I Want To Be Mortgage Free!

Jessy103 · 19 January 2017 at 5:09PM

I will find it now and subscribe!!! X

johndhuk · 20 January 2017 at 10:53AM

Hi Jessy,

Great goal, well done.

Can I ask approximately what you think you'd be paying in rent for a similar house if you weren't living there, and also how far you think the value of the house is from what you paid?

I want to crunch the numbers and show you that you're possibly in a much stronger position from owning a home than you realise.

Jessy103 · 20 January 2017 at 12:20PM

Hi johndhuk! Thanks very much. If you could number crunch that would be great and very much appreciated!

Two bed terraces like ours, that are in our area are rented out for about £400pcm. We bought our house for £86,000 and accordng to Zoopla it is now worth about £82,000, however, I think this is very optimistic and is probably only worth about £75,000 at the most!

Thank you again!

Jessy103 · 20 January 2017 at 12:30PM

Just logged onto the mortgage and it is at £66,164.66 because of the interest being added on. I have made an overpayment of £164.66 so that the total goes back down to £66,000 and when our next normal payment goes out it will take it down enough that when the interest is added on it won't go back over £66,000!

We've had some good news today, which is DH has received a payrise!! He hasn't had one for a couple of years so he wasn't expecting one and especially after he received such a good bonus at Christmas! I've put the extra £40 into the savings account, along with another £250 to start building up our emergency fund and I probably won't make another mortgage overpayment until DH gets paid again in February.

Have a great day everyone!
Jess x

johndhuk · 20 January 2017 at 1:00PM

Jessy103 wrote: »

Hi johndhuk! Thanks very much. If you could number crunch that would be great and very much appreciated!

Two bed terraces like ours, that are in our area are rented out for about £400pcm. We bought our house for £86,000 and accordng to Zoopla it is now worth about £82,000, however, I think this is very optimistic and is probably only worth about £75,000 at the most!

Thank you again!

I've done the numbers quite simplified and using your conservative valuation.

If you had been paying £400pcm rent for 9 years you would have spent
£43,200.

If your house is worth £75,000 and your mortgage balance is £70,000 you have £5,000 in equity.

£291.40 mortgage over 9 years is £31,471.20.

That means over 9 years you are now £11,728.80 + £5,000 better off than if you had been renting.

So despite the house falling in value you're £16,728.80 up overall! Hope that helps you feel better about your decision to purchase in the first place!

People overlook that even if a house goes down in value you're still making capital repayments, basically part of your mortgage payment is effectively going into savings.

I tried to illustrate this in a recent post on my new blog: https://smugdeals.com/uk/blog/2017/01/ever-wondered-the-real-cost-of-renting-vs-owning-i-was-gobsmacked-136498

Good luck, and well done on setting yourself such a great challenge! :beer:

Jessy103 · 20 January 2017 at 1:09PM

Thank you johndhuk, you are an absolute star!!! That does make me feel alot better! I really think things like mortgages and finance should be taught in schools so it makes it so much easier to understand these things when you get older! I will definitely be having a look at your blog.

Thank you again!

Jessy103 · 25 January 2017 at 10:03PM

One of the dogs was at the vets today for his booster, I also needed some worming tablets and flea prevention treatments for both of them so the trip ended up costing me £61!!! On the brightside the vet was quite dishy so every cloud has a silver lining! Lol!

Over the weekend me and DH built a bin store which was interesting! As we live in a terrace and just have a small yard at the front it wasn't nice seeing just grotty wheelie bins all the time! The bin store we made has a flower bed on the top so I have ordered some plants online which should arrive later in the week. We live on a busy road and plants are meant to help with getting rid of pollution, I've also made sure all the plants I've bought are bee friendly as well! DH is now calling me a tree hugger! I told him I'd rather be a tree hugger than someone who doesn't care about the environment they live in!

I've just received £5 from one of the survey websites and I'm getting close with a couple of other ones so will keep on keeping on with them!

I had the shopping delivered today and it was under £100 again for the next two weeks. Savings from the shopping will be going into the emergency fund. I made sausage casserole for tea in the slow cooker and have some leftover for my lunch tomorrow.

DH is watchng the football so I think I'll go and read a book in bed!

Have a great evening!
Jess x

themadvix · 26 January 2017 at 2:22PM

Hi Jess,

Have you considered buying the dogs' flea and worming stuff online? If it's Frontline you can get this without a prescription (fetch.co.uk, among others, sell it) and I recently braved ordering a prescription for flea tablets for my cat from the vets - even factoring in the cost of the prescription I saved nearly half the annual cost: ~£75 instead of ~£148. Although, maybe it's worth paying more for a dishy vet

mine are always women!

atypicalblonde · 26 January 2017 at 3:12PM

You have reminded me I need to buy flea and worm treatment for the cat and dog - thank you!

Yum yum to dishy vets

x

Jessy103 · 26 January 2017 at 3:36PM

Hi Madvix! OMG I buy everything online but seeing if I could get the dogs their worming and flea stuff on there has never occurred to me!!! Lol! They have milbemax and I will definitely have a look, thank you!

Hi ATB! Haha you're welcome!

The dishy vet didn't have a wedding ring on and don't get me wrong I love dh to bits but couldn't help thinking I wouldn't mind be married to a vet! I mean I could live on a farm with all the animals I wanted and he wouldn't mind! Lol! X

I Want To Be Mortgage Free!

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