Chipping away at large mortgage

52 Posts

Hi everyone, feeling really inspired by all of the diaries although slightly overwhelmed as only seen 2 other large mortgage ones!
I'm doing this diary to try and hold myself accountable to chipping away at the debt. I set myself a goal at the start of this year to overpay £50 per week, but I often forgot to make the payment
I've now set a reminder on my phone for a Monday evening to make the overpayment each week.
Bit of background on me - 35 years old (DH 45) DD 3 years old and currently pregnant with second child due end of Feb. What better time to make sure I'm overpaying the mortgage than when my income goes down to only £600 per month :rotfl: husband thinks I'm crazy but I'm already going to be on a tight budget so I might as well go the whole hog!
We have a London mortgage (huge against most on the board but really not bad for our area) 320k taken out initially, currently 280k. Initial 28 years, fixed 3.39% 2 years. Then fixed 1.83% for 5 years. 23 years 5 months left, but hoping to cut that as much as possible.
Here's the other issue - our house is tiny and we really need more space. I don't like the idea of moving as it's throwing money away on stamp duty etc and we'd be looking at needing another 200k to get the space we want so instead we want to add another 100k to the mortgage debt to build an extension :eek:
More detailed numbers to follow, just needed to start getting this down on paper!
I'm doing this diary to try and hold myself accountable to chipping away at the debt. I set myself a goal at the start of this year to overpay £50 per week, but I often forgot to make the payment

Bit of background on me - 35 years old (DH 45) DD 3 years old and currently pregnant with second child due end of Feb. What better time to make sure I'm overpaying the mortgage than when my income goes down to only £600 per month :rotfl: husband thinks I'm crazy but I'm already going to be on a tight budget so I might as well go the whole hog!
We have a London mortgage (huge against most on the board but really not bad for our area) 320k taken out initially, currently 280k. Initial 28 years, fixed 3.39% 2 years. Then fixed 1.83% for 5 years. 23 years 5 months left, but hoping to cut that as much as possible.
Here's the other issue - our house is tiny and we really need more space. I don't like the idea of moving as it's throwing money away on stamp duty etc and we'd be looking at needing another 200k to get the space we want so instead we want to add another 100k to the mortgage debt to build an extension :eek:
More detailed numbers to follow, just needed to start getting this down on paper!
MFW: Original mortgage £320k April 2014 28 years
Aug 21 balance £262k
May 22 up to £338k (hello extension) for 27 years
Aug 21 balance £262k
May 22 up to £338k (hello extension) for 27 years
1
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Mortgage free date 9th Apr 22 😎
E fund - £10,005/£20,000
None of of have a crystal ball to know what can happen and it would sure make things so much easier for you if there are complications and you have to stay home far longer than you had planned, the funds are there to help.
Emergency fund and life happens fund are far more important than overpaying the mortgage now - in my opinion - once you have those in good standing, then you can concentrate on getting the monkey off your back.
The last thing you need is to have a household emergency and no money in the kitty to pay the bill.
Thank you, I was hoping even the small amount I'm suggesting will make a difference!
Aug 21 balance £262k
May 22 up to £338k (hello extension) for 27 years
Thank you for your comments. I already really cut the spending some time ago and have been putting away £500 per Month into the emergency fund which stands at 15.5k. I have another 3 regular salaries before mat leave so this will be up to 17k which is why i feel I can manage the small overpayments of £50 if I'm careful with spending
Aug 21 balance £262k
May 22 up to £338k (hello extension) for 27 years
Aug 21 balance £262k
May 22 up to £338k (hello extension) for 27 years
Jodles
1% challenge- /1525
MFW 2023 #32 £841.68/£4,000
MFW 2022 #32 £8,246.43/£8,000
MFW 2021 #32 £8,982.73/£8,000
MFW 2020 #32 £12,000/£6,000
Save £12k in 2023 #31 £xx,xx.xx/£6,000
Save £12k in 2022 #32 £7,180.24/£7,000
Save £12k in 2021 #32 £9,500/£8,000
Save £12k in 2020 #147 £9,370/£8,000
I think I have the largest mortgage I’ve seen on this board - £564k. It is quite overwhelming, but all we can do is keep chipping away!
Well done on getting your EF sorted - that’s first on my list to start building up!