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  • FIRST POST
    • longway2go
    • By longway2go 18th Jun 19, 2:18 PM
    • 167Posts
    • 368Thanks
    longway2go
    Mortgage free mum
    • #1
    • 18th Jun 19, 2:18 PM
    Mortgage free mum 18th Jun 19 at 2:18 PM
    Hi everyone,

    So I want to be mortgage free ASAP but also need to find the right balance for my young family. (my boys are 3 and 8 months).

    I am currently on mat leave so my funds are very limited but I figure if I go back to work and not get used to having all of my income it would be a great place to get some extra money for overpaying.

    We have a btl property and make money on that monthly so can also get funds from here.

    I am currently remortgaging to a 10 Yr fixed rate with a mortgage of 161k 😭. The term is 18 years but I definitely do not want it to take that long.

    I plan to start overpayment in January and looking at between 900 and 1100 a month.

    Atm I am trying to work out the best amount to overpay without impacting life but making it better for us in the future.

    Thanks for reading.

    Any tips appreciated.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

Page 3
    • savingholmes
    • By savingholmes 14th Aug 19, 11:41 PM
    • 10,173 Posts
    • 21,191 Thanks
    savingholmes
    Glad it's all sorted and you have a baseline.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • longway2go
    • By longway2go 19th Aug 19, 11:35 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    First overpayment made
    I have called this morning and made an overpayment of £1000 saving me £602 in interest and knocking 1 month off the term

    The money came from a refund from my old mortgage company and the child benefit payment.

    Mortgage balance was 160424.50, now 159,424.50.
    1/16th of my loving room paid for
    Interest reductions
    Annual from 4235.20 to 4208.80 (26.40)
    Monthly from 352.93 to 350.73 (2.20)
    Daily from 11.60 to 11.53 (0.07)

    My mortgage pig 6.51
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • savingholmes
    • By savingholmes 19th Aug 19, 10:34 PM
    • 10,173 Posts
    • 21,191 Thanks
    savingholmes
    Congrats! 1 month knocked off and many more to come.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • longway2go
    • By longway2go 20th Aug 19, 8:11 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    Thank you
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • longway2go
    • By longway2go 29th Aug 19, 5:42 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    So, I have gone from buzzing in relation to my op to feeling a bit frustrated. It's the last month if mat leave pay for me so looking very unlikely an op will be made and if it is then it will be very small compared to my target. I knew this all along really but op is a bit addictive isn't it ��

    So I have entertained myself by working out how much interest I will pay when looking at certain scenario's:

    Based on 160424.50, 18 years and a rate of 2.64%

    Interest only 76,172!! And still owe the capital (granted monthly payments would only be 353).

    Repayment and no overpayment 41262!!

    Monthly Overpayment of 1000 =16,887
    Monthly Overpayment of 1100 = 15,954
    Monthly Overpayment of 1200 = 15,120
    Monthly Overpayment of 1300 = 14,369

    Interesting to flip it this way and think of the interest which can be saved.

    I appreciate the diary seems to be all figures atm but don't feel I can properly start until my salary is coming back in so just keep posting figures to keep me motivated.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • longway2go
    • By longway2go 29th Aug 19, 6:00 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    Some more figures of the amount of interest I would pay if I made overpayments. Just handy to see if I need to make a smaller OP some months and helps to keep me motivated:

    Op of 50pm saves 2810 = 38452 int
    OP of 100pm saves 5257 = 36005 int
    OP of 150pm saves 7407 = 33850 int
    OP of 200pm saves 9313 = 31949 int
    OP of 250pm saves 11013 = 30249 int
    OP of 500pm saves 17350 = 23912 int
    Op of 750pm saves 21475 =19787 int

    So far I have saved 602 in interest and think I might keep track of it as it will be nice to see it build.
    • longway2go
    • By longway2go 2nd Sep 19, 10:59 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    Just been to the park with my boys and have some work preparation to do for today.

    Should be a NSD.

    Made an OP of 140 which saves 80 in interest.

    Balance 158700.04
    Total OP 1140
    Interest saved 686
    Monthly interest now below 350 ��Onwards and downwards
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • fruitloop04
    • By fruitloop04 2nd Sep 19, 8:56 PM
    • 262 Posts
    • 763 Thanks
    fruitloop04
    You are doing really well longway2go Really inspiring to hear your motivation!
    01.05.2019 - Re-Mortgage - £142,000 Total overpaid to date: £7462.28. Mortgage amount 31/12/19 £132746.32

    MFW #52 £874.958/£12000
    Make £2020 in 2020 #60 - £231.44/£2020
    • savingholmes
    • By savingholmes 2nd Sep 19, 8:56 PM
    • 10,173 Posts
    • 21,191 Thanks
    savingholmes
    It's fun calculating different rates. Well done on the OP.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • longway2go
    • By longway2go 3rd Sep 19, 2:29 PM
    • 167 Posts
    • 368 Thanks
    longway2go
    Thank you fruitloop04 and savinghomes.

    It is nice to see the balance coming down and the interest saved going up. I have found 177.05 to OP today, its getting addictive.

    I have had a teachers visit for my son today and been to visit nan with the boys ��

    Balance 158515
    Total OP 1317.05
    Interest saved 792

    Onwards and downwards. Looking forward to hitting the mini target of 155k balance
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • longway2go
    • By longway2go 5th Sep 19, 4:40 PM
    • 167 Posts
    • 368 Thanks
    longway2go
    I am having a chilled day at home today, have made some mushroom soup as it feels a bit colder today.

    I have opened an account with monzo as I really like the idea of pots for different things and think it will help me manage Christmas savings and shopping money a bit more.

    I signed up to MFIT challenge and have put a 50k op target down to reach by Jan 22. This is based on a balance if 165k in Jan 19. It feels like a massive target but you have to be in it to win it. I have had a read through the thread and feeling inspired.

    If I pushed at this rate then we could potentially clear the mortgage before I am 45 but changes to family may mean a delay to that which I would be more than happy to accept.

    I have been playing around with spreadsheets and created an excel house, and worked out that we are 2 months ahead on the mortgage (not loads but I haven't been doing this for long so shows how fast it could grow if I stay focused).

    The amount of equity we havin the house is 43.38 and I am looking forward to that being 50. All of these small targets are helping along the way.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • savingholmes
    • By savingholmes 5th Sep 19, 9:21 PM
    • 10,173 Posts
    • 21,191 Thanks
    savingholmes
    Great stuff. Celebrate the wins along the way and the blessing of having time at home with little ones. Just think you are paying off debt / mortgage at a time a lot of people use as an excuse to increase it. You are already ahead of the curve.
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • longway2go
    • By longway2go 5th Sep 19, 9:57 PM
    • 167 Posts
    • 368 Thanks
    longway2go
    Ahhh thanks Savinghomes, really lovely to feel like I have support and know someone reads my ramblings lol
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • yogavibes
    • By yogavibes 6th Sep 19, 11:21 PM
    • 57 Posts
    • 91 Thanks
    yogavibes
    you are doing really well making OP whilst on mat leave. All I did was shop when I was off with my 3 mainly to get me out every day!
    • longway2go
    • By longway2go 7th Sep 19, 8:32 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    Thank you. I do have a few annual passes for places which I take the kids to so that we can get out. I try not to let myself go near the shops as for me it's dangerous.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • newgirly
    • By newgirly 7th Sep 19, 10:44 AM
    • 7,005 Posts
    • 48,042 Thanks
    newgirly
    Hi longway2go, just wanted to pop in and wish you all the best as Iíve just read your new diary. Trying to tackle it while the kids are young is a very good idea
    MFW 38

    2020 start bal:£73,119, current bal: £73,119 target £18,000, £ opíd
    • longway2go
    • By longway2go 7th Sep 19, 11:24 AM
    • 167 Posts
    • 368 Thanks
    longway2go
    Thank you newgirly. Tbh I do regret not doing something sooner but must now focus on what I can do to make a difference going forward.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • longway2go
    • By longway2go 23rd Sep 19, 9:48 PM
    • 167 Posts
    • 368 Thanks
    longway2go
    Hi Everyone,

    Been a little quiet lately as not had much money to find for OPs. My older son is now settled into shool and I am enjoying the last of my maternity leave with my youngest. I must say I'm not really looking forward to going back to work in many ways as I will muss my boys terribly but I am looking forward to actually getting a proper pay cheque and some adult chat.

    I have made an OP of 220 today, part if me felt I should keep it in the current account to help it a bit but not long until we get paid now and tbh I didn't want it to get swallowed up and waisted so off to the mortgage or had gone.

    Balance 158294
    Total OP 1537.05
    Interest saved 924

    Feeling positive, looking forward to getting to my first mini target of 155k and seeing my interest saved figure go above 1k

    Onwards and downwards
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

    • shopaholicnumber1
    • By shopaholicnumber1 24th Sep 19, 10:57 AM
    • 122 Posts
    • 403 Thanks
    shopaholicnumber1
    You're doing so well longway2go! I have no idea how you've managed to make such big OP's while on mat leave - excellent work! I'll be following your diary with interest x
    Mortgage: £81,154.58 (03/19) - £78171.71 (12/19)
    Emergency savings: £2500 (08/19) - £2500 (12/19)
    NSD's - 9/15 (01/20)
    1p challenge - £11.86/£671.67
    • longway2go
    • By longway2go 24th Sep 19, 4:18 PM
    • 167 Posts
    • 368 Thanks
    longway2go
    Thank you. I guess I keep my day to day costs down by breastfeeding, cloth nappy and wipes and also helps that my little one has all of my older sons clothes and toys.

    We don't eat lots of meat so I thinks that helps. I do have a small dd set up from savings to boost our income during maternity although it is not the level that my income would be.

    We do have a second property and the difference in rent and mortgage can sometimes be used although this month we have home improvements to do to that house.

    I honestly do question if I should be making the ops at times but tbh if the money stays in the current account we are likely to waste it. I questioned this last payment but as I am getting paid on Friday I decided to make it.

    I keep looking at the interest we will save if I need the final push to make the payment and I feel like the snowball effect is starting to build. If I didn't make the ops now I have a real fear I will loose momentum and not use my money wisely like before I went on maternity and I really regret previous choices I have made. I almost feel like I am trying to make up for the decisions I should have made.

    I am popping in and out of diaries to keep the motivation but don't get much time to read them in full with the 2 boys and starting my own business.

    Fingers crossed the momentum continues as I want to make a noticeable difference on a day to day basis and keep in my mind that my little family will only keep getting more expensive and the uncertainty of the world atm.

    I'm currently working on setting up a joint monzo ac with oh so we can understand our spending more and also because we can use pots to separate into weekly spending budgets.

    Thank you for taking the time to read.
    Mortgage Aug 2019 161,000
    Nov 2019 156,500 Jan 2020 153,122

    Our Mortgage is never going to be as high as it is today.
    Onwards and downwards to a better life for our family.

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