Mortgage Progress: November 2009

I’ve hardly mentioned the mortgage this year, probably because we stopped overpaying it and concentrated on building an emergency fund. However it’s time for a re focus as we’re starting to make {small} over payments again next month.

The current balance is £121,581.65 and we still have 20 years and 8 months to make payments! Originally we had hoped to clear this balance by 2012, however due to work situations changing {all the bonuses got stopped!} we changed our goals and our priorities. We still want this debt gone though!

Anyway, from December we are making a small over payment of £57 a month, which will bring the monthly payment to £600 and reduce the term of out mortgage by approximately 2 years. In the new year any extra money we make, above our budget, will be split 50/50 between the mortgage and our travel fund. When I get a new job, all my earnings will go into these two pots. If we can at least up the overpayment to £100 in the new year, this will reduce the term of the mortgage by 5 years; it’s amazing what even a small overpayment can do to your term.

Mortgage Snapshot;
Mortgage New  Pyt   Act Pyt  Int       Balance
1st Nov £542.34 £542.34 £102.60 £121,581.65
1st Dec £542.34 £600.00 £100.00 £121,081.65
1st Jan £542.34 £600.00 £100.00 £120,581.65
1st Feb £542.34 £600.00 £100.00 £120,081.65
1st Mar £542.34 £600.00 £100.00 £119,581.65
1st Apr £542.34 £600.00 £100.00 £119,081.65

 Are you making any mortgage overpayments?

 {photo credit: Fr Antunes}

Tagged as: Goals, mortgage, reducing