How to be mortgage free after 8 years

Martinslovechild

This is one of the best threads that I've read for some time on MSE, raising numerous interesting topics.

I would like to congratulate TheFunkyGibbon on his hard work to date.

For the record, I have been doing the same for the past 5 years and am just a year and a half away from clearing the mortgage now.

Just one piece of advice to anybody considering doing this - I started off with a budget planner similar to Martin's downloadable one on this site which helped me decide what I could afford to overpay on the mortgage without having to give up the occasional meal out or CD/Book purchase from Amazon. I'm certainly not into sports cars or bling but I do enjoy a nice meal out once in a while.

Clearing the mortgage is certainly achieveable but it's definitely a mindset thing - I know exactly what TFG means about Lotus Elises, fab holidays etc - I've got friends who have all these things (and probably fantastic levels of debt too!!).

By the way, a little bit off topic - why do most MSE posters confuse 'advise' and 'advice' ?. There are numerous examples on MSE of 'can somebody give me some advise' (rather than advice), or 'thanks for the advise' (rather than advice). It's very confusing.

Thefunkygibbons

Martinslovechild wrote:

By the way, a little bit off topic - why do most MSE posters confuse 'advise' and 'advice' ?. There are numerous examples on MSE of 'can somebody give me some advise' (rather than advice), or 'thanks for the advise' (rather than advice). It's very confusing.

A bit off topic :rotfl:

A mile off topic methinks

Lemoncurd

Well done to TheFunkyGibbons for doing this.
I'm a firm believer that using the same principles you have that anyone who hasn't overstretched themselves can do this. We've just bought a house at "todays prices" to quote another post. Our mortgage is just under 3* joint income and if we maintain our current expenditure (and pensions and regular savings) and put everything left over into paying off our mortgage we will pay the total off in 9 years, that's with me taking this year off work as maternity leave. Not sure if we will manage it, I won't beat myself up if it takes a few years longer but I certainly find it a much more satisfying feeling to know that you are building up that security by paying off earlier.

Ember999

Martinslovechild wrote:

By the way, a little bit off topic - why do most MSE posters confuse 'advise' and 'advice' ?. There are numerous examples on MSE of 'can somebody give me some advise' (rather than advice), or 'thanks for the advise' (rather than advice). It's very confusing.

Bad spelling I think.....a lot of people on here spell quite badly

Get_Real_2

TFG - I so admire your strategy and your resolve. Recently I arranged a new deal with same mortgage lender to reduce the outstanding term from 15ys 9months to 10 years. Already I can see light at the end of the tunnel and it feels great !

Absolutely right about having the admin facility for extra payment to hand so that procrastination can't get in the way.
Absolutely right about fix the payment amount and pay it before looking at what constitutes "spending money". I keep a spreadsheet for bank reconciliation and I know exactly how much income isn't already accounted for - it's never very much !

I don't believe I earn anything like as much as you, I haven't had a steady career and have reaped what I've sown, a series of unsatisfactory and underpaid jobs. However I still think it is possible to be disciplined with what money I earn, and yet still have a life. Holidays abroad for me are occasional extras, and certainly not an annual event, but I enjoy them a great deal when I go - snowboarding in the rockies next season!

Well done to you for speaking out for the can-doers. I think it needs to be said that being in control of one's finances is enabling.

Cheers

G R

michaels

I have no problem with the sentiment 'where possible reduce your debts to avoid paying interest'. However the resons people takeout mortgages and other loans is to spread purchases over a period. An alternative option would be to save for anything before buying it. If you get a loan instead the implicit decsion is that the enjoyment you get from whatever you buy, starting from now, is greater than the interest you pay.
Thus whilst for the OP given his level of income and chosen expenditure, paying down debt is his best option there is nothing 'wrong' with choosing to have debt. What moneysavers don't like to see is people not taking considered decisons about this and overpaying for loans, or living outside their means.
The OP does not in his email present any 'judgement' on his strategy but others seem to have done in this thread.

Martinslovechild

Funky,

I note that your signature mentions a £25K stooz pot. Just wondering - have you stoozed into an offset fund at all while overpaying yourself at the same time? I've saved tens of thousands so far in interest having done this now for several years (although it's been getting harder recently with BT fees creeping in etc).

The icing on the cake though is that my mortgage balance hovers around the £1000 mark, meaning that my normal mortgage monthly interest is less than £10. Any money in my stooz pot over & above the amount of my remaining mortgage then goes into a stooz pot to earn interest in a savings account.

Thefunkygibbons

I am a recent convert to the joy of stoozing and decided that given I have 3 years left on the mortgage, that I am not going to change now

I decided that the rates on offset were not as good as I am currently getting

If I had started stoozing sooner, it would have been worthwhile

I hope to get the next card this month and I have just started Mrs Funky on a 0% purchases card for a slow stooz

summerday

Thanks for taking the time for posting your story TFG, I found it very inspirational. Also thanks to others who have posted on this thread about paying their mortgages off early.

My situation is not dissimilar from Lemoncurd's, partner and I bought our house a year ago, I know others might think us foolish given the housing market but it felt the right thing for us to do and we don't regret it. We had a decent deposit to put down and borrowed just over 2.5x joint incomes. We try to make overpayments when we can and this will enable us to qualify for a mortgage on a bigger house sooner. It does help having a plan and goals in mind, we would like to be able to move into a bigger house just before we start a family (at a guess in 6-7 years time) but before then I plan to re-train for another career so our ability to overpay may be hampered a little. But you can only try!

Sarah

skintchick

I have a question. Bear with me because i don;t understand all this offset/overpayment stuff.

Is saving in a high interest account adn then using the cash to pay off a bit of your mortgage when the fixed rate comes to an end and you remortgage a good idea?

I get marginally more interest on my savings than I pay on my mortgage.

Or should I overpay?

Just thinking that if I do the savings thing then if there's an emergency the cash is there, whereas if I overpay it's gone.

And I live on a VERY tight budget.

THanks for any help