The Crossover Point

Zola.
Zola. Posts: 2,204
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edited 1 November 2021 at 10:44AM in Mortgage-free wannabe
I thought I would make a shiny new diary detailing my family's journey to the end goal of becoming debt free.

Five years ago my wife and I bought our first home. After a lot of saving, we put down a decent deposit and entered into a five year fix at 3%. A year ago, my wife gave birth to a beautiful little boy and he is keeping us really busy and brings a lot of joy, as well as sleepless times ;)  OH works in Account Management, I work in IT & Marketing.

The five year fixed deal is almost up and we have just agreed to enter another five year fixed deal at 1.9%.  I know rates could go down, but it still feels like such a good deal and I like the stable monthly cost.

Over the past five years, we have over paid by around £6000, which has made such an impact... we now owe around £106,000, soon to be in the five figure club!!!

We plan to over pay each month once the new deal starts, as well as investing on the side.. 

The theme of this diary is our journey to mid 2025, where I have projected (health and God willing :smile: ) that our mortgage balance (including the overpayments) may meet a point in our S&S ISAs where we have enough to pay off the mortgage (as long as there is no huge market crash between now and then, also assuming 5% returns).

I don't think we would actually pay off the mortgage, but it would be an amazing goal for us to achieve, to at least have that choice.

Until then, I will aim to document frugal hacks we discover, ways to side hustle for extra cash on the side and anything else which positively pushes us towards our goal.

I hope I can provide some fun discussions, value and interest to people on a like minded path!

Cheers!
Zola  :)

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Comments

  • Grogged
    Grogged Posts: 865
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    Good luck on your journey and (belated) congrats on ds.
    Looking forward to reading about your journey.
    G.
    If it's not adding up, compound it!
  • tinah
    tinah Posts: 48
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    Good luck on your journey. Anything you repay will be worth it in the end. Looking forward to reading how you get along.
  • Zola.
    Zola. Posts: 2,204
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    Thanks @Grogged & @tinah:)
    I have signed and posted the offer for mortgage renewal which will kick in from April  B). Looking forward to updating my Google sheet when the first few payments go off to see the total owed drop a bit more aggressively!
    Quiet weekend at home with the family, weather is too poor to go anywhere...
    On the side hustle front, I recently built a simple website for a small startup company which netted an easy little sum of £400. This allowed me to use the cash for groceries and boring things like car fuel without touching the joint account. If only I had one of those little jobs every month!


  • Grogged
    Grogged Posts: 865
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    Just checking in, how'd February go?
    If it's not adding up, compound it!
  • Grogged
    Grogged Posts: 865
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    February was Ok, March has been interesting...
    I'd been able to move my underperforming SL pension to Vanguard before corona hit.
    I now have the joy of investing the cash... 😱
    To be fair, I'm drip feeding it in on daily basis into a mix of VG funds, so it's not tanked, just dented! 😂
    My preference is the Global All Cap over the FTSE Developed World, but it's as broad as it is long.
    As I've only just set up my DD, I'm leaving them alone for the mo.
    Other than that, like you tending to the super quiet weekend...
    ATB g.
    If it's not adding up, compound it!
  • Hello Zola., 

    I have booked your diary and look forward to seeing how you get on and keeping an eye out for hacks and side hustle tips! Good luck!
    MFW - #133 - 2020 Challenge - £1230.67 / £1159
    MFW - #133 - 2021 Challenge - £1328 / £1270
    MFW #56 - 2022 Challenge - £325.35 / £1296
    Mortgage began Jan 2019 - £115,900
    Mortgage Currently            - £105,160
  • Grogged
    Grogged Posts: 865
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    Hello Zola, as you've not posted here in a while just touching base.
    Keep safe.
    If it's not adding up, compound it!
  • Grogged
    Grogged Posts: 865
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    I think it would be fair to say it's had its downs and ups! 😆
    Really pleased to see you're still about and had the opportunity to be with toddler at such an important time in their life.
    My SIPP and ISA also tanked in March, but have since recovered.
    Must say that everyday is starting to blend into meh?day, whilst I'm enjoying working from home, I do miss the office.
    If it's not adding up, compound it!
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