Alion's Mortgage Reduction Diary

Lynn11

Well done on your progress to date. It certainly helps when you are able to see the results, even though you feel it is only small amounts being paid.

setmefree2

Alion wrote: »

Another £750 down

well done on that :T:T:T

cha97michelle

Your diary is so inspiring. I have 2 small nippers so i know how difficult it is to overpay once they arrive, so you are doing so well.

It has made me work out i have saved 12 years and 4 months from a 25 year mortgage over 5 years, and other than getting married we were pretty frugal along the way.

Well done for all you have achieved.

Alion

Well, we've done a bit of playing around. Decided we liked the look of the Nationwide tracker capped at 3.99%. Better fees and better rates if we have under £150k, but overpayments will be capped at £500 again, and we've got used to paying £750 now.

So we've overpaid another £2k straight out from our savings (as we had kept levels up as we didn't have any security about interest rates etc, but now we can be sure of the max we'll need for a few years.)

Then (for the first time EVER, and I'm not over proud of this, but it makes sense), we've borrowed £6k from the bank of mum and dad so that we can keep up our £250 additional overpayments. (obviously if our situation changes we can reduce our £500 overpayment into the mortgage so we're not stuck in something we can't afford here). I didn't want to ask (pride), but they were really thrilled to help and are very supportive of the work we've done.

So if that all makes sense, current overpayments will continue, our rates are capped, and we're £2k closer to the target. Expecting to hit that magic £150k target by September now (only a tiny bit off hitting it in August)

Alion

First payment and overpayment on the new system have gone out. On track to hit that magic £150k in September - think we'll have to open a bottle of bubbly for that one - had missed out the arrangement fees in my last post, but we'll just drop under next month.

Fascinating stats...what shall we have today? We have repaid £78,791.58 to date, without overpayments that would be £35,541.58 - a difference of £43,250. WOW!!! Our total mortgage term is down from 25 years to 18 years and 7 months so each of those months has cost us £716 as opposed to the average £1,110 we've been paying - a saving of £394 on every month we've removed

Queen-Bee_2

Hi - have just read your diary through from the start. I'm particularly impressed with the way you're able to analyze your repayments/savings etc - wish I was as adept with my figures! Did you create your own spreadsheet to do this?

Anyway, very well done on what you've achieved so far, and I wouldn't dwell too much about the drop in value on your house. I know that this is a nuisance in that it probably reflects in the type of deal that can be negotiated with BSs, but in the overall scheme of things, we're in this for the longer term and everything works in cycles. It will pick up!!

QB

ajmoney

Wow, your diary is an inspiration to read. I have no idea how you work out how much time and money you have saved but would be interested to learn. I am overpaying for the same reason only not at the same rate as you. Keep your entries up as it may inspire me to pay some more.

Well done, you should both be really proud of where you are. How old are you?

setmefree2

Alion wrote: »

First payment and overpayment on the new system have gone out. On track to hit that magic £150k in September - think we'll have to open a bottle of bubbly for that one - had missed out the arrangement fees in my last post, but we'll just drop under next month.

Fascinating stats...what shall we have today? We have repaid £78,791.58 to date, without overpayments that would be £35,541.58 - a difference of £43,250. WOW!!! Our total mortgage term is down from 25 years to 18 years and 7 months so each of those months has cost us £716 as opposed to the average £1,110 we've been paying - a saving of £394 on every month we've removed

well done on all that

Alion

Oooh, I've been very bad at updating this...

We overpaid another £750 in September (£250 to Dad and £500 directly), then took a bit of a break in October to pay for our Holiday and wedding anniverary (£250 to Dad, other overpayment went on celebrations), and just did our November overpayment (£250 to Dad and £500 directly)

That brings us down to £147,622.43, we’ve got to the point where we’ve paid off ¼ of the mortgage, we own a third of the house at its original value (almost there at the current value according to Nationwide) and every £1 we’ve put in has given us a saving of £2.02 in interest over the course of the mortgage

Alion

ajmoney wrote: »

Wow, your diary is an inspiration to read. I have no idea how you work out how much time and money you have saved but would be interested to learn. I am overpaying for the same reason only not at the same rate as you. Keep your entries up as it may inspire me to pay some more.

Well done, you should both be really proud of where you are. How old are you?

The maths is a fascination with statistics - every month I look at the numbers and play around to find something interesting with them. I can't see numbers on their own but I like to see how they work together.

My husband and I are both 26.