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Beginning our mortgage free journey!!

Been lurking for a while reading through lots of your inspirational threads and it's galvanised me into taking more positive action.

A little about me... Bought my house Dec 2009 having saved up a massive deposit (amazing parents who paid for my first degree plus staying at home meant no student debt, hurrah!) after holding down 3 different jobs and completing an undergraduate degree and a PGCE. So in 2009 I started off with an £83000 mortgage in my name. By the time the (extortionate) fixed rate ended in December 2013 (and after much faffing with banks/solicitors/land registry to get my husband's name on the deeds and sort out a joint mortgage etc) and the new (excellent interest rate) mortgage finally beginning in April this year, the new total was £75000 over 15 years. In the last year of the previous mortgage we managed to overpay about £2000 as we were both working full time.

We had our beautiful baby boy in July so I'm on maternity leave and going back part time next year. Which has slightly annoyed my husband but I have argued that nursery fees would wipe out over half of my monthly salary. We are fortunate that I originally bought the house at a good time and price so we can afford for me to work part time although there will be very little money for luxuries which I really don't mind. As long as we can pay the bills and bring up a happy, healthy child then I'll be over the moon. And if we can do all that mortgage free, massive bonus!

We are both good with money and eager to overpay. So wherever I can, I'm all about budgeting as I so want to pay the mortgage off sooner and treat my son (and me... And hubby of course) to the holiday of a lifetime in Florida in about 5 years. Wonder how much can be paid off between now and then???

My goal is to overpay £4000 between now and November 2015 and if we can pay off more, that's even better. This may be tricky as my maternity pay is due to end in January (just before Christmas credit card bills roll in!) but hey ho, I enjoy a challenge!

Overpaying has become my obsession this month...so I'm all about the food budget at the moment and batch cooking/ freezing! I'll be interested to see if it does make any difference...

We've made a lot of cuts here and there already - I no longer buy my beloved trashy celeb mags :( and due to fluctuating post-birth weight, clothes buying is totally out of the question! I'm fortunate that I live near family and baby groups so I walk almost everywhere... Plus hubby and I share a car.

Phew... Not really a *little* about me is it?! More of a ramble... And I didn't mention my gorgeous yet daft dog! However, I'm really excited at the prospect of shaving months/years/pounds off mortgage :D hopefully that's not too sad for a 28 year old to say!

Looking forward to reading more about your mortgage free journeys! Any tips to be shared will be gratefully received.
Best of luck to us all! xXx

Replies

  • newgirlynewgirly Forumite
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    Hi tiger eyes, welcome and good luck with your new diary. Congratulations on your baby boy, Going part time sounds like a good idea, trading more wages for time with your little one (if it's possible of course) is not likely to be something you regret in the future, more so if you save a lot in nursery fees, plus you will have more time to come on mse amd get moneysaving tips :D
    2022 MFW 67 October 1st to New Years challenges: live on £1800/£501.87 left33 month challenge to clear mortgage, month 2 completed and on track 🙂MFI3 No.12
  • I like your thinking newgirly! I love reading stuff on this site, keeps me awake for the 2am/3am/4am feeds! Have you still got a mortgage or are you fortunately mortgage free?

    It must be so hard for people who have no other option but to work full time and leave their little ones. I know how fortunate I am, and I've been lucky to have worked since I was 16 so I could build up savings for a deposit.

    Congratulations on your weight loss! That's inspirational too... I don't even want to think about how much weight I need to lose although I'm kidding myself that it's extra insulation and will therefore save on heating...

    xx
  • newgirlynewgirly Forumite
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    Hi tiger eyes, I still have a big mortgage and including 0% cc's owe around £153k ish. However when I joined in 2010 we owed £173 k plus we have spent 30k since then having another bedroom and bathroom put in the loft. Had I not started coming on here there is no way we would be in the position we are now.

    I've also spent the last few years being a sahm and only went back to work part time three days a week last year, having more time makes it easier to save money in my opinion :)
    2022 MFW 67 October 1st to New Years challenges: live on £1800/£501.87 left33 month challenge to clear mortgage, month 2 completed and on track 🙂MFI3 No.12
  • Mrs_E_3Mrs_E_3 Forumite
    189 Posts
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    Good luck on your journey. I look forward to reading.
  • You've done so well! I'm also hoping for a loft conversion plus bathroom. I've already planned it in my head, right down to the curtain poles. Another thing to aspire to! We managed a lot of home improvements since we moved in. Everywhere was pink, peach or Artex with some dangly light fittings that were probably the height of sophistication in 1970.

    Had a productive day although sadly not a no spend day... My sister is a bad influence and practically forced me to have a burger & chips! And my mom managed to get tickets to see a certain 90s boy band next year so I'm feeling guilty about the food but good about the concert!

    Today I managed to:
    * pay in 2 cheques that have been languishing in my purse for weeks
    * count all the coins in the pot and pay in £7 worth of pennies, 10ps and 5ps
    * persuade Hubby to create several different spreadsheets (didn't take much convincing, he's an absolute spreadsheet fanatic) so we can keep track of mortgage payments, credit cards and car costs
    * avoid getting drowned in the torrential rain
    * squeeze into a pre-pregnancy onesie (although I soon wished I hadn't as the zip got stuck)
    * get discharged from hospital physio (hurray!)
    * get the last few bits sorted for my boy's christening on Sunday! (Double hurray!)
    * rang up for the current mortgage amount... £72,653.71. (Triple hurray!)

    So with a bit of luck, I can overpay a little next week. It might only be a tenner or so but every little helps! Unless of course I happen to win some millions over the weekend...

    The one thing Hubby is struggling with is working out how much comes off the capital and how much interest is accrued, with it being charged daily, so if anyone has got some spreadsheet tips that would be grand.

    Happy Friday everyone! The sun's just come out and my son is beaming at me so I'm one happy girl ��

    xx
  • edited 14 November 2014 at 3:47PM
    AndrewboomAndrewboom Forumite
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    edited 14 November 2014 at 3:47PM
    If he uses the PMT function it does most of the work for you

    https://www.sageintelligence.com/excel-tips-tricks/2013/03/excel-pmt-function-loan-repayment/

    You can then have 'fun' filling in little amount like your penny jar money, and seeing how much it saves you over the mortgage term. :-).

    My spreadsheet has grown with me on my mortgage free journey, it is not a work of art hehe.
  • Thanks Andrewboom, really helpful!
    xx
  • AndrewboomAndrewboom Forumite
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    No problem. Let me know if he gets stuck. You can download some ready made ones you just pop the details into if needed.

    If he is a real spreadsheet geek like me, next up is Pivot Table charts in nice colours to stick on the fridge!
  • newgirlynewgirly Forumite
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    Hi tiger eyes, I am a techno phobe so don't post links :o however I use a spreadsheet - if you google Dave addey mortgage overpayment calculator you can download it. It lets you put in regular and /or one off overpayments any month during the term :D
    2022 MFW 67 October 1st to New Years challenges: live on £1800/£501.87 left33 month challenge to clear mortgage, month 2 completed and on track 🙂MFI3 No.12
  • Thanks so much everyone... It's nice to have some support from like minded people. Everyone I know is either renting or living with parents as they can't afford their own place! So haven't really got anyone besides Hubby to talk to about mortgages and finances.

    I'm currently having fun messing around with spreadsheets and looking at the differences overpaying would make. I never thought I'd say 'I'm having fun with a spreadsheet' but there you go. It beats being bored to death by the footie which Hubby and son are gawping at.

    xx
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