Five year plan

isadreamalie
isadreamalie Posts: 54 Forumite
First Anniversary First Post
edited 26 June 2023 at 4:31PM in Mortgage-free wannabe
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
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Comments

  • DrCarrie
    DrCarrie Posts: 864 Forumite
    First Anniversary Debt-free and Proud! Photogenic First Post
    Congratulations and good luck. 
    Mortgage 17th of Jan 24 = £174,000
    Escaping into Private Practice fund £330/£11,000 = 3%
  • Good luck! Mortgage free by 40 is a brilliant goal x
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £1,075 /£3,600


  • Good luck...you're doing really well.
  • savingholmes
    savingholmes Posts: 27,355 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Congrats looks like you are doing amazing.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £12.3K
    3) CC £4.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value at 15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • isadreamalie
    isadreamalie Posts: 54 Forumite
    First Anniversary First Post
    edited 9 February 2023 at 12:22AM
    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
    isadreamalie Posts: 54 Forumite
    First Anniversary First Post
    edited 27 March at 3:01AM
    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 
  • 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.
    £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! 🍻🥂🍸🍹.
  • isadreamalie
    isadreamalie Posts: 54 Forumite
    First Anniversary First Post
    edited 15 February 2023 at 12:12PM
    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 
  • 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
  • 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
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