Just how do you do it?

ajmoney

Hi Brallaqueen

This is how I started, with savings but I now apply it to my mortgage OPs too.

Give yourself a couple of months, especially to get that emergency fund. Don't worry about setting up a regular OP at first, see what money you have left at the end of the month, after all you bills and anything you have spent and see if you can afford to send any of it to your mortgage, anything is better than nothing! Will you be likely to get any pay rises at work? If so and you don't need the extra money then add this to your OPs. I did this with my ISAa until I was paying the maximum amount possible.

Does your mortgage allow payment holidays with what you OP?

My first regular OPs worked out at £5 a week, I OP quite a bit more now. My mortgage is meant to be paid off in 20 years and with my OPs this will be done in 13! Trouble is this isn't my forever housr and so will be moving onto a higher mortgage at some point, I am doing all this so I own more of my house which I can throw as a deposit when we move.

Remember, your mortgage will pay itself off eventually so don't leave yourself short. So many people never have a mortgage, my grandmother has been in a council house all her life and could never have afforded a mortgage so you are not doing too badly.

Good luck and enjoy your home.

before_hollywood

op dont worry, i bought a place last year, 70k 15% deposit 6.25% for 3 years i think, ftb deal.

DONT WORRY

just keep going month to month making sure everything is paid, thats the important bit

getmore4less

Is it fixed rate? for how long?

Brallaqueen

BTW it is fixed for three years

Rich1976

Brallaqueen wrote: »

Thanks everyone, it helps to talk things out rather than stew in my head.

I know the interest rate is high - as I'm FTB, had 10% deposit and earn less than 20K, this was the best deal for the most money.

I could have gotten a slightly better interest rate but not enough mortgage to be in a nice area around here. The money I lose in interest rate I gain in living in a safe area with low crime rate.

I don't have any debt except student debt - no credit cards, store cards, car or mobile phone contract. My money covers everything, it just feels very overwhelming right now, and I feel like I should be saving, overpaying, investing, improving, redecorating etc all at once!

You sound like you're in a good position financially. I know exactly what you mean and alarming though it is, you will soon get used to all the bills coming out.

Like everyone else says you're best to have an emergency fund in a savings account and keep this regularly topped up to cover unfortunate events but also holidays, car repairs etc. The more financially minded would also advise contributing to a pension each month and then if you have anything left over, you can overpay the mortgage. Remember that your mortgage is guaranteed to be paid off ( assuming you have a capital repayment one) where as if you throw everything into a mortgage and nothing into a pension, where will you stand in 35 years time?


Its your choice, and also remember that in most cases once you have overpaid you can't get it back if you need it.

Good luck!

mrs_deadline

Rich1976 wrote: »

Its your choice, and also remember that in most cases once you have overpaid you can't get it back if you need it.

Good luck!

Good point, and the same is true if you put it in a pension.

Rather than worry indiscriminately about all the things you should be doing, take the time to think through your own priorities for whatever you've got left after the regular monthly outgoings. Sort things out into short-term, medium-term and long-term priorities, and try and allocate your disposable wealth (!) accordingly, however little the amounts at first.

Bear in mind that your income is likely go up over time, making all this more affordable. Also, when your lock-in period ends you might qualify for a better mortgage, and be able to swap the 35-year term for a 20-year term - that is one decision that would save you thousands in interest payments over the life of the mortgage, effectively freeing up money for other priorities as life goes on.

hermum

You're on that ladder & probably paying less on a mortgage than you would on rent & that's forever with no chance of paying it off early. Do you do surveys, clicks & cashback etc? A good way of earning a little extra, save all that, once you have some savings again, throw the rest at your mortgage. Do you work in a big enough place to do avon or something similar for a few extra quid? All those little bits do add up & help you out.

gratefulforhelp_2

Well done for having no other debt than student loans. It is scary when you buy as a single person, but you have got all that hassle out of the way, so well done for that too.

My mortgage is vast as you will see from my sig, so I hope that makes you feel a bit better.

Remember to enjoy your home, you are paying for it, so enjoy living there and make the most of it!

skaps

It takes time after you have bought somewhere to know what bills come out when and for how much. I make a simple spreadsheet so i know when everything goes out and this helps me to budget for things. My mortgage is huge and i started by rounding my mortgage payments to the nearest pound so my ops were 11p each month for the first 14 months. Only now i am overpaying a bit more - £60.11 a month. The first year is always harder and alot more money was spent getting things for the house. As long as you can keep up with payments you'll be fine. Most of my bills go out the day after im paid. Good luck and enjoy your new home.:D

poppyoscar_3

Why don't you just start with a mortgage pig for loose change? As it adds up you could make some op's without noticing the money going. mine probably ends up with £3-4 a month in change and i bag it up as it gets to the right amounts. At least that way you'll feel like you're starting, and it's also a great way of focusing on how you spend the cash in your purse!
PO xx