Mortgage free on new house

sillyinthepast

Hello I have been reading these threads over the last few months and am so inspired. I didn't even know you could over pay on a mortgage:eek:

[Deleted User]

Always try to pay debts off starting with the most expensive to least expensive, so if your existing debts are being charged at a higher rate than your mortgage rate (likely, unless in bonus period), then focus on these before overpaying on the mortgage.

HTH

D9

happycamel_2

Congratulations on your new home.

I'd advise:
1) get rid of existing debt that is at a higher interest than the mortgage
2) establish an emergency fund of at least 3 months worth of joint earnings in an ISA
3) save up for house refurbishment and then do it, one room at a time. Make us you have some cash set aside for emergencies such as boiler repairs (the emergency fund is for if one of you loses your job or is long term ill, generally it shouldn't be touched)
4) overpay the mortgage

It takes time but I think I've read in previous posts that you've done an amazing job sorting out debts. Don't cut back on enjoying life too much just because of the house but not spending money on frivolous things makes a huge difference.

One day you and I will be mortgage free, then it'll three holidays a year time

sillyinthepast

Thank you domino 9. I will start like that then lol

sillyinthepast

Absolutely happy camel I can't wait for 3 holidays a year lol x

Beckyy

Was just about to say also, if your debt is a higher interest rate than your mortgage then pay that off before you start OPing your mortgage.

If you can, I would cut back as much as you really can before you move in. That way it will give you a bit of a head start with paying for redecorating etc.

It might be helpful for you to post an SOA (Statement of affairs). It will highight where you're spending and anywhere that you might be able to adjust or cut back each month

Here's a link to a SOA calculator:
http://www.stoozing.com/msoc/soacalc.php

sillyinthepast

I thought about doing an SOA but am going to wait until at the new house.

I have a fairly busy day today I am going to
Cancel phone insurance
Cancel aa
Ring up bank and activate the phone insurance and rac which I get with my account
Make bread
Send out eBay parcels £41.20 made for the Christmas pot
List more items on eBay and Facebook
Collect moving boxes from someone on Facebook who is giving them away

I think that's enough to start with. I have noticed lots of people getting amazon vouchers - can someone please explain what for x

gallygirl

Good luck with your purchase

I agree with what the others have said about paying off debts. Then every little OP you can make will make a difference.

The trick is to decide how you want to live and then do so as cheaply as possible - some are happy with a very frugal lifestyle, others (like me ) enjoy going out for meals etc but look for bargains and don't fritter. If you are spending money on carp then that is a big potential saving for you. Have you tried a spending diary where you write done EVERYTHING you spend? Also, try HERE for the Demotivator tool which is great for showing what something really costs. For example, if you spend £7 a month on mags I'm sure you can work out that is £84 a year - but did you know that it takes you 1/2 a working week (if you work full time) to earn that :eek::eek::eek:?

sillyinthepast

Well have worked bottoms off today have made £47.90 on eBay and £143 on our old DVDs and games:j

lulabelle1

Good luck with the house move and welcome to the MFW club!

lilmissmup

Welcome from me too!

Thats my main hope, more holidays or a holiday home abroad!