So now I have a plan! Reduce Ј10,000 in 18 months?

A question about : So now I have a plan! Reduce Ј10,000 in 18 months?

Ok so I have previously posted under the thread ....Ending 2013 with 336 payments to go.

However, I have started a new thread as I have changed goals. I have made a plan to reduce my mortgage by Ј10,000 by the end of Dec 2015!

My mortgage is currently around Ј87500 and by overpaying approx Ј6000 it could be around the Ј77,500 mark by my target date. The aim is to get the LTV down to approx 55-60%. My current rate is fine but I am planning ahead as finances might not be great in 2016 and with the apprehension that rates will eventually increase I am getting ahead!

Before i was making over payments as and when but have now rearranged finances in order to be more aggressive while we can.

With this in mind I have today made an over payment of Ј500! Yayy!

Best answers:

• Revised plan:
  June 14 - Ј500 - paid
  Sept 14 - Ј25 - paid
  Oct -Ј25+Ј35 - paid
  Nov - Ј35 - paid
  Dec - Ј35 - paid
  May 2015 - Ј35
  June - Ј35
  July - Ј500
  August - Ј500
  Sept - Ј500
  Oct - Ј500
  Nov - Ј500
• Hoorah, a new plan
  I think it's a good idea to have shorter term goals, rather concentrating solely on the big picture. If you can work towards something in the near future, it seems much more achievable.
  Also, I like that you are having some time off too - it can be difficult to stick to a plan if it's very intensive
  good luck!
• Thank you!
  I love the fact that we get so much out of a new goal....it's like fresh bed sheets! (ok so am a little weird)
  Fingers crossed that I can do it as this is really aggressive for us and will be a massive effort, but should be worth it.
  The break will let us save some holiday funds too
• Just had a letter off S@nt@nder, they are now letting me set up my preference of either lower monthly payments or shorten the term when i overpay. Thank goodness as I normally have to call them.
  Ermmm shorten the term of course.....easy decision!
• Todays letter off S@nt@nder tells me that I have knocked another 3 months off my term!
  So far so good! Also, the mortgage has now hit below Ј87,000 although I guess the interest will take it back above slightly.....but not for long!
• Bank account looking a little bare
  Was really hoping to start looking a hols for 2015 but I am going to have to wait for now
  Not to worry as I think the prices will be nicer in November time when there is more competition.
  Have been putting of an assignment at college which really needs to be done soon and my tutor is now chasing me so I will be spend the next month trying to get it completed.Then I will be college-free
• Hi Teabody, I am with Sant..... too and looking at your payments we may have similar products. I can overpay a minimum of Ј500 at a time upto a maximum of 10% of balance each year. I am thinking of joining the MFW board and wanted to ask if you over pay by cheque and if so have you found it to be ok? I am hoping to pay a cheque in branch and I understand I have to state that it is for a capital repayment. Have you found it to be that straightforward? Hope you don't mind me asking? Will follow your journey too.
  Boom.
• Hi Boomdocker,
  I pay via online banking as I am not very near a branch and initially I had to call each time to say I wanted it to come off the term and not reduce my monthly payment. Since my June Payment I have been sent a preference form so that I no longer have to call each time. I have never done it by cheque over the counter so I am not sure in that instance. I do get a letter each time I overpay within a few days. Hope that helps....
• Lovely, I will ask when I make my first payment. Many thanks.
• Hi all,
  Spending time reading the other threads on here. I feel really motivated when I do. Hoping to be as inspirational myself one day.
  Mf vibes and best wishes to you all x
• You already are! You have such clearly defined goals, and although they are aggressive, you know it's only for a short time and then you can have a break again. I think it will keep things fresh as Goldiegirl said.
  Good luck on your MFW journey x
• Thank you Emethemist,
  Although it feels good having a defined plan I will feel much better when I have completed it. Can't wait to see if I have managed it...(shouldn't wish the time away , I know)
• I have hit a bump this month financially but I am hopeful that by the end of the month I will have straightened out the finances in order to make an over payment Fingers crossed. Will keep you posted x
• I have sadly missed my July overpayment thanks to a few hiccups but hope to get back on track in August. Sorting out all my insurance products and so on at the moment ....seem to have so many policies and too much paperwork!!!
• I'm really inspired by your plan. Paying off our whole mortgage feels like such a big task that I've tried to break it down in my head. I think I may decide an amount to aim for across the next year too. Good luck!
  FL xx
• Thank you Family Life
  I was almost feeling defeated not being able to manage the 2nd payment but I am feeling better having adjusted when to pay. After all, it will be a great achievement if I manage it but if not it's not the end of the world! Good luck to you ....i will look out for you x
• I love this idea of paying off a set amount in a set time! Seems like a really positive and less overwhelming way of reducing costs!
  Keep up the great work and dont let month month's hiccups get you down!
  Jodles
• Ok so it's not going well.
  The upside is that the money I was going to pay off the mortgage now has to go towards a once in a lifetime holiday as an in law is getting married there! How inconsiderate.
  Therefore I have revised the amount to a reduction of Ј7000 instead of Ј10000 and most payments will be made next year, however I will try to make smaller amounts in the meantime. I have just learnt by phoning my mortgage provider that they will accept lower payments than the minimum capital repayment if it is a standing order!!! Wish they had of said this earlier! So I am off to sort out a little OP standing order....
• I have set up a Standing order to overpay by Ј25 per month....not a lot but will reduce the term by another few months over the next 18 months. If I had known this was allowed I would have done it ages ago!