Mortgage gone by 2030

hellosupernova

September Update

Total overpayments for September 24:        £550.00

Mandatory payment 30.09.24:                     £547.25

Interest added 01.10.24:                              £175.91

Balance after interest added 01.10.24:        £63,077.66

Overpayments made so far in October 24:  £81.66

Current mortgage amount (16.10.24):         £62,996

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: £4,034.69 / £6,919.87 (58.3% used) / (£2,885.18 left of allowance)
Capital cleared off balance so far this financial year: £6,202.76 / £10,000.00 (62%) / (£3,797.24 left to target)

All still on track and I am happy with the progress made. Expensive months are approaching for the festive season, so I am trying to put money aside to cover it now but I also want to keep building up a more healthy emergency fund that I can instantly access without penalty just in case.

On a random side note, the time finally came to find an alternative or 'use for most stuff' non bio washing powder. It sounds silly but one of my two 'luxuries' these days is my Earl grey tea and using my branded washing powder. However the washing powder is beyond ridiculously expensive now, even with buying in bulk at the cheapest warehouse store. I have been meaning to change it for awhile and so have swapped to a supermarket one but still keeping my usual fabric softener, which to be fair you can smell more than the powder anyway and so far its been fine. Of course no surprise there as I use non-branded products most of the time anyway. I am saving around a third on the price now so thats an improvement.

isadreamalie

Great news

For myself with my pay rise I overpayed by 1k and my new balance is barely over 100k payments now around £563 a month. I've put a decent amount into a good easy access savings account too which will probably go on my mortgage once it matures 

beanielou

Great news indeed. 

isadreamalie

My mortgage debt is now 99,999
A huge milestone! From 230k to under 100k in seven years. I did overdo it the last two years as my pay fell due to strike action and I travelled a lot more frequently. In hindsight I should have had emergency savings but I was rather addicted to the rush of overpaying.  I now have a good pot of savings thanks to a lump sum in backpay.

Now my focus is on saving as opposed to overpaying and using the money to get rid of the mortgage down the line. My fixed payments are only £559 as a result of reducing the monthly payments so my mortgage isn't too noticeable these days. I'd rather invest in a good easy access saver knowing I have the money as an emergency fund if needed as well as spreading money in different accounts.

minimad125

For clarity, I am going to increase my overpayment in January 2024 to £100.00 a month. this will get me to just over 30k on fixed rate renewal. I have extra money available to throw on at the end if needed and this depends on the interest rate at the time. From what I can gather (crystal ball rolling), it will be around 3.5% so may take a 2 or 3 year fix, which pushes me to 08/2029 or 08/2030 and then a lump sum payment to clear the mortgage at the end. so 6 months ahead or 6 months after the 2030 goal. you have me inspired to finish in the middle, around 12/2029  
Current balance Nov 24 - £45825.00

isadreamalie

Amazing work

minimad125

isadreamalie said:

Amazing work

Thanks, and get that emergency fund finished like you did with the mortgage and then carry on with the overpayments. I can see you finishing earlier than you think

hellosupernova

October Update

Total overpayments for October 24:               £333.66
 
Mandatory payment 30.09.24:                        £577.52

Interest added 01.11.24:                                 £219.50

Balance after interest added 01.11.24:            £62,385.98

Overpayments made so far in November 24:  £3.00

Current mortgage amount (15.11.24):             £62,382.98

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: £4,289.69 / £6,919.87 (58.3% used) / (£2,630.18 left of allowance)
Capital cleared off balance so far this financial year: £6,815.78 / £10,000.00 (62%) / (£3,184.22 left to target)

I have now started on the new fixed deal which is 4.13% for 5 years running from 1 October 2024 to 1 November 2029. This means the fixed deal will end just before the start of 2030 which was my goal year to be mortgage free. I reduced the term from 13 years down to 11 years 5 months. The mandatory payment has increased from £547.25 to £577.52 per month, which is £30.27 more or a 5.5% increase. So not a huge jump thankfully. However the level of monthly interest has increased from £180 level to around £220 per month which is £40 more or a 22% increase.

I wanted to have certainty on rates and not be thinking I wonder what rate I will be on after 2 years. Now I can logically plan out exactly what my overpayments will be and their impact on the balance. The current fixed deal has relatively reasonable charges so if I wanted to pay the balance off in full heading towards the last two years of the fix then this could be an option.

I have reduced the regular overpayment amount to £250 per month to cover the amount we are now paying in interest on the mortgage each month. If I keep the overpayments at this level, I will still have cleared £10k capital off the balance by the end of the current financial year. We were heavily overpaying at £550 per month previously in order to get the balance down as low as we could before the rate increased on this next fixed deal.

The plan now is to balance overpaying with adding to savings and also to be able to do more things in daily living like holidays and trips out at the same time. I can also start saving a lump sum in the background which could realistically pay off the mortgage in the near future. I have put my latest figures into the mortgage overpayment calculator and it says that if I only overpay the £250 monthly for the next 5 years I will have £29,738.88 balance left on the mortgage. I am planning to make additional ad hoc overpayments, so it is possible I can get the balance further down than this figure before the current fix ends and so would need a smaller savings lump sum saved up.

It feels like things are slowly getting closer. Well done everyone so far with your journeys. You are motivating me to keep going and I like to read your progress. Soon it will be a year since I started this diary (3 December 24) so it will be interesting to see how much has changed in a year.

minimad125

Nice on the fixed rate and covering the interest with overpaying. 
I have started a regular saver to cover a lump sum overpayment towards end of 2025. Hopefully this should push me closer to 25k (minimum amount for a remortgage) 

hellosupernova

November Update

Total overpayments for November 24:          £258.00
 
Mandatory payment 30.11.24:                       £577.52

Interest added 01.12.24:                                £211.51

Balance after interest added 01.12.24:          £61,761.97


December Update

Total overpayments for December 24:           £311.00
 
Mandatory payment 31.12.24:                        £577.52

Interest added 02.01.25:                                 £216.14

Balance after interest added 02.01.25:           £61,089.59

Overpayments made so far in January 25:     £90.59

Current mortgage amount (05.01.25):             £60,999.00

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: £4,946.28 / £6,919.87 (58.3% used) / (£1,973.59 left of allowance)
Capital cleared off balance so far this financial year: £8,199.76 / £10,000.00 (81.9%) / (£1,800.24 left to target)

Apologies I have a double month update as I have delayed updating with the hectic christmas period and enjoying a nice break but I am now back and being more organised again.

When I started this diary back in December 2023 the current balance was £73,576.96 and now stands at £60,999.00 so that is £12,577.96 lower. That seems pretty good going. I am looking forward to getting under 60k level, even like £1 under as thats another 60k I won't see again for this mortgage!