First steps!

Miss-independent_2

Hi peeps!!

New here and just wanted to touch base and say about how inspirational some of your posts were!

Now, I haven't the facility to be mf within the next few yrs (single wage!) but certainly will be trying to at least be trying the halve my term!

Initially my goal will be to reduce my monthly repayments to my mortgage as quickly as I can with a view that my flat will eventually become a rental property (I could rent it out now for more than the mortgage)....this is were your help and advice comes in with step 1!!

O/s mort = £123,996, mthly payment £663, term 30 yrs

Step 1 is to reduce my mthly payments as quickly as possible to £500 or less in as quick as time as possible....how much would I need to pay off to get my mthly repayments down.

Help or advice would be great! x

Swampy3k

Welcome Miss-Indie I am in the same boat as yourself and find this board a great source of inspiration.

Got my mortgage 2 years ago (70k - 25yrs) changed it to 13yrs recently and hope to have it paid in 8

You could maybe do the same as me and see your local mortgage advisor who will be able to give free advice on what to do, may be wise to lengthen your term for now to reduce the payments, and/or ask your mortgage company what overpayments you can make then in a few years change the deal for sub 500

All the best!

Miss-independent_2

Hi Davie,

I've literally just got my mortgage, first property purchased on my own since my split with ex-hubby.

I can afford the current mortgage payments, which is why I have the term I do. My mortgage advisor had encouraged as short as term as possible without crippling myself....ta-da, 30 years. My mortgage company allow 10% annually, it's only a 2 yr term and payments should drop then anyway. (5% deposit meant slightly higher interest rates.....but still better than renting!)

I hope as a minimum to be able to double my mthly payments - I have a lodger moving in next week that covers that in most part. Used a calculator and just paying £400 extra this month saves something like £1200....that's motivational in its self.

I have a personal loan on a car...5 years, which I can also make penalty free overpayments on however the interest over the term means I pay only £560 over what I originally borrowed....returns on the mortgage seem to me to far outweigh repaying the loan, which I know is what is usually recommended!!

Any tips? Should I balance op between the car and flat - or full focus on the flat repayments?

X

edinburgher

Repay whichever has the highest interest rate, that's about it :beer:

It's also an idea to consider an emergency fund, if you don't already have one? That said, your willingness to take in a lodger will probably save you from all but the worst of financial scrapes?

Miss-independent_2

Well....first overpayment made today, the first initial mortgage payment hasn't even left my account yet!!

Mini target....my monthly repayments are recalculated each time in overpay £1000.....therefore each time my payments are recalculated, recycling the money back into the overpayments kitty....can I achieve this by the end of the mth, can I be a skin flint in month 1?! Too much? Hmmmmmmm ha!!!

Miss-independent_2

Oh....and my overpayment today saved me £2,204 in interest today! or the equivalent of 3.3 months of mortgage payments effectively!

Beckyy

Hi!

I think your lodger sounds like a great idea,

Have you thought about where you'd live yourself if you did rent out your flat in the future?

You're saving some massive figures in interest!

Miss-independent_2

Hi Becky,

Bit of background I guess may help my thought process.......

Having owner two previous properties with my ex partner of which had to be sold - effectively having to give up my home I worked hard for redesigned etc....all through someone's else's decision.

I've purchased a flat, knowing the rental income on them £720+ with my mortgage being £660. Instantly I could walk away from it......from a business perspective. I also actually do love it myself so it's not a case of "putting up with it"

However, I am 30, and single and realise that a top floor flat isn't always going to be viable and odds on, at some point I will meet someone, and will will look to settle, and that probably won't be here in the future - the plan being that my flat, will always be MY safety blanket, my security, and my pension....one that looks after itself and will require little to no input from me, and somewhere that I can also receive an income from, mortgage free not only helps me now, it's my retirement plan - I don't want to be forever slogging away because I HAVE to, but because I want to!

I can pay extra again this month - but I want to see how the month pans out as I don't want to leave myself short on "spending" money his month. I'll have some deposit coming back from a Lettings company too at some point from where I've lived the past 6 months.... That too will be thrown at my investment.

Forward thinking!