Thirty something dreaming of not paying mortgage

Mrs_Money_Penny

Brilliant your doing so well.Enjoy the kitty x

South_coast

kaycastle said:

Not sure what else I can do really apart from continue to work, save and pay off the mortgage

Yep, that's about it....

....Until you have a truly awful day at work, get depressed, go home, do a lot of soul searching, put your heads together, do some number crunching, do some more number crunching, come up with a crazy plan to pay the mortgage off in a ridiculous timescale so you don't have to do that work any more, get really fired up about it, and end up paying it off faster even than that 😀😀😀

MrsLovely

kaycastle said:

Hi All,
It's been a while I've had a summer of cycling and relaxing.
Work still stressful but I'm plodding along and thankful to have a job. Putting the money to good use. We got a kitten which has been amazing, I love her and nurturing.
I've kept up with the 1000 overpayments which means we will be under the 200k mark in october which feels fantastic. Wfh saves tons of money. 
I've got about 14k in savings too.  I think about 15k in pension. One more year and I'll be 30. 
Not sure what else I can do really apart from continue to work, save and pay off the mortgage.

Hi Kaycastle, take comfort that you are not alone. I too seek solace and motivation from my spreadsheets when times are tough. You must dig deep as there will be tough and easy times. Make sure you take lots of time to do nice things that make you happy and time out to give you head space for the working week. You are doing so well. 

L9XSS

Just happened by your thread, I had a similar mortgage to you, a little bit less, 30k deposit and 195k over 25 years..........in 2008. Fast forward to 2020 and I have 4 years 7 months left, in essence it will be gone my May 2022, so 11 years early.
like you, I overpaid, increased the mortgage payment when I got promotions and decreased the term. I balanced where I could extra pension payments, personal and workplace, now prioritising pension heavily!
good luck with what you are doing, it’s an amazing feeling!
Becoming (nearly) mortgage free, will allow me to retire earlier too!
its a lifestyle choice but one that I’m glad I took in 2008. The support on here is immense!

kaycastle

South_coast said:

kaycastle said:

Not sure what else I can do really apart from continue to work, save and pay off the mortgage

Yep, that's about it....

....Until you have a truly awful day at work, get depressed, go home, do a lot of soul searching, put your heads together, do some number crunching, do some more number crunching, come up with a crazy plan to pay the mortgage off in a ridiculous timescale so you don't have to do that work any more, get really fired up about it, and end up paying it off faster even than that 😀😀😀

Haha totally feel you, work sucks and cant believe how many horrible people there are in this kind of industry I'm in. If it wasnt for how awful people are I would like work and not be in such a rush.

Thank you everyone for the boost. It really is so lovely to hear. I wonder if I can squeeze more money out of somewhere. Well done everyone on your hard work!!

kaycastle

I did run calculations for stretch targets for the mortgage. 
I currently earn £3100 a month. I overpay £1000, and I put £650 into savings every month so I have about 1450 left. The standard mortgage and bills that absolutely can't go away like energy, internet etc. take me down to £863 left on food, non monthly bills and other spending. 

I don't think I'm comfortable increasing the overpayments anymore but I am comfortable putting more in savings to possibly earmark them for paying off the mortgage at the end of a fixed term. I will certainly be putting any bonuses I get from work straight into savings.
Possible options I've explored:
- Keep doing what I'm doing and I'll definitely be mortgage free by the end of 2029. 
- If I wanted to be mortgage free in 2024 at the end of our 5 year fixed. I'd have to literally be saving all my money every month. I'd have to save £2000 a month, £1350 extra than what I do now. Which would leave about £100 for fixed bills etc. so that's fairly unlikely haha. But it was still a fun calculation to do. Now I can dream of a pay rise which is definitely not happening any time soon  
- If I want to be mortgage free in 2026, getting a 2 year fixed after 2024. I'd have to be saving 964 a month which is 314 more than what I pay now. This could be very possible, especially if I talk to my husband about possibly him doing a payment into our "mortgage pay off bucket" as well. 

So the goal is to find £314 in that £863 I spend each month on food and other things. 

I shall continue crunching and reviewing and post part 2 of whether I can saving the extra £314. 

South_coast

Ooh, that sounds nicely do-able 😀😀😀 I think if it were me I'd be tempted to hide the £314 in a different (but accessible) account on payday and see you how get on without it, rather than trying to make sure it's still there at the end of the month. But as I've said on my diary, my brain operates much better with scarcity than abundance!

kaycastle

Omg I'm so !!!!!! off about the ns&I rate cut  

I think that's exactly what I'll do, I'll budget and move it at start of month otherwise it will disappear haha

kaycastle

Just a couple of months ago I set up the ns&I account and moved things and now that was totally pointless.

£314 to find in budget I haven't sorted yet.
I think I'm going to make a new plan to:
- save an emergency fund that would cover me for 1 year for potential future maternity leave cos god knows what can happen in this time.
- save an amount for a future massive holiday when those are back in play
- make a full list of all house improvements to make and furniture wants with estimated cost and full plan
- funnel everything else into mortgage as building savings beyond the above seems a bit pointless right now 

Keep healthy and keep up the exercise

frankersBri

The rate cut is so frustrating! I understand they're simply reflecting the ultra low BoE base rates but it's so frustrating. Are you going to move your savings to another account that pays a slightly higher level of paltry interest?

I've got mine in Marcus still, but feels pointless so I'm doing the same in terms of coming up with a plan for savings and then throw more at debt/pension. Feels fiscally responsible..

Your list sounds fun; particularly the pipedream of a massive holiday when we can travel safely again! Anywhere specific top of your list?

Well done on such accurate planning on what you need to OP to hit specific goals for mortgage repayment.. you've inspired me to take a look too..