Here we go! Single Income mfw 27 October 2021 at 9:12PM in Mortgage-free wannabe 18 replies 1K views

laura_louise

Single parent here, determined to pay down my mortgage alone. Posting for accountability.

My daughter is a teenager. I work from home as an online teacher. I paid off all my other debts and also have six months of savings incase of the worst. With potential interest rates looming and the end of my fixed deal in 13 months, i'm eager to try to pay down a big chunk of my mortgage so that it is more manageable if rates rise. 

Current mortgage:
1.69% fixed until December 2022
Oustanding balance £91,313.16
Monthly payment: £334.29
Mortgage end date: December 2050

Due to affordability I had to take out a 35 year mortgage when i purchased my property back in 2015, which is... a long time. I had a 5 year fix which last year i renewed for another 2 years. Thanks to a nice increase in the value of my property I was able to get a low rate for my 2 year fix. With hindsight, I wish i'd gone for the longer fix of 5 years again, but, too late now.

I have already been making £250 a month overpayments since July this year. Previously I overpaid a small amount, less than £1000 over 5 years.

Overpayments in 2021 so far: £1000 (July-August-September-October £250 each)

That has been pretty comfortable so I'm stepping it up a notch and have just increased my overpayment to £500 and will review in 3 months. I'm allowed to overpay 10% of my mortgage per year so no problems there. 

Not pressurising myself too much as far as goal end dates. The future is so hard to predict. 

savingholmes

Well done on the OPs - have you used the mortgage calculator on here to understand the impact it will have? I find it very motivating.

laura_louise

savingholmes said:

Well done on the OPs - have you used the mortgage calculator on here to understand the impact it will have? I find it very motivating.

Yes, If i was able to keep up £500 a month it says i'd be paid off in 10 years, now that would be amazing. Realistically, long term £250 a month is more manageable while still having a life but i'm happy to push £500 a bit and see how I get on. Even at £250, the figures are motivating. If interest rates rise next year, which is almost certain, it will scupper all these plans by a large degree but, cross that bridge when i come to it and all that... at least by then I'll be in a better position than I am now.

savingholmes

Fantastic target. Keep posting. I am sure some experienced MFWs and MFs will be along too with encouragement and ideas.

powerspowers

Well done on the OPs so far!! 35 years is a long time to pay interest in! So even small progress makes a difference over such a long time! 

Are you set for pension as well? I’m trying to do both but find the mortgage much more tangible to grasp. 

laura_louise

I've made two overpayments of £500 each. Current mortgage balance is £89,899.40

Feels good to see it below £90k 🎉

Sistergold

Oh hello @laura_louise, another single income parent here, just found your diary. Well done with the OPs so far. Keep at it and it will add up! Xx

Lauraebrad

Welcome to another single parent trying to break the mortgage!  You might find it becomes addictive :-)  Looking forward to following your diary

Mortgage_Minimiser

Single parent here too! Current mortgages £155,700 and £60,800. 

Its hard but we will get there. I will follow with interest. 

MM
x

laura_louise

Still going on £500 a month overpayments. 

Current balance of mortgage is £89,193.15

savingholmes

Well done. All heading in the right direction.