The end is in sight

How quickly can we pay off £28 308,02 while still building savings and not feeling completely deprived? Usually our biggest budget categories are holidays and eating out, hmm not using those much at the moment  :) Savings wise, we have a reasonable amount of savings (six months expenses) but would like to continue adding to these, as well as the holiday fund. We have an account I call the emergency fund but its not really as we have funds for most possible bills (YNAB user alert) but I tend to build it up to £1000  and then have a rant about the ridiculous interest rate its getting and shift it to the longer term savings. I did this just before Christmas so its only at £132 at the moment but I'd like to try and keep the £1000 in there this year so build it up to that and then leave it. 
The mortgage is at a stupidly high interest rate of 4.58% as a result of starting off with Northern Rock. It suited us at the time and allowed us to buy our house when we were a bit older and had no deposit. When they first went under we owed too much and had too much debt to move. We concentrated on paying down the debt first and then the loan part of the mortgage, by the time we did that a few years ago we found suddenly that we owed too little for anyone else to be interested in giving us a mortgage without terms that would stop us overpaying and I had the bug then. 
The plan is to overpay every month by £1563 and then split any other savings or slack in the budget between further overpayments, savings, the holiday fund and the 'emergency' fund. 
Savings will hopefully come from strict management of the groceries budget and a reduced fuel bill as we're both wfh a few days a week. I don't anticipate any savings from the cat food budget as we wouldn't dare, three ridiculously indulged ones here and then just myself and MrPorridge. 
I'll be delighted to have anyone who wants to read along although I do warn it might be full of wittering about cats and cooking. 
Mortgage Free 23 December 2020
Savings £9671 / £20 000 goal
Emergency Fund £216 / £1000 goal


  • Well that didn't start as well as I wanted. Logged into the mortgage to see that the month's interest had been added on but the payment wasn't showing yet. It should show tomorrow but it was just really disappointing expecting to see £900 less and see £100 more. On the plus-size the interest was £95.36 which is the first time its been under £100, still £3.07 a day. 
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
  • 4.58% - ouch!! 
    Good luck - sounds like you've got a plan. Have you figured out when your end date will be if you hit your OP target? 
  • Gem2889
    Gem2889 Posts: 88 Forumite
    First Anniversary First Post Name Dropper
    Good luck! Look forward to seeing you cross the finish line 🥳
    Cleared 25k from mortgage in 4 years - now I need to do it again!

    Dec 2020 Balance: £127,000
    Dec 2021: Balance £121,500
  • Thanks for dropping in both. Yes Viking 4.58% is super ouch. I really feel we've been penalised for just using a product we were offered. Although we had other debt we were never behind with our mortgage, but because we had the loan part (which we also always paid religiously) we were in the lot moved to MRAM and then to Heliodor Mortgages. 
    If we keep overpaying by the amount I've budgeted for then we should make our last payment in May next year but it does depend, if we're allowed to go on holiday this year it might be a it slower so I've got July in my head. there's also a chance that we could throw some savings at it and pay it off earlier if other things happen.
    First overpayment of the month of £562.75 just showing. Hopefully the next £500 will show tomorrow.

    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
  • Welcome and best of luck
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
  • Good luck with your journey to being mortgage-free, Porridgecat.
    Mortgage started: 31st October 2007
    Aim to be mortgage-free: 31st December 2025
  • Thank you LadyGnome and FiveMoreYears for topping in and for your good wishes. 
    Well I've had a flurry of overpayments (well an extra two) totalling another 1029.76. Its a funny figure as after doing the budget in YNAB I has 116.76 left so have done as I decided and split into four, the three lots of savings and the mortgage. I'm going to see if there're any excess in other budgets later to pay some more in. 
    WFH tomorrow so no opportunity to spend any money - can't be bad. I will need petrol next week as I've been into work four days this week after my teams laptop collapsed on Monday. Fixed now fortunately. 
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
  • Poppycat1
    Poppycat1 Posts: 376 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Would just like to wish you well on your mortgage freedom journey.  I look forward to the cat talk.  I have five and they have certainly made lock down easier.
    Without overpayments: 15 years, 1 monthsBecause of overpayments: 10 years, 10 months left until paid off
  • caeler
    caeler Posts: 2,605 Forumite
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Good luck! Ouch on the rate but a big incentive to overpay! @Porridgecat
  • Porridgecat
    Porridgecat Posts: 311 Forumite
    First Anniversary First Post Name Dropper Photogenic
    edited 6 February 2021 at 2:18PM
    Thank you Poppycat and Caeler for popping in. Yes caeler its a horrible rate, can't wait to get it gone. Poppycat we're down to three cats at the moment, I say down to as we've had as many as seven at one time. They've all been strays except for two little girls that he got from BIL and SIL as they couldn't cope with them when they had a baby, they (the cats) had a much better life with us than they would have had with them. They're the one expense that never gets scrimped on. They get whatever they want :smiley: 
    MrPorridge has gone off to do ours and his mum's shopping with a very short list. We have loads in the freezers and cupboards so I want to have a frugal February so I can throw some more into the overpayments and the savings.
    Mortgage Free 23 December 2020
    Savings £9671 / £20 000 goal
    Emergency Fund £216 / £1000 goal
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