Mortgage Free by 53!!

t2rry

Have you looked at a worse case scenario for how much your mortgage could be when you have to fix again? Since last year I have put £1500 into our budget spreadsheet even though it was £1136 so we got used to what that would look like. We didn’t, but you could then save the difference to go on your house projects. Have you got a huge mortgage? 

And yes, I don’t mind about IG. I’ll DM you!

Yeah - we're on 1.85% for another 3 years, if it jumps to 5% it'll go up by nearly £600.  

We save more than that automatically every month at the moment so I'm very grateful we are where we are now rather than where we were 3-5 years ago but the chunk it's going to take out of our ability to save is going to hurt, plus very first world issue - we'd always planned to extend this house, which originally we'd hoped to do before our fix came to an end and now seems quite far out of reach, but then we're very lucky with what we have already so I guess if it takes another 10 years then so be it.  

anthonybax

Your current mortgage interest rate of 1.9% until August 2023 is quite favorable. It's essential to keep an eye on interest rate trends as your remortgage date approaches. If you can secure a new rate that is competitive and potentially lower than 3.29%, it could save you money over the long term. However, given the uncertainty of interest rates, you might also consider a fixed-rate mortgage to protect yourself from potential future rate hikes.

crunchy_time

anthonybax said:

Your current mortgage interest rate of 1.9% until August 2023 is quite favorable. It's essential to keep an eye on interest rate trends as your remortgage date approaches. If you can secure a new rate that is competitive and potentially lower than 3.29%, it could save you money over the long term. However, given the uncertainty of interest rates, you might also consider a fixed-rate mortgage to protect yourself from potential future rate hikes.

Thanks for the advice but we’ve already locked into a new rate when our mortgage is up for renewal in November with our existing provider of 4.35%. 

We don’t want to shop around as I don’t currently have a job and that could throw up all sorts of issues! (Even though husband can clearly afford to pay for it all by himself).

crunchy_time

@t2rry

Gosh that is quite a jump. I feel your pain but sadly this is the state of the world now. 

We were planning to sell up in about 5 years time and get a slightly bigger house potentially adding £50-£100k to mortgage. All this mortgage rate nonsense has made me see sense and decide to stay put and make the most of our little three bed detached at least for the next 5-10 years.

I honestly don’t know who I am anymore my attitude to money has changed so much. I drive around in my 9 year old paid off car feeling so content. I just don’t want to spend anything. It’s weird! But great!!

£600 a month over three years is £20k ish - could that go towards it so that you don’t have to pay so much interest when your fix ends?

t2rry

oh 100%, I'm totally on the saving train now to mitigate every circumstance, we want as much as possible set aside so we can either pay a chunk off the mortgage to keep monthly payments down or if we don't feel we need to by then (rate reduction or pay increase or both - all fingers crossed!) then we have a really good pot to start thinking about the extension, if not get cracking with it or maybe even something else! So much forward planning though it sometimes feels like I'm wishing our life away

We're already below 60% LTV (bought at 75%) so should hopefully be <50% by then too, which will feel nice.  I could totally see us moving again and we often talk about what other houses we would want but ALWAYS come back to the idea of staying put and finding a little more financial freedom, it's like a life epiphany, not chasing the bigger and better but freedom and time instead!

crunchy_time

Financial freedom always felt like a very distant dream to me but now I can actually envisage what it will look like and feel like, it changes things massively 

LeighofMar

crunchy_time said:

Financial freedom always felt like a very distant dream to me but now I can actually envisage what it will look like and feel like, it changes things massively 

It does. Nothing feels better than owning the roof over your head which allows us to do so much. Travel, less work or being able to work only on passion projects, decorating your home and garden, quality time with yourself or friends/family, it's a dream that I used to think only the rich could have. I like the flexibility of making this home my dream home with the money saved instead of constantly upgrading to something nicer but that will eventually still need some work too. It's neverending at that point. I'm glad you feel you can visualize what life will be like after achieving MF status. It's very motivating. 

crunchy_time

I’m spending too much time on my instagram account than on here - sorry!

Just jumping on to say that we managed to overpay £161 in August! Mainly from interest, round ups and unexpected money but £69 ish as to round it down to an even £250,000.

I have loads of bits to seem for September and going to explore other options for earning extra money. 

I have also discovered Vinted for buying - got £50 of clothes that would cost me £180 new! Just hoping the stuff is ok!

We are back from our holiday - had an amazing time but not quite ready to plan the next one. Getting stuck into house jobs, job hunts and back to school. It’s feeling very autumnal at the moment. I had socks on today!!!

I have a question: does anymore know of an online calculator that calculates the interest you will have saved for a one off payment to your mortgage?

Honeysucklelou2

I use an app called My Mortgage. I can put in the overpayments and it tells me how much interest I have saved. Quite an interesting tool! How is the job hunting going? 

crunchy_time

Honeysucklelou2 said:

I use an app called My Mortgage. I can put in the overpayments and it tells me how much interest I have saved. Quite an interesting tool! How is the job hunting going? 

I have now found the one that is on my mortgage app ha ha But thank you!

I am registered to do supply teaching so that has been keeping me out of trouble whilst I decide what to do next.