Mortgage free in 4 years

Sensiblesaver

Hi All,
I have been reading these diaries for a while, I never really post anything, but it helps keep me to my journey as nobody in real life seems to be on the same path. When I tell people I am overpaying my mortgage they ask why? lol

I took this mortgage in 2016 (£310k) and the interest just got lower and lower over the years. I was on 1.44%, so I would overpay a bit every month but wasn't really focusing much on it. Last year I had to re-mortgage and got a new fix for 5 years at 3.49% and just seeing the amount of interest jump so much made me more focused and my plan is to clear this mortgage at the end of the fix. 

So I have decided to create a diary to document my journey and keep track of my progress. I am lucky that I have quite a fair amount of spare cash every month to play with, but I also need to focus on my pension as I am way behind. I am 45years old and the plan is to be mortgage free at 49. I want to overpay the full 10% allowance, but not sure I will make this year, but next year I will definitely do it.

Starting balance July 23 : £228,980
Overpayments up to now(Mar 24): £9580.95
Current balance: £212,309

I should get a tax rebate in April so will overpay more when I know how much I will get. I can't wait to see the mortgage starting with a 1 

Sensiblesaver

At the moment I save into my S&S ISA, SIIP and the rest goes to the mortgage. I overpay by minimum £500 and If I carry on as I am I should have enough on my S&S ISA to cover the mortgage in 4 years, I want t overpay more so I don't have to sell all my stocks. I can't save much in cash as I pay tax on the interest so not really worth it, but I have 6 months EF in cash.

Archerychick

If you’ve made use of your full ISA allowance it’s probably worth you thinking about using your £50k premium bond allowance as that’s tax free. Stocks & shares aren’t best for the short term savings but that might be something to think about. 

Sensiblesaver

@Archerychick , You are right, I would like to leave my ISA as untouched as possible as it's part of my retirement savings. The plan is to build up more cash, anything left over after my 10% OP allowance I will add to my cash ISA or premium bonds, I only have £1500 in premium bonds, so plenty of room to add more.

I just came back from a 6km run, the plan for the rest of the weekend is: 

• Finish decluttering wardrobe  
• Tidy up bathroom drawers
• Cook 2 new recipes and stock up freezer for the week cooked aubergine and lentil curry and sweet potato and black bean stew
• Gym 2x 
• Yoga 2x  actually did 3x
• sort out DS passport renewal 
• sort out DS wardrobe ( he has had a growth spurt and most of his clothes are too short lol) He did it himself 
• No alcohol (otherwise I don't achieve as much the next day lol) 

Quite glad I achieved everything on my list 

Archerychick

Haha love the no alcohol plan!

I am in a similar position to you, but for the next year I should just keep below the psa allowance but the following year I’ll put funds into the premium bonds. I pay a substantial amount into my pension already to keep below the 40% band. 

Aimingforthegoodlife

Sounds like you have a good plan, look forward to seeing your progress!

Sensiblesaver

Thank you @Aimingforthegoodlife

I changed my plans for today. I was going to finish tidying up my wardrobe, but since the sun decided to show up I spent time in the garden instead, which was in much need of some care lol. I also ended up going to the garden centre and spent £76 on flowers, it does look a bit better and more colourful now I will re-jiggle my budget to add the flower spent and also leave some money for clothes for my son as he needs everything at the moment. I had left £2200 separate ready to add to my ISA, but I decided I will keep £200 to spend on clothes and cover the flowers. I also have another £100 from his grandparents as they sent money for his birthday but I had already paid for the present, so that should be enough to cover his clothes/uniform.

I have already made the £500 overpayment to the mortgage for this month and any further overpayments will be once I get interest from my savings and when I get my tax rebate.

My mortgage year runs from 1st of July to 30th of June. I have overpaid £9580.95 for the first year so far which leaves £13317.05  allowed to overpay until 30/06. Can I do it? I'm tempted to build up a bit more cash at the moment, so not sure, but I will push myself. My income is commission based, so it varies every month, but if I stay focused I do better at work.

I went for a run today and also did yoga in the garden, so exercise box is ticked Dinner will be salmon and roast vegetables/broccoli for us and chicken, rice and broccoli for my son as he doesn't eat fish. I got rose lemonade and kombucha, so keeping away form alcohol but have something to drink. We are planning on playing some cards later.

Sensiblesaver

It has been a nice Easter weekend and I have achieved everything on my list I also updated my budget into ynab and reconciled all accounts. Tomorrow my normal mortgage payment goes out and once interest is added I will overpay to round it down. I will also overpay any interest I get from my savings account. The cash ISA interest is paid on the 5th. 

Sensiblesaver

My mortgage payment has gone out and interest was added. The current balance was -£211.540.34, so I sent an extra £40.34 OP to bring balance to -£211,500. 

Total OP so far £9621.29/ £22,898 (10% allowance)

Original mortgage end date July 2041. Current Mortgage end date July 2040

Sensiblesaver

Another £10 interest from NW reg saver sent to mortgage. Current balance -£211490
Total OP so far £9631.29/ £22898

LadyWithAPlan

Great stats!! Lovely to see a year off your end date