Single gal balancing my way to mortgage freedom!

Sistergold

Wow six months off! That’s so much progress! Well done! 

frankersBri

Thanks @South_coast that gives me a better idea! I mean, I'll know in like 50 hours when it hits my account, or maybe before if they sent the wage slip a bit before. The suspense is killer, but I'm certainly feeling lucky that I have the opportunity to get bonuses at the moment. Won't last forever!

Yes, quite a good lump up front @Sistergold! Honestly, I was not expecting to be able to make such large payments this early, but I may as well make the most whilst I can. I'm focusing on that these larger payments, whilst I can make them will make som significant progress, but it's the little and frequent payments that will slowly nibble away at the balance and reduce the whopper interest that is payable!

Peaches113

i feel you I feel your pain @frankersBri I’m currently in same position having had it confirmed but no details on the number. I usually google salarycalculator As you can put in what your tax band, student loan etc is and it spits out a number. Just remember if it takes you over a tax banding you’ll pay a big fat chunk but then pay less income tax in the following couple of months (which really just means you get to make more OPs 😂) 

Sistergold

@frankersBri
The good thing is the sooner you make any overpayment the more you will save on interest in the long 🏃‍♀️ run so keep it up. Big lump sum plus chipping away sure is a recipe for zero balance sooner than later! 👏🏾

frankersBri

So I can see my pay pending in my current account, total amount a little higher than I expected which is nice! So I am hoping to be able to make a chunky OP of ~£6k tomorrow. I#ll work it properly once it's in my account and I do my budget updates on YNAB. But very exciting!

I used YNAB to manage my budget and finances month to month, but I'm looking for a spreadsheet where I can track my mortgage balance, which can account for regular and one off OP's. I'd like to keep a monthly record and have flexibility to play around with my numbers. Has anyone seen anything like this available on MSE or elsewhere?

Sandyra

Hi FrankersBri

Just wanted to stop by and say excellent work on major lump OP. I’ve never heard of YNAB but I’d be interested in an spreadsheet that would manage that too. I use https://www.themoneycalculator.com/mortgages/calculators/mortgage-overpayment-calculator/#!/dealfinder/mortgages/
to give me a monthly breakdown as lender calculators tend to do yearly overviews. So I have an idea of my target changing every time I make an overpayment. 

There’s probably something out there better than this.

frankersBri

My final update for May an I made a £7k OP, which if you'd asked me at the start of the month I would have been doing I would have laughed in your face! Takes me to almost £10k paid off this month, before my first direct debit payment is even taken  Super excited to have paid off 5% of the original mortgage total though, that feels like a great milestone!

Thanks for the suggestion @Sandyra; there are quite a few like that that let you put in a monthly fixed amount, but as I think I'm going to be doing hopefully a small fixed amount each month combined with intermittent smaller payments during them onth (and hopefully bigger ones if work keeps going well), I have not found anything that can account for such variable OPs!

I built a couple of Excel trackers yesterday, but pretty sure some of my calculations are wrong! In one I've tried to account for the daily interest. I think the interest is calculated daily so this should give me an idea of how it's reducing as I make payments on specific days. But doesn't really give me an idea of the long term - one row per day for a 21 year term would be a big spreadsheet! I think I will just use this one to track and try and understand what is going on; TSB seem to update the total of mortgage balance in online banking fairly regularly, so I can use that as a sense check. Currently, I'm only £30 out from their calcs, and I am hoping this gets narrower as my OPs are less erratic. This does seem to show that I've brought my daily interest down from £10.15ish to £9.63ish, so that's another metric I like to see! 

The other one I have built is on a monthly basis. Again I have tried to calculate the interest added each month, so then I can work out what the capital repayment is. Challenge is as you OP the interest goes down and the capital repayment goes up so it's tricky to work out specifics. Well it is at least for me! For this one I've tried to model out what the 2 years on the fix look like, and then put in what the SVR payments would be based on my mortgage offer (although I will likely remortgage and not go onto that high rate!). But with this it seems to show I have taken 33 months off the mortgage with my OPs to date, which can't be right when other online calculators say I've only taken 16 off. But either way, big reduction in term, yay!

Anyway, I am hoping that these spreadsheets help keep me motivated as I can model things like "ooh, shall I increase my regular monthly OP to £250, what will that do to the interest and the balance at the end of my fix?". I think I'll not use the "reduction in term" as a fixed measure as things change. I guess also when I remortgage I would reduce the term? Or do people keep the term and then keep overpaying, and at the end of the very long road just make sure they are coinciding paying the final balance once no early repayment charges are payable? That is a LONG way off for me, but you can see where my mind builds to 

josephine82

That's a brilliant achievement; I also love a spreadsheet to 'model' what might happen next! I took a 5 year mortgage deal when i bought my house and I have 2 years left, so will be interesting to see what the interest rates will be in 2022; I'm hoping I will have paid off a significant chunk off mine in that time; nothing like a target date to motivate you! 

Jessy103

Fantastic OP, well done!

Sistergold

frankersBri said:

My final update for May an I made a £7k OP, which if you'd asked me at the start of the month I would have been doing I would have laughed in your face! Takes me to almost £10k paid off this month, before my first direct debit payment is even taken  Super excited to have paid off 5% of the original mortgage total though, that feels like a great milestone!

well-done you!  💃🏾🎩🥳✍🏼🎉