Let's go fly a kite..

thriftychick

Current mortgage amount: £62,743.73

Current monthly interest: £79.87

Original mortgage amount: £200,000 (2005) 

Inspired by all the MFW diaries on here, I hope you don’t mind me keeping a record on here of our journey.

After trudging through the treacle of debt repayment until 2019, and with that momentum, turned our sights on the mortgage.  We had been overpaying £50 a month since 2015 and then as things were paid off i.e. the car loan, we then added that to the repayments which took them up to £150 per month. After the parent contribution for University ended, that £500 was also directed at overpayments.

We have been paying 10% overpayments for the last two years and then saving towards overpayments and throwing as much money as we can at the mortgage free goal.  In March 2021 we owed £100,000 and started a sticker chart to freedom. 

We are currently paying a fixed rate at 1.64% which ends on 31st May.  We contacted our broker to book a new rate in the new year and have decided a tracker at base rate + 0.89% with our current provider will be the best option as it has unlimited overpayments.

Our mortgage free goal is to be rid of the mortgage by October 2025.

Feel free to join us on the, no doubt, bumpy ride!

thriftychick

Pay day this week so, a further payment into the overpayments pot of £1411.62 (which includes the money which would normally go to Council Tax) bringing the pot to £13976.48.  A tilly tidy of £23.52 to round it up to £14,000.

Our new overpayment year starts on 2nd April so, we plan to make a 10% overpayment of around £6,200 then.  Feeling frustrated by the constraint of the 10% now that we are on a roll with paying it off.

Our new tracker mortgage starts in June and although base rate has gone up this week, according to Mr Thrify's spreadsheet, it is still within what he anticipated we would be paying.  The current interest rates are still lower than we were paying in 1993 on our first home.

thriftychick

Current mortgage amount: £56,469.36

Got up early to make the 10% overpayment of £6,274.37, this amount represents all the hardwork of saving for the last 12 months.  We've saved every extra bit of money we have come by and prioritised getting the mortgage amount down by cutting back on as many things as possible - not easy in the current climate, every bill seems to go in one direction only.  Had a very sweaty palms moment transferring the money but, that's what it's been saved for.

Next regular payment will go out tomorrow.  The sticker chart is looking good - six stars in one go!  On one hand, we're looking forward to the new mortgage deal starting so that we can overpay whenever we want to but, on the other hand, more will be going in interest.

thriftychick

Current mortgage amount: £55,733.37
Current monthly interest: £87.39

Regular payment of £823.38 went out today, penultimate payment on the fixed rate of 1.64%.   

Another sticker on the chart; not sure if we will get a sticker next month, depends on how many days of interest we get charged, it might not drop into the £54K.  We started the chart in March 2021 on £100K with a 5 year plan to pay it off, so far so good but, you never know what is around the corner.

The overpayment pot stands at £7,725 which we will use as soon as we're onto the new tracker mortgage in June.  After that, it will be whatever money we can throw at it and still keep up with the rising price of everything.  Looking forward to being able to tidy the numbers, that £3.37 at the end of the balance annoys me.

Lauraebrad

Good luck!

thriftychick

Pay day this week, so further overpayment into the pot of £1,176.62 which brings the total to £8,902.25.  We will use this when the new tracker mortgage starts on 1st June. 

Inflation figures out this week suggest another interest rate rise in May but still within what we expected....so far.  We are currently putting 50% of our net income towards the mortgage in total which may not be sustainable but we'll see how it goes.

savingholmes

Well done - you sound really motivated. 

thriftychick

Feeling slightly annoyed that the mortgage payment has not gone out due to the bank holiday.  All of the other standing orders did however.  Surely it is an automated payment.  The cynic in me thinks it is the morgage company using any excuse to get more interest.  That's cost me another £2.47

savingholmes

I too find such things irritating - mine cost closer £10 in interest - but I get paid early for weekends where my payday would otherwise fall so tend to feel it balances out.

thriftychick

Current mortgage amount: £54,925.46
Monthly interest amount: £75.47

The regular monthly payment went out today of £823.38 - another sticker on the chart .  This is the last payment on our current fixed rate deal which finishes on 31st May.  So, we shall move into the new world of the tracker mortgage on 1st June.  We have always had a fixed rate repayment mortgage so this will be all new to us, feels like a bit of a risk but it gives us the flexibility we are currrently looking for.

The new monthly payment will be roughly the same at the beginning but the interest, of course, will be much higher at around £200 a month 
We have the pot of money we have saved towards the overpayments and we'll probably pay most or all of this at the beginning of June.  I don't like handing over saved money, it gives me a sweaty palms moment.

In some ways, it will give us more control, in that, we can pay spare money to the mortgage at any time and also, I can tilly tidy it 

South_coast

But that's what you've saved it for! I know what you mean though, having savings is much more fun 😀 That £9k will make a tasty dent in the balance though!