Smashing 300k in 10 years

Options
Hi,

I’m starting this as a little note to myself and putting down a wholly unrealistic target that I’d love to achieve in my wildest dreams.
 
As of today we owe around 305k on our mortgage. I’m 35 and I would love to be mortgage free (or at least mortgage neutral) by 45. My children are in Reception and year 2, so this would align with potentially starting uni etc too. 

I currently work 2 days a week which allows me to be around for my young children, DH works constantly (even when in hospital with appendicitis, over Easter weekend etc and is meant to have a largely office based job) he also works 1.5 hrs from home and is classed as an essential worker and so still continues to travel whilst most other people are working from home. 

We don’t have an extravagant lifestyle, we like nice things don’t get me wrong. 

300k in 10 years seems really challenging - our current payments and overpayments amount to paying about 25k a year - but I’m hoping that as the balance between payments and interest flips it will get easier as hopefully wages may rise too (but so could interest rates)

I have recently found out we can make 10% overpayments a year AND 3x monthly DD payments without ERC so I’m hoping this will help us along the way. 

We have 3 different mortgages at the moment - all with 28 years left to run so I’m focusing my attention on the highest interest rate first

Is this even a realistic target? I guess there is only one way to find out... wish me luck!
[DH doesn’t see the benefits on paying off the mortgage early while interest rates are low but he’s said to do what I think is best]
Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
«1

Comments

  • caeler
    caeler Posts: 2,605 Forumite
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Options
    Good luck! Only you’ll know what is realistic. It sounds like a major challenge but if you want it badly enough anything is possible! 
  • [Deleted User]
    Options
    Hi 🙂

    If you are both on board and totally committed to the MFW journey then yes, it is doable. I am the same age as you, five years ago when I started on this journey my debt was £171k, it is now £65k. My income isn't huge, it just shows what can be done when you re focus the mind completely. My children are in years 2 & 4, and I think OPing the mortgage now whilst they are young is ideal because they don't cost me much! I dread the thought of requests for phones, fancy school trips etc in years to come!

    And just remember - every £1 you OP, is £1 you'll never have to earn again. Now that is a motivational thought. Walk against the tide in our consumerism society - we can waste so much money without even realising it. Maybe post an SOA when you're ready?

    Take care and best of luck xx
  • miss_undastood
    Options
    Thanks Caeler, it will be hard but now it’s written down I feel really motivated!

    ASparklyBlonde that is amazing. Well done. You have done so well in a short space of time. Is there anything specifically that you’ve done to achieve this? I agree that while the kids don’t need expensive gadgetry it’s great to focus on this. I dread the thought of them wanting the latest iPhone or whatever is around then!
    Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
  • jenni_fer
    jenni_fer Posts: 529 Forumite
    First Anniversary First Post Name Dropper
    Options
    Writing it down is a great motivator!
    Our kids are the same ages as yours and we're looking to extend from (almost) mortgage neutral today to c£300k in the near future and will absolutely be focusing on being mortgage neutral again.
    It's so satisfying seeing that figure come down, and it really does start to snowball as the balance comes down so even the smallest overpayment now will have a big impact to the end date of the mortgage.
    Good Luck!
  • miss_undastood
    Options
    Thanks. We are paying down about 19k a year now so that will increase as we start to owe less. I’m hoping in time I will be able to add another £50/£100 a month here and there and as you say it snowballs up. 

    My only concern is that if rates go up we will be able to overpay less. But all I can do is pay what I can now to protect us from future rate rises.

    If we can overpay 19k a year for 10 years that’s 190k so we are a lot of the way there so a small extra push should get us there I think. 

    We have about 60k in savings so only need around 245k to be in a neutral position I think, so although it won’t be easy I think it could be achievable and It is so lovely having so many lovely people helping along the way :)
    Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
  • Ami-Rose
    Ami-Rose Posts: 112 Forumite
    First Anniversary First Post Photogenic Name Dropper
    Options
    Good luck! That's an incredible goal, even if you don't make it the whole way you'll still be in a much better position! Seeing this makes me feel like we're slacking when I don't think we can pay off our £100k in 10 years. 😂
    MFW: Starting balance, Jan 21: £102,950
    MFW21 Challenge #25
  • miss_undastood
    Options
    I’m sure you will be able to make huge progress on 100k :)

    I think when the balance is high there is more to gain - my first mortgage was under 60k and when rates fell and I was paying £180 a month it didn’t seem worth paying it off too quickly as I knew I’d need to take out more at a later date. 

    You need to know your final destination and work out the best way there for you and your family. Good luck :)
    Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
  • Ami-Rose
    Ami-Rose Posts: 112 Forumite
    First Anniversary First Post Photogenic Name Dropper
    Options
    I’m sure you will be able to make huge progress on 100k :)

    I think when the balance is high there is more to gain - my first mortgage was under 60k and when rates fell and I was paying £180 a month it didn’t seem worth paying it off too quickly as I knew I’d need to take out more at a later date. 

    You need to know your final destination and work out the best way there for you and your family. Good luck :)

    It's more that we just don't have the income. Your overpayments are almost our annual income, haha. My husband is the only full time earner, I do some freelance hours but at the moment that's only ~£100/month. It might be changing next year though. 😊

    This board is great because even though the financial situations are different for everyone, the advice and tips on how we all save money can help anyone.
    MFW: Starting balance, Jan 21: £102,950
    MFW21 Challenge #25
  • miss_undastood
    Options
    Everything helps. £2 or £200 - we used to round up to the nearest £10 or £100. 

    When budgeting I budget the mortgage payment to the nearest £100 too so it helped to pay what I was paying in my head. We have recently remortgaged from almost 4% to just over 1% but we have kept our payment the same - so that is technically a huge overpayment (as we haven’t reduced our term - 27 official years to go...)

    I honestly feel I contribute very little - my salary doesn’t come close to covering the cost of the mortgage - but we are all here with the same end goal - and £ by £ we will all get there
    Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
  • rugbymadfamily
    Options
    Thought I would swing by and say hi! I'm relatively new year and also have a large mortgage! Finding the  board really helpful and makes me accountable. Sounds like you have a great plan in place, can sort of understand your husbands point re low rates, mine said the same. Then I told him how much the annual, monthly and daily interest was (ours is about £650 per month and over £20 per day!!!) and it clicked for him as to why it made sense to get paying it down faster!
    Current mortgage (1 Jun 2022): £289,501 - originally £351,999 got to love London sized mortgages!
    OP Goal 2022 = 3.75% in OPs: £6,975 / £13,200
    Emergency Fund Target: 3 months saved ✅
     
Meet your Ambassadors

Categories

  • All Categories
  • 343.7K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.9K Work, Benefits & Business
  • 608.9K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards