My MF diary

SOandSO

Hello
I am signed up for the MFiT-T2 challenge and thought a diary would help me to say hello to all the forum members, and motivate me. I have been lurking for a while and was impressed by the encouragement you show to each other, I hope it will help on the journey to be MF.
A little about me – I am divorced with a DD. The mortgages are in my name. I am self employed and originally thought to get the mortgage down to a decent LTV when the fixed term expires in Oct 10. With the recent news on what are termed (most unfairly in most cases and mine in particularly) “liar loans”, I am glad I’ve been motivated.
Anyhow, the mortgage is as follows: Mortgage 1 - £170,000; Mortgage 2 - £20,000; Reserve - £55,000; Total - £245,000.
My lurking has already been a benefit because I rang about the 10% op on mtge 2 and had 5 days to pay before the year changed. I therefore paid 2 x 10% in Oct 09. I have also op’d off mtge 1 but have until Jul 10 before the year changes (I think that’s because I made an op then – I said I’d been lurking a while didn’t I).
I have set a target £150,000 which I intend to achieve by 12.12.12. This would enable me to be on course to reduce the mortgage to £50,000 by 1.1.16.

chirpchirp

Gosh that's a huge target! Good luck, you're right this is a great forum for motivation. I'm also divorced so trying to clear this on my own motivation which actually makes it easier as there is only me to make the decisions.

financialbliss

Hi SOandSO,

I've linked your post in the MFiT-T2 challenge back to this thread. Nice to see another new diary.

What's the mortgage rates on each of your 3 mortgages? If they are the same / similar, then the easy "win" would be to pay off the £20k mortgage first if you can, presuming the 10% limit doesn't get in the way, otherwise you would want to overpay on the mortgage with the highest rate first.

Financial Bliss.

SOandSO

Hi chirpchirp - Yes its huge but part of it arises due to some problems with my self employednessssss (sorry had a glass of merlot due to the excitement of starting my diary) and now that is sorted.

Hi FB

Mtge 1 and 2 are fixed rate at 4.89 with erc charges until Oct 2010 so I'm afraid the 20k stays (not willing to pay £900 erc). The reserve is high due to above probs and is at the svr. It's the one I will pay into (and take out of for tax and vat) so hopefully will move quite a bit (but overall down)

SOandSO

I forgot to say thank you for linking me to the challenge - Thank you

Queen-Bee_2

Hello and welcome, SoandSo!
Always good to see another diary. I've found reading them very inspirational.
Look forward to reading more about your journey.
QB

Louba

Good luck!!

SOandSO

Thank you Queen-Bee and Louba

I am planning to make an op on Monday. Something to look forward to as I've got some kind of bug and am feeling a little low this evening!

setmefree2

SOandSO

Well, having just got over some bug which laid me very low and then having to catch up at work I wasn't feeling the best. However my op of £1600 has come off the mortgage this morning:j It means mortgage 1 is below £170,000 and as the interest has already been added at the start of the month it won't go back over :j:j

I am going to phone the woolwich today and try and change my direct deebit from the 15th of the month to the 1st of the month.

SOandSO

Thank you setmefree2. I haven't been too well and then had to catch up on work but feel ready for the challenge again. I've read your diary and you certainly seem to be going in the right direction :j