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Just started mortgage and hence mortgage free journey

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
17 replies 2.2K views
datlexdatlex Forumite
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edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
My mortgage was issued on Thursday. First payment will be £520.77, assuming information on the app is correct, regular payment £498.47 for next 5 years. Regular mortgage payments obviously set up as a direct debit. Have just set up the mortgage company as a payee using instructions on their website and made a token £10 payment to check has been set up right. Had a quick look at the overpayment calculator and just £10 a week will take 2 years off my mortgage. Aiming to have this mortgage as short a time as possible :-)
Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
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  • julicornjulicorn Forumite
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    Happy new diary datlex! Looking forward to seeing how you get on - it's crazy what difference even a relatively small overpayment can make over the years, isn't it? :)
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £113,200 (-£21,000 overpayment savings pot)
  • datlexdatlex Forumite
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    Thanks. Yes it is. I am planning on putting any unspent budgeted spends to the mortgage. e.g. on Thursday we were decorating so did not go out on budget night out- that's now been paid to mortgage. Any unspent at end of pay period will also go to it. I can over pay up to 10% so £8000 without penalty this year. (I believe that's fairly standard).
    Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
  • YouthgonewildYouthgonewild Forumite
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    Happy new diary datlex! Looking forward to reading. How long is your term?
    Mortgage balance October 2015: £99875
    Mortgage balance November 2017: £97583

    Mortgage balance November 2018: £90952.08
    Mortgage balance December 2018: £90470.65
    Mortgage balance June 2020: £79561.39
    Mortgage balance October 2020: £77686.25
  • datlexdatlex Forumite
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    Happy new diary datlex! Looking forward to reading. How long is your term?
    It's 18 years. I've already over paid £45 had first payment go out.
    Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
  • datlexdatlex Forumite
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    Slowly plodding away at the over payments. £10 at the moment set to go automatically every week. I am saving for things- £20 a week into 2 different savings pots- initially to get garden cleared (over grown and some rubbish, so will need a skip at least) and furniture for second bedroom. Once I have saved enough for one of these, I will be up my overpayments to £30 a week.
    Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
  • RetterRetter Forumite
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    Your situation sounds similar to mine (18 months ago) with balance and regular payment amounts. I have taken £18k off since then. It gets very addictive. I keep motivated by telling myself I can overpay less and less (penalty free) each year which means life should get easier as the years roll on.

    Good luck!
  • MichaelDHMichaelDH Forumite
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    Welcome!

    Hope you are enjoying your new home!

    It's really easy to fall in to the trap of thinking small OP's won't make much of a difference to your mortgage but a few pounds here and there soon add up, some don't get disheartened if there's some month when you can't OP as much as you would like to :)
    Starting Balance August 2016: £170,199.00 | Remortgaged August 2018: £212,000.00
    Current Balance (15th February 2019): £209,278.85 :eek:
    Target: Balance below £170,000.00 by August 2023 :)
  • A_Frayed_KnotA_Frayed_Knot Forumite
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    Welcome to you and your shiney new diary.

    Same term time as mine when I took out my mortgage, but you have a huge head start, as it was roughly 2 1/2 years before I started my addiction :D of the financial kind . . . here come the zero's.

    Good Luck, you sound as if you have a plan, good start :)
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • datlexdatlex Forumite
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    Still continuing to pay off my £10 a week. Today I noticed that the balance ended was £78,551.78 so made that small payment of £1.78 to make it a round figure.
    Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
  • CouldsavemoreCouldsavemore Forumite
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    [What's this?

    DATLEXView public profileSend private messageFind more postsView all thanked postsAdd to contacts

    Still continuing to pay off my £10 a week. Today I noticed that the balance ended was £78,551.78 so made that small payment of £1.78 to make it a round figure.

    QUOTE]

    I like looking at how the length remaining is shortening.

    I've never thought of small weekly payments... i have been paying a bit at the end of the month. I might give this a try, a few extra fivers would help
    PAYDXMAS21 #41 900/900
    Fashion on a ration... 0/66
    Target weigh loss 2/14lbs
    Money saved on food budget by being frugal in 2021... 100

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