Juicygirl's forever home but NOT forever mortgage diary!

juicygirl

Hi everyone!

Serial lurker of this board here. I recently posted about whether small overpayments on a large mortgage were worth it and was surprised by the great advice and friendly welcome I got. As a result I have decided to start a diary of my own.

A bit about us:

Me and hubby both aged 29 but turning 30 in the next few months :eek:
We moved from our small 2 bed flat to our forever 4 bed detached house last August, missing out all the middle steps. This suited because I am the bigger
wage earner but this wage will drop if I go part time in the future.

Our current mortgage balance at December 2010 was £233,561.69. The mortgage was taken over 35 year and is a fixed until end June 2012 at 4.59%. This was an 85% LTV.

My first aim is to get to 80% LTV before the fixed rate is up. This will require paying £13750 off the capital if my calculations are correct.

Thanks to everyone who gave advice on my first thread on this board and good luck to everyone on their MF journeys x

katsu

Welcome Juicygirl :eek: at the size of your mortgage but not too bad at all for a 4 bed detatched.

We are a great set of virtual neighbours here and I really value some of the people I've only ever met here as fellow fans of the man :money:

You can get lots of tips to help you with the overpayments and truly every one will help. The way I look at it is that we paid an OP last year that was about £100 more than a single monthly payment, but it took 3 months off the term. Not bad at all.

dimbo61

every single penney will have a massive effect with a 35 year term so please keep up the overpayments.
You dont want to be paying a mortgage up until you are 65
At a guess overpaying £1 now will save at least £2 in interest over the term

juicygirl

Thanks for the replies!

dimbo61 wrote: »

every single penney will have a massive effect with a 35 year term so please keep up the overpayments.
You dont want to be paying a mortgage up until you are 65
At a guess overpaying £1 now will save at least £2 in interest over the term

Exactly Dimbo! Ideally I would like to have it cleared by age 50 at the very latest. In order for us to secure the mortgage this was the best option for us at the time but we agreed with my FA to start overpaying asap.

juicygirl

Well, curently we are still in the process of furnishing/decorating the new house. Now the main items needed are in place - sofas, dining table etc - we are going to slow down with this at bit (but I still want tokeep things moving along slowly). So for the next few months I plan on using whatever is left at the end of the month to get me started.

I also plan on putting any Amazon sales straight to mortgage and finally get round totry Ebay selling.

I am lucky enough to get quarterly bonuses which, after tax, are about £900 so at least 50% of thesewill also be allocated to the mortgage.

That's about all I have thought of so far.

RTNI

Welcome to the MFW board and good luck with your journey! Looking forward to the updates as time goes on!

Catslovelycats

Love your title, juicygirl!
best of luck with the mortage OPs and turning 30!

adwat

Good luck with your challenge!

To clear your mortgage in twenty years you need to start overpaying by £800 per month from now.

Try making a budget / statement of affairs to see how you can maximise your overpayments.

juicygirl

Can anyone point me in the direction of the SOA template?

juicygirl

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 3000 (this can vary between 2500 - 4000 but have given an average)
Partners monthly income after tax....... 1756
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4756

Monthly Expense Details
Mortgage................................ 1123
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 250
Electricity............................. 40 (probably not enough but unsure of best DD amount until we have been here a bit longer
Gas..................................... 40 (ditto)
Oil..................................... 0
Water rates............................. 0 (Scotland so in with Council tax)
Telephone (land line)................... 40 (includes broadband - total rip off but had to go with BT to get line installed, stuck with it til end of year)
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 63
Internet Services....................... 0 ( see above)
Groceries etc. ......................... 250
Clothing................................ 50 (a guess -don't put money aside, just buy as needed)
Petrol/diesel........................... 60
Road tax................................ 10 (again a guess, just pay it when it's due,don't save for it)
Car Insurance........................... 30 (ditto - pay annually)
Car maintenance (including MOT)......... 0 ( new car - service not due for another year, just pay new tyres etc as required)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5 ( free examinations for eyes/teeth,no treatment uusally needed so this is prob high)
Pet insurance/vet bills................. 0
Buildings insurance..................... 52.5
Contents insurance...................... 0(in with buldings)
Life assurance ......................... 38.01
Other insurance......................... 86 ( 2 x critical illness policies - i am self employed)
Presents (birthday, christmas etc)...... 50 (again just pay as we go so this is a guess)
Haircuts................................ 0 (hairdresser friend does it for free)
Entertainment........................... 50 (this is prob too high)
Holiday................................. 300 ( didn't go on one last year and just pay as we go so this is guess)
Emergency fund.......................... 50
Husband car insurance .................. 50
Husband life insurance ................. 60
Husband car finance .................... 340
NI contributions........................ 12
Car finance............................. 290
Church ................................. 40
Total monthly expenses.................. 3381.51


Assets
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 1600
Other assets............................ 0
Total Assets............................ 276600


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 233600...(1123).....4.59
Total secured & HP debts...... 233600....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 4,756
Expenses (including HP & secured debts). 3,381.51
Available for debt repayments........... 1,374.49
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,374.49

Personal Balance Sheet Summary
Total assets (things you own)........... 276,600
Total HP & Secured debt................. -233,600
Total Unsecured debt.................... -0
Net Assets.............................. 43,000

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font


Sorry it's a bit messy! The biggest reveal from doing this is seeing how little I budget for things and just assume I'll pay for any one of bills/gifts etc from that months wage. As this can vary so much this is probably a bad idea. Think I'll try to start puuting some money by for these things too.

Oops! Also forgot to add in the quarterly bonuses I get - approx £900 after tax. Next one due April 2011 :-)

Any thoughts welcome xxx

gallygirl

You've identified yourself that you don't know how much you spend on things, that is an obvious thing to try to get a handle on. The payments that stand out are the 2 car payments. What are these - if they are loans what is the APR and can they be paid off early? Or is it more beneficial to you as s/e to keep owing?

Oh, hello by the way :wave:!