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  • FIRST POST
    • iamsalt
    • By iamsalt 29th May 17, 11:32 AM
    • 268Posts
    • 5,252Thanks
    iamsalt
    Endorphins make you happy...and so does starting to pay off the mortgage
    • #1
    • 29th May 17, 11:32 AM
    Endorphins make you happy...and so does starting to pay off the mortgage 29th May 17 at 11:32 AM
    Hello

    With apologies to one of my favourite films, I want to take the plunge in paying off a mortgage which I don't actually have yet.

    Let me explain. We are exchanging on a house which I have watched slowly fall into disrepair, but still loved, which needs everything doing to it, and building a home for my mum on the plot which was part of the garden. With the sale of our homes and a family loan we should be able to get the house renovated and the home for mum built. I will then take out a mortgage to pay back the family.

    However, I want to be able to reduce my hours at work, maybe start a family but generally enjoy the opportunity that all the stars aligning have put in place. So I want to get cracking on saving and looking for opportunities to reduce the mortgage and make overpayments once it is up and running. I estimate that the mortgage will be about £170000 at the end of the process, (25% LTV) which frightens the life out of me, as currently it will be all down to me. I know the LTV will make it easier but it's still daunting

    OH is on board, not to the same degree as me but can see the benefits of trying to shrink the mortgage before we have it! He will also contribute by helping to project manage everything. We want to take on the non skilled work, and help where we can to reduce costs.

    Thank you for reading this far
    X
    Last edited by iamsalt; 10-10-2017 at 7:32 AM.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
Page 1
    • Kittenkirst
    • By Kittenkirst 29th May 17, 3:24 PM
    • 1,635 Posts
    • 8,544 Thanks
    Kittenkirst
    • #2
    • 29th May 17, 3:24 PM
    • #2
    • 29th May 17, 3:24 PM
    Best of luck for your fabulous plans
    2017 MFW #20 - OP £2348.20/ £2150 106%. New target £2500 93.9%
    Last 3 months- Oct: £179.60 Nov: £160.33 Dec: £52.33

    Emergency fund £4K/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    2016 OPs £255.50/£150
    • iamsalt
    • By iamsalt 29th May 17, 9:32 PM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    • #3
    • 29th May 17, 9:32 PM
    • #3
    • 29th May 17, 9:32 PM
    Thanks kitten kirst.

    Managed to rustle up some bits and bobs to try to sell to put funds into the renovation project, so they are now online with a couple of bids.it also means less to move!

    Tomorrow I should see the first payslip with my new salary. Some changes happened so I wasn't sure how much I would be getting. That will allow me to plan a bit more. I have always put money into savings on payday from my first payslip 20 odd years ago, even if it was a pound when things were really tight, as I wanted to make sure I had a bit of a backup plan!

    Over the next week or so I shall work out what will go on bills etc and whether any extra can be saved now.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • greent
    • By greent 30th May 17, 8:08 AM
    • 6,505 Posts
    • 65,656 Thanks
    greent
    • #4
    • 30th May 17, 8:08 AM
    • #4
    • 30th May 17, 8:08 AM
    Look forward to following your adventures
    x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) Bal 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    Next: BTL Mtge 12/16 £69786. 2017 OPs (#18) £5278/£3286
    Net sales 2017 £1259.72/£500 PAYDOX17 £12239/£10k Decluttered 1870/2017 items
    • iamsalt
    • By iamsalt 31st May 17, 7:06 AM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    • #5
    • 31st May 17, 7:06 AM
    • #5
    • 31st May 17, 7:06 AM
    Thanks Greent.

    Pay day today and the first time that a pay rise has been paid. I have allocated a separate savings account - I have many already for things like pet "insurance " and holidays, so I have named one mortgage savings, and that has already got the pay rise, and a refund from my lovely energy company in. So £210! Yay.

    I want to try to keep it separate from the general moving expenses for now as I find that more motivating, and most of those are coming from savings I had already, and I think that there is a risk of spending it on stuff we don't actually need for the new house, just because it's there.

    I have already built in 2 contingency pots into the work so I am hoping that these savings will be a lump sum to reduce the need to borrow, and at the moment I don't have any debts so I can prioritise in this way.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • FloppyDisk
    • By FloppyDisk 31st May 17, 2:15 PM
    • 502 Posts
    • 3,714 Thanks
    FloppyDisk
    • #6
    • 31st May 17, 2:15 PM
    • #6
    • 31st May 17, 2:15 PM
    Hello Salt, all those pots... I can only assume you are also a spreadsheet geek too??
    July 2012 £139,642 / Dec 2017 £111,193
    EF - £20,201/£25,000
    • atush
    • By atush 31st May 17, 2:22 PM
    • 16,372 Posts
    • 10,132 Thanks
    atush
    • #7
    • 31st May 17, 2:22 PM
    • #7
    • 31st May 17, 2:22 PM
    Sounds great.

    AS long as you dont neglect your pension.
    • iamsalt
    • By iamsalt 1st Jun 17, 5:17 AM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    • #8
    • 1st Jun 17, 5:17 AM
    • #8
    • 1st Jun 17, 5:17 AM
    Hello, yes I have a number of spreadsheets! They don't do anything fancy but as I learn more about what you can do with them I add to them.

    I have been paying into pensions since I was 18. At the time I had no idea what a pension was but I said yes because it sounded sensible, so I have 21 years of contributions already, and have potentially 27 more years until the official retirement age. I inherited a little money a few years ago and made an additional lump sum payment, but it is a sensible reminder to make sure that I know what is likely to be there, and also look for opportunities to retire earlier. My OH is 10 years older so I would hate to work full time while he is retired!
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • Mrs Money Penny
    • By Mrs Money Penny 27th Sep 17, 7:17 PM
    • 718 Posts
    • 6,250 Thanks
    Mrs Money Penny
    • #9
    • 27th Sep 17, 7:17 PM
    • #9
    • 27th Sep 17, 7:17 PM
    Hi Iamsalt Found your diary where are you in regards to the house move ? When are you likely to exchange? Looking forward to joining you on your journey.
    MFIT T4 40
    MFIT Challenge save £40k
    £55526:/36617/18909
    • iamsalt
    • By iamsalt 7th Oct 17, 7:58 AM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    Thanks Mrs Money Penny.

    So it has all taken far far longer than we had hoped.
    We moved mum into temporary accommodation as planned in August, that move in its self was pretty traumatic as the full extent of her hoarding and how ruined a lot of stuff was only came to light as we were loading the van! So 2.8tons of waste to the tip, 3 storage containers and 4 van loads of garden stuff to a friend's farm left us a little shell shocked.
    It was swiftly followed by the news at the person at the start of the chain for our place had left it until 4 days before we were due to move (one week after mum)
    to reveal they didn't have a mortgage offer after all. Eeek!

    So less than 6weeks later, much negotiating with estate agents and an amazing financial adviser, I now have a mortgage in place, we are exchanging on the place we are buying Monday, completing the following Monday. We are exchanging on our house Monday as well and that will complete at the end of the month.

    We chose to take the short term hit of the stamp duty for peace of mind that the house is ours (cue even more financial juggling), oh and the mortgage will be 175000 to begin with, as the building society retained 25000 until initial works are done. My first ambition is to not need the extra £25k! We have a 2year fix at 1.19% so I will make token overpayments and cycle money through regular savers before making lump sum payments.
    In 2 years, I hope OH will be working again and the building works done, so we should be able to crack through the mortgage then.
    Last edited by iamsalt; 07-10-2017 at 12:41 PM.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • iamsalt
    • By iamsalt 10th Oct 17, 7:38 AM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    Well this morning I have transferred the last of my house savings to the solicitor ready for completion.
    I have a little savings pot for emergencies left which I will want to grow a bit for peace of mind, and I also have a number of moving expenses on the credit card I want to clear ASAP so those will be an initial priority. I think I will use the stamp duty refund to clear them, and then save the money back up out of income.
    Once we are through this initial hiatus I will sit down with the bills and work out what money can go where.

    It's starting to happen....
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • Mrs Money Penny
    • By Mrs Money Penny 10th Oct 17, 8:16 AM
    • 718 Posts
    • 6,250 Thanks
    Mrs Money Penny
    Good luck look like it's finally happening.

    It's so expensive moving but you can't wait. It will make the last few months worth it once you get the keys.
    MFIT T4 40
    MFIT Challenge save £40k
    £55526:/36617/18909
    • Jelllibeanz
    • By Jelllibeanz 10th Oct 17, 9:30 AM
    • 114 Posts
    • 258 Thanks
    Jelllibeanz
    Wishing you well on your journey. Love the thread title and am looking forward to finding out more.
    Control freak taking back the reins MF and DF Wannabe
    M '09 = £103k M Feb '17 =£79.9k, Aug 17 = £69k Original End Date = Apr '34
    CC = £2900 £1550
    Loan = £7000 £5760
    Onwards and upwards
    • iamsalt
    • By iamsalt 18th Oct 17, 7:29 PM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    It's happened!!!!!!

    Yesterday afternoon we picked up the keys for our new home. In the morning most of our furniture was moved to our temporary home, and we were over the moon to be able to get started after so long. We first viewed the house at the beginning of February, so we have been waiting for ages.

    We managed to move all of mum's garden stuff to her plot back from the friendly farmer who let us store it there. It took 5 van loads! I think she will have to think through whether she needs 3 table and chair sets, as well as her 2 benches!

    I had a lovely late afternoon while my OH went out pottering in the new garden, starting to clear some of the many weeds and brambles . I found it really calming after the last few weeks. A robin spent time on the pump while I was there, chatting away, it really reminded me of the secret garden, which is one of my favourite books.

    The other excitement today was that OH and I recieved our first piece of joint post at the new place. It was our confirmation of our mortgage payment. It's lower until we do the essential works as some money has been retained, but the first month is a funny payment due to the time of the month we completed. I thought we could try paying the "normal" payment before we get the additional funds, as this will help start the overpayments! So my plan is to make the additional payment from December.

    I also want to crack through my credit card, as that has taken a battering with removal costs.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • iamsalt
    • By iamsalt 18th Oct 17, 7:30 PM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    Thanks Jelllibeanz.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • iamsalt
    • By iamsalt 20th Nov 17, 1:25 PM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    First ever mortgage payment went from my account last week. I definitely need to add - sign up to online banking for the mortgage, as I would like to see the impact of the over payments I make.

    We have managed to do quite a lot of the labour intensive boring jobs ourselves so far, like taking cupboards out and removing plasterboard. We want to save the money for the jobs we can't do ourselves which we need builders and specialist trades for, like electrics, roof etc.

    We have removed 2 large trees from the garden, a tree surgeon dropped them and we have been cutting them into logs and stacking them to dry as that will be a money saver in the long run. Some wood has gone to a person who is a Wood carver and turner so they can make beautiful things.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
    • Silence101
    • By Silence101 20th Nov 17, 6:05 PM
    • 310 Posts
    • 471 Thanks
    Silence101
    DIY really can save a lot! We were quoted £2500 to do the flooring in our house, and between finding deals online and Mr S spending every evening putting the flooring down we managed to do it just under £1000, so labour would have cost us the same again (if not more).
    And again, we needed curtains and I had a look online, most were at least £25 (for the cheaper ones) but I had enough leftover fabric to make some myself, so we saved a bit more there.
    I can’t remember where I read it, but someone said they looked on YouTube for the trickier things (like fixing a washing machine) and manage to do a lot themselves while following the videos.
    Good luck!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £471.44/£100 12/17 £114/£100
    • iamsalt
    • By iamsalt 20th Nov 17, 8:33 PM
    • 268 Posts
    • 5,252 Thanks
    iamsalt
    Thanks for popping by Silence, that's a big saving! I have been trying to build up a list of what we can do ourselves, but some of it is confidence that we could do it, and taking our time to get a good finish.

    Curtains are definitely on the list to do, we have 19 Windows of all sizes and shapes, I can sew reasonably well and went on a course at my local sewing shop as I want to make sure I line them and get it right.

    I have been taking copious numbers of measurements and keep them with me so if I see a bargain I can snap it up. We have managed to get a couple of bargains on eebayyy - tiles for the floor of the bathroom ( and some to spare) for £1.20, and 2 almost new posh ovens for £100.
    New house, new mortgage.
    £175,999 (likely to be £200,000 in April 2018) end date October 2041 I would love the end date to be 2027 but will aim first for 2037.
    Overpay by £25 per month while saving for the building works on the new house
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