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  • FIRST POST
    • VDOT47
    • By VDOT47 30th Oct 17, 1:32 PM
    • 114Posts
    • 307Thanks
    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 5
    • VDOT47
    • By VDOT47 1st Feb 18, 12:27 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Greent - home counties, which probably explains the costs for everything!


    Just done a calculation and (I think) daily interest is down to £14.99. It was £16.19 at the start of the mortgage, so in theory we are saving about £36 of interest in an average month compared to a year ago.
    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 5th Feb 18, 11:16 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    So, having scrapped the idea of the porch extension, we are going to get a handyman in (probably not completely MSE, but if I was to do the jobs myself we'd be waiting months for me to get round to doing them!) to do a few bits and pieces to just make our existing porch a bit nicer and a bit warmer. Costs of materials will go on the stooze CC, so the only cost will be cash to the handyman for his time.


    Weekend was low spend, with just a £10 top up shop in Tescos and buying an item from a DIY store for £9 on stooze CC.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 6th Feb 18, 8:47 AM
    • 677 Posts
    • 3,037 Thanks
    SuperSecretSquirrel
    Costs of materials will go on the stooze CC, so the only cost will be cash to the handyman for his time.
    Originally posted by VDOT47
    Sounds like the right move on the porch. The above sentence is a little alarming though. The only immediate cost will be to pay the handyman, but you will of course need to pay off the stooze eventually, so the materials aren't free!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£53,278.53 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £268,597.74 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 28.8% (exc SP)
    • VDOT47
    • By VDOT47 7th Feb 18, 10:13 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Yes, good point! I suppose the fact I don't have to think about paying it off/finding a free or very cheap balance transfer for over 2 years is making my approach a little blas!! But you are correct.
    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 Feb 18, 3:24 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Pretty good weekend cash wise, but spent a few bits on the CC including for a new door between the porch and living room which will hopefully keep the house a little warmer then the current door which has a large single paned window in it, which cannot have any thermal or acoustic properties!


    Mortgage payment went out today, so I will check online and update the signature tonight - expecting a balance around £249,500, which will be just over £20,000 less than the starting mortgage in one year.


    PS - my notional target is to reduce the balance by £25,000 p.a. on average, through a combination of natural capital reduction and overpayments, so that by Feb 2021 the balance is below £169,995 (which would be £100,000 lower than when we took the mortgage out). It is a very tall order, but aim for the stars ....
    Last edited by VDOT47; 12-02-2018 at 3:27 PM.
    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 14th Feb 18, 9:33 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Signature updated - balance down to £249,117. Should manage a small overpayment at the end of this month to take it below £249,000.
    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 Feb 18, 1:05 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Not much to report over the past week or so.


    Have been sticking to budget (largely) and even saved a little bit here and there, so with only a week to go until payday I am hopeful of being able to make a decent overpayment. This will be boosted by the fact I have decided to slowly reduce my emergency fund by £1000 over the next few months, so will probably 'release' £300-400 of that this month to boost the overpayment.


    Ultimately, we will then have £5000 in savings accounts earning 5% p.a. which is easily accessible in an emergency, and a further £1000 in a cheap easy-access savings account for smaller emergency items. This £6000 total would cover maybe 3-4 months of expenses in the event of redundancy, and could be topped up very quickly if I felt the need to by accessing regular saver accounts.
    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 Feb 18, 1:06 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    PS - handyman came on Sunday and did a very good job on the various bits and bobs we asked him to do. £100 cash for him, and about a further £100 in materials which went on the CC.
    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 27th Feb 18, 10:19 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    We have had a very good last week or so spending wise (or, more to the point, not spending!) so I have managed to raid the various accounts for a little bit more than expected and have today paid £540.38 as an overpayment. This is in addition to the automatic slight overpayment from our DD having been increased to £1200, so in total an overpayment of approx. £575.


    Standard DD in March should see us below the £248,000 mark.
    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 6th Mar 18, 9:39 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    My recent posts have been rather intermittent as frankly there has been very little different happening that is worth reporting (and also I'm not really sure anybody else is reading my witterings!).


    Did have our usual letter through confirming receipt of the last overpayment and this now shows a remaining term of 22 years 6 months, when it should still be at 24 years, so we have saved 18 months already through these overpayments! So, mortgage end date is now Aug/Sept 2040! Will update signature accordingly.
    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 9th Mar 18, 1:08 PM
    • 6,929 Posts
    • 70,854 Thanks
    greent
    Knocking 18 months off already is a great start
    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) £577.06/£4000
    Net sales 2018 £362.51/£1000 PAYDOX18 (#15) £12808.40/£18694.38
    • VDOT47
    • By VDOT47 16th Mar 18, 12:06 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Thanks Greent!


    Standard DD went out at the start of the week, so will update my signature accordingly. Balance is now £247831.52
    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 27th Mar 18, 9:18 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Nothing much to report - it has been quite a spendy month, what with the oven fan breaking (£170 to replace), meal our for mother's day etc.


    Still managed an overpayment of £446.39 this month which was decent I think.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (12/04/18) £246,637.06
    End Date Aug 2040 Original End Date February 2042
    • Kittenkirst
    • By Kittenkirst 28th Mar 18, 6:01 AM
    • 1,863 Posts
    • 10,006 Thanks
    Kittenkirst
    That's a great OP for this month- you are really smashing your Mortgage figure down which is great to see!

    Very impressed you've knocked an additional 18 months already off the term too
    2018 MFW #20 - OP £1424.47/ £3000 47.5%
    Jan: £417.42 Feb: £260.14 Mar: £218 Apr: £528.91

    Emergency fund £4.2k/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • VDOT47
    • By VDOT47 3rd Apr 18, 3:13 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Thanks Kittenkirst. I just wish the total could come down even quicker!


    Does anyone else ever feel depressed that this is such a long journey? I know that we are doing very well by all reasonable standards in terms of overpaying/saving each month, and that in theory our equity in our house is increasing by £25,000 at least each year, yet I still feel very miserable on occasions that it still isn't enough to allow me to move my little family into a house where we will be totally happy, rather than just mostly happy but having to live with compromise in terms of location/noise 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 9th Apr 18, 1:47 PM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Mortgage DD payment tomorrow, so that will allow me to update my signature and see how close to £247,000 the balance is. I think whatever is needed to get it below that figure will be the minimum I allow myself to overpay this month.


    £247,000 would represent 66% of the purchase price we paid last year (£374,000). I'm really not sure if prices have gone up or down in our area over the past year or so, so I'm going to keep LTV calculations based on the price we paid rather than some imaginary valuation figure!
    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 Apr 18, 9:03 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Just updated my signature after checking mortgage balance this morning - it was better than I anticipated in my last post above, as I had forgotten to take into account the overpayment I made last month when I was typing the message above! So we are already well below £247k. Not far to go to get below 65% LTV, which is the next target.
    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 Apr 18, 11:21 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    Month end is approaching, so I am starting to look at the various calculations to see how much can be overpaid this month. I am expecting something around £200.


    It has been an expensive month with car insurance of £372 to be paid, along with £600 for some work we are having done to replace our side fence and wall.


    Next month is annual appraisal and salary review at work. I've had a good year, so am hoping that by June I may have a payrise of some sort (fingers crossed) which would all be able to go towards overpayments.


    The end of this month also marks 6 months since the start of this diary, so it will be nice to run some figures to see how much progress has been made!
    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 27th Apr 18, 9:21 AM
    • 114 Posts
    • 307 Thanks
    VDOT47
    £233.41 overpaid in the end. Not as good as previous months but, a I said above, it has been a costly month and my pay packet came in at approx. £90 less than usual due to the pension changes.


    So, balance as at 30 April will be £246403.65, which is a reduction of approx. £18000 in the six months that I have been running this diary! I am aware that about £11000 of this was due to the money transfer that I took out in January, but even so I am pleased to see the overall balance coming down by so much!


    Will be a quieter few months now I expect.
    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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