Mortgage reduction

November 2011 - 217,265.00
October 2012 - 190,057.46 (bank put us on standard rate so more interest - less capital gets paid every month - need three years of capital repayment to get a better rate!)
March 2013 - 182,600.13
April 2013 - 181,000.00
May 2013 - 180495.91 - no mortgage over payment this month.
June 2013 - 179,000.00 - over pay of £1004.08
July 2013 - 178,000
August 2013 - 177,500 - no over payment this month
Moved house November 2013 and downsized!
January 2014 - 82,000 - no over payment this month - home improvements investments for a few months - debt will reduce by £500 a month as normal.
May 2014 - 80,000 - no over payments right now - renovations for a while.
September 2014 - 78,000

26 comments:

  1. Congratulations on such a wonderful reduction in 18 months. Well done. Hopefully you'll get a better rate of interest sooner rather than later. Jan

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  2. Are house prices gaining back their value in the UK yet?
    Here in the US and particularly in Texas, we are seeing a recovery. Homes are selling in a few days, for the asking price and more, There is more demand than supply. Historically this happens after a recession, so I am wondering if it would make sense for you to move. I am sure your home would be very desirable to a buyer.
    Good luck!! With much admiration, from Pam in TX.xx

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    1. Hi Pam - Do you pay any tax on the purchase and sale of houses? We have 'stamp duty' which is a tax on the sale of a house. Over £125,00 and up to £250,000 is 1% and then 3% up to £500,000. I bought my house for £285,000 and paid the 3% tax which is another £8550. My house price has effectively dropped to £265,000 but no one would be prepared to pay the 3% tax, which is by the way on the full amount, so houses of my price have to sell for £249,999 or people won't buy them and I'm not prepared to throw away £35,000 of hard earned capital. Houses at the lower end haven't dropped as much in price, so I'm going to sit tight until my mortgage is paid. I love the house, just not the costs.

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    2. Hi FQ,
      Ahhh, I see your reasoning and do agree with you.
      Here in the US, home buying and selling is a meaty subject and varies from state to state. I do not profess to understand it all, maybe someone in the know will enlighten us. What I do know, having lived here for 23 years and bought and sold some homes, is that there are costs involved. I do not believe that there is a sales tax in TX, but there are closing costs. If you are a buyer, then apart from your home inspection fee which is around $500 and is optional, but most people opt for it to protect their interests, you pay just the price of the home.
      If you are the seller, then hold on tight, because there are many expenses involved. You pay the agent who lists the house and the agent who sells the house, around 3%-5% each. You pay the title company who prepares the paperwork and does all the searches, and, a title insurance, which is a rip off in my opinion, a fair chunk of money. You also pay local and county taxes up to the date of sale, which you have to pay anyway at year end, but a sale forces tax payment at the time of closing.
      Good luck to you, you a are a star in my book!
      Love Pam in TX.

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    3. Hi Pam - We have to pay solicitors to do the 'conveyancing' or legal work on the sale and purchase. When I bought my house for £285,000 the costs of top of selling my previous home, buying this one, and the tax/stamp duty was another £9,000 on top. Then, there is the £1000 structural survey to get the mortgage, and 1.5% fee to the estate agent for selling our previous hom., then almost £1000 removal costs to the lorry company. Moving house costs a lot of money in the UK.

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    4. Here in Missouri the Buyer pays closing costs and title costs, not the Seller. No tax whatsoever on the sale. Still here house market is in the dumps. Horrible!

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  3. Hi Jane
    is your mortgage a repayment one or interest only??

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  4. Repayment + I over pay each month

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  5. Thanks for your reply...I have an interest only mortgage and I am struggling to change it to a repayment mortgage due to been self employed, none of the banks will entertain me :(
    I am having sleepless nights as I know it's going to take me years to pay my mortgage off.
    Do you have any advice to give me...Thanks x

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    1. Can you not just pay them whatever you have spare each month? Ours is interest only and we have set up the mortgage bank's payment details on our current account and just pay them a lump each payday and then little bits through out the month if we have any extra. We are with Nationwide.

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  6. Today I received in the post the deeds to my house....... I have just paid off my mortgage...... I have been a single parent to 4 sons for the last 14 years, and when my husband walked from us all his parting words were 'I will see you out in the streets' YEAH just the boast I needed lol...... so living a simple life. I not only paid him off and got his name off the mortgage making it mine, and yes it was scarey with 4 sons in tow..... it gave me a determination to keep a roof over our heads...... many of my friends live up to their eyes in debt for the newest this that or the other, and expensive holidays on credit cards and all have picture book homes out of the next catalogue...... and a new car every few years and new everything, yet when they come to my little cottage/house they say how they wish they lived here, with my chickens and jugs of flowers and homemade hedgerow jams and NO DEBTS :) - just wanted to share that today I am now mortgage free..... :) I am so proud of myself.... I have no one else to be proud of me, so Im blowing my own trumpet......... keep going froogs x...

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    2. Congratulations - it's a great feeling, isn't it! Well done, you.

      Jane

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    3. Thanks..... its not been easy at times as I also had 4 sons 6, 9, 14, 16 to bring up totally on my own, with no family and no child support, well unless you can call £25 a week for 4 kids support lol...... but it sure feels good knowing that its mine now and even though it could do with a good lick of paint and some bits and pieces doing to it, I will now have the money to slowly do those.... my priority was keeping a roof over our heads first :) - Im pleased cos Ive just had to take 3 months off work (self employed) as son number 3 has been in ICU and hospital for the past 18 weeks after someone in the pub put a pool cue through his eye and right into his brain, he clung onto life for 3 weeks and is slowly regaining much of what was lost.... he will still have some kinda brain damage, but now he is walking and talking and 17 weeks ago that was throught to be an impossible dream if he had lived, he was given just 1% chance of survival and then 90% chance that if he lived he would be in a vegative state...... but, hey, I made my boys strong and he is beating all the odds.......... sorry for waffling, only to now not have a mortgage around my neck couldnt have come at a better time......... xxxx

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    4. What a comment above! If you can do it after all you've been through. Can't believe your ex said that with 4 small kids. Best wishes to you. X

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  7. This is such a good thing to do. You've inspired me to blog about financial goals again!

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  8. Awesome blog! Just stumbled onto it :) xxx

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  9. Awesome blog! Just stumbled onto it :) xxx

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  10. Awesome blog!! Just stumbled onto it looking for a recipe.

    My partner and I just bought a place.... 10% deposit and we mow have to repay £135,000 odd over 25yrs :/ we will do it! -I need to sit down and look at how much we can repay without incurring any charges :) x

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  11. Thank you for inspiring me to pay off my mortgage, i have kept a record similar to yours about how much i've paid off, and it's really keeping me motivated to keep it up. Keep up your good work, and thank you for such a wonderful blog.

    :) x

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  12. You have inspired me to take control! I am planning to start over payments and would like to know how you track your decreasing mortgage, do you use a spreadsheet or go from statements? I am hankering after a spreadsheet! I love lists..

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  15. noraclarke04 - I have just gone through my finances and it feels great, everything on a spreadsheet down to a penny. I have also contacted Sky and Talktalk and reduced my monthly bills for 12 months, amazing what you get if you ask. I have also done a spreadsheet for the shopping to, so eventually i'll have a mini database and I'll know how it will cost each week. Feels great x

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  16. This is quite impressive, hope this will keep on improving and people can take the most out of this opportunity.

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