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  • FIRST POST
    • VDOT47
    • By VDOT47 30th Oct 17, 1:32 PM
    • 121Posts
    • 350Thanks
    VDOT47
    Mortgage Free by 55
    • #1
    • 30th Oct 17, 1:32 PM
    Mortgage Free by 55 30th Oct 17 at 1:32 PM
    Hi all,


    As the title would suggest, my aim is to be mortgage free by 55! Having read through a few diaries on here, I thought that starting my own might help me to keep focussed.


    Right, background info! I am 35, OH 32 and DD 2. We moved house earlier this year, with a mortgage of £269,995 (with fees). We are on a 25 year mortgage with an initial 5 year fix at 2.19%, meaning repayments of £1169.xx per month.


    I have just registered for online banking, so once the passcodes come through in the post I will find out the exact balance, but I estimate we are currently on c.£264,000 with a repayment date of Feb 2042!!


    I don't intend to do a full SOA at this stage (maybe in the future) but will say that we are in the fortunate position that we can currently put £550 pcm into regular savers and have current easy access savings of c£7000.


    The aim over the next 12 months is to get the savings up to £15,000 (from the regular savings accounts maturing and also from a bonus I should get from work next summer) and keep that as our emergency fund. From that point, whenever a regular saver matures (or I get a bonus) I intend to stick that directly into a lump sum overpayment, unless the emergency fund needs topping up of course (which it will do, as we need to do a couple of bits and pieces to the house still over the next couple of years).


    In the meantime, I intend to make ad hoc overpayments as and when possible, hopefully averaging about £100pcm.


    My motivation for this is of course to be mortgage free by 55 in order to then make saving for retirement easier (I have a work pension but not much else, although OH runs her own business which hopefully would have value when we reach retirement or could be passed to DD if she wanted to run it), but in the interim it is to allow us to build up as much equity as possible so as to be able to move again within 5 years.


    The reason for this is twofold:
    1) We always intended that this move was another step on the ladder, rather than our 'forever' home, and we originally thought we would live here for 10 years then move;
    2) However, we (well, I in particular) are not happy where we have moved to. The area is SO noisy throughout the day (and during the evening over the summer too) with children shouting and screaming and frankly the noise is doing my head in! Also, we are in a semi so there is some noise through the wall too.


    Think that is enough to start with, any comments would be welcomed and I will hopefully post a little more in due course!
Page 4
    • greent
    • By greent 10th Jan 18, 4:23 PM
    • 7,077 Posts
    • 72,124 Thanks
    greent
    Our SVR when we dropped off our fix was considerably lower than the fix
    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) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • VDOT47
    • By VDOT47 11th Jan 18, 12:39 PM
    • 121 Posts
    • 350 Thanks
    VDOT47
    I've been having a little look at our emergency savings pot and think it can be rounded down a little. That, in addition to the fact that a regular saver has expired thus freeing up £250 this month, should see me make an overpayment of about £900 at payday later this month.


    I think that this should mean that by the first anniversary of taking out the mortgage in February, our balance should be below £250,000! (It started at £270,000). I know a lot of that is from the money transfer, but it is still nice to see the balance start with a 24x!

    The amount that has previously been going into the regular saver will, from next month, have to be used to pay PCP for a new car so there is no point using this month's £250 for anything other than an overpayment!

    Taking the future monthly PCP payments into account, and the minimum repayments to the money transfer CC, from next month I hope to be able to overpay about £200-250 pcm, although this may be a bit higher initially and then drop to this level once my auto-enrolment pension contributions are required to increase in April.

    I will keep up the £300 pcm into another regular saver (and will probably renew when it expires later this year, as the rate is good) and decide what to do with the lump sum when it expires.

    I am constantly in a state of flux when deciding how much to have in easy access emergency savings! You read about needing 6 months' expenses, but that seems like quite a lot to me.
    Last edited by VDOT47; 11-01-2018 at 12:42 PM.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • greent
    • By greent 11th Jan 18, 1:06 PM
    • 7,077 Posts
    • 72,124 Thanks
    greent
    Six months does seem a lot - but my husband has had 2 periods without work of around 11 months each time (he was in the stupid position of being too well qualified to be offered lower paid jobs - he tried!) - at which point those savings start to come in very handy! The second time around we were mf, so our outgoings are obviously considerably less.
    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) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • RetireASAP
    • By RetireASAP 11th Jan 18, 1:28 PM
    • 2 Posts
    • 4 Thanks
    RetireASAP
    If you're looking at balance transfer cards why not look at one that charges no fees and no interest. Is it worth paying a 3% fee when you can get one for nothing?
    • VDOT47
    • By VDOT47 11th Jan 18, 2:21 PM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Its not a balance transfer, it was a money transfer, and there aren't any cards out there that don't charge an upfront fee (at least, not so far as I am aware of).
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 12th Jan 18, 9:07 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Signature updated to show the up to date balance! Definitely plan to have this below £250,000 by the end of the month.


    Going to investigate 0% purchase cards in order to stooze some of the costs of the porch extension this year (and the balance of the costs from a new bathroom that we had installed last year on 0% from a well known bathroom company and which is due to be paid in May).
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • RetireASAP
    • By RetireASAP 13th Jan 18, 7:09 PM
    • 2 Posts
    • 4 Thanks
    RetireASAP
    We used the Halifax card - 0% interest, no fee, 29 months to pay (you have 90 days after opening the account to do free transfers, after which there is a fee). When the deal comes to an end you can find another 0% interest no fee deal - that way your funds can be sat elsewhere earning you a decent amount of interest or used to pay your mortgage down - unfortunately as a new user I'm unable to post the link to the card site - but it's detailed in the MSE weekly email.
    • VDOT47
    • By VDOT47 15th Jan 18, 9:49 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Ah ok, didn't spot that one. Too late now though as the money is now in the mortgage account!


    Went for the new car, so that will deplete mortgage overpayment capability quite a bit. Will have to find other ways to keep the overpayments up (cashback, surveys etc).
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 16th Jan 18, 10:28 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Received the written confirmation from mortgagee that the recent overpayment has been received, and that this now reduces the remaining term to 22 years and 9 months, which I calculate to be October 2040. At the outset, the mortgage would have run to February 2042, so the overpayment so far seem to have brought this forward by 16 months :-)


    Target for 2018 is to get the balance below £235,000 (about £8000 of the reduction through overpayments, the rest through the natural capital reduction through the repayment schedule).


    First thing, to complete the home insurance renewal in the next 2 weeks and do so using Quidco for some cashback which can then go into the pot once it is received.


    Car insurance will need to be changed onto the new car in the next week too, and then renewed in April, so will be doing price comparisons there and claiming cashback if possible too.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 17th Jan 18, 12:14 PM
    • 121 Posts
    • 350 Thanks
    VDOT47
    NSD yesterday which is a rarity.


    Today will be more spendy, as I collect the new car tonight so will need some petrol for that (and, annoyingly will waste about 1/3 tank of petrol in my old car when it is returned as part exchange - bad planning!).
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 22nd Jan 18, 10:33 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Received reimbursement of my unused car tax on the old car today - £79.16, which will get paid in today and then added to this month's overpayment pot!


    On the downside, an additional £26.38 on my car insurance for the remainder of the year (to April) for changing the car on the policy.


    Have been approved for a 0% purchase card with a nice £10,000 credit limit, so that will come in handy for the various things we need to buy this year for the porch extension, downstairs toilet etc.
    Last edited by VDOT47; 22-01-2018 at 10:35 AM.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 23rd Jan 18, 10:36 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    So, home insurance renewed with a different company for £138 rather than the £171 we were being quoted by our existing provider - just need to remember to call them to cancel the renewal now!


    Still struggling to get builders to give a quote to do the porch extension, even though they now have the plans from the architect which surely makes the job of providing a quote easier? One company even replied to say the job was "too small for them"! How difficult is it to give someone some work!!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 23rd Jan 18, 11:15 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Correction - first quote just came back. £20,000!! For a 3.5m2 porch with downstairs toilet! Unbelievable! Hope the others are (MUCH) cheaper.
    Last edited by VDOT47; 23-01-2018 at 11:17 AM.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 24th Jan 18, 3:28 PM
    • 121 Posts
    • 350 Thanks
    VDOT47
    So we are slowly getting somewhere with maximising potential for savings - both Nationwide accounts are now fully open and online banking is set up. The first is fully funded (and paid out a small amount of interest already) and the second is partly funded and will be fully funded come payday at the end of this week.


    I am also going to open regular savers attached to each account, which will be a home for £400 pcm at 5% (could increase to £500pcm in the event of a payrise).


    Meanwhile, will slow stooze spending onto the new purchase CC, which will allow a bit more to be paid to the mortgage each month, rather than repaying the existing credit card in full.


    All of the above should earn us about £500 in interest over the next year, and allow for about an extra £200 pcm to be paid to mortgage than would be the case without the stooze.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 26th Jan 18, 9:50 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Well payday has arrived (woohoo!) and a sweep of the various accounts has allowed an overpayment today of £874.41.


    That will get the balance below £250,000 and based on the purchase value of £374,000 that gives us an LTV of approx. 66.8%. Not too far to get below 65%.


    This will be the last of the big monthly overpayments for a few months though as part of this month's payment came from rounding down our emergency savings fund a little bit, together with a car tax reimbursement. Also, from February the monthly car and CC repayments start (combined, about £300 pcm), and from April my auto-enrolment pension contributions will increase thus reducing my take home pay slightly.


    Also, as the previous post indicated, I am putting £400 pcm into regular savers at 5% rather than using that money for overpayments at 2.19% which is the sensible thing to do, much as I love seeing the mortgage balance drop!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 29th Jan 18, 10:49 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Not much doing this weekend from a money saving point of view. Had a de-clutter and found some (very) old premium bonds and checked on the NS&I website for historic unclaimed prizes, but didn't find any. Oh well.


    Nearly 2 weeks into driving the new car and my mpg has been 43, compared to 35 in my old car. Should save me nearly 25% on petrol costs, which at current prices is no bad thing. Maybe £25 a month if I am lucky. Every little helps.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • VDOT47
    • By VDOT47 30th Jan 18, 12:05 PM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Second porch quote in - £20,000 - £27,000 plus VAT!!! Think I know the business I should be in to make vast amounts of money!


    Think the idea is going to be a non-starter as there is no way that we can afford these sorts of amounts.


    Will have to find cheaper, simpler ways to deal with the insulation and storage issues, and just live with the lack of a downstairs toilet.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • greent
    • By greent 30th Jan 18, 7:04 PM
    • 7,077 Posts
    • 72,124 Thanks
    greent
    Ouch! I'm not sure where you live, but for a porch and downstairs loo that seems high! My bestie and her husband are spending 30k on having internal walls knocked out (rsj in), new internal walls/ doors, 2 new bathrooms, new boiler/ pipework/ radiators (full CH overhaul), new front and back doors, new patio doors into conservatory, some other internal doorways moved around and some minor bits like sockets etc moved around - seems like good value when compared to your quote (although location may make a huge difference) (Mind you, our kitchen refit is costing almost 32k.... - without any building works involved)
    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) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 31st Jan 18, 8:53 AM
    • 696 Posts
    • 3,090 Thanks
    SuperSecretSquirrel
    Second porch quote in - £20,000 - £27,000 plus VAT!!!

    Will have to find cheaper, simpler ways to deal with the insulation and storage issues, and just live with the lack of a downstairs toilet.
    Originally posted by VDOT47
    An awful lot of money, especially if you're planning on moving in a few short years. Would you claw it all back when selling?

    Any chance of building a brick outbuilding for your storage needs? Or depending on what is being stored, an off the peg wooden or metal shed even?

    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)
    • VDOT47
    • By VDOT47 31st Jan 18, 9:34 AM
    • 121 Posts
    • 350 Thanks
    VDOT47
    Hi SSS, thanks for reading.


    I think we would claw back about £10,000 in additional value when selling, and if we were going to live here for 15/20 years then I would consider it more carefully, but it doesn't seem worth it for the short amount of time we get to use it. Not to mention we would have to borrow to fund the cost in the first place!


    We do have a decent sized garage for storage of bigger items. The porch is more used for storage of things like shoes, coats, pushchairs etc and it would be nice to have a bit more space for that.


    Counted up the coin jar last night and now have £16.79 to pay into the bank today. Every little helps.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
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