The BIG Plan...

DH and I have a pretty big mortgage. We currently have around £280,000.00 with approx 27 years left to go on it. If we don't overpay and bring it down, we will finish paying when DH is 63 :eek:

We bought a house that needed lots and lots of work doing to it. We have done a lot, but still have a large chunk to go. We have an extension/renovation planned to start around spring time which should take around four months.

We have most of the money for this, but we are borrowing some - we (are very, very lucky) from family ;)

We have steadily done a lot of work in the house over the last few years, all paid for with income, but we have not really built up much in the way of savings. We really want to start overpaying the mortgage so we have decided on the following plan.

Phase One

Build up emergency savings pot of £20,000.00

Phase Two

Pay back family loan

Phase Three

Get those mortgage overpayments going :j
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Replies

  • MummyEmMummyEm Forumite
    574 Posts
    Part of the Furniture
    Phase One

    I currently have around £3k sat in a savings account that I saved up last year. This was just bits and bobs that we saved against out yearly budget which I 'hid' away so we wouldn't spend it ;)
    This will form the starting pot for our £20k. I'm not sure of the exact figure in this account as I've lost my log in details :o I have requested a new log in today so should get that through in the next 3-5 working days. The plan is for DH and I to open cash ISAs for 2012/13 and 2013/14 and fill these to form the emergency fund.

    Phase Two

    Paying back our loan. Now DH and I have discussed this at length. I would really like to pay this back before starting our savings, but DH thinks it should be after. This is borrowed from family. There is no interest to be paid on it, they do not 'need' it, and they are not in any hurry for us to pay it back BUT I hate being in debt! I really do not like owing money (including a mortgage), and don't like feeling 'in debt' to family. Anyway, no point in dwelling on it as that's the way it will be.

    Phase Three

    I can't begin to tell you how excited I am about this part. The plan is that once we have finished the work in the house, we will get the house revalued to see if it's worth getting a better mortgage deal as we should have a greatly improved LTV ratio.
  • edited 23 January 2013 at 7:19PM
    MummyEmMummyEm Forumite
    574 Posts
    Part of the Furniture
    edited 23 January 2013 at 7:19PM
    Savings for far in Jan.

    -£95.45 Refund from old energy supplier
    -£2 saving downgraded mobile cost (this will be saved every month)
    -£6.30 against budget for kids school meals where DD has been ill)
    -£137.64 my wages*
    Total £241.39

    *I recently went back to work just a few hours a week, after being home with the children full time for the last few years. I see this as 'extra' money so best to put it straight into the savings so we don't get too used to having it :D

    I should also add that we are also saving for a big holiday next year to visit my sister who lives abroad. This is purely from ebay sales, quidco, surveys etc. This pot stands at £2,000. I'd like to get this up to £4,500 by the end of 2013.
  • Hi Mummy Em:hello:
    You sound like you've got a good plan of action. Have you got a timeframe in mind to pay off?
    Mortgage paid off Dec 20
    £5000 /£7000k debt
    Jan 2019 13.9.5
    Jan 2020 12.06 (-17.5)
    Jan 2021 13.11 (+19)
  • Hi MummyEm:wave:

    I too am a newbie on here so would just like to wish you a big good luck in getting your plan underway:D

    I too have allocated all my wages towards the mortgage and a bit of Mr Buttercup's too.....but he doesn't know that yet....need to know basis...what you don't know doesn't harm you...evil I know:rotfl:

    Mine stands at a tad under 90k but I guess it's all relevant in time and space;) and I would like to banish mine in the next 7 years, how long have you got in mind?

    Best wishes

    Del B xxx
    L.B.M Dec 12 mort £91728 (£7327 sec loan incl)
    Feb 13 mort £89629:D
    2013 Challenge to op £5400/1700 paid so far
    Aim - to be mortgage free Jan 2020:j was 2025:eek:
    I'd rather laugh with the sinners than cry with the saints, the sinners have much more fun......:D
  • MummyEmMummyEm Forumite
    574 Posts
    Part of the Furniture
    Hello Octobergirl

    I would LOVE to have it paid off by the time I am 40 (13 years time, taking 14 years off the current end date), but this would mean overpaying by £1000.00 a month now which is just not realistic.

    There are a couple of factors which will impact the timeframe at the moment. DH is due to start a new job in April. He has been offered quite a bit more money so all extra will go in to Phase One savings pot. We've yet to know exactly how much this will be as he is still negotiating ;)

    The other factor is that we don't yet know exactly how much the family loan will be for. We are still finalising plans with the builders for the house move. We should have a final figure in the next month or so.
  • MummyEmMummyEm Forumite
    574 Posts
    Part of the Furniture
    Hi Delililah Buttercup

    Thanks for dropping in, and best of luck with your own journey. Do you have a diary?
    Hi MummyEm:wave:

    I too have allocated all my wages towards the mortgage and a bit of Mr Buttercup's too.....but he doesn't know that yet....need to know basis...what you don't know doesn't harm you...evil I know:rotfl:

    This made chuckle! It is much the same here ;)

    Wow, 90k in seven years is hardly a small amount! It does seem mad how much houses cost these days, and how long we all end up paying them off for. It scares me to think how much my children could pay in years to come :eek:
  • Morning MummyEm:wave:

    I do have a diary - sweet dream or a beautiful nightmare -only time will tell, it's a few under yours on the forum at the moment. Sorry don't know how to show links yet:D

    I think my diary is a bit random after ready others and is probably more about a working mums life with a hormonal teenage daughter and a Lego crazy son:)

    Have a read you may get a laugh out of it:rotfl:

    Del B xxx
    L.B.M Dec 12 mort £91728 (£7327 sec loan incl)
    Feb 13 mort £89629:D
    2013 Challenge to op £5400/1700 paid so far
    Aim - to be mortgage free Jan 2020:j was 2025:eek:
    I'd rather laugh with the sinners than cry with the saints, the sinners have much more fun......:D
  • cb4fwhcb4fwh Forumite
    158 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Forumite
    Good luck! Just bear in mind that it will be worth it in the end! I started with a mortgage of around 240k ish in 2006 over 20 years. I started overpaying last year, and with a fair wind should have paid it off by the time I am 41 in 2019 - saving around £30k in interest!

    For me, the secret to success is not going uber frugal - I still need my holidays!
  • Lois_ELois_E Forumite
    2.2K Posts
    Ninth Anniversary Combo Breaker
    Forumite
    Hello MummyEm and welcome to MFW :wave:

    I am in a similar position - trying to build up my emergency fund and pay off some family loans before getting cracking on the actual mortgage OPs. So I'll be following your journey with interest. My diary is here.

    Good luck for the journey. :)
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
  • MummyEmMummyEm Forumite
    574 Posts
    Part of the Furniture
    Delillliah B - I have just finished reading your diary. It is make for great reading. You are doing so well on the OP front already. I have subscribed.
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