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  • FIRST POST
    • lessavyfav
    • By lessavyfav 15th Aug 17, 9:32 PM
    • 178Posts
    • 215Thanks
    lessavyfav
    Chapter 3: the large London mortgage
    • #1
    • 15th Aug 17, 9:32 PM
    Chapter 3: the large London mortgage 15th Aug 17 at 9:32 PM
    Hello!

    I've had a few diaries before, never had too much by way of debt - but now myself and partner have a giant London-sized mortgage of £499,000. We're first time buyers and it's much bigger than anyone else's mortgage I've read on here — frightening. But the truth is, we're double-income, no kids, earning decent money between us so the mortgage is being comfortably paid each month (I say that, two months in!). I'm feeling good about it all.

    We have a 35 year mortgage, 2 years fixed at 2.14% but I'd like to reduce the term by a lot more if possible. So far we've done £350 OP and I'd like to do the same again this month. Very crude calculations tell me if we continue to do this over the term at the same interest rate, we can wipe off more than 8 years. But that doesn't feel enough for me, I want to do it even sooner!

    We have plenty of renovations to do, a car to buy and plans for a kid or two, so we won't be in such a fortunate position over the next few years, but that's even more motivation to overpay while we can.

    Want to keep this diary to keep me accountable, by way of adding extra payments doing surveys, sweeping spare money at the end of the month, keeping an eye on the food and entertainment budget, and my least favourite thing: selling things on ebay. Must remember to build and keep aside the emergency fund too!

    Just signed up to prolific and am already a yougov participant (but cashed out £50 not that long ago so back to square one!). Lots more to do!
    Last edited by lessavyfav; 15-08-2017 at 9:42 PM.
    0% Balance Transfer (ends May 2018) £214.94/£2524.94 (84.95% there)
    Giant London-sized mortgage (started July 2017) £492973.87/£499,00.00 Current LTV 87%
    Overpayments £1600
    S&S ISA £955.48
    Regular Saver (started August 2017) £1600
Page 1
    • Tropically
    • By Tropically 15th Aug 17, 10:04 PM
    • 158 Posts
    • 432 Thanks
    Tropically
    • #2
    • 15th Aug 17, 10:04 PM
    • #2
    • 15th Aug 17, 10:04 PM
    Hello fellow Londoner!! I too have a large London mortgage. Houses are just not affordable, and renting is pretty awful! My overall happiness is probably 1.5x what it was renting. You can do this! Look, you've already knocked some off! You could post a Statement of Accounts if you wanted. We've taken in a lodger which has been a nice boost over the last couple months.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • shangaijimmy
    • By shangaijimmy 16th Aug 17, 8:23 AM
    • 2,281 Posts
    • 10,616 Thanks
    shangaijimmy
    • #3
    • 16th Aug 17, 8:23 AM
    • #3
    • 16th Aug 17, 8:23 AM
    Shiny new diary...

    Spend an hour on a spreadsheet (it'll become your prized possession), go through some permutations and make goals. I like to have a monthly as its great for motivation, and then a 6month challenging goal, 1 yr goal, 2 yr, 5yr etc.. I try to tie in my 2yr goal with the current mortgage deal. Bite sized chunks doesn't make it seem so big! Then get yourself prepped to join the 2018 challenge as the sense of community is great (not to mention seeing your progress in green).

    You've already made a great start, you've started a diary and have made plans. Welcome aboard, you'll be addicted to making £5 OP's soon enough!
    MFW: Turning June 2036 into March 2023... 33//120 Payments Challenge, Diary Reduction £35,448.08
    Aug 2009: £163,051 // Current: £100,551.94 // Avg Daily Interest £4.52
    MFiT-T4 #8 - 56.74% of £41,000
    • lessavyfav
    • By lessavyfav 18th Aug 17, 9:52 PM
    • 178 Posts
    • 215 Thanks
    lessavyfav
    • #4
    • 18th Aug 17, 9:52 PM
    • #4
    • 18th Aug 17, 9:52 PM
    Tropically - thanks for dropping by, I just had a read of your diary and you are doing brilliantly! I think getting a lodger is a fantastic way to pay off things sooner, but I can't imagine living with other people other than my partner these days. I'm too much of a weirdo

    shangaijimmy - good advice there, I tend to be good at starting a spreadsheet but not so good at keeping it updated. We should definitely be setting shorter term achievable goals for overpayments. I'll take a look at the 2018 challenge for sure, thanks for the tip.

    this week I..
    - Made another £350 payment the same day I wrote my last post, and will no doubt put a little more in before payday depending on how much we spend on holiday the days before!
    - Did okay with lunches this week: 3 out of 5 lunches brought in from home with the other days going el cheapo. But could do better.
    -found out the nroadband bill is going up next month, disappointed with our supplier doing this for the second time in two years. It sucks they don't reward you for your loyalty so might look elsewhere.

    Staying in tonight, and no plans for tomorrow other than maybe finally getting out in the garden, which is overdue. Sunday will be a day out already paid for, so pretty low key and low cost.
    0% Balance Transfer (ends May 2018) £214.94/£2524.94 (84.95% there)
    Giant London-sized mortgage (started July 2017) £492973.87/£499,00.00 Current LTV 87%
    Overpayments £1600
    S&S ISA £955.48
    Regular Saver (started August 2017) £1600
    • lessavyfav
    • By lessavyfav 4th Sep 17, 7:46 PM
    • 178 Posts
    • 215 Thanks
    lessavyfav
    • #5
    • 4th Sep 17, 7:46 PM
    • #5
    • 4th Sep 17, 7:46 PM
    Last month we managed to make £350 overpayment but it was a very expensive month — we have a lot on in September but most of it paid for already, so hopefully this month is a little better!

    We've had someone to come round to give us a quote on some work on the house - we most definitely need walls/ceilings smoothed out, some brickwork rendered, new electrics and new radiators (plus moving them around). It's not going to be cheap but will mean we can finally begin to put up our shelves, art, etc. We've held off because our walls are glossy and gross, and all patchy.

    I'm going to tackle my first DIY job soon - painting our front door! I'm petrified of screwing it up, but I'm sure it can't go too wrong, can it?

    Almost 70% paid off my balance transfer and should be on schedule to pay it off by January - cannot wait till I get that £150 per month to use to save/overpay/spend on myself!

    Got to buckle down this month, more homemade meals, less drinks after work!
    0% Balance Transfer (ends May 2018) £214.94/£2524.94 (84.95% there)
    Giant London-sized mortgage (started July 2017) £492973.87/£499,00.00 Current LTV 87%
    Overpayments £1600
    S&S ISA £955.48
    Regular Saver (started August 2017) £1600
    • SavvySaver007
    • By SavvySaver007 24th Sep 17, 1:04 PM
    • 18 Posts
    • 82 Thanks
    SavvySaver007
    • #6
    • 24th Sep 17, 1:04 PM
    • #6
    • 24th Sep 17, 1:04 PM
    Good luck on your quest - it's fantastic you have had your lightbulb moment so early on, I know many others wish they had! You're making great inroads already to reducing your mortgage and are definitely taking all the right steps. I am a complete overpayment addict now, and will happily save money wherever I can in order to put some more ££ towards the mortgage. These boards are a fab source of motivation so make sure to keep posting and keep us updated!
    Target: Pay off mortgage in 2017!
    As at 02.12.17: £11,200/£66,000 left to pay
    Emergency Fund: £1,600/£3,000 - Swagbucks: £20.00 earned since 08.10.17
    • sleepygirl126
    • By sleepygirl126 24th Sep 17, 1:24 PM
    • 278 Posts
    • 626 Thanks
    sleepygirl126
    • #7
    • 24th Sep 17, 1:24 PM
    • #7
    • 24th Sep 17, 1:24 PM
    I totally echo the others...I wish I'd had my lightbulb moment when I bought my house at 25 and then again when I bought my ex husband out...I'm constantly trying to persuade younger friends to overpay when they've got no responsibilities or kids...it's a damn sight harder on one wage with a dependent DS! Well done you!
    Original mortgage £154,850 (2013)
    Mortgage now £148,370.15

    Original savings £0 (2013)
    Savings now £3000 in ISA and premium bonds
    £60 in mini savings pot, £600 in Xmas vouchers
    • lessavyfav
    • By lessavyfav 6th Dec 17, 6:06 PM
    • 178 Posts
    • 215 Thanks
    lessavyfav
    • #8
    • 6th Dec 17, 6:06 PM
    • #8
    • 6th Dec 17, 6:06 PM
    How's it been so long since my last update? I was never good at committing to diaries, some things never change!

    I have been updating my signature monthly though, mortgage is going down, so is the credit card, while my S&S ISA and Regular Saver are going up. So that's a positive. I didn't get to make an overpayment to the mortgage last month as it was VERY expensive: most Christmas presents bought, lots of friends round (stupid me insisting that no one should bring anything), a car stereo, etc. This month only a small overpayment of £100 but better than nothing. Already I see our LTV is 87% which is much better than I thought!

    A lot has happened since I last posted - I quit my job as I was miserable and decided to start up my own freelance consultancy. It's been a bit slow but I've at least been able to spend the time relaxing, contacting builders/contractors (which is a proper job in itself as it so turns out), exercising, and contacting recruiters and new potential jobs. I have a job lined up until Xmas that pays well so I am happy. Two weeks of work on this job is almost my entire salary at my old job! Must remember I need to keep aside money for things like pension though.

    So with this new change, there is definitely uncertainty when it comes to finances, but also big potential. Am hoping the New Year brings a lot more stable, longer term contract roles too!

    Although it's busy this month, we don't have hugely crazy calendars so I'm hoping spends will be better than they were last month. It needs to be because I earned a lot less!

    Some aims for 2018:
    - Keep saving £400 per month into Regular Saver
    - Only £380 left to pay on the CC which frees up approx £130 per month from April. Use £100 of this to build up an emergency fund, the rest for treating myself (nails, house stuff)
    - Overpayments of $335 per month (have committed to £4000 in the mortgage challenge), of course this is split with my OH
    - Open a LISA for retirement
    - Shop less at M&S food — it's our nearest supermarket and costs a fortune! Going to try getting weekly veg boxes and other things from cheaper places. I'd like to give Farmdrop a go..
    - Pay back my parents money they lent us. They've never set a timeframe, but it was £14,000. We have £6,315 aside, so need £7,685. I've been putting this one off and dipping into it to buy house stuff, but it's getting out of hand!!

    I'm sure I'll have more to add to the goals, I need to be more specific around projected spending, like holidays and gifts. Time to have a think...
    0% Balance Transfer (ends May 2018) £214.94/£2524.94 (84.95% there)
    Giant London-sized mortgage (started July 2017) £492973.87/£499,00.00 Current LTV 87%
    Overpayments £1600
    S&S ISA £955.48
    Regular Saver (started August 2017) £1600
    • michelle09
    • By michelle09 8th Dec 17, 3:10 PM
    • 470 Posts
    • 1,856 Thanks
    michelle09
    • #9
    • 8th Dec 17, 3:10 PM
    • #9
    • 8th Dec 17, 3:10 PM
    Wow, I thought our 300k was a little crazy. Unsurprisingly, another Londoner here! Well good luck, and you're right, knocking off as much as possible saves so much money. You're on nearly £30/day in interest so every little will help.

    For your parent's money, is it worth giving them back the £6000 you've already saved up? That way you can't dip into it for other things.

    M&S is lovely, but yeah, it's a hefty price tag. I keep checking out TopCashBack because you can quite often pick up deals on food delivery. (We got £13 back on a £26 spend at Asda last Christmas).
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