Here we go again .... how long will this one take?

Starting a diary on here to keep track again.

Was last on MFW board a few years ago when concentrating on overpaying our mortgage after a lightbulb moment in 2010 (7 years into our mortgage  :s) .  Became MF in 2019 and have now decided to move to our forever and dream home which has meant taking a mortgage again.

So we hope to complete mid July and will have a £280,000 mortgage on a house we are paying £375,000 for.  We also have our current house to sell, most of the proceeds of which will be O/Ped as soon as it hits our bank account, keeping some back to part replace our savings pot in case of emergencies. We have taken a tracker mortgage so we can make unlimited O/P without charge. 

By September I am hoping that we will have a mortgage of c £80,000  and will start regularly O/P to chip it away.  The mortgage is for 21 years based on my age but I would love to have it gone in 11 years
Mortgage Aug 22 £280,000
Current mortgage  £28,000

Comments

  • Thriftmaster1973
    Thriftmaster1973 Posts: 130 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    edited 2 July 2022 at 12:38PM
    On your mortgage amount & term you would be a perfect candidate for the £333 system.

    Overpaying £333 per month would give you a £1000 overpayment every quarter, it would cut nearly 11 years off the term. Nearly £9000 of interest savings too.
    £52,365 owing December 2017.Now for the final countdown..1st Jan 2021 - £29,316 -- 1st Feb 2021 - £28,809 -- 1st Mar 2021 - £27,309 -- 1st Apr 2021 - £26,811 -- 1st May 2021 - £26,315 -- 1st Jun 2021 - £25,811 -- 1st Jul 2021 - £24,311 -- 1st Aug 2021 - £23,809 -- 1st Sep 2021 - £22,305 -- 1st Oct 2021 - £21,798 -- 1st Nov 2021 - £20,292 -- 1st Dec 2021 - £19,783 -- 1st Jan 2022 - £18,276 -- 1st Feb 2022 - £17,762 -- 1st Mar 2022 -£17,248 -- 1st Apr 2022 -£15,713 -- 1st May 2022 - £15,202 --1st Jun 2022 - £13,703 -- 1st Jul 2022 - £13,184 -- 1st Aug 2022 - £11,665 -- 1st Sep 2022 - £11,144 -- 1st Oct 2022 - £9,822 -- 1st Nov 2022 - £9,298 -- 1st Dec 2022 - £7,572 --1st Jan 2023 - £7,045 -- 1st Feb 2023 - £5,516 -- 10th Feb 2023 - £5,518 Overpayment Pot @ 10th Feb 23 = £5,518 / Primed = £0 / Actual debt = £0!!!! "Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?" Hopefully at zero mortgage debt by December 2022 or very close to it. Determined for freedom! 🍻🥂🍸🍹.
  • kandfs_mam
    kandfs_mam Posts: 1,053 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Thank you @Thriftmaster1973, that's definitely something I will look at. Is it weird that I can't wait to get started :)
    Mortgage Aug 22 £280,000
    Current mortgage  £28,000

  • savingholmes
    savingholmes Posts: 27,236 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Good luck on your journey 
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • Yes it's a great feeling once you get started, simply knowing that you are not wasteful with spare cash is a huge encouragement.
    The end goal is definitely worth it.
    £52,365 owing December 2017.Now for the final countdown..1st Jan 2021 - £29,316 -- 1st Feb 2021 - £28,809 -- 1st Mar 2021 - £27,309 -- 1st Apr 2021 - £26,811 -- 1st May 2021 - £26,315 -- 1st Jun 2021 - £25,811 -- 1st Jul 2021 - £24,311 -- 1st Aug 2021 - £23,809 -- 1st Sep 2021 - £22,305 -- 1st Oct 2021 - £21,798 -- 1st Nov 2021 - £20,292 -- 1st Dec 2021 - £19,783 -- 1st Jan 2022 - £18,276 -- 1st Feb 2022 - £17,762 -- 1st Mar 2022 -£17,248 -- 1st Apr 2022 -£15,713 -- 1st May 2022 - £15,202 --1st Jun 2022 - £13,703 -- 1st Jul 2022 - £13,184 -- 1st Aug 2022 - £11,665 -- 1st Sep 2022 - £11,144 -- 1st Oct 2022 - £9,822 -- 1st Nov 2022 - £9,298 -- 1st Dec 2022 - £7,572 --1st Jan 2023 - £7,045 -- 1st Feb 2023 - £5,516 -- 10th Feb 2023 - £5,518 Overpayment Pot @ 10th Feb 23 = £5,518 / Primed = £0 / Actual debt = £0!!!! "Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?" Hopefully at zero mortgage debt by December 2022 or very close to it. Determined for freedom! 🍻🥂🍸🍹.
  • kandfs_mam
    kandfs_mam Posts: 1,053 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Well things aren't progressing as quickly as I had hoped getting this mortgage OPed. We bought our new house in July and moved in and agreed a price with a buyer for our old house around the same time.  There has been a delay in them selling their house as the FTB at the bottom of the chain has had a feckless broker / solicitor who couldnt move  with a rocket up their backside. Completion was supposed to be last Friday but is now looking at being next week as the FTB's mortgage papers were issued to his sellers solicitor instead of his own and now the chain is held up waiting for the lender to reissue the papers.

    In the meantime we are still paying 2 lots of gas/electric (massive overpayment on the old house which we will get back when the final meter readings are submitted), 2 lots of insurance and a massive mortgage.

    In better news though I have number crunched and done my sums again.  We are selling our old house for £250k (mortgage free) so we have decided that we will pay £240k off the mortgage, then whatever is left out of the remaining £10k after fees will go into the savings pot.

    This will leave us with just short of £40k mortgage which I hope to rattle down as quickly as I can with interest rates increasing.  We are on a tracker mortgage of BOE+1.29%
    Mortgage Aug 22 £280,000
    Current mortgage  £28,000

  • kandfs_mam
    kandfs_mam Posts: 1,053 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Hooray, house completed on Wednesday and money was in the bank this morning.  £240,000 paid off the mortgage this morning and my spreadsheet all updated.

    Mortgage total now £38400 and the original term should have 20 years 10 months to run.  My aim is to have this gone in under 5 years if I can!  If I stuck to the original mortgage payments it would be gone in 3yrs but I like to have a bit of a healthy buffer - in the back of my mind DD1 who is 22 could meet someone and want to get married so I want to have ready savings available for that if needed.

    I am going to do the same as I did when I was O/Ping the mortgage on my old house - at the end of the month whatever is left gets split between mortgage O/P and savings accounts. It's worked for us in the past so will give it a year and see how it's going.  
    Mortgage Aug 22 £280,000
    Current mortgage  £28,000

  • savingholmes
    savingholmes Posts: 27,236 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Well done on the sale - and the huge OP.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • kandfs_mam
    kandfs_mam Posts: 1,053 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Another £271.44 OPed yesterday to keep the Mortgage in nice round numbers. £37,000 still to go. 
    Mortgage Aug 22 £280,000
    Current mortgage  £28,000

Meet your Ambassadors

Categories

  • All Categories
  • 342.9K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235K Work, Benefits & Business
  • 607.6K Mortgages, Homes & Bills
  • 172.9K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards