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  • FIRST POST
    • newgirly
    • By newgirly 15th Apr 10, 11:02 PM
    • 5,813Posts
    • 39,737Thanks
    newgirly
    Pay off mortgage and start having fun!
    • #1
    • 15th Apr 10, 11:02 PM
    Pay off mortgage and start having fun! 15th Apr 10 at 11:02 PM
    I have been reading other peoples posts for a while,trying to get myself in the right frame of mind to start overpaying on the mortage.DH and I have a house worth about £220,000 with a mortgage of £159,000 although we only paid £120,000 for it (£93,000 mortgage) to start. So as you can see we have been not so great in the past! Last year we also owed about £20,000 on credit cards which is now down to £10,000. I really want to get rid of the mortgage before our youngest turn 18, the twins are nearly 10 now. So any words of encouragement would be great, I need keeping on the straight and narrow.

    Xmas paid for by saving £1 a day minimum in a sealed tin, plus homemade/sale stuff.
    Birthdays now in monthly budget, plus extra vouchers earned

    I am taking part in the earn £2012 in 2012 challenge on the up your income board, so whatever earned from that will be split between op's and holidays fingers crossed.

    Budget from may 2012 onwards:

    income.................2092.00
    child benefit..........188.60
    child tax cr..............0 no longer!
    total....................£2280.60

    mobiles x 2...........32.00
    tv licence..............12.37
    elec/gas................140.00
    water....................60.00
    council tax............125.83
    home insurance.......11.83
    pension..................21.90
    life ins....................15.17
    sky ........................21.00
    car tax....................15.83
    car ins.....................22.00
    car maintenance.........8.33
    petrol.......................60.00

    school dinners............48.00 (1 dinner/1 bacon sarnie each pw)
    pocket money.............20.00
    clothes.......................30.00
    birthdays....................50.00

    grocery.......................250.00
    (food/pets/cleaning)
    DH's money.................100.00
    0%cc ................................32.35
    mortgage interest.........425.00
    mortage overpayment....778.39


    money in: £2280.60
    money out:£2280.60







    This Forum Tip was included in MoneySavingExpert's weekly email

    Don't miss out on new deals, loopholes, and vouchers

    Last edited by newgirly; 16-03-2012 at 12:47 PM.
Page 1
    • SmartRRRR
    • By SmartRRRR 16th Apr 10, 12:47 AM
    • 94 Posts
    • 54 Thanks
    SmartRRRR
    • #2
    • 16th Apr 10, 12:47 AM
    • #2
    • 16th Apr 10, 12:47 AM
    My advice is always this - know the difference between what you WANT and what you NEED.

    Think carefully about why you want something, and only buy what you need; you will spend less.


    Good luck on your MFW mission.
    • Jonbvn
    • By Jonbvn 16th Apr 10, 8:29 AM
    • 5,300 Posts
    • 5,574 Thanks
    Jonbvn
    • #3
    • 16th Apr 10, 8:29 AM
    • #3
    • 16th Apr 10, 8:29 AM
    Get rid of the expensive CC debt before you move on to the mortgage.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
    • black taxi
    • By black taxi 16th Apr 10, 9:05 AM
    • 1,802 Posts
    • 6,298 Thanks
    black taxi
    • #4
    • 16th Apr 10, 9:05 AM
    • #4
    • 16th Apr 10, 9:05 AM
    agree--clear credit card--PRIORITY
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    cash isa £7202
    holiday fund£1000
    #81 save 2017£2k
    • newgirly
    • By newgirly 16th Apr 10, 9:43 AM
    • 5,813 Posts
    • 39,737 Thanks
    newgirly
    • #5
    • 16th Apr 10, 9:43 AM
    • #5
    • 16th Apr 10, 9:43 AM
    I forgot to mention, my credit card is on 0% until August, which is also when the expensive fixed rate ends on the mortgage. Am thinking of getting a one account as DH gets a lump sum once a year, approx £8000 from work.
  • pammyj74
    • #6
    • 16th Apr 10, 10:59 AM
    • #6
    • 16th Apr 10, 10:59 AM
    Good luck on being MF. Have a look at all the challenges on here (see my sig!)
    Also try and look at your outgoings and see what you can save by changing suppliers and insurance (going through cashback sites etc)

    Do you work full time? I work part time and in the evenings I do surveys and reviews etc to gain some extra cash.

    Definitely watch what you are spending and ONLY buy things if you really need to and have the money for already (not on CC)
    Join Freecycle if you need anything just ask, someone may have it for you (I got a breadmaker the other day and have had a childs bike)

    Set yourself a target to OP each year (mine is £3k)

    Maybe see about decluttering and doing a carboot now they have started again?

    Once you start OPing it will become an obsession!

    Good Luck x

    MPs left feb '08 276- Dec 13 36 MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!!
    • financialbliss
    • By financialbliss 16th Apr 10, 1:53 PM
    • 1,866 Posts
    • 8,356 Thanks
    financialbliss
    • #7
    • 16th Apr 10, 1:53 PM
    • #7
    • 16th Apr 10, 1:53 PM
    Hi newgirly,

    Welcome to the mortgage free wannabe forums. May be worth listing your mortgage balance and rate, your credit card balances, rates and when any 0% deals expire, so that we can advise what should be paid off first.

    Biggest debts first, as others have mentioned. Chances are that that will be the credit cards.

    Financial Bliss.
    Mortgage and debt free. Building up savings...
    MFiT-T3 - Chart 09 coming up on 12th March. See challenge thread for details.
    2014 #1 - Save £15,000 - £8,525 / £15,000 (56.86%)
    Note: Real life taking a toll on me just now. Hope to be back up to speed shortly...
  • Glamazon
    • #8
    • 16th Apr 10, 1:55 PM
    • #8
    • 16th Apr 10, 1:55 PM
    I have been reading other peoples posts for a while,trying to get myself in the right frame of mind to start overpaying on the mortage.DH and I have a house worth about £220,000 with a mortgage of £159,000 although we only paid £120,000 for it (£93,000 mortgage) to start. So as you can see we have been not so great in the past! Last year we also owed about £20,000 on credit cards which is now down to £10,000. I really want to get rid of the mortgage before our youngest turn 18, the twins are nearly 10 now. So any words of encouragement would be great, I need keeping on the straight and narrow!
    Originally posted by newgirly
    hi!

    Just wanted to say good luck - I'll try & read your thread when I can
    A very busy Yummy Mummy to a 1 year old gorgeous boy

    Where does the time go?
    • newgirly
    • By newgirly 17th Apr 10, 8:20 AM
    • 5,813 Posts
    • 39,737 Thanks
    newgirly
    • #9
    • 17th Apr 10, 8:20 AM
    • #9
    • 17th Apr 10, 8:20 AM
    I can't wait to start overpaying on the mortgage in August, I have already started doing online surveys and have earnt about £60 using topcashback in the last 2 months. I have cut my shopping budget from about £120 per WEEK! to £60 which is a start, but I know i can get it down further whith help from some of the other boards. Must try to get kids to eat what we eat a bit more and not be so fussy! I do a bit of cleaning for some extra money sometimes, but am a SAHM, at the moment it is easier as OH has just taken over running the company he was working for, which was a bit unexpected, and he is working from 4.30am until at least 7pm sometimes much later, and often weekends, so he is not around much. I am hoping that if we can pay the mortgage off earlier than the 30 year term we currently have, he can leave if the stress gets too much in the future. Anyway I am off to make some homemade bread for lunch, one of the only things EVERYONE in the house likes! Have a great day.
    • wymondham
    • By wymondham 17th Apr 10, 8:53 AM
    • 4,820 Posts
    • 8,119 Thanks
    wymondham
    Good luck newgirly!! We did this a few years ago (for my 40th). It's a nice feeling not having to pay any rent/mortgage etc - makes you feel 200% more secure in this uncertain world. I did it by evaluating all outgoings, checking i was getting the best deals, cashing in all bad/poor investments. I changed to a current account mortgage so I overpaid automatically (anything left pays the mortgage) - we did it in a few years. You've had some good advice on here, especially the poster who said evaluate what you NEED rather than what you WANT - remember it's not what you earn, it's what you spend that decides if you'll be successful...

    Just to add be sensible about it - don't let it rule your life!
    Last edited by wymondham; 17-04-2010 at 9:02 AM.
  • pammyj74

    Just to add be sensible about it - don't let it rule your life!
    Originally posted by wymondham
    It's a bit late for that for me lol

    MPs left feb '08 276- Dec 13 36 MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!!
    • newgirly
    • By newgirly 20th Apr 10, 7:02 PM
    • 5,813 Posts
    • 39,737 Thanks
    newgirly
    I was wondering how many of you MFWs are overpaying on the mortgage so you can buy an even bigger/better house when you have finished. It seems that there are two different ways of looking at becoming mortgage free, those that want the security of no debt and being financially better off, and those that are doing this as a means to an end,so they can one day own their dream house, which may be otherwise out of reach. I am asking as I can't decide which of these I am. It does not stop me wanting to work hard to become MF, but knowing the end goal may help a little.
  • pammyj74
    I think at the moment I am striving to not have that debt and be financially better off to be able to save for other things like a car or holiday BUT it does not stop me looking at houses and wondering if one day I could possibly afford the better detached house with the garage!!

    On the whole though to be mortgage free and in a house that isnt that bad really, I have to look at the bigger picture and think, in 10/15 years time the kids will hardly be here and the house I am in will be plenty enough for just me.
    But who knows I may meet the man of my dreams one day and then I would be on a completely different path

    MPs left feb '08 276- Dec 13 36 MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!!
    • laurasavon
    • By laurasavon 20th Apr 10, 7:46 PM
    • 482 Posts
    • 1,541 Thanks
    laurasavon
    I'd definately like to move, although my initial thought is to rent out the current house if / when we move and use that rent money towards paying a new mortgage so if we start a family in the future we could live on a smaller income
    Jan 2010 - Overdraft £9,500 / Credit Cards £5,000 / Loan £9,500 / Mortgage £128,000
    Jun 2010 - Overdraft £0 / Credit Card £0 / Loan £0 / Mortgage £125,250
    Oct 2011 - Overdraft £7,000 / Mortgage £115,295
    Dec 2014 - Overdrafts 15,000 / Credit Cards 16,000 / Loans 25,000 / Cars 18,000 / Mortgages 232,500
  • Lynn11
    I have been overpaying the past 4yrs and managed to overpay £13K which meant that we had more equity in our 2 bed semi to hopefully in the next few days conclude a missive on a 3 bed detached. I know that the interest rates are low and we have got a good deal on the top up part of the mortgage and hopefully I can overpay a small amount (reduction from nursery fees) and it will help in the future and then we can try to reduce the mortgage term at a later date.
    MFIT T2 Challenge - No 46
    Overpayments 2006-2009 = £11985; 2010 = £6170, 2011 = £5570, 2012 = £1290
    • pawlala
    • By pawlala 21st Apr 10, 10:20 AM
    • 1,216 Posts
    • 3,232 Thanks
    pawlala
    I was wondering how many of you MFWs are overpaying on the mortgage so you can buy an even bigger/better house when you have finished.
    Originally posted by newgirly
    I am! (well, have already.) You can see some of my diary at http://forums.moneysavingexpert.com/showthread.html?t=2099401
    Mortgage free: New Year's Eve 2013!
    Mortgage free II: Est. Dec 2019
    • newgirly
    • By newgirly 22nd Apr 10, 6:03 PM
    • 5,813 Posts
    • 39,737 Thanks
    newgirly
    I have contacted my building society chelsea today to find out how much I will owe when the fixed rate ends 1st August and the figure was a little higher that I thought at £160,230, the credit card will be a little lower than expected at £9500 so will be looking to borrow just under £170,000 The thing that really shocked me though was that out of the £961 per month payments only £169 has been coming off the balance eeek! So I am feeling extra motivated, and have decided to ban myself from looking on rightmove for a bigger (more expensive) house. I have had a fairly cheap day except for the TEN pounds I have just paid for my boys to go to their junior disco at school, but other than that have been very good, and dinner is homemade curry from the freezer and a nice bottle of red that mum left last week.
  • bobbybobby
    interesting that i am also keen to be mf but keep dreaming of my big house in the country!!
    to be mortg free by jan 2017 (£163,000)reduced to 8 year term.
    mortg o/p: apr£300, may£300, june£300
    food budget:£200 month
    virtual saving:£10 every time i check balance online (usually 2xwk )
  • pammyj74
    i keep thinking where could I be living in 10 years time, being MF, will I want to move and start again but have a great deposit to have. I have to keep telling myself to not be silly, my house will be ample for me when the kids are older!!!

    MPs left feb '08 276- Dec 13 36 MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!!
    • Sunnyday
    • By Sunnyday 26th Apr 10, 6:44 PM
    • 3,885 Posts
    • 34,008 Thanks
    Sunnyday
    Hi Newgirly

    just stopped by to wish you luck!

    SD
    Planning on starting the GC again soon
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