Update Paid off! - Six years and counting!!

ElmoR

Crash! The £15K barrier is in pieces!!

You are well on course now to meet your aims.

Agree with you - have your DDs do as many experiences as possible. My DD loved horse riding, until she took a tumble and injured her coccyx (ouch!), may that not be on your DD2's experience list!

Happy shopping at sixth forms  

Kat78MFW

I am rubbish at updating this diary!  Had a letter from my mortgage provider this week as we are on interest only and they have to get regular updates from us (about once every 2-3years) to check that we have a plan to pay off the capital.  I rang them this morning and let them know that we hope to pay off the remaining balance from our savings in January once the fixed rate finishes.  The lady on the phone said that you can sometimes pay without penalty in the final month of a fixed rate so there is a tiny chance that we could save up enough over the next six months to make our final mortgage overpayment to clear the balance in December.  Mortgage-free by Christmas? We are almost mortgage neutral already though, even without counting any of the money saved up for the girls.  

Uni savings for DD1 are coming on well now.  I have moved a chunk of her cash savings from the Halifax into her junior cash ISA as her savings rate at Halifax will plummet in July when she turns 16.  We've now got around £13 000 saved for her and we aim to put away another £5-6000 over the next two years for her.  Things seem on track to also have a similar amount banked for DD2 by the time she reaches 18 in 2027, although we don't know yet whether she will want to go to uni.  

We have been trying to do some retirement planning as well as DH would like to retire early at 57 or 58 (8 or 9 years).  So once the mortgage is cleared, I will be putting away the same amount as we have been paying into the mortgage into some long term savings.  He has dreams of retiring to the coast but I don't think we can afford that as well as early retirement!  

DD1 has got offers for 3 local sixth forms, including the nearest girls grammar school.  She is studying hard and her GCSEs start a week on Monday.  She had COVID over Easter which disrupted her revision but hopefully she'll get the grades needed for the grammar school.  

DD2 is still loving horse riding and hasn't yet fallen off!

Kat78MFW

Hope all MFWs have a Happy Christmas and New Year.  We are so close to mortgage freedom now - it's very exciting.  Our mortgage balance is £9945 and our fixed rate of 1.99% ends on 31st Dec.  We had a letter today that we will move onto the SVR of 6.49% on 1st January 2023, with a monthly interest only payment of £54.00. I have switched to a tracker at 1.29% above base rate (so currently at 4.79% with monthly interest only payment of £40).  But I also have £6036 in a savings account plus a £500 Christmas gift from my parents to pay into the mortgage on 1st January. Leaving £3409 to pay off as quickly as possible to minimise the interest.  Can we do it in three months to be mortgage-free by March 2023? 

DD1 did really well in her GCSEs and is loving it at the girls' grammar sixth form.  DD2 has now had a couple of falls of her horse when jumping but is still loving horse riding. She has to choose her GCSE options in a few months.  

Myself and DH are both having a tough, stressful time at work so are very glad to be off for Christmas now.  He has the whole school holidays and I finished yesterday for a much needed eight day break.

ElmoR

You are soooo close! You must be able to smell that freedom for the mortgage??

Good to hear that your DD settled into the sixth form well, it's a tricky transition.

I'm holding my breath now for your updates in the new year...

ElmoR

LeighofMar

Congratulations on being so close to mortgage freedom. It will soon be time to celebrate!

Kat78MFW

Happy New Year! New 4.29% tracker mortgage started today and has already incurred £1.17 in interest. I have transferred £6100 from savings into the mortgage reducing the balance to £3852 so that will bring the daily interest down substantially.

Had a win with a couple of complaint letters about how our credit card company handled a problem that meant interest was incurred twice rather than the balance being paid in full. I wasn't hopeful with the complaint but ended up getting all interest and charges refunded us a £100 goodwill payment for their incorrect advice and multiple phone calls with excessive waiting times. 

I have another £900 in savings which is earmarked for the mortgage but am keeping it in an accessible 2.25% savings for now in case it's needed this month.

Kat78MFW

Mortgage is now down to £1848 after further payments from savings in January but progress has been frustrating since then. Every month there has been a big expense - car insurance, car maintenance and repairs, holidays and deposits, dentist, chimney repairs etc. Don't feel as though we have been frivolous with our money, apart from the holidays but these are UK based and only short (had one night away in the Cotswolds for DH 50th birthday last week). It's getting more expensive because my eldest wants her boyfriend along on holiday too now. She turns 17 next month so we will also have the expense of driving lessons and car insurance at some point. She'd like to get a job but still has too many school, music and sports commitments to be able to fit a job in as well. 

I've got our holiday regular savings maturing this month (with only half needed to actually pay for the holiday as the deposit was paid from our monthly income) plus I'm due a lump sum from work of around £1000. Also £100 from Nationwide Fairer Share. So I'm really hoping that June is the month that I can finally pay off the mortgage. 

Kat78MFW

And.....drum roll......we are pretty much done! Paid the final £499 today, leaving just around 87p to pay off. I realised that I likely needed to speak to the bank about how to pay off the final pennies. So rang them to ask for a redemption statement but they can't see today's payment on their system yet so I need to ring back again once it's showing on my internet banking. 

Cornish_mum

Many congratulations!!! CM

LeighofMar

Fantastic! Any special plans to celebrate?