Alion's Mortgage Reduction Diary

Alion

I read these threads a lot early last year and found everyone on them to be inspirational and fantastically supportive. I hope you don't mind me starting a mortgage free diary

Situation: We took out a £200k mortgage with Nationwide in January 2007 to set up our first home. We overpaid by £500 4 times this year, with a large gap in the middle for a wedding and honeymoon.

Challenge: Reduce mortgage by £75k in 5 years (in order to be able to afford to move into a larger house when we have a family)

Method: When we remortgage in January 2009, we intend to put £20k straight into the pot. We received £10k as wedding gifts(!!!) and intend to save the rest throughout the year. We will also overpay 3x£500 with my income from my second job each year, saving for an additional 3x£500 payments this year and then overpaying by £500 every month for the following years.

We're not expensive people and I'm due a pay-rise in January, which will help. OH is looking for a new job.

It seems so scary written down like that! But I desperately need to tell someone so that we've got some support - most our friends have not bought and it wouldn't be appropriate to discuss reducing our mortgage with people who are struggling to get into a position where they can get one.

Thank you for reading

Little_Mama

Good luck Alion, I'm a lurker who pops on here for inspiration too and like you makes the odd £500 here and there....it all counts!

All the best in your quest.

LM
:xmassign:

catshark88

Good luck with your quest, lovely to see another diary.

Every £ paid off at the start of the mortgage makes such a difference in the long term. Good for you for starting so early!

Alion

Thanks cat

Both OH and myself were brought up by stay-at-home mums and we think that's the best gift they ever gave us. We're very keen to do the same for our children so are working hard now to make sure we can afford it when it comes. Living in the south-east on a single salary will be hard work, but we're stubborn so we'll manage it.

I feel less scared already because of your replies. We CAN do this!!!

chelseablue

Hi Alion

Me and my bf dont have a mortgage yet but are saving for a deposit, so just wanted to say good luck!

We sound very similar to you actually as we will be taking out a similar sized mortgage next year and want to overypay before we can have any kids.

We're in the South East too, which area are you?

x

Alion

We're in hertfordshire.

Before we bought our house, we set ourselves the challenge of saving £10k in a year and we did it even quicker - made us feel so good about ourselves, brought us up to a 10% deposit and got us in the house quicker.

Mind you, your deposit is looking really really good - well done you!

catshark88

We're in Hants. Getting free of the sort of mortgage you need in the south east is a 'mare! Still, we have paid off more than I ever thought possible since we found the day to day inspiration on this site. I only wish we had had our lightbulb moment years ago...

chickadee

Hi Alion (and others). I'm in the Nort West and I have to admit that as far as house prices go, I am very happy to stay here. I can't imagine how you guys must feel when you see the extortionate prices of property in your area. I have every respect for you in trying to get as much as poss paid off whilst you can.

I make the off £500 overpayment, as well as a regular overpayment each month, but only about £200 extra each month. I'm getting hooked on seeing my balance reduce though. I have been trying to set myself little targets to reach, which helps me to stay motivated.

Good luck, I'll follow your thread and hope you do well.

chickadee
x

Kaz2904

Good luck getting rid of your mortgage. It's nice to see people who arrive at this mindset before they have children. I always wanted to be in this sort of position but it wasn't to be as the children decided they were coming first!

cazmanian_minx

Excellent, another diary :j

Good luck with your quest and I look forward to reading you

Caz

evab_2

good luck, good to see more diaries.

I don't think anyone I know overpays on their mortgage, they obviously aren't wise to this site yet.

Best wishes for the new year Ev