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    • amycool
    • By amycool 25th Jul 14, 4:43 PM
    • 782Posts
    • 3,270Thanks
    Second Time Lucky
    • #1
    • 25th Jul 14, 4:43 PM
    Second Time Lucky 25th Jul 14 at 4:43 PM

    Having got very close to becoming mortgage-free (about £8000 remaining) on our first house, we will soon be moving into the house that we intend to live in for a very long time, which means taking on another mortgage.

    I have really enjoyed reading everyone's diaries over the past few years and think it will be motivational to record our progress once we move in and start to overpay. I expect it will be incredibly dull to read for others so I hope nobody minds me taking up internet space.

    Background - a little about me

    My husband and I have been together since we were teenagers
    but we don't really share the same financial opinions. He is very laid-back with money and will spend it if it is there, but he's happy for me to budget how I see fit and trusts my financial decisions. I suspect I could remove £10,000 from the savings account and he wouldn't notice. I grew up in a household where every penny counted and for a time we relied on government benefits, so since being very little I have been very debt-averse and have always saved.

    We have both worked since we were 15 and during university we lived with OH's parents. Things didn't go quite to plan with my career due to illness so we stayed there rather longer than planned, but they very kindly allowed us to live rent-free as we were saving for a deposit.

    In Spring 2011 we bought our first home with a large deposit from our savings. The plan was to stay here for 5 years and pay off the mortgage (OH was still training when we bought but is now qualified and employed) but we realised we didn't want to keep waiting to have children and we wanted to move somewhere bigger first.

    The Mortgage

    Our new mortgage will be £70000 on a 2 year fix at 2.64%.
    Monthly payments are £500.

    The short-term plan

    The house needs work but we want to get into the habit of overpaying and knock a nice chunk off before we have children (hoping to adopt next year) so the initial plan is:

    50% of anything left over to overpayments
    50% to be split between various savings pots
    Aim for a £10,000 emergency pot

    Having been mega-frugal for a very long time I'm quite bad at spending money and if left to my own devices I would probably cut back on everything and overpay as much as I can. However, I'd quite like a nice house and the occasional holiday so by choosing 50% I can't go overboard.

    Of course we might uncover all manner of things at the new house so I'm not setting a figure to aim for at the moment. Once we have moved in and worked out how much it will cost to run I will have a better idea.

    The long-term plan

    To be mortgage-free by the time we are 40

Page 39
    • amycool
    • By amycool 4th Jan 18, 9:42 AM
    • 782 Posts
    • 3,270 Thanks
    Have been dying to get on the computer to make an overpayment (after a year of waiting) but OH has been working from home!

    Made a £3724 overpayment today (10%) which has brought the mortgage down to £33516. It is nice to be past halfway! Our mortgage deal runs out in August I think so I'll let it go onto the standard variable rate, overpay another big chunk, then get another 2 year fix. Technically, we could pay the whole thing off, but that would leave us with little in the way of savings. I am overly cautious so like a year's living costs saved.

    Yesterday I booked our summer holiday. £700 for a week in North Yorkshire. Not any kind of deal but it's a lovely cottage and well worth the money. The plan is to try to mostly use DD's Max Card as there are lots of museums under the scheme. That should really reduce the spend. We also get free entry to some places with the cottage. This is the first time we're not taking my Mum. It was a real squeeze to get all of our stuff into our little car last year and although it's useful for extra childcare, it's an extra person to keep happy and often causes more stress. Last year she went away with my sister twice so I didn't feel guilty when we made the decision but then my sister got pregnant and isn't going away this year now! Oh well, I can't please everyone!

    I've already bought a few gifts in the sales and have used the free £100 mastercard that I got from switching phone so that's cost me nothing. Also bought DD some new clothes. We had a big sort out and gave lots of charity and I realised she doesn't have a single smart dress anymore. So two dresses at half price. Annoyingly I couldn't find any shoes in her size so I got the next size up and I'll save them.

    This weekend we're celebrating my birthday (a little early as we're busy next weekend) with roller skating (£12) and a meal (2for1 on vegan mains!).

    Right, next on the list is to write some thank you emails. DD got so many lovely things this year.
    Mortgage (Start Sep 2014)- £70,295/£32855.25- 53.2%
    Overpayments - £22659.03
    • debtfreeoneday
    • By debtfreeoneday 5th Jan 18, 1:09 PM
    • 2,821 Posts
    • 9,722 Thanks
    Hope all Ok with you A! x
    DFW (08/08) £64,346.53 Credit card debt: £3,718.72 over three credit cards.
    MFW (01/15) £118,031.21 £92808.90 ~ 2017 OPs £76.04
    Earnings 2018 Pcone £15.00 ~ Ips0s £10.00 ~1poll £43.50 ~ Pr0filic £32.75 ~ TCB £21.72 ~ YouGov £37.00
    • amycool
    • By amycool 2nd Mar 18, 12:52 PM
    • 782 Posts
    • 3,270 Thanks
    Oh my, it's been ages since I came on here. A combination of constant illness, family emergency, and DD being on holiday then snow days.

    Financially, things look okay on paper...but OH is on strike. It could last 4 weeks we've been told so that's going to be a big knock to the savings account.

    In other news, the fridge broke, full of food, and we spent £400 on a good quality new one.

    The pipes under the bath are leaking and the shower is leaking so we've decided to do a half bathroom refurb. The idea is to replace the bath/shower and retile around it, but leave the rest of the bathroom for a better time. Haven't got round to getting any quotes yet.

    We've had 2 poorly rats needing surgery, which brings the vet bill since summer past £1000.

    And OH has to go abroad for work but it doesn't look like they're covering meals or travel, so that's yet more money.

    And of course the gas and electric meters have been whizzing around like crazy all winter as we've had snow on and off for months now.

    So, just as the little line on my line graph was heading strongly upwards, it looks like it might take a rather large dip.

    Still, I'm glad we have worked so hard to save as I know lots of his colleagues are really panicking about how they will cope.

    In other news, OH being ill, a very long half term holiday (inset days either side) followed by snow days all week, means that I haven't had the house to myself for 3 weeks! I've been quite ill too so haven't been able to properly rest and recover. DD is not coping well with the change to the routine. I am really hoping that school is open on Monday!
    Mortgage (Start Sep 2014)- £70,295/£32855.25- 53.2%
    Overpayments - £22659.03
    • in need of direction
    • By in need of direction 2nd Mar 18, 10:12 PM
    • 4,930 Posts
    • 28,210 Thanks
    in need of direction
    you sound completely beleaguered. take care
    Mortgage at 01.01.14 £119,481.83 today £77,634.94, target £65,000 by 31/12/18 Offset fund today £197.27 target £5,500 by 31/12/18
    Emergency fund £0.5/5.5k & £200/200 cash.
    Current weight loss10/32 by 28 feb 2018
    determined to stop defining myself by my mistakes.
    Progress not perfection.
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