FinancialBliss: My mortgage free journey…

financialbliss

Another end of month coming around again. This time I'm reporting for mortgage payments and interest charged from January to May. It's looking like this:

Mortgage at start of year: 59,500.00

Month: Payment / Interest (per day) / Net reduction / Balance

January: 1,200.00 / 237.37 (7.66) / 962.63 / 58,537.37
February: 1,200.00 / 210.99 (7.54) / 989.01 / 57,548.36
March: 1,200.00 / 229.56 (7.41) / 970.44 / 56,577.92
April: 1,025.00 / 218.94 (7.30) / 806.06 / 55,771.86
May: 1,025.00 / 222.96 (7.19) / 802.04 / 54,969.82

Totals: Payment / Interest / Net reduction.

Minimum: 1,025.00 / 210.99 / 802.04
Maximum: 1,200.00 / 237.37 / 989.01
Average: 1,130.00 / 223.96 / 906.04
Grand Total: 5,650.00 / 1,119.82 / 4,530.18

As far as overpayments go, in light of recent utility direct debit reductions, I've upped the automatic overpayment I've set up from £101.97 to £126.97 meaning that together with the standard mortgage payment of £898.03, we'll be paying £1,025.00 per month to the mortgage.

Have some savings interest due towards the back end of June, so I may use some of this to make a further overpayment to keep the mortgage in the £53,9xx's.

FB.

financialbliss

Been a long, long first week back at work after being off last week. Diary has been somewhat neglected, so I'm going to post a few quick stats type posts that I should have been doing...

FB

financialbliss

First up, energy costs. Interesting to see how these are developing. Never had this much detail for our electric / gas costs before as we previously only entered meter readings when Scottish Power prompted us - normally quarterly.

Now I submit our electric and gas meter info on the first of each month. Here's now it stacks up for January to May:

Electric (Units / Cost):

• January: 331 / 36.04
• February: 313 / 33.77
• March: 295 / 32.90
• April: 268 / 30.31
• May: 251 / 29.05

Gas (Units / Cost):

• January: 65 / 68.22
• February: 55 / 57.53
• March: 42 / 45.49
• April: 23 / 27.34
• May: 14 / 19.07

Total, ie Electric and Gas (Units / Cost / Balance)

• January: 396 / 104.26 / 22.75
• February: 368 / 91.31 / 8.45
• March: 337 / 78.39 / 7.06
• April: 291 / 57.65 / 26.41
• May: 265 / 48.12 / 47.29

As our balance is 47.29, it will be interesting to see if Scottish Power let the balance build up further for the winter months or reduce the direct debit further.

FB.

financialbliss

House price index - another slightly interesting post to attempt to determine the theoretical worth of our house. I say theoretical, as I appreciate that any house is only worth what the market will pay. Haven't seen any comparable house for sale locally, but as we're not in the market to move, I've not really been looking either...

2008 year end house value: 232,022.54

Month: Change / Value / LTV

January: 1,990.83 / 234,013.37 / 24.94%
February: 859.68 / 233,153.69 / 24.63%
March: 3,167.24 / 229,986.45 / 24.65%
April: 135.73 / 230,122.18 / 24.20%
May: 5,474.79 / 235,596.97 / 23.29%

I'm using the Halifax house price index. No particular reason - I've just kept with the Halifax one rather than switch to the Nationwide index. Halifax HPI showed an increase in May.

With a combined increase in index and reduction in mortgage, our loan to value (LTV) is only 23.29% - this is the lowest I've calculated it yet for this mortgage :j

FB.

littlemrtinkle

wow all those figures would give me a headache :-)

Keep up the good work.

financialbliss

Post #1. I've updated this with the months elapsed / months remaining. There are 42 months left until December 2012.

I'd previously said I'd scale back the overpayments due to short term cash flow issues. Well in light of recent utility direct debit reductions, I've upped the total overall monthly mortgage commitment from £1,000 to £1,025. While this is only a relatively small £25 increase, this brings my calculation of being mortgage free from October 2014 to August 2014.

Note: This is hopefully a guaranteed mortgage free date as I've got my mortgage rate at 10% in 2014. I've upped it by 1% a year from 2011 (7%) when I step off our fix and this pessimistic forecast hopefully won't get this bad in reality :eek:

I've also updated the two graphs linked on post #1

FB.

Lunar_Eclipse

financialbliss wrote: »

Note: This is hopefully a guaranteed mortgage free date as I've got my mortgage rate at 10% in 2014. I've upped it by 1% a year from 2011 (7%) when I step off our fix and this pessimistic forecast hopefully won't get this bad in reality :eek:

Does this mean you are currently on a fixed rate of 7%, the 7% includes a significant overpayment, or your mortgage payment is 7% of your income?

If you're on a fixed rate of 7%, I would have thought you'd be much better off remortgaging asap, unless I have completely misunderstood.;)

determined1_2

I think FB is just using a prudent % for his forcasted SVR

might be wrong though

chirpchirp

It certainly reads like FB has a fixed finishing in 2011 at 7% but I'm sure this can't be the case as FB is such an MSE.

uzubairu

I think FB has a fixed rate of 4.79% with the Nationwide, like I have.

It was through reading his diary that I realised I could reduce the term so that I could pay more off each month, and still overpay by £500.