Mortgage free by 50 (13 years to go)

danthemoneysavingman

Hi,
was glad to see I'm not the only one thinking about this with a huge mortgage, my situ similar to yours.
I now regularly overpay and been looking how to budget longer term to understand if I can make lump sum payments now (from savings) and pay the savings back instead.
I like the "rounding down to a round number" thinking, which means chipping away that little bit extra.
Every little helps i reckon!
There's always a need for liquid cash though, which is the balance I need to strike!
Good luck, i'll keep an eye out on you!
DtMsM

RS89

I’ve calculated that to hit my goal I need to overpay 600 a month. So anything ahead of that means I’m ahead of the game... we have created an emergency fund of about 6xmonthly income. So now I don’t touch that and the rest goes into the mortgage (well, a regular saver which then goes into the mortgage on maturity - it earns 5% vs mortgage at 3.19).

This goal is my sweet spot - we can do it whilst still going on holiday etc - but any more aggressive and we would have to stop holidays etc for only a couple more years.

Of course if we get any bonus or pay rise that will change the amount...

Does anyone have links to good spreadsheets?

danthemoneysavingman

What do you want the spreadsheets to do exactly?

RS89

danthemoneysavingman wrote: »

What do you want the spreadsheets to do exactly?

Allow me to scenario plan mainly. The calculators on MSE are good but don’t allow me to export the graphs...

chelseablue

Always nice to hear of someone with a bigger mortgage than me we've got £213,000 left

Although thinking of moving further north next year which will hopefully bring it down to £100,000 for a nicer house (bonkers!)

NorthernMonkey1

Good work on the mortgage. With a bigger mortgage over a longer term, even smaller overpayments have a large impact on overall cost. Over 20 years, you're saving £1.87 for every £1 you overpay now.

Mortgage overpayments are a present to future you.

danthemoneysavingman

RS89 wrote: »

Allow me to scenario plan mainly. The calculators on MSE are good but don’t allow me to export the graphs...

I've built one myself.
https://1drv.ms/x/s!AsO9MquegjTwhTFMFra3m01cEm4A?e=d6xZDO

A little rough around the edges perhaps, but let's you try out scenarios.
I even threw in a comparison graph.

Feel free to tidy it up for yourself.

klew356

I have a question, sorry to jump on board... i would like to make over payments, can you just make your monthly DD higher and do it that way or do you have to deposit the money

shangaijimmy

danthemoneysavingman wrote: »

I've built one myself.
https://1drv.ms/x/s!AsO9MquegjTwhTFMFra3m01cEm4A?e=d6xZDO

A little rough around the edges perhaps, but let's you try out scenarios.
I even threw in a comparison graph.

Feel free to tidy it up for yourself.

I love the spreadsheet but it doesn't allow me to edit as it says read only? Am i doing something wrong?

Also - I've uploaded a link to mine and will forward a few notes to help you start to fill in. See if it works for you.

https://docs.google.com/spreadsheets/d/16zL2MWK_3jX6QE6dQk25E2Zj-n-BhXBjD9-rwOlnjuM/edit?usp=sharing

“On the Overpayment Schedule worksheet start by putting in your starting balance in D3 (I've set it at £150,000), your interest rate in E3 (then copy this below in to each month you have that rate for) and your standard payment in I3. All the figures will adjust then. Everytime you make an OP just manually type that into overpayment column.

Its a great worksheet as you can play around with scenarios and future rates, OP's etc.. It helps to then set targets.

On the Yearly Progression worksheet start by putting an opening balance in C3, your standard payment into H4 and then in E4 adjust the formula to your interest rate (the figures on mine end in 0199 which represents a rate of 1.99%, so if you have 2.59% then adjust the figure to 0259).

You can then play around with the reduction required column. I've entered £12,400 into D4 and the formula then tells me in I4 that i would need to average £561.33 overpayment per month to reduce our balance by £12,400 in that year. Again you can experiment with scenarios and long term targets.

Fingers crossed it makes sense, and that the link works!

My advice is to get a quiet space for 30mins, grab a coffee and experiment with figures and scenarios.

danthemoneysavingman

shangaijimmy wrote: »

I love the spreadsheet but it doesn't allow me to edit as it says read only? Am i doing something wrong?

Nope - but you can save a copy - otherwise you're editing my actual file.
Then you're free to edit your copy of it all you like.

PS: If you copied before 15:55 on 14Jun there was an error in the EndBalance formula, now corrected