The Mortgage Free (to be) Pixie

I’ve been aware of MSE, and it’s forums for a VERY long time (since my early twenties) - but this is my very first post!
I’m going to be 30 in a few short weeks, so we’ve been having discussions more about our future. We only bought our first house in August 2019, but already we want rid of the mortgage! The thought that if we only pay what we are meant to each month, then we will pay it off in 2053(!!) is pretty awful. 

Budgeting is tricky though, as we keep separate accounts, with a joint account for the household expenses. We each contribute a fixed amount into the joint account, and the rest of our pennies are our own. I’d ideally like to do this without having to increase our contribution (but know realistically that we will have to at some point - just don’t think he’s ready for me to start that!). 

As of today, our current mortgage balance is £108,507.10 
We have overpayed by just under £50 every month since we took out the mortgage, and this can easily continue. I’d just like to start putting a bit more in there too!
MFW:
mortgage start date 08/19 balance £112,500
01/21 total OP: £751.52

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Replies

  • caelercaeler Forumite
    2.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
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    Welcome and good luck! @BeeblePixie
    There are some lovely folk here and so supportive. I’ve found keeping a diary really motivating.  Check out the MSE Overpayment calculator, it’s so amazing to see how much impact it has! https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ 
    Mortgage started on 17 December 2012 at £169,000 with a 25 year term finishing in 2037
    Mortgage Repaid on 20 April 2021
    Click here to visit my Mortgage Free Wannabe Diary
  • BeeblePixieBeeblePixie Forumite
    25 Posts
    Seventh Anniversary 10 Posts Name Dropper Photogenic
    I put the idea to OH yesterday, about really starting to OP more each month (gave him the rough figure of £50 more OP per month, and let home know that with what we already do, plus the further £50, we’d be looking at more like 25 years, than 34 years of mortgage!) 

    I’ve said for him to have a think about it himself, as he’s terrible at making decisions under pressure. Hopefully our little chat will bear fruit!
    MFW:
    mortgage start date 08/19 balance £112,500
    01/21 total OP: £751.52

  • caelercaeler Forumite
    2.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    I hope so too.  Being joined up with your partner is so important but like you say there benefits of doing it are very very real! 
    Mortgage started on 17 December 2012 at £169,000 with a 25 year term finishing in 2037
    Mortgage Repaid on 20 April 2021
    Click here to visit my Mortgage Free Wannabe Diary
  • South_coastSouth_coast Forumite
    2.9K Posts
    1,000 Posts First Anniversary Name Dropper Photogenic
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    An additional 9 years of MF life in exchange for £50/month seems a pretty good deal to me! Hopefully he'll go for it 😀
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03

    Finally earning interest instead of paying it!!!
  • SpendingPenniesSpendingPennies Forumite
    111 Posts
    100 Posts Name Dropper
    Good luck on your journey @BeeblePixie hope your OH agrees with your plans. 
    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 
  • BeeblePixieBeeblePixie Forumite
    25 Posts
    Seventh Anniversary 10 Posts Name Dropper Photogenic
    Tried to bring it up again tonight, and he basically told me to talk to him about it another time when he “isn’t trying to chill” 🙈. 
    Maybe trying after we’d both had a rubbish shift at work wasn’t the best idea 😂
    Think I’ll try again at the weekend when neither of us has had to deal with customers shouting at us 🙈

    As long as I get an answer before the end of the month, so that I can change the DD for the mortgage payment, I’ll be happy ☺️
    MFW:
    mortgage start date 08/19 balance £112,500
    01/21 total OP: £751.52

  • caelercaeler Forumite
    2.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    It sounds like you need to play "the long game".  I know what I'm like when I'm excited about something I'm now, now, now but others around me don't always share the same enthusiasm.  I have to warm them up and bring them with me! 
    Mortgage started on 17 December 2012 at £169,000 with a 25 year term finishing in 2037
    Mortgage Repaid on 20 April 2021
    Click here to visit my Mortgage Free Wannabe Diary
  • BeeblePixieBeeblePixie Forumite
    25 Posts
    Seventh Anniversary 10 Posts Name Dropper Photogenic
    This is exactly it @caeler - He’s the sort of person who wants to think everything through a dozen times before committing to it (it took me over 4years to get him on board with getting a mortgage rather than renting!) I’m more the type to say, well this seems like a good idea, and jump in straight away 😂
    MFW:
    mortgage start date 08/19 balance £112,500
    01/21 total OP: £751.52

  • BeeblePixieBeeblePixie Forumite
    25 Posts
    Seventh Anniversary 10 Posts Name Dropper Photogenic
    Decision made! 
    Over a Sunday Roast (on a Saturday 😂) we had a good chat about the overpaying idea, and OH has agreed that we should increase our overpayment by £50/month. Meaning our total overpayment each month is now £96.97 (it rounds our total payment up to £500). 

    We haven’t yet decided if that means we’re both going to put an extra £25/month into the joint account, or if we’re going to try and be more careful with what we already put in there. 

    But we’re going in the right direction - the monthly payments have already been changed on the old online banking 🎉 
    MFW:
    mortgage start date 08/19 balance £112,500
    01/21 total OP: £751.52

  • BeeblePixieBeeblePixie Forumite
    25 Posts
    Seventh Anniversary 10 Posts Name Dropper Photogenic
    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 600
    Partners monthly income after tax....... 600
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1200

    Monthly Expense Details
    Mortgage................................ 403
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 114.5
    Electricity............................. 67 (We originally set up our DD to low - currently paying more than we use a month)
    Gas..................................... 29
    Oil..................................... 0
    Water rates............................. 0 (we live in Scotland)
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 27 (Virgin tv internet and landline)
    Internet Services....................... 8.99 (Netflix)
    Groceries etc. ......................... 250 
    Clothing................................ 0 (doesn’t come from joint account)
    Petrol/diesel........................... 10
    Road tax................................ 0 (doesn’t come from joint account)
    Car Insurance........................... 0 (doesn’t come from joint account)
    Car maintenance (including MOT)......... 0 (doesn’t come from joint account)
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0 (doesn’t come from joint account)
    Pet insurance/vet bills................. 4.2
    Buildings insurance..................... 21.49 (buildings and contents)
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 (doesn’t come from joint account)
    Haircuts................................ 0 (yes, really! I cut his, my dad does mine (about once a year😂))
    Entertainment........................... 50
    Holiday................................. 0 (doesn’t come from joint account - we each save separately)
    Emergency fund.......................... 100
    Total monthly expenses.................. 1098.55


    Assets
    Cash.................................... 0
    House value (Gross)..................... 125000
    Shares and bonds........................ 0
    Car(s).................................. 0 (haven’t listed the car, as that’s mine, not shared)
    Other assets............................ 0
    Total Assets............................ 125000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 108528...(403)......2.39
    Total secured & HP debts...... 108528....-.........-   

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Total unsecured debts..........0.........0.........-  


    Monthly Budget Summary
    Total monthly income.................... 1,200
    Expenses (including HP & secured debts). 1,098.55
    Available for debt repayments........... 101.45
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 101.45

    Personal Balance Sheet Summary
    Total assets (things you own)........... 12,500
    Total HP & Secured debt................. -108,528
    Total Unsecured debt.................... -0[b]
    Net Assets.............................. 16,472

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    MFW:
    mortgage start date 08/19 balance £112,500
    01/21 total OP: £751.52

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