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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