Pipz MFW

Pipz

Hello all,

I'm starting the challenge from a slightly different perspective!

I have been initially accepted for a mortgage of £70K for a 50% share of a 1 bed flat in London, I've sent the payslips in yesterday to confirm the salary so hopefully pending successful valuation the mortgage will be approved

I thought I'd start a diary at this point as my experiences may prove useful to others who are considering getting on the ladder via this method (which is my only option).

My plan is, of course, to pay off this mortgage as quickly as possible as I am somewhat debt adverse, though I appreciate this is unavoidable in this case!

My mortgage provider limits me to overpaying 10% of the balance at the beginning of the calendar year and I've opted for a 5 year fix on a 25 year term at an initial 3.69%.

I'll update this thread as I make progress through the various steps before moving in. I live with my folks at the moment so it's quite the life change! It's been great to see the solidarity on this forum (whilst lurking, I admit) as well as the great ideas many have to save that little bit extra to realise the dream of mortgage freedom that little bit earlier

[Deleted User]

Hi Pipz
Didn't want to read and run.
I am on a similar journey at the minute - I have purchased a 25% share in a 2 bed property (£37,500) have had my mortgage approved only a week ago and am now just waiting on a completion date and move in date! It's been a journey and a half already but looking forward to finally moving out of my parents house. I have a 3 year fixed on a 25 year term at 3.49%.
I don't know how quickly I am going to be able to pay off my mortgage but I'm going to give it a good shot! And like you I am already thinking about mortgage freedom! :T

I am holding off on my diary until I have moved in although I have already written my 1st post, budget etc... :eek:

Good luck on your journey I have subscribed to your thread, to keep up with your progress

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Pipz

Thanks Palema, I shall subscribe to yours as well once it's up

Good to hear that you're almost there, I read your thread and after all that you've been through you certainly do deserve your dream flat!

Looking forward to swapping MFW stories, I'll update as my diary as things progress

Pipz

Happy New Year All!

I received the application documentation on Saturday and have completed and sent all the relevant bits back today.

Now comes the waiting! I'll repost once I have the underwriters decision, fingers crossed

Tilly_MFW_in_6_YRS

Hi, starting to think about OPing this early on in your mortgage journey is fab. I wish I had been as sensible.

Good luck with your journey.

Tilly

Pipz

The application has been approved by the underwriters and has made its way to the mortgage centre for a valuation. If all is suitable then the mortgage shall be approved!

I haven't heard anything from my solicitors as yet, I am aware that the seller put the relevant papers in last week so I'm sure they'll be in touch shortly. Otherwise I'll poke them when I get the approval from my bank

I'll update my sig on mortgage approval and then get to the business of becoming MF

Lois_E

Hi Pipz (and Palema) - sorry I didn't notice this thread before - and welcome to MFW :wave:

It's shocking how many people get into these "buy a share of the place" schemes with no plan for paying off anything but the bare minimum. They can get into all sorts of difficulties a few years down the line. But it could work really well for somebody motivated like you who's going to work at paying it off so you can eventually buy the other half (or the whole of a different property or whatever). So well done for being so forward-looking and good luck with your journey.

If you're only allowed to OP once a year, you'll need a savings account to save up all year ready for the big OP date. My advice is to keep your "emergency fund" savings and your "flat OP" savings separate - whether that's two separate accounts or just two columns on a spreadsheet so you know how much belongs to each. Also, make sure you keep an eye on your savings, and the rates available, and move them whenever the situation changes and they're no longer in the best place. But maybe you already know all that, in which case, sorry!

Looking forward to hearing when you can move in.

[Deleted User]

Hi Pipz
Great news on the Mortgage! :j
I hope it all goes through OK for you, and I look forward to reading your diary once you get up and running.
Also Hi Louis!! :wave::wave:
I am just waiting to hear when I can move in! Then my own diary will be on the MFW board too!
Take care
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Pipz

Right,

Almost two months on and I feel the need for an update!

I've now moved in to my new flat

The move went well, being my first place there were quite a few furnishings involved so an expensive month it will be. That said, I had prepared for it so shouldn't take too much of a hit.

I'll have to see how the budgeting goes over the next few months but the current objective is to build up an emergency fund and thereafter start on the overpaying

Lois_E

Yay! Well done Pipz. Hope it is a lovely home for you.

[Deleted User]

Hi Pipz
Happy new home!!
I'm the same at the minute, just finding my feet as I moved 2 weeks ago!
Good luck on your journey and I look forward to reading updates
P
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