Diary Mortgage Free Road To Change My Life

Luckyinlife · 9 February 2015 at 6:39PM

Hi guys thought id keep a Diary ON my road to mortgage freedom :] which is my dream

Bit about me
27 years old self employed have been now 2-3 years variable income
Got son whos 4 now and live with family at the moment

Facts and Figures
House value 88.5k
Deposit is 25% at £22125
Leaving a mortgage of around 68k At month payments of £450 at 6.4% interest fixed for 2 years due to defaults ect which are settled

Im due to find out this week if i got the mortgage or not so exciting times :beer:.
There is a plan 2 if i don't which involves buying a cheaper house end of this year

Im Starting this diary to keep a log but mainly for support from some of you guys who have been at this a while now or new comers

Im going to have Account Named
Mortgage Fund which starts at £30000 this includes deposit as of today which will all be for the mortgage overpayment at the end of this 2 years fixed

Within this next month Im going to get a cheaper car and free up some funds which i can so the mortgage fund will be more which should add over 10k to the fund :]

Mortgage fund -- £30000 Feb 9tth 2015

Ill update as things move along :]

Luckyinlife · 11 February 2015 at 3:17PM

Update so far manage to sell the car so now am 18k back in the account

So im going to put 10k into the mortgage fund for now :T

So the mortgage fund stands at 40k as of today This is for deposit and overpayments and refurbishment

Im a guy who enjoys his cars and i know we all lose money on them ect but i dont drink smoke all that kinda stuff so my car is my release in life

What do you guys think i should do here buy something for 2k and save up for the mortage free dream or get something for 5k

Bare in mind the car will be with me for 2years + :]

Brallaqueen · 12 February 2015 at 6:13PM

Well done for selling the car and putting a great lump sum into your funds.
Can't help re decisions decisions as not a car person but is there a car you would be happy to drive for 2k?

Luckyinlife · 13 February 2015 at 11:13AM

Brallaqueen wrote: »

Well done for selling the car and putting a great lump sum into your funds.
Can't help re decisions decisions as not a car person but is there a car you would be happy to drive for 2k?

Hi there thank you Ya i wouldn't mind at all as im sure if/when i get thee house i will enjoy that more

Im currently deciding weather to get a car for around 2-3k or 5k as buying the slightly more expensive one ill still have more money back when selling and it should be a slightly newer car

Either way still have a minimum of 3k spare from the sale of the car to spend on furniture for the house :]

Still haven't heard if the offer has gone thro or not yet hopefully this afternoon :j

Brallaqueen · 13 February 2015 at 12:39PM

Fingers crossed for you x

Firegirl · 13 February 2015 at 2:30PM

Good luck on your journey!!!

Luckyinlife · 15 February 2015 at 11:27AM

Thanks guys :]

Still haven't hared anything About mortgage which is a bit disappointing but i know these things can take way to long :[

So iv decided to set myself some Targets for
February 2015
Waiting on mortgage decision
Sell car free up 18k

Done
Open an emergency fund Done Aim 7k

Currently £65
Find a new car for under 5k
Open a club lloyds monthly saver 4% interest for the first year need to go in branch for this as the site aint letting me do it booooooooo

Also open/ look for more higher percentage accounts around but i need to know whether iv go the mortgage or not and know what car iv got to see how much cash i have free

Thanks for the support

Firegirl · 15 February 2015 at 10:50PM

Keep stalking the mortgage company!!!

Luckyinlife · 16 February 2015 at 12:15AM

I will do hopefully they will say next week now some point

Im in no major rush but just wanna know either way so i can plan my year out :]

Trying to hunt down a car is a nightmare sick of looking now haha

byebyedebt · 16 February 2015 at 10:10AM

If I have understood your post correctly you are applying for mortgage but don't have one already.

Well done on building up such a big deposit. Why don't you therefore put down more of a deposit. You will then borrow less and could probably get a smaller loan, at a lower interest rate.

It is just a case of the mortgage company giving you a different deal because you ask for it. As once they approve it, it's approved. They would have to reissue an offer for the new product code.

Also, it's worth noting that most mortgages allow you to repay a percentage even when they are fixed. 10 per cent is common so if you don't get a cheaper mortgage you could over pay the day after the loan is sent to you and save on the interest from that point.

Luckyinlife · 16 February 2015 at 10:29AM

byebyedebt wrote: »

If I have understood your post correctly you are applying for mortgage but don't have one already.

Well done on building up such a big deposit. Why don't you therefore put down more of a deposit. You will then borrow less and could probably get a smaller loan, at a lower interest rate.

It is just a case of the mortgage company giving you a different deal because you ask for it. As once they approve it, it's approved. They would have to reissue an offer for the new product code.

Also, it's worth noting that most mortgages allow you to repay a percentage even when they are fixed. 10 per cent is common so if you don't get a cheaper mortgage you could over pay the day after the loan is sent to you and save on the interest from that point.

Hi there Thanks Ya that is correct

I may ask to pay more i will speak to my broker when/if i get the mortgage

In my KFI it says charges will be 3% in year 1 and 2% in year 2 for early repayment charge so if this is the case i will wait for the 2 years fixed to be up and pay off an amount when i it the SVR

Also the 40k fund i have is made up of the deposit of 22k ill need about 8-10k for refurbish which currently would leave me with 8k as a emergency fund

As im self employed i need a emergency fund which i will build up over the next 2 years Then i can pay some of the mortgage off when i see fit

Diary Mortgage Free Road To Change My Life

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