My MFW Diary

flatmate

I've been hanging around the MSE forums for a while now learning how to be a bit more prudent with my cash so now I think it's time to start my own diary. I don't only want to pay off a big chunk of my mortgage in 2011 but also want to try and keep extra income streams coming in to help knock off as much as possible, so overtime, ebay etc.

Ok about me (Lee) I'm 27, work in London, no debts and bought my flat in 2008 for £120k (yup I wasn't the cleverest bunny, bought at the totally wrong time), after deposit and a couple years payments I have £104k left to go. It was on a 30 year term but I have already been randomly overpaying but the reason I am starting this is to actually keep a record of what I'm doing and to hopefully make a half decent dent in the big old number in 2011 and more importantly help to keep me encouraged .

I will get the proper numbers once I can track down my last statement which seems to have gone walkabout but to get me started today I threw a £57 overpayment at the mortgage and set up an online ISA to put my emergency fund in rather than leave it in a normal savings account.

Now off to find random coins laying about all over the place to also throw at it, look for things to clear out and sell on ebay and keep myself encouraged to do some overtime tomorrow night.

katsu

Hi Lee/flatmate,

The way I look on it is that it only seems like you bought at the wrong time now, in enough years prices will have risen and it will all have sorted itself out.

Good luck with the OPing. Lots of tips here on saving cash, so do have a browse around. The emergency fund ISA is a good idea - we've done the same ourselves.

CathT

Hi,

Keep reading the diaries and doing regular updates and you'll find the motivation to keep making overpayments. Wishing you luck with it. I bought end of 2004 and our house has lost £5k after a recent valuation so don't worry!

Secret_Saving_Squirrel

Good luck to you. I have found that the diary has kept me really motivated.

Squirrel

flatmate

Cheers guys, I have an additional issue with the flat as the lease only has 76 years remaining I think, which is not good (I stupidly didn't know about this stuff when I purchased it). I've stopped worrying about it though, awaiting to see how much they want to extend it or let me buy the freehold, if it's too much have a possible stupid idea of just renting it out once rental prices match the mortgage payments, let it pay for itself then the rent could pay for my retirement.

Ok proper numbers are:
Monthly standard repayment is £660
Mortgage balance @ 30th June 2009 = 106,807.97
Mortgage balance @ 30th June 2010 = 104,975.07

flatmate

Ok end of my first night and getting my head in the right mind-set to do this properly. Hunting around the flat I managed to find £50 in change so need to get this in the bank and off against the mortgage. Also found my GCSE grades in a box.................. where they will be returned never to see the light of day again lol.

For eBay have got 3 books (that I didn't like), a Zippo lighter, some old train set stuff from when I was about 9, a pair of Voi trousers, and 2 pairs of Diesel, 2 pairs of Levis and a pair of Lee jeans (I actually own more pairs of jeans that don't fit me anymore than do....... how odd lol.

RosieTiger

Welcome aboard and good luck

tootallulah

I really wouldn't stress about what you flat is worth, concentrate on owning it and then it really doesn't matter. I think that you are doing brilliantly in your overpayments so early in your mortgage.

I paid off the mortgage on my flat and then bought a house with a view to the flat being part of my retirement package, so it is doable but it did take me quite a long time. With hindsight when I was ready to move I should have taken out a btl mortgage on the flat and not paid everything off which would have meant moving 5 years earlier, you live and learn!

Sassers

Hi there - just wanting to say good luck. Have you thought about joining the Payment a day thread on the Debt free wannabe diary thread.?
I've started to bash down a lot of my mortgage and debt doing this. Some people are debt free and use the method to pay in savings. It's kept me motivated and could help you...I dunno it's worth a try.
All the best
Sassers

SmlSave

Welcome to MFW Flatmate

I wouldn't worry about the Lease only having 76 years left to run unless you're planning to remortgage or sell soon. Perhaps another saving account is in order just in case you get offered the Freehold or indeed extend the Lease in the future.

flatmate

Cheers tootallulah I'm not crazy after all ha ha. I do often wonder if this is the right way of doing it or if I should just save a big new deposit instead, but guess the more paid off now potentially the less restricted I'll be in the future.

I'm more of a monthly person although I do kind of do the payment a day thing if I bring lunch in to work rather than buying it I put a couple of quid against the mortgage and so on. What I'm actually doing now my emergency fund in the savings account has been moved over to an ISA is put a big lump sum into the savings account on payday (taking into account what bills I expect to come out each month). When next payday comes along put the money in the savings against the mortgage and start the process again .

Ok today's update.

Been playing about with the excel spreadsheet mortgage calculator and was beginning to think the bank had made a mistake as adding in all my overpayments the June 2010 balance should have been lower. Got confused for a while then realised the arrangement fee was rolled into the mortgage so I actually started on £108,999. To keep me encouraged I have already made overpayments of £1,196.17 before I started this little mission and the spreadsheet says if I were to just continue paying off the standard values I would have already saved myself just over £5,700 in interest payments! Blooming good return!

Found some more books in my draw at work which can also go on eBay and some that an ex employee left here but they can go to the charity shop. Might start asking my colleagues if they have any junk they don't want that I can sell.

More good news, thought I didn't do any overtime in November (went on holiday) but found a post-it reminding me to claim 1hr 15mins at the start of the month so that's and extra £32.96 to the good and plan on doing the same amount again tonight.....