Mortgage free before I'm 45!

mikecmr

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So I want to be mortgage free before I am 45! which now gives me 10 years, scary thought!

Currently have only myself in the house which might change after meeting the 'one' (not matrix) and the only debt I have is the chain around the neck, mortgage!

So my plan is to overpay by about the same each month as I normally pay, this according to a mortgage repayment calculator should get it paid off in 12 years. Slightly below my target, so I am aiming to earn as much as I can extra to get it paid off quicker! Currently looking at saving £26,000 by paying it off earlier!

My main extra income for this, I have taken in a lodger (tax free up to 7500) and at current rate this is an extra £5000 a year into the pot

So here is my diary of how I am doing, and will keep people informed if you are interested on how I am doing!

Investment Funds -
Funding Circle - £500 investment to start - Currently -£3.56

2016 over payments - total of 2 years knocked off the term!
2017 over payments - Total of 1 Year knocked off the term - car took a hit
2018 over payments - TBC
 
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katykicker

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Well done for this year [member=866]mikecmr[/member] - I love diaries so I'll be checking in to see how you're doing! Best of luck with it!
 

mikecmr

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mortgages are a bane on lives but we all need one if we want to be secure in later life, I was tempted to put actual figures but I thought time is a better way of measuring performance, interest rates could rise, circumstances could change so on so on

It is actually the main talking point between my group of friends we are all trying to achieve this milestone
 

Jon

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Go for it! Love this target!

I'm 35 as well and would love to be mortgage free by 45!
 

mikecmr

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Jon said:
Go for it! Love this target!

I'm 35 as well and would love to be mortgage free by 45!
I use this calculator

http://www.halifax.co.uk/mortgages/mortgage-calculator/overpayment-calculator/

and it is crazy how much money you save by over paying, really opened my eyes to it
 

Chammy

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Once we have recouped the initial cost of moving and done what we want to the house/garden next year we will be looking at something like this.

We can overpay £399 a month on our mortgage without incurring costs and that will have it paid off in 9 years - I think we'll aim for the husband's 40th which gives us 10 years from August :D
 

mikecmr

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I bought mine at the worst possible time just before it all went down the pan, but luckily i'm currently on nationwide's SVR (2.25%) so no overpayment limits.

Just found a very good deal with another provider at 3 years fixed for 1.79%, saving around £600 per year this would knock another six months off my term, need to speak to my advisor and see what he thinks.

My LTV is currently 65% need to get this down haha!
 

katykicker

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Chammy said:
Once we have recouped the initial cost of moving and done what we want to the house/garden next year we will be looking at something like this.

We can overpay £399 a month on our mortgage without incurring costs and that will have it paid off in 9 years - I think we'll aim for the husband's 40th which gives us 10 years from August :D
Are you going to be stair casing at the same time? x
 

Chammy

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katykicker said:
Chammy said:
Once we have recouped the initial cost of moving and done what we want to the house/garden next year we will be looking at something like this.

We can overpay £399 a month on our mortgage without incurring costs and that will have it paid off in 9 years - I think we'll aim for the husband's 40th which gives us 10 years from August :D
Are you going to be stair casing at the same time? x
I think the plan is to look at staircasing the last 45% when our 2 year fixed period is over - remortgage etc. Then start to overpay. Though, the move I increase my income the sooner everything can start
 

katykicker

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Chammy said:
katykicker said:
Chammy said:
Once we have recouped the initial cost of moving and done what we want to the house/garden next year we will be looking at something like this.

We can overpay £399 a month on our mortgage without incurring costs and that will have it paid off in 9 years - I think we'll aim for the husband's 40th which gives us 10 years from August :D
Are you going to be stair casing at the same time? x
I think the plan is to look at staircasing the last 45% when our 2 year fixed period is over - remortgage etc. Then start to overpay. Though, the move I increase my income the sooner everything can start
Sounds like just the motivation you need to smash 2017!
 

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Mortgages are great

They are often cheaper than renting (ours is MILES cheaper than renting) and everything you pay into it is going to benefit you..

The last thing I want when I retire would be to be paying rent each month as an ongoing cost. My mortgage will be clear by then and the mortgage is easily the biggest outgoing cost you can have..
 

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Seems like a great goal...I'm looking to save up for a Mortgage myself... being only 22 and wanting to get on the property ladder. Would be great if I could save a deposit and be mortgage free in the timescales you guys are thinking about. Suppose I best put in some effort!!
 

Jon

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tom453 said:
Seems like a great goal...I'm looking to save up for a Mortgage myself... being only 22 and wanting to get on the property ladder. Would be great if I could save a deposit and be mortgage free in the timescales you guys are thinking about. Suppose I best put in some effort!!
you still have plenty of time [member=5567]tom453[/member]

I didn't buy until I was 27 and have a SHOCKING low mortgage. Living in the North helps i think as houses are just generally a lot less so you get a lot more space for a lot less money
 

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Hi [member=1]Jon[/member] I do have lots of time left but would prefer to buy now... leaves more money for my luxury retirement ;)
 

Queen

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Matched betting is also tax free to add to your income fro the lodger :)
 

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mikecmr said:
So I want to be mortgage free before I am 45! which now gives me 10 years, scary thought!

Currently have only myself in the house which might change after meeting the 'one' (not matrix) and the only debt I have is the chain around the neck, mortgage!

So my plan is to overpay by about the same each month as I normally pay, this according to a mortgage repayment calculator should get it paid off in 12 years. Slightly below my target, so I am aiming to earn as much as I can extra to get it paid off quicker! Currently looking at saving £26,000 by paying it off earlier!

My main extra income for this, I have taken in a lodger (tax free up to 7500) and at current rate this is an extra £5000 a year into the pot

So here is my diary of how I am doing, and will keep people informed if you are interested on how I am doing!

2016 over payments - total of 2 years knocked off the term!
This sounds like a great plan I am to do this within a few years of getting my foot on the ladder, when taking in a lodger is there any requirements required e.g. applying to your local council for permission, fire safety regulations etc?
 

mikecmr

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Romell said:
mikecmr said:
So I want to be mortgage free before I am 45! which now gives me 10 years, scary thought!

Currently have only myself in the house which might change after meeting the 'one' (not matrix) and the only debt I have is the chain around the neck, mortgage!

So my plan is to overpay by about the same each month as I normally pay, this according to a mortgage repayment calculator should get it paid off in 12 years. Slightly below my target, so I am aiming to earn as much as I can extra to get it paid off quicker! Currently looking at saving £26,000 by paying it off earlier!

My main extra income for this, I have taken in a lodger (tax free up to 7500) and at current rate this is an extra £5000 a year into the pot

So here is my diary of how I am doing, and will keep people informed if you are interested on how I am doing!

2016 over payments - total of 2 years knocked off the term!
This sounds like a great plan I am to do this within a few years of getting my foot on the ladder, when taking in a lodger is there any requirements required e.g. applying to your local council for permission, fire safety regulations etc?
Only thing you need to inform the council of is council tax, so you will have to pay the extra 25% if you were on sole occupancy, as you are a live in landlord you have a lot more power than renting a property and as such you don't have to adhere to fire safety stuff, but your house needs to be safe as you live in it too :D I informed my mortgage provider I had a lodger they sent me a form and that was it, I think its just to cover them.

Its easy tax free money :D
 

Jon

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Hey [member=866]mikecmr[/member]

Just wondering how you are getting on at the moment with your plans to be mortgage free!
 

mikecmr

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Things are going well, just paid another lump sum off which has saved me £2,400 in interest over the course of the deal and knocked off another year, last month was a bit busy with social and family occasions but will get back to the online earning soon.

found some good fixed term mortgage deals also helps that a house down the street has just sold for 210k which means the house prices round here are rising steadily :)
 
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Jon

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mikecmr said:
Things are going well, just paid another lump sum off which has saved me £2,400 in interest over the course of the deal and knocked off another year, last month was a bit busy with social and family occasions but will get back to the online earning soon.

found some good fixed term mortgage deals also helps that a house down the street has just sold for 210k which means the house prices round here are rising steadily :)
sounds good

We've ALWAYS gone with fixed rate. Just like to know what we are paying won't change for the term of the deal!!
 
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