My Mortgage Free Mountain - A 7 year expedition to climb to the top
OH and I are in a position where we will be able to repay the mortgage on our own home either at the end of this year or in Jan 2023 thanks to an insurance claim we have been waiting to pay out for several months.
However we also have 3
BTL mortgages which need to be cleared and our big dream is to clear them all
before my OH turns 60 (just over 7 years time).
We are lucky in that my hubby has a well
paid job so we always have spare money each month (and will have even more when
our own mortgage is paid in full) but it will be hard to be able to pay off so
much money owed in mortgages in the timescale we have set ourselves but I love
a challenge so bring it on 😊We will officially start the challenge on
1st January 2023 so anything paid before then is an added bonus.
Our balances today are:-
Our Own Mortgage £2338.07 rate 4.1% no cap on overpayment
BTL Mortgage 1 £51,089.10 rate 1.94% until 1st July 2025 10% overpayment allowed
BTL Mortgage 2 £81,504.52 rate 2.09% until 28th Feb 2026 10% overpayment allowed
BTL Mortgage 3 £77,497.02 rate 1.97% until 30th June 2027 10% overpayment allowed
TOTAL AMOUNT OWED:- £212,428.71
The plan is that we are going to try and spend as little as possible and throw any spare money towards one mortgage at a time so hopefully the results we see will keep us motivated. However we also plan to set up direct debits for the maximum amount we are allowed to overpay for each mortgage as well as save some cash which can be used as lump sums to help clear some of the balance every time we re-mortgage.
So far I have come up with the following ways to earn/save money which can then be used towards our mortgage free dreams:-
Ways to earn money:-
OH working overtime (he already does lots and usually we just fritter it away but not anymore – it will be used for mortgage overpayments)
Step up my little business a gear (I really want to be able to bring in a decent amount each month to use towards overpayments). All profit made from my business will be being used for OP
Use cashback sites for all online purchases if possible and use coupons/discount codes
Get a higher rate savings account to earn more interest on lump sums going to be used
Declutter house and sell things on FB Marketplace, Car Boots, Ebay etc
Apps/Sites where you earn points for playing/surveys etc like Swagbucks, Mistplay etc
Part Time job for me
Ways to save money:-
Cut food waste – I am really bad for not using things up but I will be now and will have a monthly budget of £400 to spend each month and no more
Limit Dog Treats – our house is filled with dog treats and we are very generous how many she has a day but no more – we will use the ones we already have and there will now be a limit (including how many I give out to other dogs I meet)
Use the cars less – hubby needs his car to get to and from work but I will hopefully bike or walk to post office etc instead of driving
No buying clothes for OH or me, books, stationery, plants or craft supplies – we have plenty
Cut back on Christmas – we always spoil our kids and parents but from here on in we will limit the amount we spend
Cut costs/cancel subscriptions – I’m going to haggle prices and cancel what we don’t use
Have lots of NSD’s each month and cut down on spending – not so many takeaways, treats, use towelling cloths instead of kitchen roll etc
Save energy – turn of lights, unplug, not run dishwasher as much, no heating on when just me in the house or after 9pm etc
Return unwanted/broken items so need to keep receipts or ask for electronic ones
Investigate what perks are included in our subscriptions we keep and make use of them
Maintain things better so they do not need to be replaced
I'll edit the list as I think of more!
Although the challenge will not officially start until next year there is no harm in getting started this month so I’m keen to see just how much money we can add to our pot ready to help those balances decrease.
Fingers crossed this diary will keep me accountable and stop me frittering away too much!
So strap yourself into your snow shoes and enjoy the expedition 😊
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