Hope to be mortgage free in 2 years when I am 38 - Single Female

happy_days

This is my first post on this account, although I set it up last year and meant to post then, but just didn't get round to posting. In that time though, I have been following many other peoples MF diarys with interest and thought it was time that I finally started my own. The reason is, because although I've followed many other people's, none have been similar to my situation in terms of being a single individual, in their 30s and not with a huge mortgage.

Background:
I bought my first home when I was 28 in 2013. The house was £135,000 and I put down £19,000 and so took out a mortgage for £116,000 over 25 years
At that time I was earning £26,000, which has gradually increased over the years, as i have taken on higher roles to around £32,000 now (there is no more opportunity for me to move up the ladder to earn more and even if there was, I wouldn't want to). 

My current home was never meant to be my current home, I always envisaged being there for a few years and moving on and at the age I am now to have settled down and started a family - but none of that has happened and so my mortgage journey has entirely been just me. I've not holidayed or bought flash phones, gadgets etc and my biggest expense other than my house was buying (treating) myself to a car for £12,000. I realised after the first year that I had money left over each month, so in year 2 had set up an extra £100 payment per month. Throughout the years this over payments has varied from £100 to £250. Also, I re-mortgaged twice in that time reduced mortgage periods down by 5 years each time (which led to higher monthly fees). 

My aim has always been to own it outright as soon as possible, but that wish became even stronger when a few years ago I was struggling at work, having panic attacks and took a six month break. In that time, although I managed to get small jobs here and there, I survived by  using up all of my savings of £8000. That money went to mortgage payments (without making any over payments during this time), bills, food, travel and a new boiler. 

I then went back to my old job and although wasn't feeling as bad as I was pre-breakdown, I realised that if I reduced the burden of needing this job to pay for the mortgage, that would be a huge weight off. Last year, I re-mortgaged ( for the third and final time) and decided that although I had 7 years and £49,000 on my mortgage remaining, I would try to reduce that down to 4 years. This means that I would pay £1200 a month towards mortgage payments , but there would be no money for monthly overpayments and i would have to make cut backs. To afford this I scrapped all premium tv subscriptions (Netflix, Disney, Sky TV) and have downgraded everything. I have a sim only mobile phone plan, downgraded fibre internet to basic (possibly the one downgrade I regret the most)! Also, Covid helped me a bit. My work did not change during lockdowns and as a keyworker, I still went out to work the same as before. However I was spending less as I was not going out with friends, to the pub or for meals etc. All birthday money and Christmas money gets paid in as one-off over payments. 

I have managed fine with the £1200 payments and due to not spending as much have even made a few over payments. My current balance is £36,000 with three years to pay. I have calculated that if I can continue to cut back on spending, I can cut this down to 2years and 5 months! I has been hard and I haven't shared this info with anyone else and although I do think that I have missed out on holidays and enjoying myself with the money I've worked hard to earn, another part of me thinks that I've done the right thing so I can then leave work if it ever gets that bad again and be happier taking a lower paid and less stressful job. 

Wow! I cant believe that I have written so much! This isn't here to inspire anyone, as even i am unsure if I've made the right decision in overpaying. Would i have been happier enjoying the money and going on holidays, buying nice clothes etc. But it though that there maybe singletons in their 30s, who like me have taken out a relatively modest mortgage, and are on a similar journey to me. This may be something they use to compare top their own journey. 

To summarise:
Single Female bought house at 28yrs in 2013 for £135,000, with a mortgage of £116,000 over 25years.
Over the years have reduced the mortgage length and made monthly over payments.
I currently have 3 years remaining and £36,000 to pay, but plan on getting this down to 2years and 5 months. If so, I will be 38 and just shy of my 39th birthday.

Thriftmaster1973

Well, by reading your post I think I'd be right to say - you should feel very proud of yourself.

We all have our own mindsets, we all have our ups and downs, but you have remained focused on the end goal of debt freedom.

You are so close (as I am too), stay focused  and the day of debt freedom will come.

smetf

It sounds like you've done brilliantly and having that mortgage paid off will give you more flexibility in the future. Wishing you the best of luck!

happy_days

Thriftmaster1973 said:

Well, by reading your post I think I'd be right to say - you should feel very proud of yourself.

We all have our own mindsets, we all have our ups and downs, but you have remained focused on the end goal of debt freedom.

You are so close (as I am too), stay focused  and the day of debt freedom will come.

Thank you and well done you too! I like how you have kept a log of all of your monthly balances - i have done the exact same and thinks it motivates me more. 

We may be mortgage free at similar times. 

happy_days

smetf said:

It sounds like you've done brilliantly and having that mortgage paid off will give you more flexibility in the future. Wishing you the best of luck!

Thank you! I wish you all the best on your journey to being mortgage free too!

powerspowers

Wow that’s amazing!! And just think how much flexibility you have already gained- if needs must you could remortgage over x years and pay a tiny amount (although a lot of interest so not recommended!)
 
the bulk of your frugality has been in covid times so I think I’d be tempted to
get more of a balance and live a little more. On one hand three years is nothing and then you will have plenty of money to do things you want to do.  On the other, three years is a slog if you are going to get to the end and go “now what”

good luck with it x