The Scariest Thing I Have Ever Done....

McTaggus · 12 January 2016 at 6:38PM

So, I'm being a little premature by signing up here. I am on the verge of exchange as a FTB, and while I know that I still have many hurdles to cross before I actually start paying the mortgage, I have already made the decision that I want to be mortgage free as soon as is humanly possible - even if the powers that be are against me and this property falls through, I know that when we are in place I need to reduce my debt as soon as possible.

I have been reading through all of your threads, and I'm amazed and inspired by all of your stories and its given me a huge kick to think how much I can save in interest alone (let alone building my equity faster) simply through overpayments. I have, however, set myself what feels like a pretty scary task ahead for my new home when it comes to aiming to become mortgage free in as little time as possible.

Mortgage Value: £532,000
LTV: 95%
Monthly repayments: £2,600 per month for the first two years until fixed rate expires - then, it will all come down to where interest rates are
Term: 31 Years

Mortgage is solely in my name, but husband will be making contributions (he's still named on an ex's mortgage, and its complicated

). This is my house, for us to live in, and I'm going to pay for it without asking anyone else for a penny - aside from an equal contribution to the bills of course!

I have worked out my budget, but my first year projections for overpayment are all going to come down to the actual completion date. If its ahead of March, I'll need to pay my interest free bridging loan back before I can make substantial overpayments, if its after March I should be able to start with OP's immediately.....

My planned OP's right now are varying in projection between £500 a month and £1,000 a month - with some additional lump sum payments alongside helping my savings build up again having decimated them with the planned deposit.

I have been reading all of your tips with interest, and will be posting more information and hoping for your help and support as I start this journey. I'm still deciding on my planned timeframe - I think my stretch target will be 15 years early, but its more likely to be 10 early (i.e. 20 years from now!!!!!!!). I could be around here for some time :rotfl:

Updates to come as soon as we get our exchange and completion dates sorted.... and then planning can commence in full!

Wish me luck.............!

edinburgher · 12 January 2016 at 8:14PM

Gosh - you must be in the SE! :eek:

Best of luck

Luckyinlife · 12 January 2016 at 8:33PM

first thing well done :]

i myself was a first time buyer 11 months ago and just as scared at the time

massive amount of money that is to me 500k wow but all relative i know so good luck and update as as you go along

biggest time is just Save or Op when you can simples but takes a while hehw

McTaggus · 12 January 2016 at 9:50PM

Yes, I'm in the SE, and believe me it's a massive sum no matter how you look at it. I'm still reeling that I can borrow that much on my own, particularly as I had to fight so hard 10 years ago to get a 120K mortgage!!

I have to admit I'm a little scared, but I think that's going to add to my motivation to pay off sooner!!!

I'm going to do all I can to rebuild my savings AND OP, and am going to do my utmost to cut my repayment term by 50%. That's my goal... As at least then I'll be mortgage free by the time I'm 50!

Thanks for the support, I'll be here some time (clearly!) but looking forward to starting the journey with other like minded folk!

Secret_Saving_Squirrel · 12 January 2016 at 9:52PM

Very good luck on the journey, I hope you enjoy the challenge!

McTaggus · 12 January 2016 at 9:57PM

Thank you!!!!:o

bunty109 · 12 January 2016 at 10:02PM

Wow at that mortgage! Good luck!

dark^knight · 13 January 2016 at 12:53AM

That's a monster of a mortgage...the very best of luck.

newgirly · 13 January 2016 at 8:18AM

That is a whopper! Best of luck with the new diary

stuart07970 · 13 January 2016 at 8:58AM

Congrats on your decision and commitment to overpay.

My only piece of advice would be to time your remortgages - ie. the period of each of your fixes to get you just below the next loan to value band.

Also find out which lenders let you remortage early if you stay with them. (Nationwide do - this lets you access a cheaper rate and overpay more 3 months earlier)

By timing it right, overpaying, and getting cashback, I managed to get our rate down from 3.49% to 1.84% in 3.5 years, and those lower payments in turn allow you to overpay more.

As a kick start remember that there's no council tax to pay in Feb & March, so add that to the pot for your overpayments.

My only other piece of advice is to make a legal agreement about what will happen if you split from your other half.
Hard talking now is better than expensive disputes later.
Look I'm sure you'll be together forever - but do it just in case.
(I'm sure I'm not gonna crash my car today or die - but I've got insurance for both just in case)

Gen_Y_Saver · 13 January 2016 at 10:05AM

Best of luck McTaggus!

What is the rate of the 2 year fix? Assuming a rate of 3%, every £1,000 overpaid will save you c£1,500 in interest!

The Scariest Thing I Have Ever Done....

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