On my way!

Escapar2020

Hi all

I've recently found this forum, but have been wanting to finish my mortgage early for ages!

I started my 25-year mortgage back in 2003. So, expected to finish in 2028.

I bought my first house near the height of the property boom in 2003, using a fixed rate mortgage. My plan was to stay for 5-years and then move-up the property ladder. Then we all know what happened to the economy, and 5-years soon passed, and before I knew it I was settled.

Each time the fixed rate period ended, I'd go into another fixed rate, it felt like the safest thing to do, then interest rates started to go down! Eventually, I let my mortgage transfer to the standard variable tracker, currently 2.04% inlcuding the base rate. Not long after switching to the tracker, I started to pay of a little bit extra, without really having a plan.

Couple of things happened last year that made me think about the future more. My dad had some health problems (he's ok now), but made him think about downsizing the family home which was getting expensive and difficult to manage (he's still there and I doubt he'll ever move!). I made contact with an elderly uncle, who I hadn't seen for years. Unlike my dad, my uncle had lived in the same house all of his adult life, never feeling the need to climb the property ladder. Finally, I had the chance of a promotion, to a job I'd knew I'd never love but would make my income jump.

So the thought entered by mind, stay in this house, go for the job, put even more income into paying the mortgage :j (I know other people might think I should invest in something else, but the thought never occured to me and I wouldn't know where to start).

So, having got the job, my mortgage stood at £45,460 in January this year, and had 11 years and 6 months to run. My plan was to pay it off within 5 years, so July 2022.

As well as my extra salary, I've moved any spare cash into the mortgage too, and will have a clearout and sell some stuff I don't need. I haven't really made any sacrifices yet, and even managed to by a camper van with savings this year.

Anyway, as of today, 8 September 2017, the balance of my mortgage is down to £34,998, and I think I'm on track to be mortgage free by September 2020 :beer:. Three years still feels like a long time, I was right about not loving the job, but its a means to an end! Planning ahead feels like I've finally grown-up! I'm breaking up the challenge in my mind, by thinking about where I should be in 12-month blocks.

I feel a bit anxious about what I will do if and when I become an ex-wannabe. I'd like to either reduce my hours or do something more fulfilling, but the opportunities in a quiet rural area aren't obvious yet. We'll see what happens!

I thought this was going to be a short post, so well done if you've made it this far! I'll try to provide some updates as I go.

Escapar2020

Betterthanever

Welcome! I look forward to seeing your journey unfold!

Madcatgirl

Hi there - good luck, looks like you've already taken years off the finish date!

fiona100

Just beginning the process, but I am now feeling more confident that I will be able to get started properly. Thanks for posting and encouraging me.

fiona100

beanielou

Happy shiny new diary

Skinnylatte

I've subscribed, keep posting and I'll keep plodding!

Escapar2020

My latest good news is that I've increased the standing order for my overpayment to what I think is the maximum I can afford. So, my standard payment is £350 per month and I'll now be overpaying by £600 on top. If I can maintain that, I will hit my 2020 target :-) I do have a big trip and some home improvements planned in the next 12-months, but will try to keep to my target by searching for bargains!

The bad news is that I thought I found a bargain that turned out to be a scam :-S so, I may have lost £160. If the bank give me a refund, I'll put it into the mortgage and learn my lesson!

Escapar2020

[Deleted User]

Good luck on your journey... I'll be following you

SavvySaver007

Just dropping by to subscribe & to wish you luck with your overpayment journey, I am aiming to overpay about the same very month. I find these forums a brilliant source of motivation and inspiration, we'll be reducing these pesky mortgages in no time at all!

Escapar2020

Staying motivated.....
(this will be different for everyone!)

I started a countdown app back in december, when I was planning to be MF within 5 years. I quickly got that down too less than 4 years by increasing regular overpayments to where I was comfortable and moving other spare cash when ever it wasnt needed. I don't feel like I've scrimped on anything in the meantime, just asked myself if I really needed something before making a irregular purchase (I've got too much stuff already)

Anyway, my countdown app turned a milestone and now starts withh the number 2 :-) It actually reads 2 years, 11 months, and 31 days (which I think is 3 years in most people's books, but I was very happy to see the 2 anyway!). Not bad for 10 months effort. Of course this is only a target, and could get pushed back or brought forwards depending on circumstances. The plan is to finish early (shceduled end is in 2028), not stress about the exact date of becoming MF.

I have a couple of other countdowns running, one for the number of payments left, and one for the number of days left. My next big milestone will be getting under 1,000 days left, which should happen in around 3 months time.

Sometimes, the countdowns don't feel that helpful. If I'm having a hard time at work, they seem to move too slowly and I find myself looking at them often and wishing they'd reduce faster! But when I combine them with managing my mortgage balance on mobile banking, I've found myself a few times noticing if I pay just a bit more (£50ish) then the balance figure drops into the next £1000 bracket (e.g. From £35,049 to £34,999), which also has a great pyschological impact :-D

I'd be interested to know what milestones keep you motivated?

Escapar2020

Escapar2020

Despite some car repairs and a european city break in September, I managed a £700 overpayment, reducing the balance by £1k :-)

If I could do that every month, I could be finished by July 2020, but we shall see!

I saw HSBC are offering £200 to switch current accounts. I haven't swithced for ages, so maybe an opportunity to make another OP ;-)