Mortgage Free Sooner rather than later

eternal_sunshine

wow you are doing great! Brilliant to see the comparison year on year-so motivating! How have you been working out what term you have left? I feel like I’m being a bit thick but can’t really work that bit out-500 overpayment for me takes a month off the term so is it just a case of keeping track of what I have OP’d and converting it to months? I only get a mortgage statement every year,I wish I could see through online banking what the term was so that I wouldn’t need to work it out myself lol.

family355

Thank you @eternal_sunshine, My mortgage is with Santander so I can see everything online other wise I wouldn’t have a clue either 😂 
I also use an overpayment calculator on ‘themoneycalculator.com’ -mentioned by someone on these boards. I often input money I don’t have just to see how quickly I could pay off the mortgage😆

family355

I have spent far too much time lurking and not updating...
Like a lot of dairies I have read, We have been haemorrhaging money over the last few months due to stay cation/ spends, trips, annual insurances & school uniforms at £250 not including shoes as they still fit (for now) Both cars have needed work so I have had to shuffle 1250 out of bonds to level out and add to the credit card 😭 

Our 18 year old has an apprenticeship so is now financially independent of us. She also didn’t want to come away with us so we had the benefit of her dog sitting!

Mortgage stands at £91,080 with 15y 9m remaining. The standing order of 137 odd remains, then a tidy up is all we have managed. We will reach the 80’s by the end of the year. 

My main focus is to clear the credit card and build up the holiday and annual bills pots as this has knocked me off track this year. I am really sick of looking at that credit card balance on my online banking! Currently £3145. It needs to go!

family355

Forgot to add I did purchase the robbo vac thanks to @eat_that_frog, he (Barry) has been a very welcome addition to the household especially with the new to us dog. She sheds constantly! 

family355

After 18 months of payments, I’ve officially hit the 80’s..£89,970.13. Term left 16 years 6 months. I’ve always rounded down and shaved the pennies off the end but I have been trying to get the credit card down so the odd figures may have to stay this month 🙃

Credit Card (grrr) is now at £1675, I’m so tempted to take money out of bonds to pay it off but it is still at 0% until next November 🤔 (Fee free balance transfer with my bank) The credit card is like putting on weight, so easy to put on but such an effort to get off! 

The last win for this year is all of our annual insurances/bills have been paid upfront so no additional direct debits. I also have started a pot for these for next year @ £125 per month. 

My other pot is a holiday/trips fund as this is where we became unstuck, £333 per month. I’ve paid a deposit for Cornwall, Center parcs and my DD D of E payment out of this.

DD birthday this month and Xmas has no funds in the pot. This is not good! 

I was hit with a tax credit overpayment from a few years ago (knew at the time but it just went into the black hole) so now paying £100 a month back until June. Again wondering whether to clear this out of bonds so I can start 2022 with no debts and free up £200 per month?

When I found MFW we were in the first lockdown, it felt so easy to transfer ‘surplus’ money over to the mortgage but this has got harder and going slower than I’d like. I’m constantly conflicted between MFW ( /DFW) and not taking memories and experiences away from family life. The goal is still there and at least if I did nothing else it will now still happen sooner rather than later 🙂

family355

Checking in with end of year totals as feeling quite deflated at the minute on the overpaying front. I’ve cancelled the OP direct debit as we need to get better with the monthly budget along with saving for those annual costs. 

Having a nightmare as both cars are off the road, mine looks like it can be fixed for £500 but it’s already had £800 spent on it in the last 12 months and does not fit us all in. It is my work car😭 The other-we have been advised to trade in and get what we can for it which is around 8-9k. Looking at used family cars prices this isn’t going to replace the family car without additional funds. 

OH has just landed a new job with slightly increased pay, a better pension and within walking distance so £120 month saving on fuel! Also means from the new year we could manage for a while with one car, just need to get through the next few weeks...

*Mortgage is sitting at £89,545-Total OP 2021 has been £2054.11. Term left 15 yrs, 5 mth. 
*Credit card OP in 2021 has been £5650-now down to £1650 Owing. I wanted to shuffle cash out of bonds to pay this off but will hold off for now until the car situation is resolved. 

*Bonds are at 8k 

We’ll be due to remortgage in June so hoping interest rates don’t shoot up!
Have got around 2k in pots to sort the car and get through Xmas. 

Next year I’m aiming to tidy up the mortgage with very small monthly overpayments, fill up all of the annual pots, pay off the credit card and put any extra in bonds. Hopefully this will get us back on track to increase mortgage overpayments 🙂

savingholmes

Just caught up on your diary. Well done on your progress with the mortgage and the debt. Hope you get your car sorted soon. 

family355

Thank you savingholmes, had the repairs on my car last week but it broke down again last night! It’s a money pit! DH car is going for a second opinion on Wednesday so fingers crossed we can salvage one car out of the 2 for the next 8 working days 🤞🏼 

savingholmes

Ouch - not what you need at all so close to Xmas.

family355

The start of the year wasn't great with an operation at new year, life doesn't seem to have improved much...

Financialy I'm still holding onto the MFW dream but this is small payments each month to tidy up the balance. I had hoped to have knocked a year off the mortgage but that hasn't happened. It's sitting at 15 yrs 2 m (would be at 16 years with no op's) 

The credit card has reduced to £780 but so have the bonds, 5k now. 

The cars have caused the train to derail, we decided to 'fix' both cars to keep them on the road...they are still on the road but not exactly fixed with emerging new problems. We are going to replace mine, it's just not worth throwing any more money at it. The way used prices are, it is looking like we need a loan to get anything that will suit us. We just don't think 1 car will be practical for us even though DH new job is close, the working hours plus kids activities will just cause too much hassle. Have had some helpful advice from the motoring board so will be starting the search this weekend. 

Have a wedding abroad next week having been rearranged 3 times, looking forward to a break.