My story - determined

determined1_2

Hi all

I thought I'd start this diary:
a) as a motivational tool
b) to share my experiances

Firstly, a little bit about my situation. Me (20) and my fiancee (20) bought our first house in May 2008 for £160,000 with a mortgage of £144,499 (£499 fees added).

Mortgage is 35yr with halifax and is fixed at 5.69% until June 2013.

I'm a trainee accountant (£19k) and my fiancee is a supervisor of one of the departments at one of the major supermarkets (£15k).

As you can see, we only have modest incomes, but we do watch our money very carefully.

We started overpaying in October 08 and I feel we are currently doing well.

I spent quite some time (prob about two days actually) drawing up a fairly large spreadsheet that tracks our mortgage and is only ever about 5p out (EDIT: found the error of my ways and now only ever 1p out due to rounding differences. Mistake - Halifax's financial year runs 1/2 - 31/1 so had my 365/366 days calculation wrong ) when the payment and interest hits our account (we can view our balance online) :cool:

The things it show are:
- the total overpayments to date
- daily interest
- monthly interest
- total interest to date
- current balance

However, most importantly (well I feel), it shows me how much interest I have saved over the life of the mortgage and how many months I have taken off. This is clearly an estimate as it assumes the ROI stays the same for the rest of its life. I can ammend this as and when it happens, so will be very accurate in the long term.

I'll leave it at that for now, and will post some goals shortly!

Thanks
......................................................................................................

CUMULATIVE RESULTS TO DATE (so that monthly update post is not massive!)

Stats below for balance, overpayment made, "interest saved" that month, "interest saved" to date, and months taken off (denoted as balance/OP/interest saved that month/total interest saved/months saved).

Jan 11: £111,000.00/£2,258.07/£4,655.23/£96,025.57/156
Dec 10: £113,500.00/£2,252.07/£4,975.09/£91,370.34/147
Nov 10: £116,000.00/£774.97/£1,798.32/£86,395.25/138
Oct 10: £117,000.00/£1,761.44/£1,818.56/£84,596.93/135
Sept 10: £118,000.00/£1,789.47/£4,465.39/£82,778.37/131
Aug 10: £120,000.00/£693.83/£1,807.98/£78,312.98/123
July 10: £120,9000.00/£377.79/£1,006.64/£76,505.00/120
June 10: £121,500.00/£299.15/£810.93/£75,498.36/119
May 10: £122,000.00/£433.17/£1,195.04/£74,687.43/117
Apr 10: £122,650.00/£807.11/£2,284.25/£73,492.39/115
Mar 10: £123,649.99/£502.57/£1,460.83/£71,208.14/111
Feb 10: £124,400.00/£413.64/£1,226.91/£69,747.31/109
Jan 10: £125,000.00/£768.24/£2,337.67/£68,520.40/107
Dec 09: £125,950.00/£1,154.91/£3,649.15/£66,182.73/103
Nov 09: £127,300.00/£1,030.56/£3,396.93/£62,533.58/97
Oct 09: £128,500.00/£714.74/£2,441.85/£59,136.65/91
Sept 09: £129,400.00/£940.22/£3,324.76/£56,694.80/87
Aug 09: £130,500.00/£845.05/£3,103.05/£53,370.04/82
July 09: £131,499.99/£1,532.51/£5,910.43/£50,266.99/77
June 09: £133,200.00/£1,008.83/£4,102.48/£44,356.56/67
May 09: £134,250.00/£490.93/£2,065.86/£40,254.08/61
Apr 09: £135,000.00/£1,137.13/£4,970.81/£38,188.22/58
Mar 09: £136,269.03/£1,000/£4,588.67/£33,209.26/50
Feb 09: £137,459.47/£740/£3,538.81/£28,620.59/43
Jan 09: £138,323.21/£2,030/£10,364.53/£25,081.78/37
Dec 08: £140,466.66/£2,380/£13,508.64/£14,717.25/22
Nov 08: £142,970.30/£100/£605.23/£1,208.61/2
Oct 08: £143,170.74/£100/£603.28/£603.28/1

Daily interest below. Each goes from 2nd of previous month to first of the month stated. E.g. £18.08 was for 02.11.10 - 01.12.10

Jan 11: £17.69
Dec 10: £18.08
Nov 10: £18.24
Oct 10: £18.40
Sept 10: £18.71
Aug 10: £18.85
July 10: £18.94
June 10: £19.02
May 10: £19.12
Apr 10: £19.28
Mar 10: £19.39
Feb 10: £19.49
Jan 10: £19.63
Dec 09: £19.84
Nov 09: £20.03
Oct 09: £20.17
Sept 09: £20.34
Aug 09: £20.50
July 09: £20.76
June 09: £20.94
May 09: £21.05
Apr 09: £21.24
Mar 09: £21.43
Feb 09: £21.56
Jan 09: £21.84
Dec 08: £22.23
Nov 08: £22.26
Oct 08: £22.29

determined1_2

I feel I need to set myself a variety of goals. Both short and long term.

However, for now I'm going to only set three long term goals, and will document my short term goals in another post!

One of the main reasons we are overpaying, is the fear of negative equity. We plan on staying here for quite some time, so aren't that concerned about the falling value.

Our current standard payment is £790.43.

Goal 1 - maintain a 'standard' overpayment of £500 (will become more clear as time passes) for the next 6 months

Goal 2 - 'save' £50,000 of interest (see post one about estimates here) by the end of 2009

Goal 3 - get mortgage sub £100,000 by christmas 2011

Wish me luck :j

Details of my current progress to follow.

thanks

Mumto5

you sound like a young couple who have really got their heads screwed the right way on. Well done. :T

determined1_2

As promised, here is my progress to date.

In advance, I'll let you know that I'm a keen stoozer (relatively new and fairly low limits due to my age) and a novice to match betting (£700 profit since 4th Jan :j )

Anyway, overpayments made, "interest saved" that month, "interest saved" to date, and months taken off (denoted as OP/interest saved that month/total interest saved/months saved):

Jan 09: £2,030/£10,364.53/£25,081.78/37
Dec 08: £2,380/£13,508.64/£14,717.25/22
Nov 08: £100/£605.23/£1,208.61/2
Oct 08: £100/£603.28/£603.28/1

At first these figures may seem wrong, but they are correct and clearly show the hidious affect of compound interest :eek:

I must include that Dec included £1,380 of stoozed money, and Jan included £1,480 of stoozed money

That's all for now.

Thanks

MoneyQueen

Hi determined1

Welcome onboard... You really are in safe hands here.. You will find everyone to be so helpful here... I myself joined MFW board last month. Good Luck with all your endeavours

MQ

setmefree2

and

SmlSave

Hi determined! i look forward to reading your diray, seem like you're all set up to suceed.

Welshlassie

Sounds like you really know what you are doing, well done on your progress to date and I'm looking forward to following you journey.

ShelleyC_2

determined1 wrote: »

£700 profit since 4th Jan :j

Thats fab - I still can't get my head round MB. Maybe its your accountant brain helping. My Dad is a retired accountant and was continually despairing of my appalling maths skills :rotfl:

Sounds like you and OH are really focused. Make sure you have plenty of fun too. Good luck on your journey.

hughmungas1986

Hi there dertermined1,

Good luck with your challenge, you seem to have a great plan to be MF. You have come to the right place for advice and discussion,

Have you had a look at the The Mortgage Free in Three - Take 2 challenge (MFiT-T2), you may want to join that, it starts later this year and it may spur you on a little more

http://forums.moneysavingexpert.com/showthread.html?t=1402631

Hope this helps


hugh


.

Lynn11

Good luck on your journey but you certainly seem as if you know what you are talking about and hope you are able to achieve all your goals listed.