Mortgage gone by 2030

minimad125

Hi again  supernova, I am now at £48675.00 with 10k in savings towards my £30k target (have funds elsewhere that would cover it but keeping mortgage money separate) . 
overpayment allowance is 20% and resets end June so may consider throwing more onto the balance.
Keep up the good work and you be passing me very soon

hellosupernova

minimad125 said:

Hi again  supernova, I am now at £48675.00 with 10k in savings towards my £30k target (have funds elsewhere that would cover it but keeping mortgage money separate) . 
overpayment allowance is 20% and resets end June so may consider throwing more onto the balance.
Keep up the good work and you be passing me very soon

Thanks minimad for the encouragement. Great progress and great that you have those savings and 20% overpayment allowance to use if you want. I will keep at it and see if I can get closer to where you are now.

hellosupernova

June Update

Total overpayments for June 24:    £732.81

Mandatory payment 30.06.24:       £547.25

Interest added 30.06.24:                £184.06

Current mortgage amount (30.06.24): £65,999

Opening balance as of 01.04.24: £69,198.76
10% overpay allowance fee free: £6,919.87
Overpayments made so far this financial year: £2,125.30 / £6,919.87 (30.7% used) / (£4,794.57 left of allowance)
Capital cleared off balance so far this financial year: £3,199.76 / £10,000.00 (31.99%) / (£6,800.24 left to target)

This month has been challenging but I have still managed to stay on track. I am starting to rethink my 2 year fix thoughts and might just go for a lower interest rate 5 year fix, so that I can fix the rate and not worry about the market for the next 5 years. I could fix at a mandatory payment level of £500 ish and overpay what I am allowed to each year and then start saving my lump sum ready to pay off whats left of the mortgage at the end. This means I would still be mortgage free by 2030. 

minimad125

hellosupernova said:

June Update

Total overpayments for June 24:    £732.81

Mandatory payment 30.06.24:       £547.25

Interest added 30.06.24:                £184.06

Current mortgage amount (30.06.24): £65,999

Opening balance as of 01.04.24: £69,198.76
10% overpay allowance fee free: £6,919.87
Overpayments made so far this financial year: £2,125.30 / £6,919.87 (30.7% used) / (£4,794.57 left of allowance)
Capital cleared off balance so far this financial year: £3,199.76 / £10,000.00 (31.99%) / (£6,800.24 left to target)

This month has been challenging but I have still managed to stay on track. I am starting to rethink my 2 year fix thoughts and might just go for a lower interest rate 5 year fix, so that I can fix the rate and not worry about the market for the next 5 years. I could fix at a mandatory payment level of £500 ish and overpay what I am allowed to each year and then start saving my lump sum ready to pay off whats left of the mortgage at the end. This means I would still be mortgage free by 2030. 

Hi again, I would say that when you do come to choosing the next rate, see what the savings rates are and then decide on the fixed term length. if the rates are on a par, you may as well take the 2 year and continue with your current trajectory of overpaying. 

isadreamalie

My debt is now 103,960.02
Monthly payments now £575.84
 
This is £75 cheaper than my rent was back in 2015 and over £325 cheaper a month than my mortgage was six and a half years ago

On target to reach a five figure debt balance by the year end.  Gets easier and easier to overpay with my committed payments falling each month 

My monthly payments are starting to feel insignificant 
£351.84 of my £575.84 now goes towards paying off the debt* and with an average overpayment of £500 I'm reducing the debt by the best part of £1000 each month

*my interest rate is 0.0259 and debt 103,960.02


103,960.02 x 0.0259=2692
2692/12= 224

575.84-224=351.84

Of my £575.84 a month payment £351.84 pays off the debt and £224 goes towards the interest. 

hellosupernova

July Update

Total overpayments for July 24:     £560.00

Mandatory payment 31.07.24:       £547.25

Interest added 01.08.24:                £187.40

August 24 overpayments so far:    £  80.15

Current mortgage amount (11.08.24): £64,999

Opening balance as of 01.04.24: £69,198.76
10% overpay allowance fee free: £6,919.87
Overpayments made so far this financial year: £2,765.45 / £6,919.87 (39.96% used) / (£4,154.42 left of allowance)
Capital cleared off balance so far this financial year: £4,199.76 / £10,000.00 (41.99%) / (£5,800.24 left to target)

A delayed update due to unforseen circumstances where I was in a car accident (other driver rear ended me at speed). My focus has been on recovering and dealing with the aftermath but I was able to walk out alive which is the most important thing. Due to associated costs and the summer already being an expensive time, my overpayments will likely need to be stopped or reduced down for the time being. Progress has still been made but I am just trying to get back to normality and get my confidence back when driving. After this I have been telling everyone to make sure they have motor legal cover to help with these kind of situations where you just don't know what might happen on the roads through no fault of your own.

isadreamalie

hellosupernova said:

July Update

Total overpayments for July 24:     £560.00

Mandatory payment 31.07.24:       £547.25

Interest added 01.08.24:                £187.40

August 24 overpayments so far:    £  80.15

Current mortgage amount (11.08.24): £64,999

Opening balance as of 01.04.24: £69,198.76
10% overpay allowance fee free: £6,919.87
Overpayments made so far this financial year: £2,765.45 / £6,919.87 (39.96% used) / (£4,154.42 left of allowance)
Capital cleared off balance so far this financial year: £4,199.76 / £10,000.00 (41.99%) / (£5,800.24 left to target)

A delayed update due to unforseen circumstances where I was in a car accident (other driver rear ended me at speed). My focus has been on recovering and dealing with the aftermath but I was able to walk out alive which is the most important thing. Due to associated costs and the summer already being an expensive time, my overpayments will likely need to be stopped or reduced down for the time being. Progress has still been made but I am just trying to get back to normality and get my confidence back when driving. After this I have been telling everyone to make sure they have motor legal cover to help with these kind of situations where you just don't know what might happen on the roads through no fault of your own.

Terrible news hope you're ok

beanielou

Sorry to hear that. Take care of yourself. 

MerryHen

hellosupernova said:

MerryHen said:

Your MFW figures look great. We had a regular £500 mortgage OP set up too. We'd quite often OP more at the end of the month but that £500 came out at the start of every month with other bills and knocked years off the mortgage.

Happy new year! I look forward to following your progress ☺️

Thanks. I wish I had the foresight to overpay even a tiny amount from month one but I can see progress now so will focus on that. How does it feel to own your home and not be tied to the mortgage payment? Do you feel more freedom? I have been wondering what it feels like to give me more motivation! 

Realised I never replied to you 🤦🏻‍♀️

I feel really proud we did it but we haven't felt much more financial freedom yet because our mortgage costs have been replaced by expensive childcare costs 😅 (£1700 a month 😵‍💫). But not having it has given us breathing space and alleviated money worries while I'm studying, so in that sense I guess it has given me the freedom to not have to work alongside my studies.

Really sorry to hear about the car accident. I hope you're on the path to being okay physically and mentally ok after it. 

You're making great progress with your mortgage. Keep on chipping away at it!

isadreamalie

Hope everything is OK?

I'm opting to save now and use an isa because it's clear you can earn more that way then use the money to overpay. My monthly mortgage being smaller and finally getting a pay rise should keep me on track.