Forever House then MFW


Hello All :)!

I have been reading with interest everyone else's diaries, I have started my own to share my experiences and seek opinions from you level-headed knowledgeable people! :)

I like the fact everyones diary has a balance between life and overpaying the mortgage. It is something I would like to maintain.
I cannot promise this will be a compelling read, in fact it it will be quite boring! :wall:

Background

My GF & I are both young and we both work in financial services sector. I did university and she went straight into work after school. We saved really hard for about a year, and then about 6 months before we were ready to buy a house in terms of savings we found one.

It is a 3 bed semi, in a really nice cul de sac location. It certainly wasn't a normal 1st time buyers property, but skipping the rung on the ladder was certainly worth the financial hardship.

It was up for £190,000 we went in with seriously low offer and after a bit of negiotating we got it for £165,000. I had to sell my car and we both emptied out every piggy bank we had in order to top up the savings enough for the 10% deposit and all the other costs. We finally got the keys in February.

We spent 6 months renovating including a rewire, central heating, new kitchen & bathroom and much more.

We are in no doubts that we are lucky and fortunate to have good jobs and a lovely house at our age.

Mortgage

90% LTV repayment mortgage for £148,900 @ 4.49% 2 year fix

Monthly repayments £753

Redemption date 2043!!!!!!- Had to have 30 years to keep
mortgage payments down whilst we renovated the house.

Plan
We both accept that this will not be our forever home. We would like a period detached house with 4 beds in a rural location, preferably with a local pub :beer:!

The plan is to overpay the mortgage whilst we both work on increasing our earnings.

This will assist us in stepping up the ladder to our forever home. Bottom to the top in two moves-That's the theory!

Longer Term Plan

I think the long term plan can be broken down as follows:

Mortgage Free
Mortgage free by the age of 45 (21 years for me!)- may be a big target as we are not sure what the mortgage will be on our forever house!

Marriage? :shhh:
We are not engaged ....
Personally I want a few more years spending money on holiday's and hobbies before any 'pressures'.

Little One's
Family ..... we do have a dog? :rotfl:

Retirement_party_

Pension I do not wish to be working until I drop. In fact If I could I do not really want to work beyond next week!

We both pay into workplace pensions and some into a personal pension. I would like to perhaps invest elsewhere in buy to let or a SIPP.

Life
As alluded to, I want to travel. I would love to take up a hobby of some description.
It is about a balance of the above.

Now back to work......

Start Feb 2013 £148,900
Initial MFD Feb 2043 --- Target Feb 2035
Current balance [STRIKE]Jan 2014 £146,652[/STRIKE], Nov 2014 £143,509

:beer:Current MFD Oct 2042 (5 Months Early) :beer:
2013 OP: £255 / 2014 OP: £815
«1345

Replies

  • I have now updated my signature, feels very real!

    In other news I have two potential job leads, both very interesting opportunities that should give me more flexibility to overpay!

    I am in the middle of becoming Chartered and all being well this will be March 2015! As a result I have 6 essays in before mid September and 2 exams in October.
    Bank holiday may be a boring one!
    Start Feb 2013 £148,900
    Initial MFD Feb 2043 --- Target Feb 2035
    Current balance [STRIKE]Jan 2014 £146,652[/STRIKE], Nov 2014 £143,509

    :beer:Current MFD Oct 2042 (5 Months Early) :beer:
    2013 OP: £255 / 2014 OP: £815
  • specialkayespecialkaye Forumite
    193 Posts
    Eighth Anniversary 100 Posts Combo Breaker
    Hey Smifffy,

    Welcome to the board! I'm also 1989 and part way through Chartership although it's just me in a little 2 bed.

    Anyways good luck on the journey,

    :)
    1% at a time challenge member #127

    MWF: [email protected] Oct13 £45,917, now £43,024.56
  • Welcome...

    Have a great journey, but be warned, it's quite addictive..

    Wish
    Mortgage outstanding: [STRIKE]£47,750 (August 2014)[/STRIKE] [STRIKE][/STRIKE]£46,950 (Nov 14)[STRIKE][/STRIKE] £44,900 (June 2015)
    Student loan: Paid off June 2015 - 10 years & 2months.
  • edinburgheredinburgher Forumite
    12.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    We both pay into workplace pensions and some into a personal pension. I would like to perhaps invest elsewhere in buy to let or a SIPP.

    Welcome Smifffy :coffee:

    While there are some tax benefits to saving in pensions, don't overdo it, the money is tied up for a long time, probably a lot longer by the point you'll be thinking seriously about retirement. Mrs E and I pay exactly what is required to get the maximum employer match, the rest goes into a S&S ISA.

    Investment within an ISA got a whole lot easier thanks to the new limits and you can invest in a massive range of ETFs, funds and individual shares. All that, coupled with no taxation, no CGT and the flexibility to withdraw the money when you like. Granted, you can't add some of the more exotic items to your ISA (for example, I believe you can own commercial properties, gold etc. through a SIPP), but it's a pretty effective wrapper all the same. The fees are cheaper than a stakeholder pension, so it grows just that tiny bit faster.
  • Hey Smifffy,

    Welcome to the board! I'm also 1989 and part way through Chartership although it's just me in a little 2 bed.

    Anyways good luck on the journey,

    :)

    Thanks specialkaye, glad to hear there are more mad people battling to become Chartered. I was hoping the studying stuff was finished when I graduated!

    While there are some tax benefits to saving in pensions, don't overdo it, the money is tied up for a long time, probably a lot longer by the point you'll be thinking seriously about retirement. Mrs E and I pay exactly what is required to get the maximum employer match, the rest goes into a S&S ISA.

    Interesting perspective, I have been switching between the two.

    Unfortunately my current company do not offer me a match, my other halves company do and she takes full advantage of this.

    I have to say my S&S ISA is doing better than my pension!

    Thanks for dropping in!
    Start Feb 2013 £148,900
    Initial MFD Feb 2043 --- Target Feb 2035
    Current balance [STRIKE]Jan 2014 £146,652[/STRIKE], Nov 2014 £143,509

    :beer:Current MFD Oct 2042 (5 Months Early) :beer:
    2013 OP: £255 / 2014 OP: £815
  • egoodeegoode Forumite
    605 Posts
    Eighth Anniversary Combo Breaker
    ✭✭
    I'm impressed you are already thinking about a pension at your age. I'm 10 years older and only now starting to think about what to do about a pension and already worrying I should have started years ago but no point looking back I'm at least looking at one now.

    Good luck on your mortgage free journey and your forever home sounds absolutely amazing I really hope you get it one day.
    Starting Mortgage Balance: £264,800 (8th Aug 2014)
    Current Mortgage Balance: £269,750 (18th April 2016)
  • newgirlynewgirly Forumite
    8.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hi just wanted to wish you all the best with the new diary :)
    MFW 67

    2021 £16,071.71/£16,400
  • It sounds like you have a really great plan. I just pay into my workplace pension. Previously it's been one that you pay into and forget about until you need it. Getting paper work through now as it's all changing........

    Will be following along for some good ideas.

    Wish
    Mortgage outstanding: [STRIKE]£47,750 (August 2014)[/STRIKE] [STRIKE][/STRIKE]£46,950 (Nov 14)[STRIKE][/STRIKE] £44,900 (June 2015)
    Student loan: Paid off June 2015 - 10 years & 2months.
  • PrincessLouPrincessLou Forumite
    503 Posts
    ✭✭
    Subscribed. What are you long term goals? i.e. how many years until you move into your forever home? How much do you anticipate you will be paying for it? And finally, how much equity are you aiming to have by then?

    All things to think about.... :j
    Mortgage - £105,500
  • Subscribed. What are you long term goals? i.e. how many years until you move into your forever home? How much do you anticipate you will be paying for it? And finally, how much equity are you aiming to have by then?

    All things to think about.... :j

    Wow what a question set!

    I guess on a more basic level the goal is to have the forever house somewhere relatively rural. We like the grow your own lifestyle and the open countryside more than the city hustle and bustle.

    I would also like to have a decent level of disposable income, and the ability to retire early on the basis my family history suggests we don't live to far into retirement. (my granny excepted- 90 and still driving!)

    Forever home I imagine is 10 years away, we would like to make our current home last until then possibly by way of kitchen diner extension. That gives us 10 years, by which time I would like the mortgage to be under £100k! To do that we need to overpay by £80 per month.

    The forever home is debatable, I would want a renovation project, detached and I am not sure where that would be yet. I imagine it would be in the region of £250-£400k but who knows!

    We have listed a number of items on fleabay, and a few are selling that may give us some pennies to throw at the mortgage for September!

    In other news I recently have been looking to move companies as I am almost chartered. I have had one interview and I am awaiting the outcome of that. BUT... I applied for another role last week and immediately got a call back from the recruiter, the role sounds amazing even if it is more travel. I am waiting for the company to come back to me to see if they want to interview me.

    They have asked for a credit check? Anyone else had a credit check prior to an interview? It is financial services role, but prior to an interview? Perhaps I will ask the question on the Jobs board, a good sign anyway I hope?
    Start Feb 2013 £148,900
    Initial MFD Feb 2043 --- Target Feb 2035
    Current balance [STRIKE]Jan 2014 £146,652[/STRIKE], Nov 2014 £143,509

    :beer:Current MFD Oct 2042 (5 Months Early) :beer:
    2013 OP: £255 / 2014 OP: £815
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