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  • FIRST POST
    • VDOT47
    • By VDOT47 30th Oct 17, 1:32 PM
    • 116Posts
    • 337Thanks
    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 c7000.


    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 6
    • kuratowski
    • By kuratowski 28th Apr 18, 9:10 PM
    • 23 Posts
    • 38 Thanks
    kuratowski
    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?
    Originally posted by VDOT47
    Yes, exactly this! I think it helps to run the MSE overpayments calculator once every so often to remind yourself how many years you will ultimately shave off the mortgage... Helps me, anyway
    • gallygirl
    • By gallygirl 28th Apr 18, 10:03 PM
    • 16,589 Posts
    • 109,547 Thanks
    gallygirl


    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 :-(
    Originally posted by VDOT47
    It IS a long journey, no matter what you do. But you are taking steps to make it shorter so take comfort from that .

    I found it very useful to have lots of mini-targets along the way, along with a groovy spreadsheet of course . I know you are planning on moving but treat the mortgage as if you are staying put. Mortgage interest has just dropped below 15 so it will be a while before it goes below 14. How long before it goes below 14.50? How long before you've paid off 10%, 15%, 20% etc? Do you have a regular day you make overpayments? Choose a date and a nominal amount of say 200 if that is what you can definitely afford every month. Stick that on the spreadsheet along with your normal monthly payment. What's the estimated pay-off date? If it's say the 30th of a month as that's when your mortgage payment comes out, how much do you need to bring it forward say two weeks, so that your overpayment will be the last payment? Can you find that extra down the back of the sofa etc? Then how much to bring it forward another two weeks etc? And obviously it will come forward anyway if you pay more than 200 extra. Make it a game - Beat the Spreadsheet .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • VDOT47
    • By VDOT47 15th May 18, 10:03 AM
    • 116 Posts
    • 337 Thanks
    VDOT47
    Not much doing here. Going to be a quiet few months on the overpayment front.
    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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