MFW - Starting my long journey

2Cats

Although I have been a MFW & lurker for a long time, today is the start of my real MFW journey so thought I'd start a diary too to keep me motivated & focused .... :eek:

Today seems like a good day to start...we have come into a little money recently and the funds cleared into our account today. :j

Already today, we have paid off in full the car loan, the barclaycard and also 10% from our mortgage; the maximum we can do without penalties. Now we have nothing left from the money we received....but no debt apart from the mortgage.

Figures: This morning, we owed £142,594.20 over 23 years 11months on an Offset 2.99% (fixed to end of 2018). After my frantic call to the Coventry, we are now at £128,577.24 and have reduced the term to 20 years 9 months :beer:

So my aim this year (can pay another 10% on 1st January 2015) is to build up the offset so that we can pay 10% of the balance at the end of the year....this will be very tough going but got to try!

2Cats

So, a little bit about us:

there's me, 2 Cats (although this name should be altered because I have what seems like a mini zoo in the house!), DH (he is starting to realise that becoming MF is achievable) and DS (age 10)

I am the main driving force behind becoming MFW although DH was pretty surprised when I told him that we had just saved ourselves £13Kish of interest by paying the 10% today!

The extra money will come from my salary and any extras I can find throughout the month. It should be roughly £550 p/m into the offset from me but maybe I could persuade DH to pay the money gained from paying the car loan and Barclaycard into the offset too.

I am assuming that this is the best step forward - we will build up our savings plus the 10% overpayment into the offset - if there is something else I could do, I'd love to hear it!

Anyway, if you're reading, thank you....this read may be rather boring but it should help me focus. Still trying to work out an ideal end date; just asap I guess!

Bye for now!

2Cats

It's me again just reading back what I wrote, have realised I actually need to find £1200 per month to be able to get 10% saved by January....looks like I need to start eBaying anything I have....!

It's good to have a goal...even though, at the moment, it seems quite an unrealistic one :rotfl:

2Cats

OK, after reading another diary on here last night, I realised that I could apply to decrease the term of the mortgage and therefore pay a higher monthly payment WITHOUT going over the 10% (in effect overpaying more than 10%).....so this is what I have done....!

Papers are seing sent to us to reduce the term further to 15 years and increase the monthly payment by £200 to £890. This is do-able as I will not put so much into the offset each month from my salary. I hope this is the right thing to do.

So, in the space of 24hrs, we have reduced our mortgage by 9 years! This MFW is a little addictive....

Today we have had a lazy day...woke early so started on the decorating of one of the rooms that I have been meaning to do. Have taken photos for eBay so will list about 6 items tonight whilst watching a little trash TV! Have some curtains listed that someone is interested in so have started the 'Buy It Now' negotiations....money will go straight into the offset.

Cheap day for us; 95p spent on milk! Didn't even spend money on petrol as brought it whilst on a dog walk...wish every day was as cheap!

HelenDaveKids

:jWay to go 2 cats

Hurdler

It is incredibly addictive and I think that's why dissenters scoff - because they feel you are depriving yourself for the goal.

I think you've made a great start - all the best in your journey!

SuperSecretSquirrel

You're off to an incredible start! I've subscribed and will be reading along with you

2Cats

Hi

Many thanks for the welcome :T

Been a little quiet on here for a few days but have been busy ebaying, thinking and plotting ways to reduce mortgage further!

So the paperwork to reduce the term of the mortgage has arrived so once DH has returned from his business trip at the weekend, we shall sign, seal and deliver back to the C*ventry. What is interesting (for me anyway ) is that from now onwards, our monthly payment will be £889.55 but once the fixed rate finishes in 2018, the variable rate (as it stands now at 4.49%) will change the monthly payment to £956.45! :eek:
So, need to reduce the mortgage as much as possible before then.

I don't really have an end date in mind...ideally within 10 years (but secretly hope for less, maybe 7 years); at the moment it is 15 years.

Anyway, I got paid today :beer: so £661 into the offset. Plus have been ebaying a little this week so another £47 into the offset. So £708 into the offset this week...actualy have some 'pennies' that I have collected from FBing some old toys so probably another £20-30 as well once I have put them in the bank :cool:

I am also chasing a payment from NPower - we changed supply last August but forgot to cancel the direct debit so another £500-£600 coming our way....

Good start but need to stay motivated....

2Cats

Just a quick note, mainly for my benefit, but in total £800 paid to the Offset today :beer: - from my salary, eBaying and FB sales too!! Was £780 but got my DH to top it up!

Have sold a couple more items overnight and some more to list so all going in the right direction and heading towards a decluttered home too!!

pgalland

2Cats wrote: »

Hi

the fixed rate finishes in 2018, the variable rate (as it stands now at 4.49%) will change the monthly payment to £956.45! :eek:
So, need to reduce the mortgage as much as possible before then.

Why don't you remortgage - I am sure that you can do better than that even if you lock in for 5 years. You're looking at 2.8-3.2%

That would save you a lot of cash.

I remortgaged 4months ago and I am locking in a great 1.89% until 2H 2015

2Cats

Hi,

Thanks for the reply. I meant that the interest rate will go up to 4.49% in 2018; I'm currently on a 2.99% rate. Will remortgage then for sure!