Financial independence – quarterly #mortgage update 2014 Q3

During Q3 of 2014, we finished making the maximum 10% allowed overpayments and this is our current status:

  • Mortgage balance at start of year: £85,000
  • Current mortgage balance: £62,727.92
  • Interest charged: £1,168.80
  • Overpayment allowed in year: £8,500
  • Current overpayment total: £8,500
  • Mortgage term at start of year: 48 months (December 2017)
  • Current mortgage term: 44 months (August 2017)
  • Months to go: 35

So, in nine months we have cleared £22,272.08 from our mortgage balance. Although the exact value of our house is not known, with a conservative estimate of £180,000 we had around 57% LTV at the start of the year and now have 65%.

Now that we can’t overpay for the rest of the year, we are putting some of the overpayments towards the cost of having all our windows double-glazed. This will increase the saleability and value of the house when we eventually come to sell, as well as increasing the comfort while we live here (no cavity walls in this old house, so limited insulation possibilities; with single glazing only, the house is very cold in the winter). It should also reduce our energy bills as less heating will be required. We had already saved most of the cost towards this last year, so the outstanding amounts saved from overpayments will go towards the 10% overpayment that we are allowed next year. I’m aiming to make the bulk of the overpayment in the first month it’s allowed, for an immediate interest reduction.

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