Paying the mortgage off in record time!

chilswelluk

I purchased my house in December 2021, where I borrowed £195480.00.  I am on a 5 year fixed mortgage term (1.99% interest) with a duration of 33 years.  This would take me long into retirement and is just ridiculous!   My aim to to pay the mortgage off in record time.  My goal is 10%  a year (£19548 - maximum without incurring charges) plus what ever extra I can save to make a lump sum overpayment at the end of the 5 year fixed term.  Last year I did not pay anything as I purchased some extra land (increased value of property), but I have just paid the maximum £19548 mortgage over payment for this year.  This is my record so far:

December 2021 mortgage opening balance = £195480.00

May 2023 - mortgage over payment of £548
June 2023 - mortgage  over payment of £19000

6th June 2023 - mortgage stands at £170,253.23

I now have about £2500 in savings, so will aim to stash as much as I can away each month, ready for an over payment in January 2024. Once I have paid the 10% each year, I would like to try and save away as much as possible, ready for a big lump payment when my fix term ends at the end of the five years.

I earn a salary of 41k per year working for the council and also run a B&B in my home. As far as the B&B goes, my aim to to increase the amount of rooms let in the property, and if necessary, I will sleep in my very old campervan in the garage.  I desperately need more cash to pay the  mortgage quicker, so I think this is a good approach.  A bit of hardship in the beginning seems worth it.  I tend to live quite frugally, buying reduced food at the supermarket and using minimum central heating / electricity.  I don't really eat out / go drinking / spend money on socialising, I drive a 15 year old car and have a 8 year old phone.  I don't have any dependents and  have no debts apart from the mortgage.

beanielou

Wishing you well on your journey 

chilswelluk

Having maxed out my 10% mortgage payments last year, its a new year, so I can start the process again!  I just transferred some funds from my premium bonds and have just made a payment of £9548 to my mortgage.  The mortgage now stands at: £157.945.32

Over the next few months I want to save 10k to max out my mortgage over payment again for this year.  I do understand it would be better to keep my savings in a high interest account and pay at the end of the year, but the buzz I get when making over payments is unreal.

fjireland

Well done … you are doing really well 👍

I know what you mean… all the advice (and I know it’s logical too!) is to put the money into savings and leave until the end of term but like you for a higher interest rate than the mortgage rate, I like to see it coming off my debt and the money is out of reach then too to avoid spending it… 

good luck this year