Meandering to mortgage free

TimmySaver

edinburgher wrote: »

How does parenthood suit you?

So far so good. Enjoying being in our own little bubble!

TimmySaver

FunLovinCriminal wrote: »

Congratulations
As a relative new parent and mfw I have been reading your diary with great interest and admiration.
Good luck with your journey
FLC

Thank you. That was a lovely message. I hope that your mfw journey is going well too.

TimmySaver

Mortgage update:

As well as our standard overpayments over the past couple of months, I made an overpayment of £256.36, which dw decided to match. We also received an extra tax credit payment, which allowed another overpayment of £131.74.

Because we have the savings to pay the tax credit back if there was an error - and because we steadily bought baby necessities over the past 9 months, this meant that the extra tax credit didn't need to be used directly for baby this time. In future we're going to put some of the tax credit into a savings account, which we'll dip into for baby necessities and paraphernalia and at interims use any extra to overpay the mortgage. However as the tax credit people constantly get our income incorrect, the tax credits will probably be swallowed up in call costs as we keep trying to correct them!

Anyhow!

Our mortgage is now down from £59,999.94 in March to £58,611.89 in May. Our mortgage year begins each November, so I'd like to see if we can get the mortgage as close to £55,500.00 as possible! If we can - and nothing changes - I'd really love to see the mortgage dwindle into the 40,000s during the next mortgage year (Nov 2015 - Oct 2016) (Pipe dreams perhaps!?).

Luckyinlife

Wow great progress timmy we have kinda the same amounts :] Do you know roughly how much your place is worth currently ?

Im itching to get my ltv to under 50% within the next year or 2 as i can kinda relax then knowing if anything goes tits up i can rent it or sell it and still get money

Love your sig as well shows how much we really need to make OP each and every year dont it is guess in 2009/2010/2011 you didnt make much op ?

TimmySaver

Thanks. When we got our new mortgage product last year, our mortgage provider valued the house at around £150,000 with Mouseprice valuing it at around £146,000. I checked the other day and Mouseprice are currently valuing it at around £155,000. Of course, they're just estimates and it'll be a while before we find out what it's really worth!

In the first couple of years I was overpaying £50-£100 per month. Then I became ill with ME and haven't been able to work since. Last year I finally had assessments for various benefits and they started being paid late last year, so very eager to get back on track with reducing the mortgage. This really shows on our mortgage spreadsheet as we're just over half way through our mortgage year, but this is already our highest paying year on the mortgage. :j

Luckyinlife

That is great :] 100k or so in the green is a happy place :] well done

once iv done mine im looking forward to getting a few valuations hopefully ill have 30-35%LTV then :]

Ya i see hope your better now timmy :]

TimmySaver

Thanks, Luckyinlife
It's nice to have the theoretical amount in the green. I guess we'll only know for sure when someone is willing to spend that much to take it off our hands (feel free to make an offer - please - anyone)!

The frustrating thing with ME is that there's no way to consciously make it better yet. I'm very lucky to life in a country where benefits are available and that I live frugally enough to make it work for me.

Best of luck with your MFW journey and all the house improvements.

TimmySaver

Tomorrow Mrs. Saver is going to get the forms to open up an account for baby saver! Can't wait to get his account open. We're going for a standard savings account to start with as it'll be a long time before he'll need to pay interest on the money we put in. Then in the future, probably when he's around 7-8, we'll go with him and open an ISA or whatever seems ideal at the time, so he can add his own savings and get access to them when he's 18.

I see we're having a budget update in July, which means that we'll probably hold off on any big overpayments until after that. Hopefully there will be nothing that changes our situation detrimentally, but you never know!

Hope you're all having a great weekend.

sweetdaisy

Hi TimmySaver

I've not been on for a while but just catching up and wanted to say congratulations on the birth of Noah. Hope that you are all well .

TimmySaver

Thanks, Sweetdaisy. How is your AAT going?