Mortgage Free by 2023!
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thematrix12
Posts: 16 Forumite
Hi all,
So I am a long-time lurker and thought I would finally setup my own diary!
OH and I bought our first place together in 2016. I was the ripe age of 21, only been out of University for 3 months and fortunately due to working through Uni (and saving) and OH having a flat we were able to purchase a house at £215k with a mortgage LTV of 74% at 2.64% interest rate.
I have always wanted to keep up overpayments on the mortgage but also balance this with other investments to get a decent long-term return.
Over the last 2 years we have overpaid £2500 and currently have a mortgage balance of just under £150k. Last year my money was sporadic due to a training programme I was on, however we are both now employed in education and are getting decent monthly incomes (and OH has a pay increase on the way).
Currently we have an income of £3200 a month, £1000 is spent on bills (including mortgage payment of £531), £750 day-to-day (including fuel), £350 mortgage overpayment, £250 to Stocks and Shares, £150 to private pension and the rest is divvied up between our house fund (for DIY and improvements), leisure fund and our rainy day savings.
I am hoping that we can keep upping our overpayments. We have already nearly doubled our gross income since taking out the mortgage and are planning to split all future pay rises between overpayments, stocks and shares and private pension (we have teachers pensions running alongside so have around £1300 going into pensions each month but only costs us £500 a month net).
So currently, October 2018 - remaining £149572. Plan is to get it down as quick as possible whilst still investing elsewhere to capitalise on long-term returns. It's going to be a challenge but I hate paying out money on interest and dread the idea of our fix coming up in 3 years time and interest rates soaring! Being mortgage-free by 38 would be a dream and means we can chuck even more at investments, potentially even a BTL (or two) and an early retirement.
Wish me luck! :beer:
So I am a long-time lurker and thought I would finally setup my own diary!
OH and I bought our first place together in 2016. I was the ripe age of 21, only been out of University for 3 months and fortunately due to working through Uni (and saving) and OH having a flat we were able to purchase a house at £215k with a mortgage LTV of 74% at 2.64% interest rate.
I have always wanted to keep up overpayments on the mortgage but also balance this with other investments to get a decent long-term return.
Over the last 2 years we have overpaid £2500 and currently have a mortgage balance of just under £150k. Last year my money was sporadic due to a training programme I was on, however we are both now employed in education and are getting decent monthly incomes (and OH has a pay increase on the way).
Currently we have an income of £3200 a month, £1000 is spent on bills (including mortgage payment of £531), £750 day-to-day (including fuel), £350 mortgage overpayment, £250 to Stocks and Shares, £150 to private pension and the rest is divvied up between our house fund (for DIY and improvements), leisure fund and our rainy day savings.
I am hoping that we can keep upping our overpayments. We have already nearly doubled our gross income since taking out the mortgage and are planning to split all future pay rises between overpayments, stocks and shares and private pension (we have teachers pensions running alongside so have around £1300 going into pensions each month but only costs us £500 a month net).
So currently, October 2018 - remaining £149572. Plan is to get it down as quick as possible whilst still investing elsewhere to capitalise on long-term returns. It's going to be a challenge but I hate paying out money on interest and dread the idea of our fix coming up in 3 years time and interest rates soaring! Being mortgage-free by 38 would be a dream and means we can chuck even more at investments, potentially even a BTL (or two) and an early retirement.
Wish me luck! :beer:
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Happy shiney new diary
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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.0 -
Happy new diary!
Quick question: wouldn't 2023 mean you'd be mortgage-free at 28, rather than 38?Original mortgage: December 2017, £203,495
MFW start: April 2018, £201,800
Mortgage neutral: September 2022, mortgage redeemed: December 2022
New house, new mortgage: December 2022, £276,007
Current balance: £217,800 minus £8,300 overpayment savings pot0 -
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Quick update. Thanks to some extra money and careful spending we are now down to £141k owing. Happy days! 0
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