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BNOC - MFW Diary

edited 30 January 2010 at 3:13PM in Mortgage-Free Wannabe
15 replies 1.9K views
bnocbnoc Forumite
43 Posts
edited 30 January 2010 at 3:13PM in Mortgage-Free Wannabe
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.
MFW 2010 - No. 151 - £583.39 of £9,000 OP Target (£540 so far for February 2010)
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Replies

  • Good luck! PO xx
    :D2010 MFW Challenge No. 112 Mortgage paid in full 27/08/10 I was MF!!!:D
    But now I'm not - (Joint) Mortgage £104704.
    New MFW target £5000 overpayments by 31/12/2105 £400/£5000 = 8%
    SAVINGS TARGET - £25000 by 31/12/2015 £13643/£25000 = 55%
    No 17 Lewis Lane
  • 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
    MFW Start Date 1.4.08. Updated 23.1.18. MFW date 1.8.18
    Original Mortgage o/s £187,643 / £71,904 (-115,739)
    Repay o/s £92,661 / now £55,900 (-36,761)
    Int Only o/s £94,982, now £16,004 (-78,978)
    Total daily interest £1 [a) £0.77 b)£0.23
    Total OP's:2018 target £TBC YTD £1,995
  • clearmydebtsclearmydebts Forumite
    6.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    ✭✭✭✭
    Good luck - you sound very determined!
    Total (Aug 19):€58,567 Now:€26,947
    DFD:Nov 22/June 22
    Mortgage: €199,712
    MFD: March 2042/July 2034
  • canne_2canne_2 Forumite
    124 Posts
    It sounds like an interesting journey you are on! Good luck and I will follow your thread and see how you go!
    The Mortgage Free in Three - Take 2 Challenge (MFiT-T2): #58 - Goal: Get to AU$50 000 by 12/12/12
    Current balance: $84 693
    2011 MF Wannabes: #102 - Goal: Overpay mortgage by AU$15 000
    Total paid for 2011: $2253.16
  • gallygirlgallygirl Forumite
    17.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
    ✭✭✭✭✭
    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?
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • setmefree2setmefree2 Forumite
    9.1K Posts
    Mortgage-free Glee!
    ✭✭✭✭
    Oh My - that's a big 'un

    Smiley%20Welcome.gif


    and Good Luck

  • evab_2evab_2 Forumite
    2.3K Posts
    Good luck on the next chapter of your journey!
  • bnocbnoc Forumite
    43 Posts
    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.
    MFW 2010 - No. 151 - £583.39 of £9,000 OP Target (£540 so far for February 2010)
  • bnocbnoc Forumite
    43 Posts
    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!
    MFW 2010 - No. 151 - £583.39 of £9,000 OP Target (£540 so far for February 2010)
  • setmefree2setmefree2 Forumite
    9.1K Posts
    Mortgage-free Glee!
    ✭✭✭✭
    _yay__by_Toxic_Fox_Girl.gif well done on that :T

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