BNOC - MFW Diary

bnoc

My wife and I finished clearing all unsecured debt over the last 5 months and are now resolved to taking on the big boys; amounting to a total of £425,354.12 :eek: and total monthly repayments of £1,805.58, our mortgage accounts are a little odd insofar as having 5 accounts on 2 properties, namely:

1) £50,000 (Interest only, 6% Fixed, £250.00/mth).
2) £188,367 (Interest only, 4.84% SVR, £756.61/mth);
3) £176.209.50 (Interest only, 4.99% Fixed, £732.74/mth);
4) £5,046.28 (Repayment, 4.99% Fixed, £31.01/mth);
5) £5,731.34 (Repayment, 4.99% Fixed, £35.22/mth); and

I have listed them in order of attack, clearly the most expensive first. Second however I have put the SVR mortgage because, in my humble estimation, rates will rise in the not too distant and we will struggle to refinance (I have just become self-employed with no accounts to date) so I want to beat that loan into submission before it overtakes the fixed rate deals in relation to cost of borrowing.

We have scheduled a sit down around the dinner-table tomorrow evening to put together an up to date budget, once completed we will know how much we need to survive and more importantly how much we can OP against the various accounts.

In our minds, albeit without the budget completed, we expect to be able to OP £750 per month and to increase that sum by a minimum of the reduction in interest due each month due to the previous OPs. Extra OPs will come from any particularly healthy months for me and unplanned incomes (tax rebate, pennyjar, £10 from great aunty maud in a birthday card and the suchlike).

Once we've budgeted I'll report back, I hope that this fledgling diary will go in some way to motivating us to pursue this new venture with singularity of vision and focus.

Well, here we are, the first week of the rest of our lives.

Wish us luck.

poppyoscar_3

Good luck! PO xx

abouttimetoo

Welcome to the board BNOC and congratulations on clearing your unsecured debt.

It sounds like your plans are coming together so good luck with those, I'll look forward to reading about your progress

clearmydebts

Good luck - you sound very determined!

canne_2

It sounds like an interesting journey you are on! Good luck and I will follow your thread and see how you go!

gallygirl

bnoc wrote: »

My wife and I finished clearing all unsecured debt over the last 5 months and are now resolved to taking on the big boys; amounting to a total of £425,354.12 :eek: and total monthly repayments of £1,805.58

_pale_ am off for a lie-down _pale_

Being nosey - what is 2nd property - is it a BTL?

Good luck, if you've been clearing debt you're already in the swing of things. Are you using the free money from those to OP on your mortgages?

setmefree2

Oh My - that's a big 'un




and Good Luck

evab_2

Good luck on the next chapter of your journey!

bnoc

Cheers for the welcome messages and wishes of luck.

The 2nd property is let, but wasn't bought to let; I bought it and lived in it for a number of years before meeting and moving in with my then girlfriend (now wife). We subsequently bought together and timing being as they were got caught by the lowering market (completed on 2nd house in August 2007, ouch).

We're in the process of selling the older house now as it will come to the end of the 3yr CGT allowance this summer; I expect we'll be able to knock £280,000 off the total debt realistically upon sale.

We made our first OP on 27.1.10, for £43.39, whoop! I know, we won't get MF quickly with those levels of OP, but that was the month we cleared unsecured debt and I wanted to get the ball rolling somewhere.

Still no budget report, I got the opportunity to do some extra work on Sunday so it got pushed; but we are all too aware of how important a tool it is so we will do it one evening this week.

bnoc

Just OP'd £500 to the 6% account and increased the standing order OP on the SVR by the corresponding amount that the interest on the first account will drop by.

Bring it on bankers, Whoop!

setmefree2

well done on that :T