MF take two...

gerbiljo

Some of you may remember me, my old diary is here
http://forums.moneysavingexpert.com/showthread.html?t=2263449
Well we are still mortgage free but about to sign on the dotted line once again…

In 2004 I met my now husband, had some holidays did a mini refurb, got married 2007, first daughter in 2008. Had issues at work trying to go back part time, went back full time, interest dropped just as I had ended my fixed rate and started a tracker mortgage, this was the lightbulb moment, my necessity to work financially made me desire to become MF. We started an extension in anticipation of number two which we built ourselves, over the last 3 years. In august 2012 we paid off the mortgage after living like paupers and spending every scrap of money on over payments, the extreme way it was stressful not pleasant and only doable for us as it was over the short term. We are debt free, just finished the extension and have a second daughter 5 months old, I am on maternity leave but just before I had her I got accepted to work part time so I will be going back in february on that basis.

Mortgage free living has been good but we have had holidays and extension costs and bought a horse so we haven't built up any savings. Losing the worry of a mortgage has been great but now we have equity so if paying a mortgage is too much we could downsize…we have got used to buying things and not waiting so having a mortgage again will make a big difference especially with me not working.

We saw a house we liked go up for sale and decided to go for it, it will offer us we believe, a better quality family life justifying a new mortgage, plus room for a baby if my broodiness doesn't wear off!
I have always wanted land as we have a horse and there is land behind, if in a few years we could get a few acres or even rent a bit then it would be our dream home. But for the moment the kids having a good life has to come before my dreams, as my oldest I feel missed out a lot with me working full time and us building. So now is our family time.

Our mortgage is likely to start next month, £236500, it is over 17 years. Its about £1365 a month (fixed rate for 2 years about 1.68% but I would need to check), we intend to pay £1500 a month to start with but that might not be possible when I am not at work. So the long term plan, to pay it off early? Of course, gonna aim for 12 years, but would love to do it in 10…. However the main difference this time, life comes first, so budgets will be much looser and I think holidays and clubs for my daughter etc have to be budgeted for, I guess its more about using extra money wisely rather than scrimping ourselves, plus if we don't meet our target its not the end of the world…also we'd already booked a holiday so its an interest free card just for spending til I get back to work so that will need to be paid too.

So I am 36 my husband 31 and our daughter are nearly 6 and 5 months. Plus we have a house full of pets. I earn about £25000 when working and my husband a basic of about £35000 but he can get more in overtime though he does have threat of a pay cut looming, possibly. I loved paying off the mortgage before but my husband did not and so life must come before over payments.

Aim- small regular over payments

Will update when it happens, hopefully it will all happen now

CathT

Hi Jo, I followed your diary before. Has it really been two years!

Congratulations on baby number 2, lovely news. New house sounds fantastic! Have you sold yours or renting out?

Lots of luck with signing on the dotted line.

gerbiljo

Hi Cath I remember you how is life treating you?
Ours is sold to a lovely family so I am happy but I will cry when we leave it.
All signed and due to exchange today!! Scary but hopefully the right thing to do.
Time flies doesn't it. MF will all be a distant memory soon!!!

PrincessLou

Subscribed :j How much did you pay off in total the first time round?

CathT

gerbiljo wrote: »

Hi Cath I remember you how is life treating you?
Ours is sold to a lovely family so I am happy but I will cry when we leave it.
All signed and due to exchange today!! Scary but hopefully the right thing to do.
Time flies doesn't it. MF will all be a distant memory soon!!!

All good here thanks, still plodding, a series of home improvements means the mortgage is reducing very slowly!

How exciting you have exchanged contracts, am sure the new home will be worth it.

gerbiljo

Hi Princess Lou, my original mortgage was £135000, I started over paying at about £120000 when my 5 year fixed rate ended. I was working full time though and I won't be doing it again, plus the new mortgage is double and reaslitically I doubt I will have the luxury of such a low interest rate throughout!!

Cath, thats what we did and tbh you do have to have some quality of life living in a building site is no fun. But a newly decorated house is much easier to care for! As long as it is going down its all good!!

Well I have about 2 and a half weeks left without a mortgage!!!

abouttimetoo

Welcome back Jo

Congrats on the house move and new baby

Good luck with your new MF plans

Regards
ATT

gerbiljo

Thanks abouttimetoo, its like I've never been away haha

wantabetterlife

Oh Jo I remember you!! Congratulations on the new baby and the new house...look forward to your posts :j:j

gerbiljo

Hi want a better life, thank you I remember you too

gerbiljo

Well we are just over a week away, we are still finishing jobs in the house… they have to be done by next friday, I have packed a lot and moved it to my parents and sisters to make it easier on the day. We have a 'shed' to take with us, but it is actually a 2 storey play house and that needs to be taken apart for the journey as does our ducks run and the green house we will try to take in one go! So basically no relaxing before we go!!

I have been thinking about over payments. I am going to try to over pay by £135 a month until I go back to work. My boss has asked me if I would rather go back on part time days rather than night, there are advantages and disadvantages to both. Days is less money and more shifts, but no weekends and weekends are the worst bit. Days also means my parents will be providing child care so it means I can only do certain days, plus they will be looking after my sisters baby 5 weeks younger so I am concerned this will be too much for them. My sister and I can sort something between us but I have been blessed with an easy baby and my parents think I will struggle with my niece… Days means I get to work and come home and feel a sense of normality and the whole friday type feeling. Nights is more sporadic so I can imagine feeling more anxious about work, also I am likely to get asked to do overtime, a lot which would probably mean my monthly money would be almost double that of working days, but the truth is I really don't want to work extra, life is too busy and my husband would really hate it. Anyway I said I would consider it and he hasn't got back to me so it might just be more his brainstorming than a realistic opportunity…

Anyway to pay off the mortgage is 10 years is going to be an overpayment of about £800 a month. If I overpay as planned about £135 a month it'll be just over 15years to pay it off. If I overpay £635 month it'll be about 11 years to pay it off, I would be 47 and my husband 42. I think we will have to see, I think if I work nights that will be easy enough… However variable to consider are interest rates will rise in that time but our salaries may not, I would really like to buy some land… plus will we have another baby.

Early days at the moment and something we will have to discuss. my oldest daughter will be 18 in 12 years so thats when we may need to pay for uni, cars, weddings, kids??? who knows what the future brings but I think about 12 years would be ideal.

Anyway I haven't done much money saving lately but I have signed up to tescos half price mid week saver delivery for one year, this means I cannot throw extra things in my shopping basket and no nasty surprises at the check out. It also means I spend less petrol and more importantly more time with my family instead of wandering around the supermarket!!!

Will try and keep this updated