First OP made. We're on our way!

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Ellie78
Ellie78 Posts: 195 Forumite
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in Mortgage-free wannabe
I've read so many inspiring diaries here over the last week or two that I thought I'd document our own efforts.

This morning I made our first mortgage overpayment! Who knew waving goodbye to a huge chunk of money would be so exciting! :rotfl:

I put the full 10% allowed for the year into the account in one go. We had been saving for a deposit to move but after deciding to stay put for a little while longer we wanted to put the money to good use. I'm hoping this diary will keep me focussed on clearing the debt as quickly as possible. Fingers crossed.

Mortgage/Life details -
3 bed semi on 50% ownership
£49,127.89 with 25 years and 5 months remaining
Currently on 4.24% but looking to switch to better deal/shorter term asap
Me and OH are about to celebrate 10 years together, happily child free with one dog

OP amount today - £4,900

Can't make any more OPs until next year now but we're off to a good start!
Mortgage - £23,500 remaining
MFW2021 #8 - £2,519.77/£3,000
Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
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Comments

  • beanielou
    beanielou Posts: 90,268 Ambassador
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    Great start :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.     ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    Spent a while on the phone last night and this morning. Halifax aren't the most helpful bunch. Apparently I need to wait for the OP to appear in the account and then call them to tell them what to do with it. I think by default it reduces your monthly payment rather than the term. This morning they're now saying I need to speak to their mortgage team to amend the term which could take up to an hour on the phone. There must be an easier way of making overpayments?

    Also called HSBC to ask if they provide mortgages for shared ownership and they do as long as you have the option to staircase to 100% of the property, so that's something. They seemed much more organised.

    Will probably look to switch to one of the HSBC fee saver fixed rate terms. The trackers have unlimited overpayments but not sure the £1,000 set up fee is worth that.
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
  • LeighofMar
    LeighofMar Posts: 672 Forumite
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    Sorry about the hassle, but congrats on getting started. What a great first OP for your mortgage-free journey. Our balances are very similar, so I will be cheering you on.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    LeighofMar wrote: »
    Sorry about the hassle, but congrats on getting started. What a great first OP for your mortgage-free journey. Our balances are very similar, so I will be cheering you on.


    Thanks LeighofMar! I love that everyone has their own little cheerleader squad on this thread! Are you keeping a diary too?
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
  • LeighofMar
    LeighofMar Posts: 672 Forumite
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    "Thanks LeighofMar! I love that everyone has their own little cheerleader squad on this thread! Are you keeping a diary too?"

    Sure am. Mine is called Cottage Countdown if you ever want to stop by and yell at me for starting to slack off or deviate from my plans:p But yes, this is such a friendly and motivating board. Everyone is trying to get to the same place, so there's tons of support here.;)
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    This week I've been up to my eyeballs in bank account/savings info. I wanted to get our other finances organised ready for January when we can start to make more overpayments.
    I switched accounts for a cash bonus and opened a couple of new ones to make the most of their interest and cashback. It should bring in a nice amount in the next 12 months.

    My OH was sick of me talking about savings, mortgages and interest rates until I pointed out that if we'd known about all of this when we got the house years ago we'd be MF already! Safe to say he's fully on board now. :grin:
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
  • fruitloop04
    fruitloop04 Posts: 294 Forumite
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    That's a great start on your first OP maxing out your 10%! I am the same with my other half, constantly going on about how we can make the most of our money!
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    fruitloop04 wrote: »
    That's a great start on your first OP maxing out your 10%! I am the same with my other half, constantly going on about how we can make the most of our money!

    Thanks! It's nice to come hear and chat about it so I don't bore him to tears!
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    My 13 year old tank of a car unexpectedly sailed through her MOT like a champ! I'd set aside some money for repairs which can now go into the pot for our next OP in January :j
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
  • Ellie78
    Ellie78 Posts: 195 Forumite
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    So apparently we don't have a cap on the OPs we can make at the moment as we're on Halifax's standard rate (currently shopping around for the best fixed rate to remortgage).
    Has this happened to anyone else?

    I don't want to throw another chunk of savings at it and then get penalised. It was one of their mortgage advisors who told me but mistakes can be made. I think I'll call back tomorrow to double check first!
    Mortgage - £23,500 remaining
    MFW2021 #8 - £2,519.77/£3,000
    Overpayments: 2020 - £4,722.83 / 2019 - £16,042.00
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