Southernman's steps to freedom!

Southernman

I've been browsing the MFW forum for quite some time now and as i do work for a bank and see people's mortgages on the systems quite regularly, the weird thing is i have never ever seen anyone make overpayments on any of their mortgages.

I'm wondering if people in this forum ARE an extreme minority, as i've said i must have looked at 100 peoples mortgages over the last two years and as yet not a single one has overpaid.

Also another thing, people seem to be able to overpay by a VAST amount each month. I can just about afford £100, plus £200 in a savings account for emergencies/enjoyment/mortgage lump sum payoffs further down the line.

It may be down to two incomes (which i don't have) but if i could overpay by £500 a month it would be fantastic. Saying that, my mortgage isn't as big as most peoples. I'm currently on £83,919! It would be great to get it below the £70,000 mark when my 5 year fixed is up (in 3.5 years).

EDIT- assuming i pay off £3000 each year for 3 years, apparently (according to my calculations on the spreadsheet, i would fall below £60,000 on my mortgage.

Now this year i'll have definitely paid off around £4000 in overpayments (although £1000 of that was a daddy donation and another £1000 is chilling in my savings account until next payday) so that could well be achievable which is EXTREMELY EXCITING!

sweetdaisy

Southernman wrote: »

Also another thing, people seem to be able to overpay by a VAST amount each month. I can just about afford £100, plus £200 in a savings account for emergencies/enjoyment/mortgage lump sum payoffs further down the line.

We are on two incomes in our house and we manage to overpay around £100-£150 a month and put money into our savings as well as savings accounts for the children. I would love to overpay more on the mortgage, but until our childcare costs reduce, I am not able to increase our overpayments.

Tilly_MFW_in_6_YRS

Hi SouthernMan, we spent 13 years with our heads in the sand. Spending ridiculous amounts with nothing to show for it. I lurked for a year before starting a diary which was silly.

We OP any penny we can now and no money is wasted. Increasing disposable income was key for us - any way possible. We have a lodger and up to a few weeks ago had two lodgers . It amazes me how colleagues I work with don't OP and buy coffees, lunches etc and then moan abut being skint. I sit with my packed lunch, or soup and think about April 2016 :j:j

Whilst our incomes may all be different our goal is the same and the support this forum gives is phenomenal.

Enough prevaricating, I need to get Eb@ying

Night, Tilly x

Southernman

I do have a lodger and i think he gets quite a good deal considering i'm not around much and he gets a bathroom to himself plus i don't think i charge him enough rent compared to roomshares in my local area BUT he's a good flatmate and he's tidy and courteous so i can't complain!

I could manage without him but i wouldn't be able to overpay or save a penny. My wage would literally go on bills and nothing fun as they amount to £834 (before overpayments) with income of around £1170 (on a non bonus month) leaving me with £336 for living and food.

Times like this i don't think affordability calculators for mortgages are that accurate, my wage is after a (slight) payrise for inflation too! In real terms i shouldn't have been approved it i don't think.

(service charge is a large chunk of my bills- currently £168 although should drop by £30-£40 by Jan 2013)

Southernman

I'm wondering if it's achievable to aim for a mortgage of £60,000 by April 2016 when my 5 year fix ends.

According to an excel spreadsheet it's possible but i do need to overpay by £3500 ish a year.

I'm going to try and aim for this anyway!

I_want_a_baby

Hi Southernman,

Just been reading your diary - well done on your OP's so far!

We are in the process of buying our first home & already have our OP plans sorted (and the long term plan on amount of equity we could have in 7 years to upsize to the forever home!).

I just wanted to say 'hang in there with your boyfriend'. When I moved in with my now husband (after 3 years together), I couldn't understand why he never had any money. He soon told me it was all sorted and it transpired that he had been living the high life, had racked up 35k of debt & had gone into an IVA (completely unaware of the consequences!).
Those first few months after were very bumpy, I nearly left a few times, especially once when after a big talk about how we had to be open about our finances and discuss big purchases before getting them - he went and spend £120 on a hobby which left me nothing for the month as I had to make up the bills. It was then that the ultimation was delivered.

I do the money or I go. It wasn't that I didnt trust him just that frankly I was much better at it. He was actually releaved that he just got his 'spends' and knew I had all the bills paid and savings made. He knew from that day that if he got any more credit or spent something that was unneeded I would be gone. I even got a 10k loan out in my name to clear the IVA early - lots of people thought I was crazy but deep down I knew he was 'the one' and he wouldn't let me down again.

Fast forward 7 years & we are happily married with two children and currently buying our first home. Over the years he has become more and more happy with the set up. Now he is is the one talking quidco/overpayments/saving money & I REALLY would have never thought that would happen!

I just wanted to let you in on a positive outcome & send my best wishes to you both.

Stacey x

P.s Anything is possible if you want it enough re: your target!:)

Southernman

What a truly inspiring post!

He is making the conscious effort to get things sorted. It must have been so tough on you at the time. In a way i'm glad i'm not the only one and the scale is so much smaller than your situation 7 years ago and i still found it a shock to deal with at first.

The thing i think i'll struggle with in time is the my money/his money. I'm working my bum off with my mortgage and he's renting and has nothing to show for it.

I just feel a bit ARGH because traditionally the male should look after the girl and at this rate i'm going to be his babysitter.

I don't even know if i want him to live with me and put towards my mortgage because so far i've put £56k of my own money towards it! (not even counting interest). I've been doing it solo.

PS i aim to be mortgage free by 40 too! Only 17 years to go lol.

Mortgage_Reduction_Novice

Southernman wrote: »

I don't even know if i want him to live with me and put towards my mortgage because so far i've put £56k of my own money towards it! (not even counting interest). I've been doing it solo.

Well then you need to decide between you on what terms he'll move in on (if that's what you want - he'll pick up some of your frugal ways living with you!). You both need to be happy with the terms. Perhaps you can continue to have your mortgage as yours and he more of a lodger with contributions to you. You may feel differently in time and be happy to share what you have with him down the line.

Southernman

Yeah i'm only 23, i'm probably looking too far ahead really.

It wouldn't be for another 5 years. If i'm completely honest i don't know if i'd like to move in with a future husband until i'm ready for marriage and i feel too young ft sort of thing right now.

Plus i know this is awful but i really want a nice engagement ring. I've been dreaming about it since i was 10 and know exactly what i want. I don't even want a posh wedding, something small but a nice engagement ring (yellow gold, single stone, circular not square) would make me so happy!! It has to be from a second hand jeweller too, i want something vintage and traditional!

(i don't ask for much i know)

Mortgage_Reduction_Novice

If you're not ready then don't feel rushed or forced into living together. It is a big commitment step but not irreversible.