5 years to freedom

haras_n0sirrah

Hello everybody. 
I have always overpaid a bit but the current situation has made me realise that more than anything I really want to own my home in full. Ironic I hate having a mortgage when considering my job. We are in our forever home - I am 36 and husband is 43. We have two boys 4 and 7. If anything lockdown has made me realise that shiny stuff isnt important and experiences and family are worth more. My husband has had to give up work to look after our children as I couldn't do it all while they were off school for 6 months - my 7 year old is autistic and quite a handful and within 3 days of my husband returning to work from furlow it was clear that he had to leave work. I am self employed so my income is variable but I am very fortunate that my work has not been overly affected by covid and if anything I am busier now than ever. My husband is looking after the children and the house while I work full time and he also helps me with some basic admin for my business. 
When we bought the house in 2014 our mortgage was 180k. It is now 143k so we have made great strides over the years currently with 18 to go. Losing an income isnt ideal but my income potential is higher. He may return to work when things go back to normal but with the current risk of the kids being sent home for 2 weeks at any time once they do go back to school it will be a while until he does. He is happy for now (3 weeks in) but let's see what happens when the novelty wears off.
Anyway crunching some numbers I have worked out that if we overpay by the maximum 10% we will be clear in 5 years. That is quite an incentive and could mean that I dont have to work as much. A bit of short term restriction (OP of 1300 a month) and we then know that no matter what our home is safe. So I have set up a standing order to OP 1300 a month - at least then it can be amended if needed.
Wish me luck 

financialfreedomxo

Welcome fellow MFW! 
I have to say, it's quite awesome that you've taken the (HUGE) first step of making a mental decision to want to be mortgage free. I believe that's half the journey done already. A £1300 OP is a lot esp on one income but I'm sure you'll make it. For me, since I have made the decision to be mortgage free I've realized spending money is now a mental conversation of "Do I really need this dress or, would I rather be mortgage-free". This has helped me put money aside to start OPing. 

haras_n0sirrah

Thanks. 1300 a month is challenging but achievable as long as nothing disastrous happens in the next 5 years. I am fortunate that I earn very well and last year just about hit 6 figures. My mortgage is in 3 parts, one for each house move and the additional borrowing that came with it. Part one is the original borrow back one from 2008 when you could overpay and have the overpayment back as a lump sum. I have paid down to £135 but if I needed to I have access to 68k in the borrow back fund from previous overpayments made so with this emergency blanket in place i feel confident that we can hit this hard. Sadly the other two parts don't have borrow back so once paid in it is gone which is why I haven't been hitting this so hard after almost clearing the flexible part. But earning 0.5% in a savings account refocused the mind somewhat 

jenni_fer

Welcome and good luck!
Hope OH continues to enjoy being home, it's been a strange time for everyone but it really does focus the mind and make you reassess what is important.
It was the 'borrow back' element that attracted us to switching to an Offset, sounds like you've got a decent emergency option though.

helensbiggestfan

Hello, thought I'd drop by.  Yes it's been lockdown that has really helped me to focus and make the decision to really crack on and get rid of my mortgage.  And as you say savings rates are so pitiful it does seem to make sense to use any surplus to pay make overpayments.  

Good luck. 

haras_n0sirrah

So first overpayment has been made - I have set up a standing order for the 10% allowed and the first of 60 has now gone out
£1325 overpayment made and new balance of 141777
Although now we are considering an extension - question is do we do it now, increase the mortgage and then pay it off or wait a number of years. It will be done at some point
Decisions decisions

helensbiggestfan

Well done. That's a great start.