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A long hard slog- is the end in sight?
TimSynths
Posts: 603 Forumite
A lot of posts here in this MFW forum have motivated me so I thought I do some number crunching myself and also take chance to take stock and evaluate my mortgage, always had a rough idea in my mind but its time to look at all the pieces in play.
25 year Santander mortgage since Aug 2003
£33,940 balance remaining.
£554 pm
25 year Santander mortgage since Aug 2003
£33,940 balance remaining.
£554 pm
7 year fix 2.69% to May 2025 with the mortgage set to be finished in 5 yrs 6 months.
The mission is to be in a position (if I choose) to be able to clear the remaining balance once the current deal runs out in May 2025 so I have 25 more payments under the current 2.69% deal (£1.7k ERC). Currently I'm reducing the balance by approx. £476 per month, I know this figure increases slightly each month (about £1) as the capital reduces so over the next 25 months the capital owed should come down to approx. £22k.
So I need to have £22k saved by May 2025 and if I am able to settle early I think I will save £2040 in interest payments.
Now I overpay currently but I don't pay this direct to the mortgage but I invest it into a Vanguard LifeStrategy® 100% Equity Fund ISA. I pay £100pm and so far I have saved £2701 and my rate of return is 43.6%, so far so good. Another 25x £100 + a conservate 5% growth should see this increase to approx £5870 come May 2025.
I have approx. £16k in share options through work and about £4k becomes available to sell each January.
Finally I use an app "Sprive"
Sprive - Mortgage Free, Faster
Which analyses my spending through open banking as its linked to my current account and sets aside money it thinks I can afford to overpay, I only started using this a few months ago and it already has £194 earmarked for me which at a click I can send to Santander or ask to have it put back into my account if I don't agree with it/need it.
I will come back and update progress from time to time, I may look to increase the amount to the ISA come spring as I have a reasonable payrise coming and I think I should increase this to £150 pm.
Happy to hear suggestions/opinions etc. I feel better already for getting this down on paper, its been a long hard slog since 2003 but the end is in sight.
Tim.
The mission is to be in a position (if I choose) to be able to clear the remaining balance once the current deal runs out in May 2025 so I have 25 more payments under the current 2.69% deal (£1.7k ERC). Currently I'm reducing the balance by approx. £476 per month, I know this figure increases slightly each month (about £1) as the capital reduces so over the next 25 months the capital owed should come down to approx. £22k.
So I need to have £22k saved by May 2025 and if I am able to settle early I think I will save £2040 in interest payments.
Now I overpay currently but I don't pay this direct to the mortgage but I invest it into a Vanguard LifeStrategy® 100% Equity Fund ISA. I pay £100pm and so far I have saved £2701 and my rate of return is 43.6%, so far so good. Another 25x £100 + a conservate 5% growth should see this increase to approx £5870 come May 2025.
I have approx. £16k in share options through work and about £4k becomes available to sell each January.
Finally I use an app "Sprive"
Sprive - Mortgage Free, Faster
Which analyses my spending through open banking as its linked to my current account and sets aside money it thinks I can afford to overpay, I only started using this a few months ago and it already has £194 earmarked for me which at a click I can send to Santander or ask to have it put back into my account if I don't agree with it/need it.
I will come back and update progress from time to time, I may look to increase the amount to the ISA come spring as I have a reasonable payrise coming and I think I should increase this to £150 pm.
Happy to hear suggestions/opinions etc. I feel better already for getting this down on paper, its been a long hard slog since 2003 but the end is in sight.
Tim.
1
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