing about the whole mortgage free journey - it certainly educates you with bills, money expenditure etc.
Stick with it and you'll see the benefits.

Thriftmaster1973

And the inflation rate of 1.2% issued by the government is a lie.
I have looked at my outgoings (as most of us MFW's do) and I have worked out the average upsurge in running costs is around 6 - 7%.

Thriftmaster1973

Progress report

Another overpayment of £1000 is in the MOP (mortgage overpayment pot) account and primed to be thrown into the mortgage, this will bring the debt to £27,800, plus my regular mortgage payment of £537 is due out on the 1st March meaning that mortgage debt for March will be around £27,300 +/-.