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Finally I have a mortgage I can start to pay off!

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themadvix
themadvix Posts: 7,985 Forumite
Mortgage-free Glee! Photogenic First Anniversary Name Dropper
edited 21 November 2016 at 6:06PM in Mortgage-free wannabe
Hi Everyone,
Having been a long time lurker on this board whilst saving for a house deposit (you’re all so friendly and positive that it’s an inspiring place to ‘hang out’), my fiance and I completed on our first house yesterday!

It’s a three-bedroomed terraced house in Hertfordshire (hence the long saving period) with an 80% LTV mortgage of £132,999 with Natwest, fixed for 2 years at 3.79%.

There’s just the two of us (and our new two fish, Rosie and Jim, inherited with the house!), but I work from home, hence the need for a third bedroom as office space. We won’t be moving in until June as the house needs some work doing and we’re getting married in June so it seemed to be a sensible option (as we both currently live with our parents…tragic I know in my late 20s, but nice mortgage rate as a result).

Obviously with house needing work and a wedding looming, I don’t expect to be making much in the way of overpayments for a while (but this won’t stop me rounding numbers down or transferring small bits across). Another issue is that although DF is employed (and hopefully about to get a new job in the company :T), I am self-employed and therefore my income varies drastically from month to month. However, I have built up a fairly solid client base over the last five years, and especially in the last year, so I hope that this will continue to improve and that I will be able to contribute to overpayments.

DF is the spreadsheet nut, so I’m hoping he’ll get it set up for me so I can play with figures soon (although I have no idea what a pivot table is and am not convinced I need to know! ;)) We’re already a very MSE couple having been saving for so long – we cashback, do surveys, shop around, get the freebies that are relevant to us and have already (having gone to the house last night) established that if I’m paying the energy bills we’ll be living in a cold house! In all seriousness though, we are both on board with the idea of overpaying the mortgage - it just makes sense!:D

So, for the moment this diary will be a place to record the small things I do as well as the little overpayments I make (once my mortgage shows up in online banking!). Once June has flown past and we’re back from our honeymoon, I’ll get a grip on income and expenditure and work out an SOA and how much we can regularly overpay. :)

Vicky

PS Long, long term, this isn’t our forever home and one day we’d like to build our own environmentally friendly home! But more of that in the future…
Mortgage free 16/06/2023! £132,500 cleared in 11 years, 3 months and 7 days

'Now is no time to think of what you do not have. Think of what you can do with what there is.' Ernest Hemingway


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Comments

  • originalmiscellany
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    Brilliant stuff! Spreadsheets are key as you've identified as well as a culture of both of you saving and chipping away at your mortgage - as well as the thrill of overpaying little and often. Look forward to your SOA - but be aware (I know you know this) that the first 6 months of buying your house is always more expensive than you think.
    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
  • evab_2
    evab_2 Posts: 2,336 Forumite
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    Congratulations on your new home and best of luck for all your plans x
  • Weronika
    Weronika Posts: 260 Forumite
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    I agree - first 6 months will probably be the worst financially!

    When we bought the house I had this idea of starting the OP straight away and it took me 2 years before I could make first!

    We needed carpets, floors, kitchen, bathroom, all furniture, small household stuff - you will find there is always something missing you didn't know you have to have now you are on your own! People accumulate it over years so the cost goes unnoticed but with new house it's all at once!
    Especially silly stuff like champagne or wine glasses that you forget to budget for:D!

    Good luck:j settling in - you will probably need it...
    Debt: [STRIKE]-£77.299 74,209[/STRIKE]-£72,860 Projected MF date(age):[STRIKE]2044(63)[/STRIKE] 2029(48)
    Credit Card 0%: -£1,800 Reg Saver: £4000/£6000 ISA: £0/£2500

    From March 2012: Mortgage OP: £160 pcm
    (saving 29k):D
    Apr 2013 Goal: reduce balance to £72,000 to get 60%LTV & better deal
  • Numberwang_2
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    All the best Madvix. (sorry to hijack your thread).
    I'm coming to end of 3 yr fix 30yrs on £140k at 7.2% with Yorks Bank will switch to there SVR (just gone up to 4.95% !!!!!!s!!). Can anyone help as my monthly payments should drop by circa £200 should I overpay or save it? Obviously the 1st £200 will buy the family some new clothes, its been a long 3yrs.
  • sweetdaisy
    sweetdaisy Posts: 1,249 Forumite
    First Post First Anniversary Combo Breaker
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    Welcome to the thread and good luck with your plans :). You will get lots of helpful advice on here.
  • Weronika
    Weronika Posts: 260 Forumite
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    Numberwang wrote: »
    All the best Madvix. (sorry to hijack your thread).
    I'm coming to end of 3 yr fix 30yrs on £140k at 7.2% with Yorks Bank will switch to there SVR (just gone up to 4.95% !!!!!!s!!). Can anyone help as my monthly payments should drop by circa £200 should I overpay or save it? Obviously the 1st £200 will buy the family some new clothes, its been a long 3yrs.

    It depends - if you are likely to spend savings it's better to overpay; if you have no ISA or other saving account it could be better to save up for emergencies first, if you have any high interest credit card or car loan that should be tackled first.
    generally speaking, if so far you were managing to pay the mortgage without getting into debt, it's best to tuck that money away - either overpay or save - so you don't get used to it lying in the bank and spend it on silly things. The recent interest hikes are suggesting that the low interest rates on mortgages won't last so you can build up a buffer now for future rate increases.
    Debt: [STRIKE]-£77.299 74,209[/STRIKE]-£72,860 Projected MF date(age):[STRIKE]2044(63)[/STRIKE] 2029(48)
    Credit Card 0%: -£1,800 Reg Saver: £4000/£6000 ISA: £0/£2500

    From March 2012: Mortgage OP: £160 pcm
    (saving 29k):D
    Apr 2013 Goal: reduce balance to £72,000 to get 60%LTV & better deal
  • themadvix
    themadvix Posts: 7,985 Forumite
    Mortgage-free Glee! Photogenic First Anniversary Name Dropper
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    Morning All!

    Hope you all had a good weekend and thanks for a such a warm welcome :) No problem Numberwang - feel free to hijack, but just don't expect me to give you a good answer, maths is not my strong point! But 7.2% sounds like a painful rate! Bet you're glad you're through with that.

    Not a lot of money saving has been done this weekend - OM and Weronika, you are both so right about the expenses of a house! We spent £77 at homebase at the weekend and didn't get half of what we went for (but other things that we do need but hadn't thought about). At least it was 15% off weekend :o

    Still waiting for NW to put the mortgage on our online banking screen so I can see what's what.... wish they'd get on with it!!:rotfl:

    Vicky
    Mortgage free 16/06/2023! £132,500 cleared in 11 years, 3 months and 7 days

    'Now is no time to think of what you do not have. Think of what you can do with what there is.' Ernest Hemingway


  • happihorse
    happihorse Posts: 182 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
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    Hello.

    I read your thread the other day and subscribed but only just had a chance to reply.

    Congratulations and well done on getting your first home! :beer:

    I am in a similar position - well hoping to be soon! I am 30, living at home with my parents and had an offer accepted on a house back in Spetember 2011 but two days before we were due to exchange the vendors dropped a bombshell (ie the probate for the house had not been sorted) so I have been waiting to exchange ever since. I'm desperately hoping (as promised by the vendors) that is goes through before 24th March when the first time buyer stamp duty holiday ends. I am so excited about getting my first house and getting it done up (as it needs a lot of work), so will be following your thread with envy!

    I am hoping to get over-paying from the start too but there will be so much expense I might allow myself a couple of months to get sorted.

    Good luck and I look forward to following your story.

    happihorse
  • Sashk
    Sashk Posts: 47 Forumite
    First Anniversary Combo Breaker Mortgage-free Glee!
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    Congratulations on getting the keys to your new home and your forthcoming wedding !! Its a lovely feeling getting the keys to your own home!!
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    happihorse wrote: »
    living at home with my parents and had an offer accepted on a house back in Spetember 2011 but two days before we were due to exchange the vendors dropped a bombshell (ie the probate for the house had not been sorted) so I have been waiting to exchange ever since. I'm desperately hoping (as promised by the vendors) that is goes through before 24th March when the first time buyer stamp duty holiday ends. I am so excited about getting my first house and getting it done up (as it needs a lot of work), so will be following your thread with envy!

    I am hoping to get over-paying from the start too but there will be so much expense I might allow myself a couple of months to get sorted.

    Good luck and I look forward to following your story.

    happihorse


    we've had exactly the same thing happen, was told it was all sorted when we offered. Made an offer in November and still waiting
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
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