Aiming for zero

To keep track of our progress.

So I have previously overpaid the mortgage but shortly after we moved into this house , 11 years ago, DH went self employed and we were no longer able to.

When lockdown hit we applied for a mortgage holiday as his business was affected, however as we both worked from home I continued to pay slightly more than the new payment was going to be (interest rates change). I then started reading MSE again and spotted the 1% thread on paying off your mortgage which piqued my interest.



Outstanding at 01/01/20 £126,139.40 

Between 30th June and the scheduled overpayment on 1st December we have paid off an extra £6459.54 in addition to the regular payments and we are determined to keep the momentum going.

The payments will mainly be made of £150 set up as a standing order. We have an emergency fund, which we used this month to get the boiler fixed, this will be topped back up and then any spare money will be thrown at the mortgage.

I have an endowment policy that matures in 2 years which will be thrown at it although it is only a small fraction of the amount owed, which was originally 185k.
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  • My automatic overpayment of £150 goes in at 9 am today. I have £100 left in the current account which I can’t decide whether to throw at the mortgage or put into the emergency fund.
    Still haven’t put the Christmas trees up. The kids have put their little ones up and decorated their bedrooms and the outside lights are up though. Hopefully kitchen/ family room tree tonight, the lounge tree needs to wait until the carpet fitting is done.
  • flipper_72
    flipper_72 Posts: 671
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    edited 12 December 2020 at 8:29PM
    Lots of discussions today about mortgage and moving. We have had a long term goal of eventually moving to the coast, we live almost as far from it as is possible in England, today we have decided to try to move that forward and aim to move in 2025!! This is the earliest realistic date we can do it, first possible opportunity is in 18 months when oldest does GCSEs but as we have a business to sell we don’t think that is achievable. In 2025 the youngest will do GCSEs and the goal is to move over the summer so they can continue their education in our new area.

     I am now really confused about paying the mortgage. I think continuing to overpay is the best option, I think that way we will pay less overall than just paying the normal payment. We are hoping to be able to buy the next house without a mortgage, so is throwing everything at the mortgage the best thing or putting it in ‘savings’ that earn next to nothing better?

    We have an inheritance of around 30k likely to be paid next year and an endowment policy for around 25k to be paid at the end of 2022. 
     
  • savingholmes
    savingholmes Posts: 26,853
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    Good luck on your journey
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • caeler
    caeler Posts: 2,605
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    Good luck! 
    @flipper_72 but have a think about any cash you’ll need for the move itself? 
  • Thank you both :smile: I am very excited!
    That is a very good point about moving costs, the last time I did a longer distance move I hired a Luton van, the move to this house 11 years ago took 2 full sized removal lorries so I will have to do some research on likely costs and start a savings pot for it nearer the time.
  • Hi flipper! No advice on the move but I’d say paying off the mortgage is making your money work more than in savings. 
    We’re about as far as you can get from the sea as well! 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £500/ £3,600


  • Early payday today (by 10 days) so I have moved the money into savings until my normal payday otherwise I will lose track of what is available to throw at the mortgage.
     I am going to contact my mortgage provider to see if the mortgage is portable, we might need £50k to be able to afford something suitable when we move so taking this one (lifetime tracker) could be cheaper than a new one when the time comes.
    We stayed in tier 3 this weekend but I expect we will all be in tier 4 / lockdown very soon so I am going to the gym / swimming as much as possible as it will be back to running and walking again then.
    Thanks for popping in powerspowers 👋🏻 Living in the middle makes a trip to the beach (when you are allowed) a long one doesn’t it!!
  • flipper_72
    flipper_72 Posts: 671
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    edited 31 December 2020 at 8:36AM
    The mortgage is portable which is good, we will decide closer to the time whether to slow down the overpayment so we have enough money to move.
    I paid my salary back into my current account today. I imagine all the bills and standing orders due tomorrow will not happen until Monday but I might be wrong. In fact that has now worried me so I am going to transfer the bills money into the bills account now and cancel the standing order for tomorrow!
    My spreadsheet showed that I will be able to make a small overpayment this month but next month I am going to do it differently and pay off bits as and when I make savings.
  • Hi Flipper, you sound to have a similar set up to me.  I'm in Tier 3 and far from the sea as well!  Also keen to use the gym and pool I'm a member of as much as possible before the likely move to Tier 4 some time in Jan.  Having the move to the coast to motivate you to overpay the mortgage sounds great. 
    I'm only a newbie here but have recently decided myself to throw everything at the mortgage and only keep emergency money in savings - you'd have to earn a lot in interest to make savings work as hard and that's not really possible at the moment with interest rates being so low. I'll follow your progress!
    MFW start date 30/12/20 with mortgage of £133,492, final payment due October 2038
    Current mortgage outstanding £116,597.49, final payment due October 2036
    Target final payment date: December 2030



  • Hi waterplate, we have gone into tier 4 today ☹️ so no gym or swimming now which isn’t good for any of us. Hopefully you manage to stay out of Tier 4 so you can continue with yours.

    I am going to look at the positive side, trampolining and gymnastics have told us to cancel the January standing order so that is £72, the gym is checking whether they can stop the DD but if they can’t they have been good at ensuring we don’t pay for more than we can use so it will come off a future months bill. Swimming club want full payment for  the kids and will adjust future bills but my payment doesn’t need to be paid as we haven’t been allowed to train since being in tier 3 so that is £31 all coming off the mortgage - yay!
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