Back from the brink of disaster....now to pay off £160,400 interest only mortgage :-(

Cheapskate_Kate

This diary is to keep me motivated about the huge task ahead. It's about continuing with the good habits I've developed and building on them. Hopefully in time I can turn this sub prime mortgage disaster around and learn from the incredibly stupid and naive mistakes I have made in my financial life.

I don't expect anyone to read this - it's really just for me. I've read these forums for years but never been brave enough to post as everyone is wiser with their money than I am - or I was should that say! But, in 'coming clean' with the fact I have a mortgage which is just the sort of thing that led to the banking crisis in 2008 might just lead me to do something about it. And it is going to have to be something big to sort this mess out.

My name is Kate and I am far from a cheapskate. I'm hoping that by acting this persona I will at some point become the role. After 4 years of a more sensible outlook I'm still not always there....still striving to be more frugal, to be more sensible and make better choices. To save, to make do and mend, to cook from scratch, to buy on need not want, to watch the pennies and hopefully learn from others.

The gruesome details to follow. But as a hint they involve credit cards, unmanageable debt, marriage breakdown, numerous equity releases (I know, I know), NRAM, unplanned pregnancy, defaults, mortgage arrears, and I'm only now brave enough to share this hopeless stuff because there's hope now - I think?

bownyboy

Welcome and good luck. By talking and sharing things can become less scary! You'll get lts of great advice on here.

Beckyy

Hi Kate!

Welcome and good luck on your journey. A problem shared is a problem halved they say!

feelingfestive

Hi Kate :wave: Welcome to the forum! I'm a newbie too and everyone here is really friendly. You've been really brave posting and you should look at it as the first step towards financial happiness and hopefully freedom! You should be proud that you've posted anything at all - too many people bury their heads in the sand and avoid the problem altogether. Go on...post the details! It'll make you feel better. Then really clever people on here (not me ) will be able to advise on the best way to tackle the issues!

Well done so far though and I'll be keeping up with your journey
ff xx

QB_Wolf

Good luck Kate, it doesn't sound like you need much advice, but as far as I'm concerned, it's best to break the problem down to manageable chunks, set yourself some realistic achievable goals, celebrate when you hit them (by posting not having a big party ), even if you're a little late - people here are generally a bit bonkers (including me) and are really pleased for people making a dent in their mortgages.

elantan

Kate that was some opening statement, you do know you will have us all hooked, and not so that we can gossip or titter, but to watch and share and help in your transformation process, you've done so much already so you know what's ahead ... I'm sure you will flourish and achieve your goals

Good luck

CathT

Wishing you lots of luck. There is a fab network of support on this forum and we all help each other out at times whether it be encouraging words, tips on making money or simply helping to keep the momentum going.

Cheapskate_Kate

Wow........thanks so much for the warm welcome. So many replies already.

I really hope that one day I'll feel like I properly belong to this forum - as a money savvy person who not only repays her mortgage but actually overpays it. I would add an :rotfl:at this point but it really isn't that funny when you think about it.

Lois_E

Welcome Kate :wave:

You have a fab attitude, and the support of this board is just what will help you to stay committed to what you are trying to do. And remember, nobody's expecting you to get everything right, or never to do anything but the most frugal option. We are here to help you to make the right choice a bit more often, to encourage you to decide when to cut yourself some slack and splurge on a treat and when to stay on the wagon, and most importantly to support you when you fall down and need to get back up and onto the horse again.

As you're finding from all these responses, there are plenty of people who'll want to read what you write and be with you along the journey, and I'm one of them.

Lois_E

Cheapskate_Kate wrote: »

Wow........thanks so much for the warm welcome. So many replies already.

I really hope that one day I'll feel like I properly belong to this forum - as a money savvy person who not only repays her mortgage but actually overpays it. I would add an :rotfl:at this point but it really isn't that funny when you think about it.

If you have the desire and intention to pay more than the bank makes you pay, and you post on here to give and receive encouragement with others doing the same thing, then you are a proper MFW. End of.

Remember, it's called "mortgage free wannabe" not "mortgage overpayers".

Cheapskate_Kate

Ok, time for the confessional. Best to get this bit out of the way before I get too relaxed here and can't bring myself to spill the details with my new found forum friends.

Property wise it all started so well. I bought a flat for 25k when property was still 'cheap' with a gifted deposit from my father. At this point I had about 4k owing on credit cards which was converted to a loan when I graduated. But this was ok because any day I was going to be offered a top job that paid loads - I had a degree dontcha know

Then I met my now ex husband, he moved in and we had my eldest daughter. We trundled along living beyond our means and I also went part time in my admin job. When I was pg with my second daughter we decided we needed a bigger place. Having watched many episodes of location x3 I knew exactly what we needed - a place with 'character' in an 'up and coming area' with 'kerb appeal' and 'room to grow' and a bay window for the Christmas tree. The details of the mortgage and indeed whether we could afford it were a mere technicality in this.

And so I sold the flat for 55K and we bought my current home in 2004. We purchased it for 130K and put down a 20k deposit making the mortgage around the 110K mark and paid off outstanding loans and debts with the rest of the money.......tbc