Aiming to be mortgage free when I'm 40.

Sncjw

Hi all 

I want to start a diary even though we are going to over pay the same amount as much as possible..

We currently live in a 2 bed home which we have no plans to sell. We have scope to extend but won't until we have savings as I don't want to put it on credit. 

We bought our home for 83,500 with a mortgage of 75,150 and we are on a 20 year term fixed for 5 years with 2 years left on the fixed in April. So we pay £396 a month at the moment. 

We are currently standing at 66,445 on the mortgage and we have set up overpayments. We are going to over pay by 620 a month from march so that the total is 1016 a month in the aim to get the mortgage down to the 40s. With this I am hoping that we will get another good fixed deal and be able to over pay on the new deal too. 

We don't have any kids yet as I have trouble conceiving due to pcos but we are hoping to have one. So we are also going to save some money aside once my credit card is paid off. We are going to use the money we use to pay the card off to save up for any child related expenses or if we can't have a child to put towards home improvements. My credit card deal is on 0 percent until 2024 so I know it will be paid off as I just paid off another credit card before the deal ended. 

So I don't know if I have too much info there but that's the rough plan. I am hoping to not have to cancel the overpayments but you never know the future. 

Thank you 

Sncjw

I forgot to add that I am going to be 33 in march so if we get this mortgage paid off when I just turn 40 it will be really good but I know things can change. 

Also this morning I woke up so tired and realised I have another 35 years of working and my god that makes me feel so depressed. But then if I get this mortgage paid off it means that I won't need to be paying a mortgage for 25 years and we can save money aside for improvements or retirement which is along side our workplace pensions. 

I am just hoping to be in my job for that long but of course you don't know what happens in the future. I am generally happy where I am as I don't feel I can move jobs. I don't think I can go higher up due to disability related reasons and even with the adjustments I have now I wouldn't be able to do the job fully. 

TimSynths

I use Sprive to help with my overpayments-

Sprive - Mortgage Free, Faster

"Set aside money
automatically

Our algorithm analyses your spending each week and sets aside the perfect amount.

The less you spend, the more we set aside without ever impacting your lifestyle."

Sncjw

TimSynths said:

I use Sprive to help with my overpayments-

Sprive - Mortgage Free, Faster

"Set aside money
automatically

Our algorithm analyses your spending each week and sets aside the perfect amount.

The less you spend, the more we set aside without ever impacting your lifestyle."

I don't need that as I have a set amount set upm an amount I know we can overpay and also still have a good quality of life. 

Sncjw

Hi all 

I have moved my overpayment amount into the account that gets the mortgage taken from..now to wait until payday for to move the contractual payment amount I will have my first overpayment ready to go on the 1st of the month. 

Feel a little guilty with where the money comes from and it's being used for mortgage as it is my pip but someone said that it can be seen as that the money from my wages is covering my disability and that I am replacing my wages and with it being replaced I can use this to over pay mortgage. 

Plus I want a secure home that no one can take away from me and that I model to how I need it and not have to ask permission from a landlord to do so. 

themadvix

Welcome to MFW @Sncjw!

 Have you checked you’ll be able to OP that much? Most fixes only allow you to overpay 10% per year. Also, you haven’t mentioned your interest rate - if you’re part way through your fix I imagine you’ve got a great rate? If so, you’d be financially better saving the cash and earning a much higher rate of interest on it and paying it off as a lump sum at the end of the fix.

 Entirely agree that your PIP money is yours to use as you choose - it’s ensuring your future security to use it this way, so definitely covering the ‘independence’ part.

 Good luck!

Sncjw

themadvix said:

Welcome to MFW @Sncjw!

 Have you checked you’ll be able to OP that much? Most fixes only allow you to overpay 10% per year. Also, you haven’t mentioned your interest rate - if you’re part way through your fix I imagine you’ve got a great rate? If so, you’d be financially better saving the cash and earning a much higher rate of interest on it and paying it off as a lump sum at the end of the fix.

 Entirely agree that your PIP money is yours to use as you choose - it’s ensuring your future security to use it this way, so definitely covering the ‘independence’ part.

 Good luck!

Yes I can. Mortgage was 75150 when we took it out so we can pay 7515. Our interest rate is 2.44 percent. 

Sncjw

Plus I just want to go straight to mortgage as I don't want to be tempted by having it in a savings account 

Sncjw

I just seen someone else mention karls mortgage calculator so I had a look and managed to work out the term if consistently overpaid the same amount. 
This is of course if nothing adverse happens but you never know what's in the future. Deapite being awarded until 2027 the benefit system may change. 

Also if I have a child I may need to buy equipment to help me hear the child's needs or to change the home. once credit card is paid off my husband and I are going to put that money we used to pay cards off to one side and build a pot for just in case. 

Also we are still going to have money to actually live and enjoy ourselves but not go mad. I have done two scenarios one if I continue to get the pip payment past 2027 but I hope by then we will have a pot of money we can use to to fully pay off the remaining balance if I don't get payments past that point. Also another scenario if we don't hand the money over and I don't get payments past that point.  This is also based on the rate staying the same at 2.44 percent but I know it can change when it comes to renewing 

First one is if got payments past 2027. 

Sncjw

This one is if payments don't go past 2027 and again the interest rates are the same 

Sncjw

Showed my husband these figures and I explained it to him and he was like whatever 🤣..

He doesn't really understand alot of finances and espically to do with the house. He seemed perplexed when we went to the meeting to find out about mortgages so he has left me to do it. 

Anyways he said we agreed to overpay so just do it 🤣. I just wanted to make sure he is in the loop and he knows that is based on if we continue as we are but things can change.