Dreaming alouds MF journey

Dreamingalound

After lerking on the MFW forum for over six months and being inspired by Financial Bliss diary i've decided to create my own blog for motivational purposes.

So a little bit of history, my mortgage started in June 2006 with the Nationwide on a repayment mortgage of 169,500 gbp on a 25 year fixed rate mortgage at 4.76% fixed for the first five years. After reading this forum i started making my maximum 500 overpayments six months ago and recently applied to the nationwide to reduce the term from 25 years to 13.9 years. This has increased my monthly payment from 976 pounds to 1550 pounds. I still hope to make some overpayments but it will be limited at first. Without any further overpayments this would save me 53,000 pounds in interest and cut 11 years of the mortgage :j (I just wish i had known about this earlier)


So now a little about me! I am 25 years old and live with my Fiancee, we are getting married in march 2010 so are also saving up for our wedding. Our long term plan is to pay both of our mortgages off and then move abroad where we could both rent our mortgage free properties out and take life a little easier and raise a family with a better life style. This is a dream of ours and we are working hard now to try and make this happen.

I will post more soon, if anyone has any questions please feel free to join in and ask! I want as much feedback as possible and as much help as possible. I feel like there is a little family on this MFW forum and i hope i can be a part of it :T



So as of right now, my mortgage balance is approx 155,500.00 and my target date to be mortgage free is 2015 (i plan on making some large overpayments after year 5) as of right now, its october 2019. So my six year journey begins.

financialbliss

Dreamingalound wrote: »

After lerking on the MFW forum for over six months and being inspired by Financial Bliss diary i've decided to create my own blog for motivational purposes.

Hi Dreamingalound,
That's two diaries I've read in as many minutes and I get two mentions :eek:

While I may appear that I know exactly what I'm doing, sometimes I'm not sure

That's not a bad 5 year fix rate. I see your fix will be up in 2011 - same as me. Any pointers - work out your daily mortgage interest - can be very motivational to drive this down. When in 2015 - 05/10/15 - perhaps?

Welcome to the mortgage free forums...

FB.

littlemrtinkle

good luck !:T remember to have some fun along the way

Dreamingalound

Thank you FB and LittlemrTinkle. I'm planning on making a 30,000 lump sum payment if i can when the five year fixed rate mortgage is up...it really depends on interest rates but i have a feeling they will only remain this low for a year before we see extremely high rates. Unfortunately i don't think our government has a handle on inflation and i remember my parents telling me about a time where they had 15% interest rates...could these days be returning soon? If i can make this overpayment of 30,000 i could be mortgage free by February 2015.

However, lots can happen between now and then, we have a wedding to pay for, a moneymoon to pay for and who knows if any little surprises may come along between now and then. The future Mrs Dreaming Aloud also has a flat which is being rented out at the moment, her mortgage is interest only and her two year deal runs out in July, i hope we will be able to fix for 5 years on a lower rate to ride out the storm. The next plan will be to pay that mortgage off as quickly as possible.

mark5

Reading Financial Bliss thread have really got me thinking too, I earn less than FB but lucky to have wife bringing in 2nd wage which gives us a higher household income. So in theory if FB can do it me and other half should have no problem!

Goodluck with your journey Dreamingaloud!

Dreamingalound

Thanks Mark5! i have now updated my signature. Today we are shopping for tiles to decorate our flat and buy some paint. I do not know if we'll be able to put away 500 overpayments but we are going to ebay some old cd's and books we don't use anymore so hopefully that can raise some much wanted cash.

MrC-117

Good luck and keep posting. It really seems to help with staying motivated

clearmydebts

Hi DreamingAloud,

I am very interested in your diary as it is also myself and my OH's dream to live abroad. Unfortunately I wasn't as sensible as you when I was 25 and racked up some debt which I am trying to get rid of (I am 32). I have made good headway as we have only had one wage coming in for the past 2 years (OH is in uni) but I am hoping we can be DF by Xmas 2009 and then save for a deposit, and then overpay.

We have a flat that we rent out so would love to overpay on that when we get our house. So lots to do before I get to the overpayment stage. Well done on the decrease on the length of the mortgage!

setmefree2

andon your Mf journey.

StuartGMC

Dreamingalound wrote: »

it really depends on interest rates but i have a feeling they will only remain this low for a year before we see extremely high rates. Unfortunately i don't think our government has a handle on inflation and i remember my parents telling me about a time where they had 15% interest rates...could these days be returning soon?

Future interest rates are a difficult call; the Bank of England is charged with controlling inflation (both max and min, so there is growth) and as we all know, once inflation exceeds the upper limit BoE raise interest rates to control it. However, in the meantime could we see deflation?

To put things in perspective we took out our mortgage in October 1994 (still in the recession, houses still being repossessed, just two years after I was redundant due to employer going bust and not paying redundancy.... sound familiar?). The required quotes were 8% prevailing and 10% for the rate+2%, but we asked for the repayment quotes at 13% interest rate as this was typical of the preceding years.

It sounds like you'll be well placed to address this if it occurs with the sums you are targeting to save.

Best wishes for the plans and the wedding next year. Remember to have fun along the way as this is a marathon not a sprint and, if children do come along, it will impact things but also bring other benefits too.

SmlSave

Just found your diary Dreaming and would like to wish you good luck and say hi