Large Mortgage - Journey to a Smaller Balance

nakiwala123

Hi All,

I have lurked for years and always wanted to be part of this MFW community. Your stories are inspirational.

BF and I completed on our 1st home in June and have so far made 4 payments.

We did take out a rather large mortgage of £217k with a small deposit about 6.5%. We used the save to buy mortgage products.

I would have preferred to have put down a 10% deposit but we were paying £1000 in rent, our landlord was selling the flat and I really just wanted a stable home. We have 'reasonably' stable jobs, we were saving hard and we had good credit histories that we thought we should try and see if we could get a mortgage.

Interest rate is very high at 5.49% compared the other products on the market with higher deposits but we had a budget and once the repayments fit the budget, we took the plunge.

We bought a 3 bed semi near a good primary school. 10min bus ride to the station (the compromise) for me to get to work in London and for BF is who is only 5 miles drive to work. I am happy to stay in this house for the next 10-15yrs. In fact if we can stay here forever, I would not mind but you never know what the future brings.

We are overpaying the mortgage by £100 per month but I hope to increase this amount in the near future. Even before we took out the mortgage, I had budgeted to have overpayments.

We are on a 4 year fix and I hope that by the end of the fix we shall have a minimum 20% stake in our property to be able to get better deals. I know our overpayments will have to rise significantly to achieve this.

Good luck in all your efforts.

SpottyKnickers

Good luck to you too

FloppyDisk

Gosh that is a tiny amount of equity but what a huge amount to pay in rent, no wonder you took the leap when you did! It's great to see new people joining, especially those that have had to buy in such hard circumstances. Well done on your overpayments so far, what a really great start to home-ownership!

All the best with your journey!

FloppyD x

sleepygirl126

you're in a similar position to me....I have a mortgage of £152,752 on one wage and a DS too.....I know you have 2 wages but I think the overwhelming responsibility is the same for us both!!:eek:

I am going for small steps...£70 OP (due to debts that still need clearing) and bits and pieces of extra OPs when I have spare cash.....I have paid off £1600 in the last 18 months from my mortgage so I feel that I am plodding on!

Good Luck...go for it!!!!:T

nakiwala123

Because we have very little equity that is why when we decided to buy a home we would be happy to stay in a long time. We could have bought a flat and borrowed less but then we could have outgrown it as we are on the wrong side of 25 and moved sooner than desired with the extra fees that it entails. I wanted a home to stay in and not leave for as long as possible.

Our mortgage payments are 39% of our take home pay. Due to a promotion and BF moving to another part of his company that pays a tiny bit more, this % should hopefully go down.

The good thing is that this house had all the work done to it and to our taste so we have not had to do any work to it.