The first steps on a long road to be Mortgage Free!

keza

Hello all!

i dont really know how to start this off so i apologise for rambling!

A bit about me, i'm 25, just married to my soulmate (who will be known as Beanie - aged 30). no kids as yet and no debt to speak of except 0% CC with our car on it - £5,700 remaining. I cleared £15k of personal debt in 9 months when i moved in with Beanie at the beginning of 2009, so have now become super frugal and sensible with cash as a result.

Me and Beanie met at work in 2005, got together in November 2007, Engaged by June 2009 and Married November 2010.

Beanie first brought our house in July 2008, the mortgage is in his name, as are the deeds as we were just starting out dating back then (and i was in debt...) He brought our house with 10% deposit he had saved and we now have a mortgage for £162,000. :eek:

Our mortgage is interest only over 25 years, we fixed for the first 2 years as we were scared of the interest rates and the looming recession. Gutted when the rates plummeted as im sure many were!

Fixed rate finished in July 2010 and our rate changed to variable, 2% above base rate - Nice! :cool:

This is still interest only so our monthly payments havent even touched the massive mortgage.

We've had our extravagant wedding, 2 weeks in the Maldives as our honeymoon in November and then 7nights in Hawaii followed by 5 nights in Vegas in March. Now is the time to start overpaying on our mortgage!

So this is my diary to keep track of all the small things im going to do to at least get some equity into our house for our next home purchase if nothing else!

thanks for reading! :D

xx

lincoln-potter

Hello Keza,

Welcome to MFW, I look forward to reading about your progress.
Sounds like you had a lovely honeymoon!

All the best.
LP

keza

heres our SOA. we are pretty organised. few notes next to some:

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.................... 2
Monthly Income Details
Monthly income after tax................ 1587
Partners monthly income after tax....... 2080
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3667
Monthly Expense Details
Mortgage................................ 337 - interest only
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 17
Gas..................................... 20
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 11.66
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 38
Internet Services....................... 6
Groceries etc. ......................... 140
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 46 - 2 cars
Car maintenance (including MOT)......... 40 - put away each month for car related expenses included valeting and tax (£30 per yr!)
Car parking............................. 0
Other travel............................ 250 - my train ticket to work in the city
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.5 - contents included
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 500 - joint savings
Total monthly expenses.................. 1941.16

Assets
Cash.................................... 1200
House value (Gross)..................... 179950
Shares and bonds........................ 800
Car(s).................................. 10000 - 2 cars
Other assets............................ 0
Total Assets............................ 191950

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 162000...(337)......2.5
Total secured & HP debts...... 162000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
virgin cc - car................5700......300.......0
Total unsecured debts..........5700......300.......-

Monthly Budget Summary
Total monthly income.................... 3,667
Expenses (including HP & secured debts). 1,941.16
Available for debt repayments........... 1,725.84
Monthly UNsecured debt repayments....... 300
Amount left after debt repayments....... 1,425.84
Personal Balance Sheet Summary
Total assets (things you own)........... 191,950
Total HP & Secured debt................. -162,000
Total Unsecured debt.................... -5,700
Net Assets.............................. 24,250
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

keza

our plan is to take the following steps :

1) - put away £600 per month for overpayment at the end of the year

2) - round down joint account to nearest £10 into savings account every Friday

3) - any money saved on other expenses goes into savings for overpayment at end of year

Hopefully we will have at least £6,000 to pay off by end of the year (she says....)

xx

originalmiscellany

Sounds like you're pretty switched on Keza - It'll be amazing to see how quickly your debts/mortgage go down with regular overpaying - we're in a similar position to you where any savings are going onto the mortgage, and it feels wonderful to know each month you're paying less in interest etc, and the date of completion is getting that little bit closer. Praise be!

keza

£20.20 on the way to the mortgage pot soon as cash back from npower when we moved to them a few months ago


also a round down of the joint account £6.13 into the pot :j

dimbo61

I would for the time being be splitting the savings each month 50/50 into overpayment pot and cash ISA pot
1 you have very little in the way of savings
2 your interest rate on the mortgage is 2.5% ( well done on that LTV)
3 you could if need be use the savings to pay a lump sum off the mortgage should you need to remortgage or get a fix
4 great plans have a way of changing ( little people arrive) and a good savings pot takes away alot of the stress

keza

dimbo61 wrote: »

I would for the time being be splitting the savings each month 50/50 into overpayment pot and cash ISA pot
1 you have very little in the way of savings
2 your interest rate on the mortgage is 2.5% ( well done on that LTV)
3 you could if need be use the savings to pay a lump sum off the mortgage should you need to remortgage or get a fix
4 great plans have a way of changing ( little people arrive) and a good savings pot takes away alot of the stress

thanks for this. We will be stashing all the savings into one savings account then seeing whats there at the end of the year and decide on a lump to pay as we are currently having to go thru legal proceedings with the people we brought our home from as they gave false info on the SPIF which has left us in a rather difficuly situation....so we dont know how much money we need to throw at that yet with legal fees etc...

dimbo61

OMG legal fees and solictors !! GOOD Luck