Debt-free, Stress-free now Mortgage-free Wannabe!

Unicorn_cottage

Hello all!

We became debt-free at the end of January 2020 shortly before the pandemic hit – phew! It was a right slog but we got there.

We are now onto the next phase which is paying down the mortgage. We are due to switch to a tracker mortgage with Nationwide in July 2020 at a rate of 1.69% unless of course the base rate goes up! This is a move from a fixed rate of 2.68% (Bank of Ireland) with horrendous early redemption fees of 5% and a minimum overpayment of £500. I am very excited that the new mortgage allows unlimited overpayments of any value – get in!

The starting point in July will be approx. £121,000 (£121,394.76 to be exact). Am not sure how far we will get as we live in uncertain times and I have been furloughed until the end of May. BUT at the end of the day you need to keep hustling so we are working on the principle that any overpayment is a step forward.

So we are in the starting blocks waiting for July but in the meantime are saving up an Emergency Fund to see us through any of life’s hurdles.

Bye for now

dark^knight

Hi unicorn_cottage, welcome and good luck with your journey. The folks on here will keep you going.

Unicorn_cottage

@dark^knight Thank you! I see from your signature that you are due to be mortgage free this month. Wow! Will check out your posts

Tropically

Hi unicorn!! Good luck on the next step of your journey! 

regularsaver

Good luck @Unicorn_cottage with your journey! 

Unicorn_cottage

Tropically said:

Hi unicorn!! Good luck on the next step of your journey! 

Thanks Tropically. I need to catch up on your diary

Unicorn_cottage

regularsaver said:

Good luck @Unicorn_cottage with your journey! 

Thanks regularsaver! Keep crushing that mortgage!

julicorn

Happy new diary, unicorn!  

Unicorn_cottage

When we first took out our mortgage in 2015 the mortgage illustration said we would be paying back £1.57 for every pound borrowed. HOW DEPRESSING IS THAT ! The cost for the new mortgage it is £1.38 which looks much better!

Over the 5 years of the current mortgage we did make some overpayments of about £8350. Although this is not a great deal it is pretty good considering the debt we were also paying off, that I had a number of !!!!!! jobs and my partner was off work for a period of time due to a workplace injury. We thought we were entering a period of relative calm in 2020 and then BAM! along came the pandemic! Too much musing for a Tuesday night!

Thanks @julicorn for the welcome

bexster1975

Hello

Great news on being debt free! What a perfect time too. I agree completely about little wins. If you are furloughed and have the time, survey sites may be worth a look.

Good luck 
Bexster 

Unicorn_cottage

@bexster1975 Thank you. Will deffo check out the surveys.

Does anyone obsessively run their figures through overpayment calculators? I would love to be mortgage free in 5 years but that is not going to happen as we will be moving at some point, (to be near OH's parents), & well we don't have £1500 a month spare! I am hoping to pay off a minimum of £300 a month if I keep my job lol. Got to keep dreaming...

£300 – will pay off 7 years early

£500 – will pay off 10 years early

£700 – will pay off 11 years early

£800 – will pay off 12 years early

£1000 – will pay off 13 years early

£1200 - will pay off 14 years early

£1500 – will pay off 15 years early