I wanna be mortgage freeeee!

Hi folks

I’m a long time lurker coming out of the shadows as our circumstances now mean that we have a real shot of getting rid of the mortgage early.

Me and my husband were both made redundant in January. I found a job straight away and my husband has found one and starts early May.

We got a pot of money from redundancy which has paid off a few small things, and will pay the rest off once my husband starts his new job, with some money to spare. We also both got decent pay rises and extra money freed up once debts are paid. 

So my plan:
1. Save enough to have 6 months expenses banked. (20k)
2. Have an emergency savings for house/car (5k)
3. Have a savings fund for holidays (5k)

then:
start over paying the mortgage

Mortgage is currently at £169,168 with 20 years and 2 months left. I’d like to halve this if possible.

This diary is to keep track and keep me accountable. Halving my mortgage is doable but only if i keep a close eye on things and get my savings in a good place.

Currently:
Mortgage:  £169,168
Debts:        £22,259
Savings:     £29,480
«1345

Comments

  • Well done on getting the new jobs so quickly. REdundancy must have been scary but it sounds like it's going to work out for the best.
    MFW 2024 £0/7500 Mortgage £129,500 Jan 22 Final payment June 38 Now £99,801.75 FP May 36 Emergency Fund £17,500 100% Added to ISA 24 £0 Save 12k in 24 #31 £0/20,000 Debt Free 31.07.14
  • Thanks @FlacosFloozie. It was pretty scary but we were both unhappy in our jobs so in some ways it was quite liberating once we’d got over the intial panic.   We’re not lucky generally but the planets feel to have aligned for us a bit this time
  • Well my mortgage payment went out today. It hasn’t hit my account yet but I had set the DD to round my payment up so I have made my very first overpayment of £8.19 🎉🎉

    I also rang the mortgage company to change the DD date. It’s been coming out in the middle of the month. Still a hangover from when we were both paid on 14th of the month 7+ years ago.  Moving it 2 weeks earlier next month with save £133 in interest and as my DD is fixed at a higher amount, next month my overpayment with be around £142. Nice.

    Now I have finally got around to sorting the app so I can see my
    mortgage account online I can tell that this is gonna be quite addictive!

  • Flossymuldoo
    Flossymuldoo Posts: 67 Forumite
    Name Dropper First Post First Anniversary
    edited 20 April 2023 at 9:01AM
    Hhmmmm. The latest mortgage DD hasn’t hit the mortgage account after 3 days. Why with normal bank accounts does the money hit straight away and this takes 3+ days?  The cynic in me assumes they hold onto it for a bit. At £8 ish interest a days I guess it’s not in their interest to credit is straight away  :|
  • beanielou
    beanielou Posts: 90,087 Ambassador
    Academoney Grad I'm a Volunteer Ambassador Mortgage-free Glee! Name Dropper
    Happy shiny new diary  :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • Thank you @beanielou :*
  • So my main ‘doings’ this week have been:

    1) Tidying the pence from our spending account to savings at the end of the day.
    2) I’ve done some surveys this week! Pretty close on 2 sites to being able to cash out £10.
    3) Keeping a close eye on our joint spending account. I’ve kept all the bills in check for a long time but the spending from this account has been getting a bit out of hand.
    4) Downloaded Moneyhub, set my budgets and sorted transactions so that I can see where my money is going.

    There will a large expense in the next week or so. OHs car needs a bit of work. His brake discs and pads have already cost £800+ (although dealership quoted £2.5k 😮) and it also needs some suspension work and 2 tyres. Not sure how much the garage will charge to fit the brakes and the rest of the work but I am sure the bill won’t be pretty! 

    Looks like there will be some leftover money at the end of the month (car costs will come out of the car fund) so I’ll just roll this over to next month to part cover the shortfall for May, until he starts getting paid from his new job.

  • Oh, and the mortgage payment still
    isn't showing even though it left my
    bank last Monday  :#
  • savingholmes
    savingholmes Posts: 27,258 Forumite
    Name Dropper First Anniversary Photogenic First Post
    How irritating on the OP - let's hope they backdate it when they credit it. If it's any consolation my mortgage provider doesn't even have an app!

    Great you got jobs so quickly after redundancy.  


    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • Thanks for dropping in @savingholmes!!

    To be honest this is the first time I’ve ever used an app for my mortgage and I’ve had this one nearly 8 years. I’ve always just paid it and waited for the annual statements, and done everything else by phone. Not sure why it took me so long to get with the programme and download it 🙄
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