Five year plan

isadreamalie

Well  I'm delighted to have the following offer now set in stone for five years having paid £999 for it in June before things went crazy...

5 Year Fixed

Product end date

2nd Oct 2027

Interest rate

2.59%

Loan balance

£123,468.23

Up from 1.99% on my first five year fix and therefore an increase per month of about £36

I paid off nearly £107,000 during my first five year fix (borrowed £230,000 with a £120,000 deposit)

Aim to demolish the mortgage in the next five years. I'm 33 and hope to be mortgage free by 40. I previously overpaid by as much as £1,500  if not more a month but it looks like I can overpay by less and still clear in not much more than five years or at least get the debt to a minimal amount. 

I appear to be able to pay the full 10% before the year ends so essentially the overpayment allowance has reset although I can't afford that just yet. Worth noting the overpayment amount reduces as the debt goes down but I can save the same amount and chuck a load at it when the fix ends if need be

DrCarrie

Congratulations and good luck. 

powerspowers

Good luck! Mortgage free by 40 is a brilliant goal x

dark^knight

Good luck...you're doing really well.

savingholmes

Congrats looks like you are doing amazing.

isadreamalie

savingholmes said:

Congrats looks like you are doing amazing.

Thanks 😊 

Paying around 700 now in overpayments. 1500 suddenly seems a bit over the top but the cost of living doesn't help
I've already hit a key milestone where my mortgage even on my new deal is less than I was paying in rent seven years ago

isadreamalie

Well I'm now overpaying by around 600-700 a month which sees me mortgage free within ten years by which time I'll be 43 but crucially within a shorter time period I will be seeing monthly payments below 500 which is very exciting. 

Paying off completely in five years is too ambitious and would require 1500 a month overpayments. I haven't had a pay rise in three years so it depends on that.

My overall debt has just fallen to below 120k 

Thriftmaster1973

Good luck. Keep at it and treat it as a game. Be ruthless at looking for bargains and ways of free entertainment. Keep yourselves fit & active - find this keeps the "feel good" mindset.
If some months you miss your overpayment target, don't beat yourselves up.

Good luck.

isadreamalie

Now down to just over 118k in total debt 

Making 600 a month overpayments

I no longer need to pay 1k or so overpayments to reach my targets 

I'd say the first five years are the hardest and I'm definitely getting less scared of my debt now it approaches five figures 

isadreamalie

Now at the half way mark 5 1/2 years in. Total debt 115k borrowed 230k
Monthly payments Now roughly £612 a month at 2.59% (new 5 year fix started late last year) 
Paying £500 overpayment when I can

isadreamalie

I've just done this calculation on my mortgage payments 

So at present £248 a month goes towards interest  and about £364 towards the debt. 

Multiply your balance by the interest rate then divide by 12