MFW - Part 2!

Nickyt13 · 6 October 2022 at 4:07PM

My original post was made on 21st August 2014 but has since been archived as I've been slack at updating...

"My name is Nick, and I'm a Mortgage Free Wanabee!
We bought our current house in October 2011, when Mrs T was pregnant with our second son and thanks to a fruitful sale of our previous property and the generosity of my parents were in the following situation:

Cost of new property: £218,000
Mortgage amount: £127,500
LTV: 58%
Mortgage Term: 25 years
Interest rate: 4.09% (fixed for 5 years)
Monthly repayment: £679

I've always been a fan of fixed rate mortgages and wanted the ability to overpay if I found myself in the situation to do so, so chose a product that allows me to do so up to a maximum of £500 month penalty free.

Over payment capital is achieved by a mixture of working hard and being careful with how is spend my income. My best decision was to move all of my utilities to Utility Warehouse saving me over £100/month on my previous expenditure!

In little under three years I have overpaid just over £13,000 and am currently looking at paying off our mortgage in less than half the original term. I turn 37 next month and am determined to be Mortgage Free by the time I'm 50. I'm entertaining the thought of purchasing a 2nd property (either buy to let or holiday home) so that may scupper my plans but I'm equally happy to work harder to achieve that dream or become Mortgage Free twice

The overpayment calculator was the single biggest incentive to embark on this journey. Aside from the obvious financial benefits that it will give my wife and I later in life, I also want to ensure that we can help establish our sons financially.

Thanks for reading and sharing in our journey so far. If anyone wants any additional information on top of anything that I post, please feel free to contact me directly and I'll happily oblige"

Fast forward 8 years, one divorce and the associated pay-out later and this is the situation I now find myself in...

Value of current property (still same as above): £420k+
Remaining amount from original mortgage: £55,000 (1.94% interest rate, fixed until 31.10.24)
Additional mortgage amount: £30k
Remaining addition mortgage: £16,500 (2.79% interest rate, fixed until 31.5.29)
Total Monthly repayment: £535.42

Life doesn't always go the way you hoped it would originally, but if you keep chipping away things do always work out.

So grateful for every penny that I have ever overpaid on my mortgage; little and often knocks tens of thousands off over the years and I plan on ensuring that my boys are fully aware of the benefits of emulating this approach when they become homeowners.

Still on track to be mortgage free by the time I'm 50

L9XSS · 6 October 2022 at 4:48PM

Good luck with your journey, like life there is bumps along the way, but you look well on track. I became MF at 55 (2 months ago), it’s a great feeling and has put me in a good position for retirement. My term was due to end in 2032, so I focussed on overpaying as much as I could.