Vala's frugal journey to be MF!!

in Mortgage-Free Wannabe
152 replies 14.7K views
Hi All,

I feel this is an odd time to start a MFW diary as I have been starting to get into the MFW for about 6 months now but have mainly been a lurker but geting very excited over everybodies posts and how much people are able to save and over pay.

A little bit of info about me - I am 27 and me and my OH bought our first house together with a mortgage of £110000 in 2010 with a fixed interest for 2 years, we have now come off the fixed rate as of April/May this year and have been able to start overpaying, luckily as and when we want using internet banking. After a meeting with the lovely lady in HSBC she showed me that if we continued paying the same figure that we had been doing whilst we were on a fixed rate, there would be an overpayment of around £132 a month, this meant there were no changes to the amount we would be paying off and if things stayed the same rates wise (which I know they wont but still) it could take 8 years off our MFD (currently March 2040 :eek: )

So this equals me super excited, scrambling round everything that goes out of our joint account to try and find some extra pennies to put on the overpayment which we have been lucky to carry on sticking to and im gradually coaxing the OH round to this way of thinking. Unfortunately our joint account has taken a bit of a battering due to DIY jobs etc so August may be the first month we wont actually make the over payment so we can build up the fund we have in there.

To make things a little more difficult (but in a good way :p ) We are planning on getting married in June 2013 and paying for it ourselves (so I am also a DIY wedding MSE'er - I apologise now if you get any weddingy mse stuff on here) So we are managing to save £200 each a month to go into a 'Wedding Fund', since being able to make overpayments part of me cant wait to be married just so we can start putting that towards the mortgage :o

I am starting this thread just to try and keep myself accountable and motivated, I am a hardy MSE'er and keep at it even tho I get a lot of funny looks from people my age when we go out for a day with our packed lunches and flasks when they are all in the pubs but I love it and would love to have somewhere like here to record my progress and to keep reminding me of the main goal!!

Thanks everyone for any support, I love reading your blogs, you all seem to be very on the ball with it all and I hope to learn from you all!!

Vala

:D
Simplify and then Simplify some more!
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Replies

  • beachiebeachie Forumite
    463 Posts
    Hi,

    Good luck on your journey. It sounds like your on the HSBC variable rate at 3.84% which means you are most certainly better off putting your money into a Cash ISA or savings account if you havn't already done so. Needs to be one that you won't lose all your interest on if you make a withdrawal.

    You can then use this to overpay the mortgage if interest rates rise and become higher than the savings rates.

    Beachie.
    Mortgage: [STRIKE]Jan 11 - £91830 [/STRIKE][STRIKE] Jan 12 - £89'199[/STRIKE] May 14 - £69'999 Car Loan: [STRIKE]Jan 11 - £3658 [/STRIKE] July 12 - £0! Credit Card: [STRIKE] Jan 11 - £3300 Jan 12 - £2250 [/STRIKE] Oct 13 - £0

    MFiT-T3:#43 (Half Mortgage) April 13 - £10719/£42875 (25.00%)
  • Vala-Mal-DoranVala-Mal-Doran Forumite
    239 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    Oh gosh really? I thought i was beginning to understand this stuff but then I had been wondering why the interest I was paying wasnt going steadily down like I expected it to?

    Why is it better to wait then?
    Simplify and then Simplify some more!
  • Secret_Saving_SquirrelSecret_Saving_Squirrel Forumite
    4.1K Posts
    Mortgage-free Glee!
    ✭✭✭✭
    Hello Vala,

    Thank you for saying hello on my thread. I liked what you said about discovering that you were a mfw! How did you find out? I do like a lightbulb moment!

    Good luck with the wedding saving, it is tough to save it all yourselves but the huge advantage is that everything is totally your choice only!

    All the best,

    Squirrel
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • Vala-Mal-DoranVala-Mal-Doran Forumite
    239 Posts
    Part of the Furniture 100 Posts Combo Breaker
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    Hi SSS :)

    It was a culmination of things really, partly coming on the the MFW thread out of curiosity as I knew you could over pay but I had no idea just what a difference it could make, combined with playing on the overpayment calculators it was a bit of an 'oh my god, we could actually do this' moment!

    Haha-about the wedding planning being our choice - try telling my mother that!! To be fair they have offered to 'help' but communicating isn't our strong point and I would never dream of asking so am assuming as if it will be us funding the entire thing which is how I would prefer it to be then any help is a nice surprise.

    I find it funny that I got so attached to your thread especially as we seem to be in completely different situations but i suppose its just fascinating to see how other people do this!
    Simplify and then Simplify some more!
  • beachiebeachie Forumite
    463 Posts
    Oh gosh really? I thought i was beginning to understand this stuff but then I had been wondering why the interest I was paying wasnt going steadily down like I expected it to?

    Why is it better to wait then?

    I wass overpaying my mortgage by as much as possible until not long ago because it felt good and I liked seeing the balance come down, however I have now been paying as much into my cash ISA and regular saver to get it up the limit.

    This is because the interest rate on my cash ISA is higher than the interest rate on my mortgage.

    Therefore I earn more on putting £100 in the Cash ISA than I do paying off £100 on the mortgage.

    I then take my mortgage balance and deduct my savings to get a figure showing how much I owe.

    Obviously if HSBC change the variable rate or you want to move to a fixed rate then you will need to check again.
    Mortgage: [STRIKE]Jan 11 - £91830 [/STRIKE][STRIKE] Jan 12 - £89'199[/STRIKE] May 14 - £69'999 Car Loan: [STRIKE]Jan 11 - £3658 [/STRIKE] July 12 - £0! Credit Card: [STRIKE] Jan 11 - £3300 Jan 12 - £2250 [/STRIKE] Oct 13 - £0

    MFiT-T3:#43 (Half Mortgage) April 13 - £10719/£42875 (25.00%)
  • Vala-Mal-DoranVala-Mal-Doran Forumite
    239 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    Oh I see, I will definately have a look into that it will need a bit of planning.

    Thanks for the advice!

    Vala xo
    Simplify and then Simplify some more!
  • Hi :j

    Looks like we had a similar mortgage but mine was a 5 yr HSBC fixed rate of 5.68% until July and is now on the HSBC SVR of 3.94%. I much prefer to make overpayments but do keep some by for savings/DIY. :)

    Did you by any chance see the Channel 4 programme, Superscrimpers, last night. They had a wedding on a budget really looked interesting, I think the programme is repeated during the week - if you missed it. Good Luck with your journey.
    Mortgage: Aug 12 £114,984.74 - Jun 14 £94000.00 = Total Payments £20984.74

    Albert Einstein - “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
  • Vala-Mal-DoranVala-Mal-Doran Forumite
    239 Posts
    Part of the Furniture 100 Posts Combo Breaker
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    Hi exarmydreamer - No I hadnt seen that episode until I saw your post then ran into the living room to get it on the demand. The OH was grumbling at first but then it got entertaining when he started ranting at the TV about how much money people spend - or should I say waste -on takeaways, treats (like £40 beads!!) each month. Quite entertaining for me!

    Iv swapped all my moneys round tonight so that wedding fund is up to date and credit card is paid off. Iv been using the credit card as it is a cashback one and have been trying to put all 'everyday' spending on it and then pay it off at the end of the month, it sounded so simple - I even have an accounts app to help me keep an eye on it, yet each month near the end iv forgotten how much is on there or how much is in my current account and have ended up overdrawn which is annoying as I should be having money left over these days (we recently went to sharing my car instead of being a 2 car household so my costs are effectively halved!)

    Im annoyed iv struggled so much with it, especially when on paper it seemed such a simple thing and Iv never been a person to use credit cards other than for big purchases eg car repairs etc when I usually have the savings to clear it immediately. Oh well - hopefully I will get back to normal over the next month or so and just have the one account to keep and eye on!!

    Had a freezer surprise tea tonight - certain Mr N CSlaters Sweet Onion Lentil Stew - Recommended, tastes a lot lovelier than it sounds! Especially if you like cinnamon and nutmeg! Its pretty low fat too!

    We have been using up cupboard and freezer stock this last week as we have not been in much, I cant wait to go food shopping on Friday morning, I feel like I havent seen a fresh vegetable in weeks. I do all the cooking in our house (Im a bit of a Foodie) and Iv recently gotten into a very good balanced healthy diet so am feeling the difference now im turning to more stodgy foods. Im also a bit sad to have run my freezer stock down, but I guess it needs to happen sometimes.

    Roll on Friday and a weekend of freezer planning and batch cooking! :T

    Stay happy! :j
    Simplify and then Simplify some more!
  • wantabetterlifewantabetterlife Forumite
    1.3K Posts
    Part of the Furniture
    ✭✭✭
    loving the diary VMD...goodluck :D
    Mortgage [strike]£177,750[/strike]£149,488
    Overpayments 2016 £2053.58 2017 £3417.70 2018 £5180.78 #26 2019 £2435.35
    Daily interest £19.91:eek: £15.28 :eek:£8.94
    BUY TO LET MORTGAGE [STRIKE]£111408 [/STRIKE][STRIKE]£109975[/STRIKE] £94,779
    14.9 % paid
  • Vala-Mal-DoranVala-Mal-Doran Forumite
    239 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    Wow what a busy weekend, first time iv got to the internet for days!

    Having a lot of meals out at the moment due to birthdays, celebrations etc. It's hard on the purse but I always try to go to things like these so that we stay in touch with people-we don't tend to do meals out on our own much so that kind of makes up for it. One more tomoro night then hopefully back onto normal routine for a little while.

    On the plus side I made cupcakes for a birthday present today and have a lovely cake box to put them in so a cheap present- just need to find a card from my present box and I'm sorted.

    Batch cooked a lasagne today - 1 portion each, another 6 for the freezer. Made it a bit special by setting the table and having a bottle of (free, won at a pub quiz) wine, also used some of our vegetable patch salad so feeling pretty happy about dinner.

    Also bridesmaids dresses came on Friday - these are very mse, I bought them through a fleabay shop, noticed the other day that they were no longer in my watched items so I re-searched for them to find that the style I liked were being discontinued and there were 2 left in the size I needed!! Eek!! Cue me stressing, frantically sending messages to bridesmaids and then just buying them anyways as - wait for it - they were HALF PRICE!! So I got 2 bridesmaids dresses for £74! Still a bit painful but a big discount so happy with that. They have arrived and are lovely - cant wait to get them tried on! Will be too big for on girl but can be taken in hopefully.

    Think that's it for now, ooh except that I realise I have to work on oh's spending habits, after travelling some distance to a shop to buy one thing, which they didn't have, oh states that we need to buy something, to make it worth the trip! Hmm- definately needs working on!

    Enjoy your day.

    Vala xx
    Simplify and then Simplify some more!
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