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  • FIRST POST
    • DireEmblem
    • By DireEmblem 17th Jun 17, 10:13 AM
    • 289Posts
    • 190Thanks
    DireEmblem
    Chip Chip Chipping away
    • #1
    • 17th Jun 17, 10:13 AM
    Chip Chip Chipping away 17th Jun 17 at 10:13 AM
    Well after logging on today, I had a message containing a 10 year badge, so looks like I've been lurking around here for a while!

    I've just purchased my first property - 2 bedrooms, that met all my goals -
    Central to town
    Bigger than current rented flat
    Cheaper than my current rent

    All things going well, I move in on the 31st of July, taking on the most debt that I have ever had

    I may also take a lodger to help lighten the burden and help me on this journey, but need to look into how this works re mortgage etc.

    So, now to work out how best to chip away at that 172k figure! I have kept back an amount that I worked out to be equivalent of 6 months of my salary, so I'm able to start saving from day 1. Very quick glance suggest that I shouldnt overpay in the first two years(2% charge, and interest on mortgage at the very least is less than a regular saver).

    Wish me luck!
    Last edited by DireEmblem; 17-06-2017 at 1:05 PM.
Page 1
    • A Frayed Knot
    • By A Frayed Knot 17th Jun 17, 10:21 AM
    • 2,127 Posts
    • 9,569 Thanks
    A Frayed Knot
    • #2
    • 17th Jun 17, 10:21 AM
    • #2
    • 17th Jun 17, 10:21 AM
    Good Luck from me and wish you well.

    Have a second glance at your mortgage as most (not all, but most) allow you to o/p 10% of balance at beginning of each year.

    But as you say, if regular saver interest % is more than mortgage %, then save, only drawback I can see here is if you were going to o/p more than regular saver allows you to deposit each month. I would then do both - save and o/p, unless of course, you have more than 1 regular saver
    Always have 00.00 at the end of your mortgage balance and one day it will all be 0's
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/£4000, 2015/£6294.69,2016/£3186.80
    2017 £2422.71 + Phantom o/ps 2017 -£1367.81 so far
    • DireEmblem
    • By DireEmblem 2nd Jul 17, 9:14 PM
    • 289 Posts
    • 190 Thanks
    DireEmblem
    • #3
    • 2nd Jul 17, 9:14 PM
    • #3
    • 2nd Jul 17, 9:14 PM
    Thanks AFK,

    I've now had my mortgage confirmed, and I will finally get my keys on the 27th of July so not long now!

    I will be getting a lodger in September, and anything from that will be set aside for when I change my deal in 2 years time.

    Regular savers look to be key - 5% going by this site, so will be looking to contribute as much as I can into that.

    Current level of debt £173,500 - which does seem slightly daunting, but when I look at my repayments, and that only £164 of that is interest - the rest is technically going back into my pocket as capital repayment, so much better for me than £600 in rent!

    My mortgage free journey I guess only really starts when everything is signed, so I will be keeping a good track from the 27th of July.

    At the moment I'm just looking at what I can do to to reduce outgoings. The first item will be to do a massive shop, so that I have snacks etc in the flat, rather than relying on takeaway! I have a trick at the moment - everytime I have comfort food - say pizza for brunch after a night out etc, I put a pizza express in the oven that only costs a few quid, rather than pay for say dominoes, and the remaining change(to the value of £20 goes into my savings!
    • DireEmblem
    • By DireEmblem 22nd Jul 17, 9:07 PM
    • 289 Posts
    • 190 Thanks
    DireEmblem
    • #4
    • 22nd Jul 17, 9:07 PM
    • #4
    • 22nd Jul 17, 9:07 PM
    Well time for an update. I signed all my documents with the solicitor yesterday, and all going well, I move in next weekend!

    I've done a fair bit of reading, and something I've decided to do is that when I buy something, I hold back and look around to find the best offer, and save the difference. I was quoted £184 for my home/buildings insurance with my mortgage provider, however searching online have managed to get the same level of cover/excess for £109! I'm counting that as my first £75 to set aside to help reduce the term.

    Total debt remaining £173,425.
    • Debtslayer
    • By Debtslayer 23rd Jul 17, 7:18 AM
    • 404 Posts
    • 564 Thanks
    Debtslayer
    • #5
    • 23rd Jul 17, 7:18 AM
    • #5
    • 23rd Jul 17, 7:18 AM
    Welcome
    Fingers crossed for moving day!! Very exciting!!
    Good idea to start overpaying straight away, that was our intention and finally got round to it 18 months in!!
    Current Mortgage 01.10.17 £113,513.88
    MFW Start Mortgage: £114,794.64
    Current MED: 2036 Target MED: 2026
    Overpayment Target for remainder of 2017: £2,000
    Mortgage overpayment savings: £473.20
    MFW No 124
    • michelle09
    • By michelle09 23rd Jul 17, 1:12 PM
    • 308 Posts
    • 1,022 Thanks
    michelle09
    • #6
    • 23rd Jul 17, 1:12 PM
    • #6
    • 23rd Jul 17, 1:12 PM
    Welcome, and good luck! It sounds like you're really on top of things and that £173k will start dropping before you know it.

    Good luck with moving - if you're anything like us you'll find that all the small purchases are the ones that really add up. We spent £100 on bedding and it was supermarket own brand duvet, two pillows and two sets of sheets. Nothing fancy!
    • DireEmblem
    • By DireEmblem 9th Aug 17, 10:15 PM
    • 289 Posts
    • 190 Thanks
    DireEmblem
    • #7
    • 9th Aug 17, 10:15 PM
    • #7
    • 9th Aug 17, 10:15 PM
    Thanks michelle - yes realise what you mean, all the small things do add up. I've tried to be sensible about it though and made a list of things I wanted to get from various places. I am now pleased to say that I have now moved into my flat, and unless I have forgotten anything, everything should be paid for. The last items to arrive are my Sofa's on Tuesday, and my work has very kindly allowed me to work from home, so I dont lose any holidays.

    I now have to make sure that I get as much of my deposit back as possible from my old flat, and this weekend I will do one final sweep/clean to ensure this is maximised.

    My sister is now moving into my spare room at the end of the month. We havent negotiated terms yet, but I'm happy if she wants to cover the bills, then she can have the room for free. Given Council tax is around £135PCM, electric and Gas I estimate to be £60, and TV/Broadband is another £50, I think thats fair. All bills she was paying anyway, and an extra £250 a month for me to go against the mortgage, so I am £3k better off.

    I have also stopped taking the bus to work - its now a 10 minute walk, so thats £1.80 saved a day or £400 that I will also be putting aside as well. I was spending it before, so I cant see it as something that I will actually miss.
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 9th Aug 17, 10:36 PM
    • 463 Posts
    • 1,801 Thanks
    wishingthemortgaheaway
    • #8
    • 9th Aug 17, 10:36 PM
    • #8
    • 9th Aug 17, 10:36 PM
    Congratulations on the flat, you already sound so determined. You'll be racing past me in no time.

    Wish
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 August: £36,411.85 8/100 September: £35,945.66 10/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • Viking_mfw
    • By Viking_mfw 10th Aug 17, 11:09 AM
    • 60 Posts
    • 264 Thanks
    Viking_mfw
    • #9
    • 10th Aug 17, 11:09 AM
    • #9
    • 10th Aug 17, 11:09 AM
    Sounds like you're in an excellent position

    Good point about not missing things you were previously spending on.

    Goos luck!
    • Kittenkirst
    • By Kittenkirst 10th Aug 17, 2:34 PM
    • 1,594 Posts
    • 8,235 Thanks
    Kittenkirst
    Hi DireEmblem! We have similar levels of mortgage debt so I shall be cheering you along

    Sounds like a fantastic idea having your sister move in and £3k a year is definitely a sweetner to the deal!
    2017 MFW #20 - OP £1958.94/ £2150 91%
    Last 3 months-Aug: £212.52 Sep £206.32 Oct: £176.97

    Emergency fund £3880/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    2016 OPs £255.50/£150
    • DireEmblem
    • By DireEmblem 22nd Oct 17, 8:35 PM
    • 289 Posts
    • 190 Thanks
    DireEmblem
    Well its been a long time since I've posted here, and its now almost 3 months since I moved into my new flat!!!


    So since then, I've started to tweak a few things. Firstly after doing some research, I have downloaded moneydashboard to help review my spending. In order to do this, I also tried to pay for everything I did where possible on card. Some of the results are interesting. For the month of September, just doing what I normally do, I spent 87% of my net wage. In this I also paid out for my trip to Budapest for October, so all in all I spend around 70-80% of my wages each month!


    Bills - £845 total
    £600 Mortgage
    £135 Council tax
    £55 TV/Internet
    £10 Mobile
    £45 Electric and Gas (No bill but I drip feed payments every month so the bills not so big each quarter).


    I also spent £105 on 1 pre work breakfast, and 5 work lunches each week. What I'm thinking to reduce this figure, is that I do a lot of batch cooking now in the flat, and freeze food for when I'm in a lazy mood. I just need to extend this and take food to work, as there are kitchens to reheat meals.


    For Take away's, I spent £72 for the month, so that's also an easy option to try and cut back on spending if I keep more food in the flat as well, to discourage ordering when by myself.


    Now here is the expensive bit - I spent a further £280 on what it calls "Eating and Dining out", but I also withdrew £250 cash from the bank which is difficult to track. I need to learn to log these slightly better, to allow myself to truly track what I'm spending.


    I then spent a further £400 on winter running gear, and to pay for my trip to Budapest for the Marathon last weekend, so thinking I should actually budget better for these items, given I am aware of these months in advance. This would help me flatten out my spending patterns, and help define a reasonable level of regular savings.


    So lots of areas where I can make savings, although on the plus side I am spending less than what I earn currently, so I need to find ways to better make use of the surplus. I've read a lot of articles, and one of the sayings I quite like is "Pay yourself first", so once I can figure out a reasonable amount to save/put aside each month, then I think I will start doing that.


    Anyhow back to chipping away at my mortgage, since the 27th of July when I purchased the property, current progress is as follows:-


    Mortgage: (173,500)... now (172,142.40)
    Rainy day fund: £9,672


    Once my rainy day fund gets to a nice round 10k mark, I will then look at diversification. I kept these funds back from my mortgage as I like having something to fall back on should something happen, that is easy to access. This is currently earning 1.3%, which I realise is not great.
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