My First Step into the scary world of MFW

clearing_out_my_pockets

Hello all :wave:

This is my first proper post on the MFW boards - I've posted on one of the threads, and have been making over payments here and there, but have mainly stayed on the DFW boards. As my next birthday approaches, and the 6 month mark of being a mortgage holder also looms near, I thought I'd step into the big, scary world of MFW!

A little bit about [STRIKE]me[/STRIKE] us.

We took out a 30 year (I know, I know) 90% LTV (I know!) mortgage in December on a tracker which allows us to over pay by £500 per month without penalty. Between December and now, we have paid £5,242.42 in normal payments and £471.25 in overpayments. This doesn't seem a lot, but we are also saving for a wedding. Once that is over and done with the overpayments will increase quite dramatically.

If interest rates stay the same and we continue with our overpayments as we are, increasing them after the wedding, we will be free of the mortgage in just under 17 years, which suits me just fine, but I'll target 15, I think.

I know interest rates won't stay the same, but I can't do calculations based on the unknown!

delmar39

Well done. Any OP amount is a step in the right direction and balanced with other priorities (i.e. wedding savings) it gives a certain amount of satisfaction knowing you're on your way to paying your mortgage off earlier than expect. All the best.

clearing_out_my_pockets

Thanks. I'm a little bit strange with numbers. I don't like having non-rounded figures on any of my bank accounts - the mortgage is the only one I can put up with being a random number.

So far, I have been seeing a slight impact of the overpayments. When we first completed we were paying £19.91 in interest per day. As of today, we're 'only' paying £19.78. Still a shocking amount, but it's a step in the right direction.

Toying with the idea of not telling OH when the mortgage is paid off and pocketing the money for myself!!! He has so little interest in the mortgage, it's unbelieveable!

Courgette

clearing_out_my_pockets wrote: »

Toying with the idea of not telling OH when the mortgage is paid off and pocketing the money for myself!!! He has so little interest in the mortgage, it's unbelieveable!

:rotfl::rotfl::rotfl: I like your style!

Good luck on your journey!

clearing_out_my_pockets

Seriously - he doesn't know what our interest rate is, he wouldn't have a clue how much has been paid off to date and he isn't noticing the small payments I'm making so far.

We don't have a joint account (yet) so he has a standing order for his share of the bills that goes into my account. The 13 years we're shaving off the mortgage means I could potentially make £56,940 by keeping quiet about overpayments!

clearing_out_my_pockets

97p overpayment today, although a second small payment may also be forthcoming as I've noticed my credit card balance isn't a nice round number.

delmar39

My OH has no idea either. We don't have a joint account, which enables me to overpay what I want - OH doesn't see the point of it and would rather spend it! However, recently OH is all for it since I sold the advantages and as long as I balance with our other priorities she's fine with it. Just in the process of doing a refined budget to see if there's anymore money I can free up for OPs. What with hols, car service and various other stuff coming up it's not easy, but there must be a way...!

clearing_out_my_pockets

delmar - our 'regular' overpayment is actually similar to that you're showing in your signature. This means we're effectively paying the same amount as we would be paying if it was a 25 year term. So we're quite clearly not overstretched with our mortgage.

It wouldn't be as much of an issue OH not knowing out interest rate, balance, etc if he didn't work in finance, and if our mortgage was older than 6 months! Good job one of us has their head screwed on!

delmar39

clearing_out_my_pockets wrote: »

delmar - our 'regular' overpayment is actually similar to that you're showing in your signature. This means we're effectively paying the same amount as we would be paying if it was a 25 year term. So we're quite clearly not overstretched with our mortgage.

It wouldn't be as much of an issue OH not knowing out interest rate, balance, etc if he didn't work in finance, and if our mortgage was older than 6 months! Good job one of us has their head screwed on!

To be honest I'm pleased OH let's me get on with it. I think it all boils down to the fact that she knows I'm good with money so just trusts me to get on with it. I think she knows that I wouldn't waste it or spend it on something else!

I've just put in place a punishment system. So, for example, my aim in the week is to take packed lunch to work and not spend any money Mon - Friday other than on essentials. When I go up to the shop on a lunchtime to look around and end up buying something that's none essential I have to pay the equivalent amount off my mortgage. So today I saw two bottles of Marston's Fever pitch beer on offer for £1 and bought a couple. Essential one might argue, but it's something I wouldn't normally have bought, so that's £2 towards the mortgage overpayments

Perhaps a slightly silly system, but it makes me think about buying things that I don't need.

clearing_out_my_pockets

Hi it's me again.

We're off to a Salsa class tonight and the instructors give you one free lesson for every five that you pay for, and tonight's our free lesson (in theory). If that's the case, the salsa money will be winging it's way to the mortgage account tomorrow.

67p overpayment today. Every little helps!

gallygirl

clearing_out_my_pockets wrote: »

Thanks. I'm a little bit strange with numbers. I don't like having non-rounded figures on any of my bank accounts - the mortgage is the only one I can put up with being a random number.

clearing_out_my_pockets wrote: »

97p overpayment today, although a second small payment may also be forthcoming as I've noticed my credit card balance isn't a nice round number.

clearing_out_my_pockets wrote: »

67p overpayment today. Every little helps!

:rotfl:oh great, another mad woman :rotfl:, welcome to the club, there's lots of us around