QB Wolf's long and winding road

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QB_Wolf
QB_Wolf Posts: 722 Forumite
in Mortgage-free wannabe
Hello, I’ve spent a lot of this week trying to sort out my finances, cancelling un-needed things, sorting out utilities etc, managed to shave £800 off my debts in a month, credit card balance cleared!! Now I’ve started to think about my mortgage - details in my signature.

I’ve decided on small targets and not to worry too much about the big scary number, so I will get it down to £180K by Christmas. Once I get there I’ll think about a realistic target for the next 6 months. I’ll need to pay some biggish chunks –but I do have some savings so we’ll see.

I’ve just had a promotion at work, so have a bit more cash coming in, so have set up a standing order to overpay £100 a month; this will save me £16,444 in interest and pay it off in full 3 years and 5 months earlier, it’s a small start but it feels good!!! :T

A bit about me I’m 37, married with two kids, a boy who is nearly three and a daughter who is 12 days old!! – So Mrs QBW is working in a different sense for a bit. :)
Start Date 16/09/2015
Original amount outstanding = 225,000 Current amount outstanding =199,812
Original LTV = 64% Current LTV = 49%
Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
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Comments

  • bargainlover08
    bargainlover08 Posts: 518 Forumite
    First Post First Anniversary
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    Hi QB Wolf,

    Congratulations on birth of baby QBW :) And on your promotion. It sounds like you are having a good time recently!
    Also well done on paying off debts and credit cards. I would pay off all my debts before overpaying the mortgage.
    We have just started to overpay our mortgage and also only overpay £100 a month which I think is a good start. Every little helps!
    Have you checked with your mortgage provider that they don't charge you for overpayments?

    Good luck with your MFW journey!

    Bargainlover08
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Hmm good call on the overpayment charge, I'm not on a deal just on SVR so think I'll be OK, will call later just to check.
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • sweetdaisy
    sweetdaisy Posts: 1,249 Forumite
    First Post First Anniversary Combo Breaker
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    Good luck on your journey to become Mortgage Free :).
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Have read a lot of inspirational stuff on here - just can't wait for pay day to make my first overpayment and to see what my new salary is and to start planning to make this millstone smaller.
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Just found a more complex calculator, that allows me to insert yearly lump sums. In summary, to pay off in ten years, I need to overpay 400 a month and put a 10,000 (my annual bonus + dividends) yearly lump sum.

    Frightening, but possibly do-able.
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • financialbliss
    financialbliss Posts: 1,943 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 8 July 2012 at 8:54AM
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    Hi QB Wolf,

    There's lots of calculators available, eg search for locoblade on these MSE forums, or do an internet search, but I crafted my own. See posts 534 and 536 of my diary. They are linked to from the first post:

    http://forums.moneysavingexpert.com/...d.php?t=572849

    Allows different standard and overpayments, mortgage rates etc. May be worth a look, even if it only helps you understand your mortgage a bit better.

    Don't recall you mentioning your mortgage rate yet - if it's a very low SVR - mine is 2.5% - it may be better to save rather than overpay and review as the rates change.

    Financial Bliss.
    Mortgage and debt free. Building up savings...
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Hi the SVR is 4%, because of my high LTV kind of stuck with it for now, will be looking at other deals as the LTV lowers.

    I am saving a little as well though.
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Just found an old account that had 48.65 in it and paid it into my mortgage -my first OP, not shortened the mortgage, but saved £78 in interest ha ha ha!
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
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    Just checked my current account and I have £45 to last me 15 days. NSDs are going to be enforced - hurry up pay day!!
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • Tilly_MFW_in_6_YRS
    Tilly_MFW_in_6_YRS Posts: 7,833 Forumite
    Mortgage-free Glee!
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    Hi QBQ, it does get strangely addictive but in a very good way. Good luck, Tilly x
    2004 £387k 29 years - MF March 2033:eek:
    2011 £309k 10 years - MF March 2021.
    Achieved Goal: 28/08/15 :j
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