Plan B to being mortgage free
After reading many of the MFW diaries over the last few weeks I felt inspired to give it a go. Worst case scenario I don’t hit the target I’ve set but we’re further ahead than we would have been just making the monthly repayments, right?
At the start of the year we had a plan – clear our £104,675 mortgage (twenty six and a half years left) in three years. This should have been pretty straightforward – DH is self-employed and I work for him doing accounts and admin etc. We get paid the minimum we need to pay our day to day bills but usually get to take dividends of about £30,000 so between these and the monthly payments and some OPs the mortgage should have been cleared with relative ease and only a bit of belt tightening.
Fast forward to now and obviously the world is a very different place. We know we are very fortunate – I’ve been furloughed since March and at home with the kids (I’m looking forward to September!) and work has been plodding along nicely if a little quieter than normal for DH, fingers crossed this will continue.
Once this was cleared we would then look to either move house to our “dream home” or stay in the house we’re currently in until we downsize once the kids have left home.
Now we’re feeling that we should be more cautious and rather than throwing every penny at the mortgage keep something back just in case recession hits hard as essentially we’re a one income family. But at the time still trying to clear it as quickly as possible so we have more security for us as a family.
I’ve joined the July Grocery Challenge as we’re always seem spending a fortune on feeding the five of us. One good thing about lockdown has been less takeaways as everywhere shut – although you wouldn’t be able to tell from my waist line! Hopefully there’ll be some money left at the end of this month to either add to the savings or pay off the mortgage.
This week I increased the £150.00 OP to £151.15 to make the overall payment a nice round £600.
Now I’m off to read more diaries – at least it’s a healthy addiction!
Grocery Challenge July £468.97/£500.00 August £137.55/£500.00