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Here we go! Single Income mfw

laura_louise
laura_louise Posts: 92 Forumite
Eighth Anniversary Combo Breaker First Post Photogenic
in Mortgage-free wannabe
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. 
single parent, debt free apart from mortgage!
Current balance: £73 525.33 (September 2023, down from £103,900) 
Goal - by 2036 (14 yrs early) - in it for the long haul! paid £30 374.67 so far, 29.2% down, 70.8% to go!
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Comments

  • savingholmes
    savingholmes Posts: 28,133 Forumite
    First Post First Anniversary Photogenic Name Dropper
    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.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 233 payments to go - now £180,463 Equity 27.81%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £9.35K on 0% spends card (includes £1K work expenses) & offset by £34.9K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.6K/£127.5K AVC target 9.09% value at 15/8/24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.2K at 15/8/24
  • laura_louise
    laura_louise Posts: 92 Forumite
    Eighth Anniversary Combo Breaker First Post Photogenic
    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. :D
    single parent, debt free apart from mortgage!
    Current balance: £73 525.33 (September 2023, down from £103,900) 
    Goal - by 2036 (14 yrs early) - in it for the long haul! paid £30 374.67 so far, 29.2% down, 70.8% to go!
  • savingholmes
    savingholmes Posts: 28,133 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Fantastic target. Keep posting. I am sure some experienced MFWs and MFs will be along too with encouragement and ideas.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 233 payments to go - now £180,463 Equity 27.81%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £9.35K on 0% spends card (includes £1K work expenses) & offset by £34.9K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.6K/£127.5K AVC target 9.09% value at 15/8/24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.2K at 15/8/24
  • powerspowers
    powerspowers Posts: 1,174 Forumite
    Third Anniversary 1,000 Posts Name Dropper
    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. 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £2,625 / £3,600


  • laura_louise
    laura_louise Posts: 92 Forumite
    Eighth Anniversary Combo Breaker First Post Photogenic
    I've made two overpayments of £500 each. Current mortgage balance is £89,899.40

    Feels good to see it below £90k 🎉
    single parent, debt free apart from mortgage!
    Current balance: £73 525.33 (September 2023, down from £103,900) 
    Goal - by 2036 (14 yrs early) - in it for the long haul! paid £30 374.67 so far, 29.2% down, 70.8% to go!
  • Sistergold
    Sistergold Posts: 2,039 Forumite
    1,000 Posts Fifth Anniversary Photogenic Name Dropper
    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
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
  • Lauraebrad
    Lauraebrad Posts: 161 Forumite
    100 Posts First Anniversary Name Dropper
    Welcome to another single parent trying to break the mortgage!  You might find it becomes addictive :-)  Looking forward to following your diary

    Aiming for mortgage free by September 2030

    Balance 1.1.20 - £69,701.80
    Balance 1.1.21 - £63,699.80
    Balance 1.1.22 - £57,762.80
    Balance 1.1.23 - £53,074.20
    Balance 1.1.24 - £47,902.00

    over payments 2024 = £1,150/£1,200 /// invested 2024 = £900/£1,200 = TOTAL (YTD) £2,050
  • Mortgage_Minimiser
    Mortgage_Minimiser Posts: 316 Forumite
    Tenth Anniversary First Post Name Dropper
    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
    O'Payments:
    2016 - £3641.26
    2017 - £7779.28
    2018 - £11,515.16
    MFiT-T4 # 59 - reduce to £195,000; MFit-T5 - reduce to £140,000 MFiT-T6 - reduce to £110,000
    Mortgage:01/2/2015 - £243,750 31/12/15 - Mortgage today £135,986
  • laura_louise
    laura_louise Posts: 92 Forumite
    Eighth Anniversary Combo Breaker First Post Photogenic
    Still going on £500 a month overpayments. 

    Current balance of mortgage is £89,193.15
    single parent, debt free apart from mortgage!
    Current balance: £73 525.33 (September 2023, down from £103,900) 
    Goal - by 2036 (14 yrs early) - in it for the long haul! paid £30 374.67 so far, 29.2% down, 70.8% to go!
  • savingholmes
    savingholmes Posts: 28,133 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Well done. All heading in the right direction.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 233 payments to go - now £180,463 Equity 27.81%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £9.35K on 0% spends card (includes £1K work expenses) & offset by £34.9K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.6K/£127.5K AVC target 9.09% value at 15/8/24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.2K at 15/8/24
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