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    • DireEmblem
    • By DireEmblem 17th Jun 17, 10:13 AM
    • 288Posts
    • 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
    • 2,097 Posts
    • 9,492 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
    • 288 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
    • 288 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
    • 349 Posts
    • 515 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 01.08.17 £114,371.25
    MFW Start Mortgage: £114,794.64
    Current MED: 2036 Target MED: 2026
    Overpayment Target for remainder of 2017: £2,000

    MFW No 124
    • michelle09
    • By michelle09 23rd Jul 17, 1:12 PM
    • 189 Posts
    • 445 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
    • 288 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
    • 142 Posts
    • 658 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
    Goals:
    Mortgage: overpay £75 per month
    Surveys: £20 a month in cash or vouchers
    Temperature blanket: get up to date stay up to date
    Keep a cash spending diary
    • Viking_mfw
    • By Viking_mfw 10th Aug 17, 11:09 AM
    • 60 Posts
    • 230 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
    • 1,525 Posts
    • 7,770 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!
    Emergency savings- £3750.96 /£6000
    Mortgage Oct '16- £170.995 LTV- 90% end date Nov 2041
    2016 OPs £255.50/£150
    2017 MFW #20 - OP £1743.34/ £2150. 81%
    Jan- £68.21, Feb- £306.67, March- £272.01 April-£324.05 May £120.33 June £279.15 July: £172.36 Aug: £203.24
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