Chasing the Dream

Narola1976

As the title says I am chasing the dream to be mortgage free.

When we first bought our home, we were relatively new to the UK and didn’t know a lot. But it was the days of 100% mortgages and we had a limited time in which to use the offer so we bought quickly.  Not the house of my dreams, but it is ours. Stupidly paid interest only for the first 3 years so lost that time - did I mention we were as green as grass?? But we have made decent progress since those early days, thanks to all the interests rate drops. Our interest rate is guaranteed to never be more than 1% above the base rate so you can imagine. And we have been overpaying for years. Not a whole lot, but enough to make a difference

So the figures:

Loan Amount: £89,000 over 30 years
Current Balance: £38,435
Projected MFD (at current interest rates according to MSE calculator) : March 2025 (coincidentally my current DFD too!)

It was great to see my interest go from £50 to about £35 with the new interest rate, appreciate it will go up at some point which will affected the MFD. I wish we could overpay even more than we are now, but I am also on a DFJ so unfortunately could not make any further payments.

I often thought that I wanted to get a better house in a nicer area but the truth is I just can’t face having a mortgage for years and years. If things go to plan, I will be mortgage free by the age of 49/50 assuming interest rates do not spike. How great it would be if I could give myself that as 50th birthday gift! Anyway, though my house needs a lot of work, I told my DD that I would rather save up to fix the house than start paying again for a mortgage. I apologised in advance that the house she will inherit one day won’t be grand, but hey, we’re 1st generation immigrants and isn’t that how it goes?  We make a start for her to build on?  The thought of not paying for another 20 years is very tempting. And you know, even if I were debt free, I am not sure I would feel any different. 

So I am chasing the dream...wish me luck

Narola

Youthgonewild

Oh fab, your MFD isn't too far away. I wish you well on your journey x

Narola1976

Morning, so a quick report on figures as mortgage payment has gone out today:

Previous balance: £38435
Payment: £400
Interest : £35.91
New balance: £38071.09

Nearly out of the 38’s. I wish I had more money to throw at it, but the DFJ is the priority right now. Have a good day all

LeighofMar

Welcome. We have similar balances and I hope to be done in 3.5 years when I'm 45. You are so right. What better present to give ourselves than decades of mortgage freedom? I also agree that though my house is cute, it is certainly not grand or fancy, but we like fixing it up to our taste rather than looking for another house and starting the process all over again. Will follow your diary with interest. 

Narola1976

Thanks for stopping by @LeighofMar

Wow, 3.5 years is around the corner.  I am sure it will be a great relief to know your home is secure. That is what motivates me not to chase after a nicer house. And you know its not just the mortgage payment you save, its also the life insurance policies and income protection payments alongside. I pay another £60 or so for these. 

Have you got a diary, I can follow you in return. 

LeighofMar

So true Narola. It is always more than just the price of a newer house itself. 
Yes, I'm on Cottage Countdown and usually ramble about something every Thursday when I make my OPs.

Thick_n_Thin

Welcome and good luck! X

Narola1976

New month and a chance to update the figures 

Previous balance: £38071.09
Payment: £400
Interest : £34.42
New balance: £37705.51

I am so happy to be out of the 38’s !!!

longway2go

Nice to wave the 38s away 

LeighofMar

Way to go. Every 1K bracket feels so amazing, doesn't it? When I'm making OPs, if it takes me to $38,000, I have to put in an extra dollar or two so it reads $37,99X.00 

Hazelnutty

Welcome NArola! It's a lovely group here and there's lots of support and encouragement