Its fully paid I cant believe we did it, 4 Years 7 months and 1 week from move in day. Mortgage Free

Neonitrix

Hi Guys/Girls,


Myself (40) and my other half (47) purchased our first house in the UK in July of this year for a purchase price of 145,000. We paid a 30,000 deposit and took mortgage over 15 years with initial 2 year fixed payments. We emigrated to the UK in October 2014 with empty pockets and too many suitcases and came up with a plan to have our forever zero.


Firstly a wedding (2016)
Secondly a Visa for my better half (2019)
Thirdly a home to call ours (2019++)


Well best made plans and all but we got tired sending our landlord on holidays and decided we should buy now and work towards a visa with some mortgage payments under our belts.


We purchased a house in July this year we can make 10% of our outstanding mortgage, Calculated January each year without penalty until our fixed term ends.


We make our first overpayment in 2 weeks time, 11,500 meaning we are sub 101,000 by Jan 2019


and our plan into the future is:
10,100 extra payment July 2019 after visa
8,500 extra payment January 2020
Remortgage for 65,000 at end of Aug 2021 paying off 15,000 mortgage and doing some house repairs (re-roof, pointing) *This 65,000 remortgage amount never happened we ended up remortgaging closer to 80,000 reason = life.


Best of luck everyone

kitjos

Congratulations on your new home . Been a few exciting years for you! Good luck on the mortgage OP'ing, you certainly seem to have your heads screwed on :beer:.

All the best on your mortgage free journey xx

beanielou

Happy shiny new diary

Neonitrix

Update first overpayment made to the bank amounting to £11,500 (10 % our our origional £115,000 mortgage taken out in July 2018) we made the payment during November and as of 1st December we now owe £100,856, reducing our term by approx 2 years. Our intention is to make a further payment next August / Sept of the 10% of the oustanding mortgage amount as of Jan 2019.


We wish everyone a happy christmas and all the very best for 2019.

Neonitrix

Fast forward to today, update almost 2 years in.
End of fixed term 31st August 2020
Purchase Price £145,000 July 2018, Deposit £30,000, Started out Mortgage owing £115,000 on a 15 Year Term
26th June 2020 Currently Owe: £79,400
Remortgage Secured with Coventry Building Society for £80,000 a 10 Year Term with 5 Year Fixed @ 1.7 with no cap on over-payments and a early repayment charge of £125.00 

Just want to thank the people of the forum for giving us the willpower to go over-payment heavy and Covid aside we are on target to have the mortgage cleared by end of 2023 or at very least continue chipping away as we have been doing.

Im not sure overall what interest we have saved thus far but do know that even if we take 10 years to clear it we started with 15 year mortgage term and in switching will end up with 10 Remortgage + 2 years Fixed so have knocked 3 years off original plan.

LeighofMar

Well done. Wonderful progress.

Neonitrix

Fast forward to today - 3 Years 2 Months in.

• Purchase Price £145,000 July 2018, Deposit £30,000. Started our Mortgage (Halifax) owing £115,000 on a 15 Year Term with a 2 year fixed and limited to max overpayment of 10% anything over incurred fees.

• Regular overpayments within the sub 10% threshold in order to not incur fees

• Halifax at the end of the 2 year fixed term played silly numbers and were far too greedy so I shopped around for a better offer that suited us in the end Coventry Building Society gave us a 1.7 % with no overpayment fees which interested us.

• Remortgaged June 2020 at end of our 2 year fixed term 10 Year Term at £80,000 with Coventry Building Society no cap on overpayments and an early repayment charge of 125.00 when we clear mortgage.

• Took advantage of the 3 months mortgage Holiday as we needed to reassess our finances as my wife's income took a slip due to furlough

• Actively overpaying each month.

• Today we owe: £51,308 with a target of sub £40,000 by year end.

• Have 10,000 in a rainy day account once we owe 10K were gonna clear it.

• Plan of action somewhere between Sept & Dec 2022 we will no longer have a mortgage. its a goal if we don't score it we will be bloody close.

• First planned purchase post clearing the mortgage Jaguar XE cant frikin wait

The call to switch to a provider that has no fees for overpayments of any size has given us the freedom to really get behind the idea that we can be mortgage free meaning we can put our mortgage 760 into something better each month. 

powerspowers

Love the plan for the first mortgage free month, aim big! 

Well done on your progress so far

Neonitrix

powerspowers said:

Love the plan for the first mortgage free month, aim big! 

Well done on your progress so far

Thank you, we figure that so much has had to wait until the house is paid down including a car we may as well aim big. 

Neonitrix

Fast forward to today - 3 Years 4 Months in.

Its been tough but the end is in sight 

• When we bought this place we made the decision that given we are a little older than most and this is our first home and we haven't even thought about things like retirement etc. having only arrived on these shores in 2016 July and Oct, to pay down the house asap. Basically how we do it is try live on one of our wages and pump the mortgage with the other.

• Purchase Price £145,000 July 2018, Deposit £30,000. Started our Mortgage (Halifax) owing £115,000 on a 15 Year Term with a 2 year fixed and limited to max overpayment of 10% anything over incurred fees.

• Regular overpayments during the 2 year fixed with Halifax within the sub 10% threshold in order to not incur fees

• Halifax at the end of the 2 year fixed term played silly numbers and were far too greedy so I shopped around for a better offer that suited us in the end Coventry Building Society gave us a 1.7 % with no overpayment fees which interested us.

• Remortgaged June 2020 at end of our 2 year fixed term 10 Year Term at £80,000 with Coventry Building Society no cap on overpayments and an early repayment charge of 125.00 when we clear mortgage.

• Took advantage of the 3 months mortgage Holiday as we needed to reassess our finances as my wife's income took a slip due to furlough

• Since this remortgage after the mortgage holiday was complete we have been actively overpaying each month, anything between 1,000 and 2,500 depending on what's going on at each given time. Any bonuses etc. go into the mortgage.

• Today we owe: £45,604 with a target of sub £40,000 by year end fingers crossed.

• Have 10,000 in a rainy day account once we owe the last 10K on the mortgage were gonna clear it.

• Plan of action somewhere between Sept & Dec 2022 we will no longer have a mortgage. its a goal if we don't score it we will be bloody close.

• First planned purchase post clearing the mortgage Jaguar XE cant frikin wait

The call to switch to a provider that has no fees for overpayments of any size has given us the freedom to really get behind the idea that we can be mortgage free meaning we can put our mortgage 760 into something better each month. 

Neonitrix

Fast forward to today - 4 years 3 months in

Today we owe 28,004.09
We have 18,000 in Savings and trying to build to up to clear the whole balance by 1st Jan 2023 

Wont lie its been hard and Covid did not help, so come Christmas we are going to be having conversations about what next and were giving serious considerations to either Selling or Renting out the house and getting a van and doing a conversion and travelling for a few years.