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  • FIRST POST
    • Ms-Bristol
    • By Ms-Bristol 8th Mar 16, 7:26 PM
    • 27Posts
    • 102Thanks
    Ms-Bristol
    Project 2018
    • #1
    • 8th Mar 16, 7:26 PM
    Project 2018 8th Mar 16 at 7:26 PM
    I've been lurking a while so I thought I'd post my thoughts!

    We bought our house in 2007, with a mortgage of £235,000. The mortgage was ported from the previous property with part 4.5% and part 6.2% fixed (as this was pre credit crunch!) Repayments were a whopping £1500+ per month (ouch!)

    Nine years later the balance is £91,000 and I've repaid the ported amount and switched the fix to 2.99%. The repayments are now just over £600 per month.

    The fix only allows 10% repayment per year so I do that every year and put the rest in an ISA. The aim is to have enough in savings to pay the remaining balance when the fixed rate and associated restriction comes to an end in July 2018. This requires an 'overpayment' that actually goes into a savings account of £1500 per month. Currently saving £1600 per month so I am on target to do this. Every month I use the mortgage overpayment calculator on MSE to check I am on track.

    If it goes well the savings will meet the mortgage balance before the end date dictated by the fix. Due to the interest I earn on the savings and the penalty on the mortgage, ditching the fix is not worth it.

    I'd be interested if anyone else is taking a similar approach?
Page 3
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 31st Dec 17, 9:28 AM
    • 705 Posts
    • 3,137 Thanks
    SuperSecretSquirrel
    Nearly there Ms Bristol! Well done and keep going!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • Ms-Bristol
    • By Ms-Bristol 6th Jan 18, 1:31 PM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    January 2018 Update
    Done some more sums on the situation -

    Mortgage balance: £66,400
    Savings balance: £50,900
    Shortfall amount: £15,500

    Months till end of fixed term: 7 months
    Anticipated repayments minus interest: £250 x7 = £1750

    Savings required: £15,500 - £1750 = £13,750
    Monthly savings required to repay in July 2018: £1964
    Last edited by Ms-Bristol; 19-04-2018 at 11:12 PM.
    • Ms-Bristol
    • By Ms-Bristol 19th Apr 18, 11:01 PM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    April 2018 Update
    An update at just under 3 months before the end of the fixed term - which is 30th June 2018.

    Mortgage balance: £65,300
    Savings balance: £56,400
    Shortfall amount: £8,900

    Months till end of fixed term: 3 months
    Anticipated repayments minus interest: £300 x4 = £1200

    Savings required: £8,900 - £1,200 = £7,700
    Monthly savings required to repay in July 2018: £1925
    Last edited by Ms-Bristol; 13-05-2018 at 8:24 PM.
    • erin_transport
    • By erin_transport 20th Apr 18, 7:58 AM
    • 629 Posts
    • 2,741 Thanks
    erin_transport
    Nearly there!
    Well done
    On a mission!

    2018 MFW #138
    • greent
    • By greent 20th Apr 18, 12:38 PM
    • 7,341 Posts
    • 74,437 Thanks
    greent
    So close! - well done!
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £6100/£7500
    Net sales 2018 £655.15/£1000 PAYDOX18 (#15) Done £18918.90
    • Ms-Bristol
    • By Ms-Bristol 13th May 18, 8:30 PM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    May 2018 Update
    Approx 7 weeks to go and the balances are:

    Mortgage balance: £65,126
    Savings balance: £58,253
    Shortfall amount: £6,873

    Months till end of fixed term: <2 months
    Anticipated repayments minus interest: £300 x3 = £900

    Savings required: £6,873 - £900 = £5,973
    Monthly savings required to repay in July 2018: £1991
    • Ms-Bristol
    • By Ms-Bristol 21st Jul 18, 8:56 AM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    July 2018 Update
    1st July came and Barclays sent a letter saying the interest rate was going up to 3.89% and that our monthly payments would be higher. This was the cue for overpayments!

    The outstanding balance was just over £64K. So during July I have paid £10,000 amounts on six occasions (that is the limit I can transfer in one go). Each time Barclays send another letter to say that due to a partial redemption, they have adjusted the monthly repayment amount. The latest one, with a balance of just over £4,400 is £42 a month. It would take nearly 9 years to pay off at that amount!

    I have now transferred a further £3200 and have a balance of approx £1200. The reduced payments (of £42) don't kick in until August so we have a payment of £550 at the end of July. I am going to let that one go through and then contact them to ask for a redemption balance which will be approx £700.

    I'll update again when I have completed that final stage.
    • julicorn
    • By julicorn 21st Jul 18, 9:55 AM
    • 285 Posts
    • 1,153 Thanks
    julicorn
    That's so awesome to see you're almost there! It's really impressive how quickly you've paid off your mortgage.
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £191,400
    • greent
    • By greent 22nd Jul 18, 9:45 AM
    • 7,341 Posts
    • 74,437 Thanks
    greent
    Fantastic! x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £6100/£7500
    Net sales 2018 £655.15/£1000 PAYDOX18 (#15) Done £18918.90
    • Ms-Bristol
    • By Ms-Bristol 6th Aug 18, 6:50 PM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    August 2018 Update
    Despite the over-payments and a notification that our new instalments would be £11 a month, the July payment based on the balance at the start of July and the interest at 3.89% was collected. This was £518.

    As most of this 'interest' wasn't due because of all the over-payments, the balance was then reduced to £585. I ordered a redemption statement which you can do online. This had a schedule of amounts, one for each day of the month of August.

    So I paid the amount that related to 1st August, which was £585.06.

    It's a bit of an anticlimax as I have yet to receive anything further from Barclays. When I log into my online account, I cannot see anything as they have removed my statement. I will need to check that they aren't going to collect the £11 at the end of month.

    So all paid off, 13 years and 4 months early. And that is that, the end.
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 7th Aug 18, 7:20 AM
    • 705 Posts
    • 3,137 Thanks
    SuperSecretSquirrel
    Congratulations!

    Hopefully the good times feeling will hit when your redemption letter is received, and when you no longer see around £500 debited from your account each month

    What's next?

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • julicorn
    • By julicorn 7th Aug 18, 3:36 PM
    • 285 Posts
    • 1,153 Thanks
    julicorn
    Congratulations! And I hope you get your redemption letter ASAP - I'd probably be tempted to frame it and put it on the wall
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £191,400
    • zcrat41
    • By zcrat41 7th Aug 18, 7:44 PM
    • 1,485 Posts
    • 4,030 Thanks
    zcrat41
    Wow, thatís some amazing overpaying!

    What do you plan to do with all your money now?!
    Aim: To o/p the mortgage by £131 pm.
    07/18: £254. Smashed it!
    08/18: £219.31 Smashed it again!
    09/18: Target £131 plus £50 into savings
    • greent
    • By greent 11th Aug 18, 2:54 PM
    • 7,341 Posts
    • 74,437 Thanks
    greent
    Brilliant!
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £6100/£7500
    Net sales 2018 £655.15/£1000 PAYDOX18 (#15) Done £18918.90
    • Ms-Bristol
    • By Ms-Bristol 2nd Sep 18, 4:29 PM
    • 27 Posts
    • 102 Thanks
    Ms-Bristol
    Post-redemption update
    On 21st August (3 weeks after I paid the final amount) Barclays wrote us a letter to confirm the mortgage had been paid off in full. The letter arrived on 28th August. So it is official now and there was no mortgage payment collected for August.

    It took us 10 years and 8 months to pay off that mortgage. Our previous mortgage was ported into this one, so we have had a mortgage for just over 14 years.

    What next? Well old habits die hard and clearing your mortgage off means that you have no savings. So I have sold my old car and carried on saving each month. I now have £8500 in my savings account which feels a bit more comfortable that when it was down to zero!

    The plan is to buy an investment property so I am going to save up a deposit for a buy-to-let mortgage.
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