Mortgage free by 2028

sakura2023

We would love to be mortgage free by 2028!

A little bit about us, family of four, two teenagers and our pup.

Current mortgage balance £76,650 fixed for 5 years at 3.99%.

We brought the house in Oct 2021 on a two year fix. Just started a new fix and feel really motivated to try and pay it off once it finishes.

We have a 10% overpayment cap and I have worked it out to be £633 a month for this first year. Not sure if we will hit it due to increased costs of everything but we can only try.

We have some financial commitments for the next year (plastering that is due to be done at the end of Sept, and a holiday in March). But I am hoping to remain motivated. 

sakura2023

Our gas and electricity has just come out of a fixed contract which I am truly grateful for. We was paying £160 a month, they want to set the new direct debit for £110 but I opted for £120 to create a buffer. We have about £650 in credit but I like the idea of having the buffer there for the winter months.

I try and submit a meter reading every month just to see how much we've used and so we don't get caught out.

I work to a zero based budget and I have about £50 to last me until payday next Friday. I need petrol and just bread/milk and maybe a small amount of lunchbox snacks.

savingholmes

Good luck with your plans. 

beanielou

Happy shiny new diary. 

sakura2023

Payday today, after reviewing our finances I have opted to pay £350. I don't want to make ourselves short. The plasterer is starting tomorrow, the money for that has been put away.

Partner had to pay out for a medical bill which we wasn't expecting, which is the main reason why I haven't paid the full overpayment. I think he is going to contest it with his work as he should have been covered but hey ho.

LadyWithAPlan

sakura2023 said:

We would love to be mortgage free by 2028!

A little bit about us, family of four, two teenagers and our pup.

Current mortgage balance £76,650 fixed for 5 years at 3.99%.

We brought the house in Oct 2021 on a two year fix. Just started a new fix and feel really motivated to try and pay it off once it finishes.

We have a 10% overpayment cap and I have worked it out to be £633 a month for this first year. Not sure if we will hit it due to increased costs of everything but we can only try.

Good luck! Lots of great ideas I have picked up here on saving.
Some people like to aim to OP their monthly interest where possible.

Have you worked out the maths on being done on your mortgage by 2028? As in how much per year you need to save to achieve your goal? That way it is a tangible amount.  I know it may be more than your 10% cap..but at least you know the maths then and if you are ahead or behind.

Also maybe try printing a copy of your house with £500 or £1000 squares of principal so you can colour them and see visually how much more of your home you own each payment? I am doing this with saving up for a deposit and its v motivational.

Also lots of MFW here do Tilly tidys - so they move extra pence each day sat in their bank accts  into their mortgage OP - so if your current account is £102.23 they move 23p into a OP pot etc..

sakura2023

@LadyWithAPlan thanks for reading, I think if we was to overpay the max that they will allow us, we would owe something like £24000. 

These first two years I don't think will be feasible to save anything extra on top of paying the max overpayment and our other savings. However the final three years we will save the extra and hope to use it is a lump sum.

When we was saving for the mortgage deposit we did something similar I printed off a sheet with a jar on and coloured it in every time we reached a milestone. I might do that per year for the overpayment.

The mortgage went out and we was left at £75009.99, looking back at my original post I think I was meant to write it was £76000!

Paid off the additional 9.99 so it's a nice round figure. 

savingholmes

Well done. I loved colouring charts or even tangible objects. I did a little craft house - I need to stick some tokens on to reflect my recent payments.

sakura2023

@savingholmes I agree, I like breaking it down into bitesized chunks. It makes it less overwhelming.

Hallway is nearly done just the new floor to go in and skirting/architrave. We will paint it ourselves to save some cost.

We need to crunch some numbers because we would like to get our bathroom done next year. It would mean taking out a loan or 0% credit card. I think that will be the final rennovation anything else can wait until we have paid off the mortgage. We have thought about waiting until we pay off the mortgage but would rather get it done and enjoy it. 

I'm going to have a look at getting some quotes and seeing what the ballpark figure will be.

Squirrelz92

Happy shiny new diary!!! x

sakura2023

Our phones have come to the end of their plan, I've changed them to sim only, originally I was paying £67 for three contracts but now it's come down to £8 each. Every little helps!