Danni R's little road to riches?

Hello,

I figured its time I jumped on the band wagon as well.

I'm 28 and 1/12 and I have had my mortgage since april 2011.

Its for £105k over 30 years. Its just little old me and I really want to pay it off as soon as I can (who doesnt?!).

I got a nice sized deposit from my parents to buy it and things have changed recently so I'd like to either be able to start paying them back or hit the mortgage with such force that I could remortgage in 3 years and release some equity to pay them back some.

Its not what they want but the situation has changed and I'd like to be able to help them out.

I've never op'd before and I think with NW i can do it by 10% a year fee free.

I'm geting a lodger in at the end of the month. short term to begin with. Now unfortunately I'm going to need this money to clear my od with HSBC but once thats gone I'll be able to get to the mortgage.

I have my little e-bay empire. Just selling stuff from around the house and that I think brings in about £80 a month. but I just spent half of that on new glasses.

I tend to batch cook at the start of the month when I have money so I can eat at the end of the month!

So please join me in my little journey. I need all the motivation and encouragement I can get!
[STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
£1200 of £6000 Savings
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Comments

  • Hi - welcome to this board. I'll be interested to see how you get on as we're of a similar and and have a similar sized mortgage. We also recently considered taking on a lodger (a friend of the family).
  • Remember too there's some tax relief too on a lodger (4.5k a year rings a mental bell) that you're allowed to have without paying tax.

    That would certainly help you out I have to admit. Keep posting regularly here and let's help you meet your goals!
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
  • lvm
    lvm Posts: 1,544
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    Hey Danni,

    Good luck on getting that mortgage down!

    I can vouch for getting a lodger. It took me a lot longer to finally decide on doing this though. I bought my flat in Aug 2006 and was totally against living with anyone until I decided to go for it in April just past. First 2 were very short term but the one I have now is fab (he's a chef and cooks for me all the time!).

    When I come to buying a bigger place I would definitely take in a lodger again (maybe even 2!).

    I'll be starting my MFW diary in January I think after I've sorted out a couple of debts and I can't wait to clear down the mortgage.

    Good luck x
  • Danni-R
    Danni-R Posts: 641
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    Hey!

    Thanks B&E. where abouts are you?

    Original. I didnt plan on announcing it. I'm making sure the council tax is done properly but I've just done rent x 12 and its less than 4.5k. Should I declare it?

    lvm. He's not moved in yet but already I think it'll be ok. he's helping me out with stuff around the house as well. He's got family that are carpenters, electricians etc and his gf is a bathroom fitter so I'm hoping that she'll be able to quote me for mine.

    So this weekend I finished painting my room. I've been sleeping on the sofa since last saturday and I wasnt too happy about it! I dont like one colour. I went for dove grey and dusky raspberry. Its the raspberry that I have issues with.

    My 'new' plan is to get the flat finished by june /july next year and then get it re-valued. Just for my own interests. I want to know that what I'm doing is adding value.

    Oh. When I moved in to the flat the other people left some stuff that they thought I might want including a mobility bed type thing. It looks like I have sold that for £150 which is being used to pay for my wardrobe.

    I still need to attack my od.
    I still need to attack my belly.

    It never ends does it#?!
    [STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
    £1200 of £6000 Savings
  • Danni-R
    Danni-R Posts: 641
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    So I've moved back into my room thankfully and I have curtains up.

    I just cant fit everything in my room t hat I want.

    I gave my mum 2 big bags of clothes the other day. Some with lables on still.

    When will I stop buying stuff I dont need?
    [STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
    £1200 of £6000 Savings
  • Muhren
    Muhren Posts: 1,703
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    Hi Danni

    My circumstances are similar to yours, we are the same age, and our mortgages started at the same time and are over the same term. I am also thinking of getting a mate to move in as the money would really help with op but I am enjoying living on my own too much at the minute!

    My mortgage is a little lower than yours but maybe we can keep each other motivated as we are at similar points. I made my first op of £500 a couple of months ago and it knocked off 3 months of my term if I remember correctly. Taking that first step to being mortgage free felt good and makes you wanna keep chipping away at it. The minimum I can op is £500 so hoping to make another one by the end of the year.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

  • Danni-R
    Danni-R Posts: 641
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    Afternoon Muhren,

    I do love living on my own but I just think I need to get some more money coming in and this is the best way to do it. I also think living on my own has turned me a little lazy so its good that I have someone there to remind me that I do have to pick things up etc.

    Well done for doing your first OP. I just dont feel like I have the disposable income for that right now.

    I dont have a minimum I can over pay (I think) but I can only do 10% a year and if I get even close to that I'd be amazed!

    So, you going to bite the bullet and get the lodger?
    [STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
    £1200 of £6000 Savings
  • Muhren
    Muhren Posts: 1,703
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    I know what you mean about leaving things undone around the house it’s so easily done, but in fairness I think I keep the place fairly tidy. If I get my mate to move in having two blokes there could change all that!

    All my mates keep talking about whether he is going to move in or not but think I am going to try and hold out until the New Year and then go from there. Did you get a contract drawn up for your lodger or are you good enough friends to not have bothered with that?
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016
    Gambling: The sure way of getting nothing from something.

  • Danni-R
    Danni-R Posts: 641
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    I didnt get a contract done.

    Its a 6 month thing then see from there.

    He's doing a lot for me so I'm trying to be laid back. Plus I'm not usually that stressy anyways!

    I'm waiting for the huge queue of people to start with the whole 'you should have a contract' :-o

    I held out for a while but family circumstances have changed so I needed to do something before I got myself into trouble.

    Do you need him to move in or does it just make it easier?
    [STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
    £1200 of £6000 Savings
  • Sepa74
    Sepa74 Posts: 962 Forumite
    Hi Danni, Welcome!

    There are a few of us singletons on here - myself, Seriously Seeking and Hurdler. Radish was a singleton, but she's just sold her flat and is moving in with the bf! Let's not call her a traitor!!

    If you have a lodger I don't think you even need to declare it as long as it's over £4.5K plus expenses, but do check that out. If you don't have to declare it, don't, as it means you might move from PAYE to having to do a tax return every year (if you don't already).

    I had a friend live with me for a while, which worked really well, but that is definitely a tribute to the friend! Some other friends might have been a bit more 'challenging'. My preference would always be to get a stranger or friend of a friend in, hoping they become a friend!

    Unfortunately when my friend moved out I couldn't find anyone else, and now I use the spare room as an office, so I would struggle to get someone in. But it was GREAT having the extra money while it lasted. It paid for carpet and sofas and things, which I really needed.

    You're very sensible making sure that your improvements increase the value, but in this climate I suspect they won't :( I've been focusing on improvements that mean I'M happy - so I've pretty much redecorated everywhere - it had horrible apricot coloured walls when I moved in, and now all the walls are a lovely calm very pale cream. I've just had the kitchen redone (I liked the colour scheme, but the layout was driving me CRAZY!) and the bathroom has just been gutted and should be sorted next week. Again, lovely apricot coloured tiles and bathroom suite. Yugh! What is the obsession with not-quite magnolia? If you're going to go for a magnolia-like colour scheme, just go for magnolia, there's a reason why it's so popular!
    Borrowed £150,000 in an offset tracker mortgage in May 2007 - MFD May 2041 (67)

    Jan 2012 - £125,620.02 / 2,913.87 / Nov 2032 (58) :beer:
    Apr 2012 - £122,901.88 / 3,170.91 / Jul 2032 (58)
    Jul 2012 - £122, 589.02 / 3,507.99 / Sept 2032 (58)
    Oct 2012 - £120,476.31 / 3,889.42 / July 2032 (58)
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