the long path to mortgage free freedom

Hello everyone
I've been an mse'r for many years now and it's helped get us through some sticky situations. at the moment we are in a reasonably good place in as much as we dont have debt, although we dont have savings either. so the new plan is to have a plan :o
I'm hoping writing it down and having peoples suggestions will keep me motivated :D so here goes:

step 1 : emergency fund we are starting this at £500 then increasing up to £1,000
step 2 : pay off mortgage as soon as possible currently 21y 3mnth :(
step 2b: build up emergency fund to cover 6 mnths essential expenses. at the moment this = £6633
we are going to run 2 and 2b consecutively maybe not the best way to do it but oh's job is pretty secure so we have decided we have the luxury of doing this.

so onwards and upwards as they say i'll post a more detailed breakdown soon.:j
:coffee:i find a cup of tea can solve most problems:coffee:
:dance: but alcohol solves them all :dance:
basic emergency fund 387.87/500
£1000 emergency fund #290
mortgage 91,719= 21y 0mnth :eek:
6 mnths exp 0/6633
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Replies

  • LadyGnomeLadyGnome Forumite
    683 Posts
    Sixth Anniversary 500 Posts Name Dropper Combo Breaker
    ✭✭
    Welcome and best of luck on your MFW journey.

    There is no one right way to do things. So if you want to run 2 and 2b concurrently (i wasn’t sure if you meant this rather than consecutively- spot the lawyer in the room :o) then go for it. Psychologically even small OP whilst filling other pots helps you feel like you are making progress.
    Mortgage
    Start Nov 2012 £310,000
    Aug 2021 £174,115.10
    Reduction £135,884.90

    End Sept 2034 (but I have a cunning plan...)
  • i've worked out our new budget it took about 4 hours and i now have detailed printouts and spreadsheets (yes thats the kind of person i am lol)
    i'm going to follow the dave ramsey approach of cash envelopes but tweek it slightly so the larger budget amounts are put into accounts ie: christmas, holiday etc.
    as i've been following mse for a long time I know theres not much we can change in the budget to gain more money, we are already on the cheapest provider for energy ( cheap energy club member)and I use comparison sites and cashback sites to get the best deals for insurances etc. I have also just rang virgin as we were out of contract and got them to reduce us back to our original new customer deal for another year.
    there are some things we might be able to change
    1) food bill. last months food bill was £200 for 2 adults and 2 kids and 1 dog I need to try and half this.
    2) water. we have a meter and 2 water butts for the garden so hopefully using less will help.
    3) energy. we are on the cheapest deal so using less here also.
    4) selling what we can
    if anyone can point me in the right direction of some challenges that might help I would appreciate it.

    the second step is to remortgage however this is going to take a bit of research. currently we are nearly 4 years in to a 5yr fix at 3.15% it was a good deal for our circumstances at the time but we can now get something much cheaper. however we have early repayment charges at 1% of the balance per year and a new mortgage will have set up fees so some maths is needed to work out if we should remortgage this oct (when the early repayment drops to 1%) or wait till next oct when we will be free to leave.
    i'm motivated at the moment however its going to be a long journey.
    :coffee:i find a cup of tea can solve most problems:coffee:
    :dance: but alcohol solves them all :dance:
    basic emergency fund 387.87/500
    £1000 emergency fund #290
    mortgage 91,719= 21y 0mnth :eek:
    6 mnths exp 0/6633
  • LadyGnome wrote: »
    Welcome and best of luck on your MFW journey.

    There is no one right way to do things. So if you want to run 2 and 2b concurrently (i wasn’t sure if you meant this rather than consecutively- spot the lawyer in the room :o) then go for it. Psychologically even small OP whilst filling other pots helps you feel like you are making progress.

    Thank you ladygnome yes thats what I meant lol :D . I'm very impatient so I think the achievement of seeing the mortgage drop will keep me motivated. although i'm aware we need a safety net.
    :coffee:i find a cup of tea can solve most problems:coffee:
    :dance: but alcohol solves them all :dance:
    basic emergency fund 387.87/500
    £1000 emergency fund #290
    mortgage 91,719= 21y 0mnth :eek:
    6 mnths exp 0/6633
  • Good luck! I'll be following with interest. Worth shopping around for a good remortgage deal (whether you wait till end of current deal or not. ) You can significantly cut your monthly payments that way and either overpay or alter the length of your mortgage. Wish you well!
  • BoredBored Forumite
    341 Posts
    Part of the Furniture 100 Posts Debt-free and Proud!
    ✭✭
    Good luck on your journey! I also want to save an emergency fund and overpay the mortgage. At the moment I am focusing 100% on the emergency fund but I am very tempted to start with a few small overpayments alongside my savings.
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
  • moneysavingfamilycompmoneysavingfamilycomp Forumite
    658 Posts
    Part of the Furniture 500 Posts Combo Breaker
    ✭✭
    regarding re mortgage i've had a look at the mortgage calculators and best buys (obviously i'll have to re do it in oct)
    at the moment we seem to have 2 options to weigh up
    1) 1.49% with £999 fee's which will need to be added in + early re payment charge of £920
    2) 1.98% with no fee's apart from £920 early repay.
    I can't decide if when we do it it's worth paying fee's which will need to be added to the mortgage in order to get the cheaper rate. at the moment our rate is 3.15% !! so both ways will save us the cost of the early repay charge + more over the first year alone.

    i'm not officially starting my budget till monday 1st July as thats when most of my direct debits come out. at that point anything left in the account above the amount of the couple of DD that come out the following week will be taken out so that I can start from a zero point for the month. I'm hoping I can pay off the last £25 that is on the CC over the weekend (i'm waiting for a couple of people to pay me what they owe) then I can close it and we will have zero debt. it was opened as a 0% balance transfer to clear debt. I have another card with no balance on which I will keep open as an emergency back up until we build up the emergency fund. i'll put a little update in the next post of what i've done today.
    :coffee:i find a cup of tea can solve most problems:coffee:
    :dance: but alcohol solves them all :dance:
    basic emergency fund 387.87/500
    £1000 emergency fund #290
    mortgage 91,719= 21y 0mnth :eek:
    6 mnths exp 0/6633
  • moneysavingfamilycompmoneysavingfamilycomp Forumite
    658 Posts
    Part of the Furniture 500 Posts Combo Breaker
    ✭✭
    thursday 27th
    ways I've cut expenses today

    1) walk the school run to save on diesel
    2) washing dried on line to save using dryer
    3) dinner made from freezer stock
    4) yellow sticker items bought to go in freezer to stretch food budget
    5) just about to check surveys on swagbucks
    6) 1p, 2p and 5p out of purse into relevant saving jars.
    :coffee:i find a cup of tea can solve most problems:coffee:
    :dance: but alcohol solves them all :dance:
    basic emergency fund 387.87/500
    £1000 emergency fund #290
    mortgage 91,719= 21y 0mnth :eek:
    6 mnths exp 0/6633
  • moneysavingfamilycompmoneysavingfamilycomp Forumite
    658 Posts
    Part of the Furniture 500 Posts Combo Breaker
    ✭✭
    friday 28th

    1) walked the school run i'm determined this will become the norm as it will save about £20 a month in diesel :eek:
    2) all washing dry on line again so no dryer
    3) a couple of payments came in so paid off CC
    :j WE ARE OFFICIALLY DEBT FREE :j
    4) made a couple of small sales from our home business so that will go straight to the emergency fund i'll update it next week.
    5) curry in the slow cooker for dinner. had to buy the sauce but had chicken and naan in freezer and rice in cupboard.
    6) OH has managed to find an offer for a family cinema ticket for £10 so we are taking the 2 kids to see toy story 4 tonight. i've bought 3 bags of sweets for £1 OH and I will share lol so will work out as a nice cheap treat night.
    7) reduced arranged overdraft on my account from £800 to £400. I never use it its only there to cover DD in case of a complete disaster so it will help reduce our available credit.

    to do

    1) submit meter readings tomorrow so they dont estimate the bill. it has to be done no more than 3 days before the bill date so hope i've timed it right.
    2) ring CC and cancel to reduce our available credit more before we look into re mortgage.
    :coffee:i find a cup of tea can solve most problems:coffee:
    :dance: but alcohol solves them all :dance:
    basic emergency fund 387.87/500
    £1000 emergency fund #290
    mortgage 91,719= 21y 0mnth :eek:
    6 mnths exp 0/6633
  • LadyGnomeLadyGnome Forumite
    683 Posts
    Sixth Anniversary 500 Posts Name Dropper Combo Breaker
    ✭✭
    Congratulations on being debt free _party_
    Mortgage
    Start Nov 2012 £310,000
    Aug 2021 £174,115.10
    Reduction £135,884.90

    End Sept 2034 (but I have a cunning plan...)
  • beanieloubeanielou Forumite
    77.7K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    ✭✭✭✭✭✭
    Good news on being debt free :)
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
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