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Madcat's Got No Mortgage!

edited 1 May 2016 at 12:05AM in Mortgage-Free Wannabe
6 replies 1K views
MadcatgirlMadcatgirl Forumite
327 posts
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edited 1 May 2016 at 12:05AM in Mortgage-Free Wannabe
Edited as out of date info.
March 2016 - £178,914.59; July 2017 £146,160.38
Mortgage end Sept 2043; Target - pay off by March 2022, now Sept 2021
Target balance July 2018 £112,560

Replies

  • I think that's a great idea - it's what i'm going to do when i'm mf. I shall save up for my 'forever' house. Good luck and i look forward to reading your diary.
    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
  • setmefree2setmefree2 Forumite
    9.1K posts
    Mortgage-free Glee!
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    Smiley%20Welcome.gif



    and Good Luck

  • Good luck - I think you're in the right place. You need to think really carefully about what to do with your savings, as rates are soooo low. Time to be a rate tart, or look at longer term savings deals with limited access. Or maybe a tracker fund, so you can use the higher stocks & shares ISA limits?
  • getmore4lessgetmore4less Forumite
    43.7K posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
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    With a fixed saving target you can use the pay yourself first method.

    Put the saving needed to hit target to one side then budget based on whats left.


    In your post the following caught my eye.
    Madcatgirl wrote: »
    ......
    My situation is that I live with my partner in his flat which is about worth what his mortgage is (or even slightly less), so there is no point in selling it at the moment, his mortgage (and my rent) is cheap and it's OK.
    ......
    we keep our finances completely separate and we both like it that way. I can count our joint purchases on one hand!
    ......
    he also has other expenses with the flat that I don't as a tenant, so it's up to him really.

    If you are treating this as a house share(he just happens to own the place) are you contibuting the fare amount.

    1/2 market rent
    1/2 the bills,

    Nothing for the maintanence or capital purchases for the place.

    If he will struggle to save the target because he is subsidizing your cuurent costs it could make it a bit farer and easier for hm to save if you review.
  • Madcatgirl wrote: »
    So, I'm saving up to buy a house without a mortgage, or at the very least, an enormous deposit, if you see what I mean?

    My situation is that I live with my partner in his flat which is about worth what his mortgage is (or even slightly less), so there is no point in selling it at the moment, his mortgage (and my rent) is cheap and it's OK. He'd also like to hold onto it as a pension for the future. However, we both have quite good jobs and are savers, rather than spenders and would like to think about buying somewhere together, maybe in the next 2-3 years.

    We currently have about £20K in savings and no debts (other than student loans). I have slightly more savings than he does, but I should say that despite our long term partnership, we keep our finances completely separate and we both like it that way. I can count our joint purchases on one hand!

    I have £13783.72 in savings and my plan was initially to increase this to £20K by the end of the year. I think this is quite do-able. However, I seem to have no focus to my savings, so by focusing on saving for a deposit or even to buy a house outright (more of that later), will give me a focus to my savings, rather than aimlessly collecting money for no apparent reason. I've decided to try to aim to have £30K by the end of 2011. This will be tough, but not insurmountable I think. If we were to jointly save 50K by then, I'm relying on my other half to increase his savings to £20K, which is doable for him, but I won't hold him to it - he also has other expenses with the flat that I don't as a tenant, so it's up to him really.

    I'm all a bit confused...he owns the house at the moment, which he'll hold on to, although you, effectively, pay half the mortgage at the moment. You're going to be the main saver for the new house (and may, possibly, chuck another half a house in for good measure), which you'll buy together...

    Are you completely clear about what your plan is, how much you'll each contribute to the new property, how much equity you'll each take, etc - is your partner as committed to this plan as you are?

    It's OK to go into this as a "I'll just save what I can..." thing, but on the face of it it seems your OH will get a much better deal out of this than you will...
  • cake21cake21 Forumite
    1K posts
    Good luck with your mortgage-free plan! There's another thread on here that you might find useful/interesting, started in 2007 but still going as at last month :DBuying a house without a mortgage
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