Agile's quest to be MF - The journey begins

agile83

Hi all,

Have been lurking on the forums for some time and get great inspiration from reading other diaries. I'd like to start my own one - hopefully when I look back through my diary I will have made some progress to clearing our mortgage down.

My wife (24) and I (27) bought our current home for £116,000 back at the height of the property market back in November 2007 and with only a 10% deposit we started a 30 year mortgage with an opening balance of £104,000.

For the first 2 years we were fixed at 5.87% paying the standard payment of £614, with only around £117 a month of that being capital!!! After the fix ended we went down to Alliance and Leicesters SVR which at the time was 4.99%. Since then we have been making regular monthly overpayments and lump sum over payments each January whenever possible. Currently we are on a 1yr deal with A and L of 4.24% ending in August and reverting to a 3.74% above base rate for life.

Using Locoblades excellent mortgage repayment calculator ive been able to see the true effects of compound interest and also the great effects of even the slightest overpayments.

As at March 2011 the balance is around £89,900 and we are currently overpaying by making monthly payments of £850 which is around a £400 per month overpayment.

Please see my SOA - I hope if there is anything ive missed you could provide me with some guidance!


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1460
Partners monthly income after tax....... 730
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2190

Monthly Expense Details
Mortgage................................ 850
Secured/HP loan repayments.............. 0
Management charge (leasehold property).. 60
Council tax............................. 97(over 10 months)
Electricity............................. 50 ( electric heating)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 11.25(just switched to sky from BT)
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 7.50
Groceries etc. ......................... 220
Clothing................................ 0
Petrol/diesel........................... 110(can't do anything about this)
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)..0
Haircuts................................ 0
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
CC overpayments......................... 0
child savings.......................... 0
Total monthly expenses.................. 1618.75
Assets
Cash.................................... 2300
House value (Gross)..................... 100,000
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 106800

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 89900....(850)......4.24
Total secured & HP debts...... 59900.....-.........-

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

Monthly Budget Summary
Total monthly income.................... 2190
Expenses (including HP & secured debts). 1618
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 0

Personal Balance Sheet Summary
Total assets (things you own)........... 104,500
Total HP & Secured debt................. -89900
Total Unsecured debt.................... 0
Net Assets.............................. 14,600

sarahevie

Welcome to the board

We are in very similar positions, we started Nov 2007 for 30 years with £143000, have since cut 6 years off term, but still 21 to go,:rotfl: also have very similar monthly incomes.

I am now a SAHM to two daughters, you can make inroads into the mortgage but it takes perseverance, best way to think of it is it's a marathon not a sprint.

I'll follow with interest

Secret_Saving_Squirrel

You are really sensible to start overpaying at this stage while you are young and the interest rates are low. I wish I had had your foresight. I think your SOA seems fine - you are obviously on top of things financially - just stick with what you are doing - don't waste money on junk and keep making the overpayments!

Well done,

Squirrel

agile83

Hi all,

Havent updated my diary in a long time, something im going to be focussing on in the coming weeks. Since April I have been continuing the overpayment of around £300 per month, trying to gain as much equity as I can to help us in the future. Current balance i think is around £87100.

I have however come to the end of my 1yr fix with Alliance and Leicester and have been working hard sorting my next product. I called Santander who advised me to move me from Alliance and Leicester to themselves I had to pay them £199 which seems a bit cheeky as it wasnt my fault Santander took them over. Their trackers and fixes on offer to me were around 4.69% with more fees of around £399 ( I have around an 85% LTV) - So i ended up speaking to my Financial Advisor who found me a deal with The woolwich. Its a 2yr fix and was reduced recently to 4.19% with no fees. It also comes with a "mortgage current account". Can anyone confirm whether this means i will be able to view my mortgage balance? and will i be able to make ad-hoc overpayments when I want to if i register for the online service?? I think this would spur me on even more to drop £10 and £20s on to the mortgage whenever I had some spare rather than spending it!!!

Cheers all

patrick_bs15

Well done for being so on the ball with overpayments already - that's rare in someone under 30...

If that account with the Woolwich is like my First Direct account, you'll be able to find out your remaining mortgage amount over the phone.