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  • FIRST POST
    • NelliePie
    • By NelliePie 13th Jun 17, 3:12 PM
    • 91Posts
    • 303Thanks
    NelliePie
    Mortgage day one - Diary to MF
    • #1
    • 13th Jun 17, 3:12 PM
    Mortgage day one - Diary to MF 13th Jun 17 at 3:12 PM
    Hi All,

    Like many in the past I've been a 'reader' - reading all of your useful tips and advice and other people stories as inspiration. But now feel like I have my own small story to tell and hopefully get a bit more advice and encouragement from you wonderful bunch! Even if no one reads this or comments I'll be filling t in to monitor our progress.

    This month my fiance and I complete on our first house with a 90% LTV mortgage at 2.53% 2yr fixed from the post office owing £144000. I cannot sing the praises of L&C enough, through every step of the way they were brilliant - professional and personable (even with my million FTB questions!) It's taken us about a year and a half to save £20000 - which is now mostly gone on deposit, legal fees etc

    It has taken my partner and I a while to save the deposit and we've made the most of the HTB ISA scheme both with over £4500 when we closed them earlier this month. So that's almost £2k free cash We each saved the maximum £200 per month into the ISA's and put whatever we had left into a savings account. Our plan is to continue to save in this way but use what was the £200 each ISA money as OP on the mortgage each month. The other savings account will go towards our wedding fund.

    If we didn't overpay we'd drop to just over 85% LTV when it comes to remortgaging in 2 years but overpaying by £310 per month should get us down to 80% LTV. This should hopefully get us a better deal.

    If any of you have any tips or advice for mortgage/OP newbies they'd be greatly appreciated! Thanks in advance!

    June 2017 £144k
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
Page 1
    • Dogbooks
    • By Dogbooks 13th Jun 17, 5:37 PM
    • 32 Posts
    • 80 Thanks
    Dogbooks
    • #2
    • 13th Jun 17, 5:37 PM
    • #2
    • 13th Jun 17, 5:37 PM
    Congratulations to you! Hope all goes well, please keep us posted of how you get on
    Goals for 2017:
    • Complete purchase of house
    • Save emergency fund- £1200/ £9300
    • Westminster
    • By Westminster 13th Jun 17, 7:28 PM
    • 815 Posts
    • 500 Thanks
    Westminster
    • #3
    • 13th Jun 17, 7:28 PM
    • #3
    • 13th Jun 17, 7:28 PM
    Well done!
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • erin_transport
    • By erin_transport 13th Jun 17, 11:03 PM
    • 327 Posts
    • 1,561 Thanks
    erin_transport
    • #4
    • 13th Jun 17, 11:03 PM
    • #4
    • 13th Jun 17, 11:03 PM
    Great plan
    Best wishes with it
    On a mission!
    • NelliePie
    • By NelliePie 14th Jun 17, 1:59 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    • #5
    • 14th Jun 17, 1:59 PM
    • #5
    • 14th Jun 17, 1:59 PM
    Has anyone else had ideas of what to do with the money they were putting saving towards help to buy ISA's? I cant find a savings account that'd we'd be better off saving in.
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • Guna
    • By Guna 14th Jun 17, 2:29 PM
    • 27 Posts
    • 115 Thanks
    Guna
    • #6
    • 14th Jun 17, 2:29 PM
    • #6
    • 14th Jun 17, 2:29 PM
    I don't think there is anything available at the moment that would match an interest rate of HTB ISA. Perhaps a regular ISA? I found that just putting money away into a different account helps me to mentally distance myself from it so that it is never really touched except in an absolute emergency. If your mortgage terms allow overpayment without penalties, you may as well just pay it off without worrying about savings. The amount of interest saved would exceed any interest you may have earned elsewhere.
    I realise you are trying to save up for a wedding, but if it is a distant event, it still feels like a better option to reduce your mortgage capital.
    Mortgage £8472.53
    Student Loan £44156.09
    • NelliePie
    • By NelliePie 14th Jun 17, 2:41 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    • #7
    • 14th Jun 17, 2:41 PM
    • #7
    • 14th Jun 17, 2:41 PM
    Thanks Guna. I thought so too but it's nice to ghet it confirmed by other more savvy members. We're lucky we're both earning and in decently paid jobs so we can afford to save a little more than that a month so can put the extra towards the wedding (May 2018!)
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • NelliePie
    • By NelliePie 14th Jun 17, 2:56 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    • #8
    • 14th Jun 17, 2:56 PM
    • #8
    • 14th Jun 17, 2:56 PM
    As a FTB its a strange feeling knowing all our savings that we scrimped together have gone and we now owe almost ten times as much! Kind of feels like we're back to square one but with lots more out goings as we tidy up the house. There's nothing major that needs doing just a bit of tarting up really. I'm trying to convince myself that now we've completed level 1 - the deposit stage; the mortgage stage is juts the next challenge/level in the game etc. It's a bit daunting though!
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • NelliePie
    • By NelliePie 14th Jun 17, 3:57 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    • #9
    • 14th Jun 17, 3:57 PM
    • #9
    • 14th Jun 17, 3:57 PM
    SOA
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2[b]

    Monthly Income Details
    Monthly income after tax................ 1400
    Partners monthly income after tax....... 1350
    Total monthly income.................... 2750

    Monthly Expense Details
    Mortgage................................ 648.1
    Council tax............................. 115
    Electricity............................. 30
    Gas..................................... 30
    Water rates............................. 5.69
    Telephone, broadband and TV................... 42
    Mobile phones............................ 23.5
    TV Licence.............................. 12.13
    Groceries etc. ......................... 100
    Petrol/diesel........................... 40
    Road tax................................ 16.67
    Car Insurance........................... 110
    Medical (prescriptions, dentist etc).... 13
    Buildings & contents insurance..................... 12
    Life assurance ......................... 9.53
    Total monthly expenses.................. 1215.62

    Created using the SOA calculator at stoozing. Reproduced on Moneysavingexpert with permission, using other browser.

    We're both fairly frugal so don't spend much on clothes, fancy cars, etc so but we do treat ourselves to dinners out every now and then. We're not hardcore savers it just comes naturally for us to not spend much - we both like the simple things in life. However after reading everyone else's diary's it's huge inspiration to start overpaying when we can.
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • NelliePie
    • By NelliePie 22nd Jun 17, 3:16 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    Our mortgage came with £500 cashback on completion, that's just cleared so has gone in as the first over-payment! I know its only a one off but it feels good to be making a start
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • shangaijimmy
    • By shangaijimmy 22nd Jun 17, 7:15 PM
    • 2,232 Posts
    • 10,268 Thanks
    shangaijimmy
    The fact you have this mindsight is your biggest asset. I have monthly goals on my first post which helps for motivation and is great to look back on. Its hsrd now but try to imagine your potential scenarios for remortgage and i guarantee that with this diary youll surpass them! In our first few months a picture on the fridge with 136 bricks was a great motivator and it felt good to colour one in and reward ourselves with a takeaway and wine!
    MFW: Turning June 2036 into March 2023... 32//120 Payments Challenge, Diary Reduction £34,271.00
    Aug 2009: £163,051 // Current: £101,729.00 // Avg Daily Interest £4.57
    MFiT-T4 #8 - 56.74% of £41,000
    • NelliePie
    • By NelliePie 22nd Jun 17, 7:24 PM
    • 91 Posts
    • 303 Thanks
    NelliePie
    That coloured square great idea! I might have to start that! When we've finished unpacking and found my pens and paper I'll get that going!
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • Koldweather1
    • By Koldweather1 22nd Jun 17, 7:46 PM
    • 33 Posts
    • 47 Thanks
    Koldweather1
    The coloured squares are a great idea. I'm in a very similar position to you NP, will be a FTB (exchanged but won't complete till August) so hopefully your insights will help here as well.
    • Kittenkirst
    • By Kittenkirst 23rd Jun 17, 8:39 AM
    • 1,609 Posts
    • 8,379 Thanks
    Kittenkirst
    I also have he coloured in method on a spreadsheet: I geekily made a house of 100 bricks in excel on my laptop and calculated what 1% of capital would be. Now every time we pay off 1% I colour it in with 'ours' in text over the square....very motivating!

    Well done on your first OP- it's a nice chunky amount so will have a great impact already
    2017 MFW #20 - OP £2151.52: £2150 100%
    Last 3 months- Sep £206.32 Oct: £179.60 Nov: £12.58

    Emergency fund £3945/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    2016 OPs £255.50/£150
    • NelliePie
    • By NelliePie 23rd Jun 17, 8:43 AM
    • 91 Posts
    • 303 Thanks
    NelliePie
    I might have to do that too! The delightful OH is on board with overpaying etc but I'll try any motivation tools in order to keep this going.

    And with the OP my thoughts were we didn't have it to start with so we won't miss it!
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • shangaijimmy
    • By shangaijimmy 23rd Jun 17, 10:36 AM
    • 2,232 Posts
    • 10,268 Thanks
    shangaijimmy
    I also use daily interest as a big motivator. We've seen our tumble from £15.93 in May 2010, to £4.88 in May 2017! Daily interest seems to work with Mrs SJ, and to quote her "I feel physically sick", when she realised how much it was at one stage!

    I then have the theory that no matter how small the OP its money that i'll never pay interest on again.

    MF is definitely a long game, and the hard work in the opening years when it seems to go at a snails pace, really does pay off as everything starts to snowball, which really accelerates our efforts after a few years.
    MFW: Turning June 2036 into March 2023... 32//120 Payments Challenge, Diary Reduction £34,271.00
    Aug 2009: £163,051 // Current: £101,729.00 // Avg Daily Interest £4.57
    MFiT-T4 #8 - 56.74% of £41,000
    • NelliePie
    • By NelliePie 23rd Jun 17, 10:54 AM
    • 91 Posts
    • 303 Thanks
    NelliePie
    I also use daily interest as a big motivator. We've seen our tumble from £15.93 in May 2010, to £4.88 in May 2017! Daily interest seems to work with Mrs SJ, and to quote her "I feel physically sick", when she realised how much it was at one stage!

    I then have the theory that no matter how small the OP its money that i'll never pay interest on again.

    MF is definitely a long game, and the hard work in the opening years when it seems to go at a snails pace, really does pay off as everything starts to snowball, which really accelerates our efforts after a few years.
    Originally posted by shangaijimmy

    SJ how did you calculate your daily interest? Or was it provided by your lender / available to track online?
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • shangaijimmy
    • By shangaijimmy 23rd Jun 17, 11:02 AM
    • 2,232 Posts
    • 10,268 Thanks
    shangaijimmy
    I have a spreadsheet that calculates it each month. But a simple way is look at the months interest and divide it by the number of days, e.g. Interest £145.06, divided by 30 days = £4.84.
    MFW: Turning June 2036 into March 2023... 32//120 Payments Challenge, Diary Reduction £34,271.00
    Aug 2009: £163,051 // Current: £101,729.00 // Avg Daily Interest £4.57
    MFiT-T4 #8 - 56.74% of £41,000
    • NelliePie
    • By NelliePie 25th Aug 17, 9:05 AM
    • 91 Posts
    • 303 Thanks
    NelliePie
    So just over two months in and I've just checked my credit reports to check everything has updated properly. It's nice to see the new house address on there Its also both scary and satisfying to see the mortgage balance on there too! Scary because it's such a big amount but satisfying too because it's already coming down!

    The OP's have had to go on hold for the time being (we only got one in!), as we've had to pay out some unexpected car bills (new brake disks and tyres) and are really focusing on trying to get the wedding (and all the associated gubbins) paid off. The house is livable but needs some updating so these past two months we've been unpacking (what did start rather enthusiastically died off slowly - there's still the odd box in the garage) and also figuring out what we want to do to the house. My partner and I are both young FTB so it's quite exciting to know that we could do pretty much whatever we like to the house (within reason) but with that comes the question of 'well what do we actually want to do? It'll be a slow process getting it the way we want it but we're making a start.

    I'm writing this fully expecting not many people to read it, but it's quite therapeutic getting it all out. My best friend/maid of honor is coming to stay with us this weekend and we're going wedding/bridesmaid dress shopping - I've found a local discount warehouse that have a huge selection of 'off the shelf' dresses and according to their website they start from £50! I'm not expecting to find one that suit's and fits for that cheap but we'll see what happens.

    Shangijimmy and KittenKirst My partner and I have taken both of your squares ideas and put them on the fridge! Out monthly payment one is a bit larger though 300 squares as it's a 25 year mortgage - they're both a bit bare at the moment as we'rte at the start of our journey but it is nice to have colored a couple of payment squares in!

    TL;DR
    Credit report not showing mortgage (and it coming down slowly). Over payments on hold due to wedding, car repairs and trying to figure out how we're going to renovate our house.
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
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