Alcohol free in 2020, Mortgage free by 2030?

Hi everyone, I gave up alcohol after starting to enjoy it a bit too frequently on New Year's Eve 2019 and haven't touched a drop in 2020.  I have developed a whole toolkit of ways to do hard things through this experience and have decided to turn my hand to becoming mortgage free within 10 years of today.  So, I'm going to keep a diary on here to track the journey and pick up even more tips from all you wonderful people on here who have shared your wisdom. I've worked all these numbers out using a spreadsheet posted on the forum back in 2007.
Mortgage as of yesterday morning: £133,429.03.  Final payment date = November 2038
Mortgage after overpayment of 10% of outstanding balance, completed yesterday from savings generated by sale of our old flat which we used to let out: £119,500.  Final payment date = July 2036
I plan to pay off another 10% of the balance in January (we are in a 5 year fix which runs out in October 2023 and this limits us to overpaying 10% in any calendar year.)  This will leave us with a 10k emergency fund plus another 10k for work we are considering doing on our house. 
This will reduce the balance to £107,023.  Final payment date = October 2034. 
I'm going to stop regular savings into cash accounts as they pay so little interest and overpay the mortgage by £250 a month instead.  This gives us a final payment date of December 2030, so we'll be mortgage free in ten years. 
The next phase of the plan will be to pay it off more quickly, because once we get out of the fix in October 2023 we should be in a position to get a great deal as our LTV will only be about 36%, so when I can see what interest rates are like then I'll be able to refine the target and hopefully knock a couple more years off.
Looking forward to hearing how all the rest of the MFWs are doing!


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



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Comments

  • Welcome aboard... I sense you will enjoy the same obsessions as everyone on this board!
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34

    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • Wooooo congrats on your new diary! Best of luck in achieving your goal over the next 10 years!
    Debt Free Date: 24th October 2023! £7402.10 Paid Off In 6 Months!
    3 Month Emergency Fund: £3500 / £3500
    #60 2024 Mortgage-Free Wannabes: £200/£2500
  • Hi @waterplate I’ve just started my plan to overpay the mortgage a couple of days ago, with a similar timeline to you. It’s exciting isn’t it? 
    New to all this!
    Mortgage balance 01/01/21 £181,400. Scheduled repayment date Aug 2036. 
    Target savings to overpay in 2021 £12,000
    Progress to date  £7105/£12,000 
  • Welcome aboard... I sense you will enjoy the same obsessions as everyone on this board!

    Thanks!  I certainly get the impression I'll feel at home here!
    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



  • Wooooo congrats on your new diary! Best of luck in achieving your goal over the next 10 years!

    Thank you!  I'm already obsessing about how much more quickly I can do it.  I am currently on hold to my mortgage company to ask if there is an option to offset with our existing mortgage.  My husband is going to love the New Year's Eve I have planned, where we look at The Spreadsheet!
    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 I’ve just started my plan to overpay the mortgage a couple of days ago, with a similar timeline to you. It’s exciting isn’t it? 
    It is exciting!  I can't believe I didn't think to do this months ago!  Good luck with your plan - do you have a diary thread?
    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 yes I just started a diary on here too. (Ditching It) It’s pay day today and I can’t wait to get started. 
    New to all this!
    Mortgage balance 01/01/21 £181,400. Scheduled repayment date Aug 2036. 
    Target savings to overpay in 2021 £12,000
    Progress to date  £7105/£12,000 
  • Hi @waterplate yes I just started a diary on here too. (Ditching It) It’s pay day today and I can’t wait to get started. 

    Great, I'll go and read up now!
    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



  • Bit of good news here - we had two Ratesetter ISAs which I wanted to withdraw the money from during the first lockdown as they don't have FCA protection and I was concerned they may run into serious financial difficulties with people not repaying their loans.  However when I applied to withdraw there were over 19,000 requests in front of me in the queue!  However they have now paid out all our money so that's a big chunk of our savings which are now liquid.  So I can pay off the 2021 max of 10% of our mortgage as soon as the phonelines reopen at the bank.  We won't be able to overpay after that obviously during this year so I'll put the money we would have overpaid aside, ready to do the same again next January.  Just pondering whether I should feed it into our stocks and shares ISA or keep it in cash.  Probably will go for the stocks and shares, or maybe a 50/50 split.
    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



  • jenni_fer
    jenni_fer Posts: 529
    First Anniversary First Post Name Dropper
    Forumite
    Happy new diary! 
    Good luck.
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