Saving 11.4 years and £42,759

Hello Dear Reader and welcome to all new followers and readers xxxxxx

Times are hard. No one need to worry about not having any money as no one has any! If you have any, you could save it and get sod all in return! Once you’ve paid off any debts, if you have any, the next step is the mortgage. We’ve been paying back nothing more than the minimum repayment of the capital, in our case nothing more than asked, for the past two years. Now, we’re going to take every penny we previously snowballed into debts and add that to a monthly payment.

I don’t make a regular payment, I actually go into Santander and pay them a cheque each month. Some months, I pay more and some times less. I can pay up to 10% of the balance a year and not incur extra financial penalties. Can you believe those blood suckers actually get away with charging you more for paying off your mortgage at more than 10% a year! Well I’m fixed into that stupid deal until 9/9/2012, when I will be telling them in no uncertain terms where to get off! I’ll tart my payments from bank to bank in the future without being tied in, whilst looking for the best deal as it arises.

By overpaying my mortgage to the point at which I was paying debts each month, means we will be left with exactly what we had to live on when we were in debt. Life won’t change. We’ll still use second hand water, won’t turn the heating on, will still use the shower timer, will still grow food to supplement our diet, still have a small food budget and still not go out to eat. It won’t kill us. It will though reduce our mortgage by 11.4 years and save us £42,759 in interest payments. That will rid me of the shackles I have to the bank.

Whilst I’m on the stinky high interest rate and stuck into a deal with penalties, we only pay off 10% a year but there are mortgage deals out there that don’t have penalty charges and I will keep my eyes open for one.

I’m off now to read my meters and record what I’ve used or not used. We’ve also had great success with solar re-chargables and will look into some more for the house. There’s no way I’m going to commit to PV whilst I don’t own my own home, but I can have stand alone and re-chargable lighting for snuggly winter evenings where a warm glow will do. I can always throw a switch if I need ‘day light’. I know some people who read this are literally on your financial arse and my thoughts and prayers are with you. I know some of you, through prudence and being careful have worked your way to debt freedom. If that’s the case, then why not have a look at how much you could save if you over paid your mortgage.

I may live a simple life but it’s worth it to pay off my mortgage in 8 years and 6 months! (So, stuff that you bankers!)

Love Froogs xxxxx

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28 thoughts on “Saving 11.4 years and £42,759

  1. Hi, Frugal Queen I found your blog only last week. I am one of those who have alot of debt but I have picked up some great ideas already.I am very glad to see you back. I am allowing myself one hour a day reading from the start of your blog if I dont I will be on here all day lol. Just want to thank you as so far I have saved £70 a month from some of your advice. I have worked out it will take me until Dec 2015 to be debt free, but I hope with your help it will be sooner.

    Kimsmum

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  2. Oh welcome back Froogs – we know you are still wading through deep doo doo – but it's good to know you are keeping your head above the … err.. water.
    Great about the mortgage overpayments, and the holiday and all the other random blessings [Lacura eye serum etc]
    Wrap up warm, and keep plodding on!

    but that bit about “I don't like odd numbers, 6 more sign on, please” – if you add 6 to an ODD number, it is STILL an ODD number!!

    blessings x

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  3. So true! We are lucky to have a no-penalties mortgage and have been overpaying (by 100% most months) for the past two years… cashing in on the low interest rate to pay off the capital faster. To begin with, our bank kept sending us letters saying they were adjusting the monthly payment as they noted we'd overpaid… in response we just upped the overpayment the next month! This went on for 6 months until the bank realised we were not going to play their game and keep giving them the interest they want 🙂 Our mortage is still huge but it has dropped dramatically!

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  4. We're 27 years ahead with our mortgage because we pay the maximum we can each month.

    We pay $974 a month. We are expected to pay roughly $360 a month (I think). We don't have debt so we are able do this. We can also do it because we live frugal. If we lived like we used to it would not be a possibility and we would be struggling like everyone else.

    We are not penalised to pay extra at our bank – plus things have changed in Oz recently I believe banks can not charge you a fee for exiting their loan early to go to another bank. So I need to get into my finances more and start looking at better options. Frugal is good but so is looking at making my money work harder, which is what I have been neglecting.

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  5. We hope (and pray) we can pay off our mortgage in 14 months by living frugally.

    Not sure how much we'll be saving but that would be interesting to work out!

    £42,759 saved would motivate anyone surely!

    Congrats on a great attitude

    Sft x

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  6. As I have mentioned on my blog a few times Debt = Slavery. Slavery to the banking system, that forces us to continue to work in shitty jobs that are meaningless. We are on track to pay off our mortgage after 14 year, but have really only been frugal since 2006 when we really ramped up the payments. I cannot wait for that momentous day that we make the last mortgage payment. It will be the same day that I put my notice in at work!

    Gav

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  7. We pay extra on our mortgage whenever we can, usually a £100 but we can't manage that every month. It does make a huge difference even if you pay say an extra £50 per month. We have a repayment rather than an interest-only mortgage so you can see the balance going down.

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  8. Well done on the mortgage. That is rotten about the 10% cap. I am thankful we never had one. We lived in way below substandard conditions on our land and then built a shell of a house we are finishing as we find the funds.

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  9. im really interested in what solar products you use,i have the solar battery charger and have just dug out a camping light we had its only small but it lets out a nice glow. Would like some ideas on something a bit bigger that uses AA batteries.My husband thinks im daft not turning lights on but as you say its all less going to these people and more on debt slaying ,love to hear any ideas you have
    xx

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  10. This idea may not do your readers in the UK any good, but it works (and works well) in the US.

    In our previous home, we decided that we wanted our home paid off by DH's 60th birthday. (You could pick any date). We went to the bank (you could do it online now) and found out how much we would have to pay each month to pay the loan in full in the month he turned 60th. I then set up automatic payments for the full amount, and largely forgot about it.

    Then, life got in the way. DH got transferred 100 miles away. We sold the old house and bought a new one in our new community. But we still wanted that loan paid by October 31, 2004–his 60th birthday. So, we used all of the equity from the old house as a down payment, and got a 10-year mortgage–the shortest the bank would write. We found out how much we had to pay each month to retire it in 7 years–the date of his 60th birthday–and again set up auto payments. This was absolutely a painless way to pay off the mortgage early.

    We were fortunate to have been otherwise debt-free at the time. If you have other debt, it's probably best to snowball your other debts first. Then, just pick a date. We chose a date 5 years from when DH decided to retire. Then, life got in the way again, and he retired after only 2 more years of working. Were we glad that our house was paid for!

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  11. Welcome back old bean,have had a crap week battling with the c word (health wise). Glad about your recovery but specally about the swearing, I have become very anglo saxon in the last couple of weeks, if I can work out how to (I am old and dim) I will become a follower
    Sue xxxxx

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  12. We're on a tracker mortgage with a very low interest rate as we transferred from an endowment about 6 years ago. Before DH was made redundant in April we were paying double our monthly payment as there are no penalties for overpaying and we were looking to slash our payment term in half. Of course DH's school pissed on our plans when they made him redundant while he was off sick with stress but while interest rates are still so low I am still paying extra every month. That way we are still reducing the term a little but also if interest rates start to rise it won't be such a shock to the system if we've already been paying extra. I wish we could get back to having a decent amount coming in so I could really go for it and pay chunks off every month, but every little helps.

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  13. So glad you are back! I love your blog and check it every day! All you old posts are helpful and relevant! We too want to pay off our mortgage (hopefully by 2015) so I am now avidly following! Hope things improve for you! (((Hugs)))

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  14. Its good to have you back. I missed
    your daily presence and wise advice.
    You are doing your best and helping so many of us to step up and try harder. Thanks for being so open and
    caring.

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  15. We try to pay off £500 extra each month. It's the most we're allowed to without penalties.
    We worked out that by switching to the lowest rate we could, we'd save the total penalty in a year just on the interest, but we put off doing it. We're trying to sell the house, so thought we'd be switching the mortgage anyway, but it hasn't sold yet. Now do we switch – potentially for only 3 or 6 months, so it ends up costing us, or do we stick with high interest for as long as it takes to sell? I need a crystal ball!

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  16. Another echo of “Glad you are back!” and I am hoping things are going ok for you!

    Do you have any advice for someone newly in a mortgage? I have just gotten my home this past summer. I am a single mom with 2 kids at home. I am paying just an extra $10 a month on principle. Of course I try to do all repairs/work as cheaply as possible and have a fund for those house things that crop up… would love to read more of how you made it thru your years of being a single mom, if you care to write about it. 2 days after closing on my house I lost my job.

    I truly appreciate your work here! Thank you!

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  17. Wish we could pay off our mortgage early but it's not an option for us. We didn't buy our first home until DH was 55 and I was 50. That was back in 1997 and he retired in 2001. We sold the house and traveled around the country (USA) for 3 1/2 years. We lived in our motorhome with no “real” home base. We finally bought another home in 2005 but moved to our present home in 2008. We've never stayed long enough in one place to have much equity so we'll be paying off this house until we die. We get a pension and SS but it doesn't go far enough to make double payments. My DH will be 71 in a few days so, at this point in our lives, would it really be worth it to try to pay off a house????

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  18. You are so right to attack the mortgage – I can testify to how liberating it is to pay off the mortgage. I paid mine down month by month like you – as much as I could afford and really challenged myself to get that balance down. It felt so good – and hardly believeable! – to get all the stuff through from the Halifax confirming it was paid off and the legal charge on the house lifted from the Land Registry. It amuses me (though sometimes makes me a bit irritated) when people I know who are in dual income households and spending money on expensive extras and luxuries remark on how 'lucky' I am to have no mortgage. Yes – and the harder I worked at paying it off the luckier I got!

    Jane

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  19. grrr blogger ate my comment.

    Please do post about your solar recharging. With pictures if possible as they really help me understand.

    I did see a solar desk lamp in ikea, but I didnt buy it.

    Have you made sun jars? I think you can make those with garden lights and jam jars…

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  20. Yes, frugaldom seems to become part of everyday living, even if you've got money to spare, the little frugal fairy that whispers in my ear says “do you really need it” or “is it really worth it”.

    Like

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