Managing The Mortgages

saver03

At the beginning of my journey on this site I was a DFW and now we have grown up and see money in a whole new light, making much better decisions. :j

Now you can see from our signature that we do have 2 loans but they are from family members and as such have no interest on them. And I should point out that these loans were not for frivolous purchases or wild parties, unfortunately :rotfl: We bought a repossessed apartment that needed minimal work and we now rent it out with a healthy yield and we doubled the equity in it :A We are aiming to pay these back as quickly as possible so that our families don't lose out on any interest and also so we will have the extra £500 a month to throw at our mortgages.

Mortgage wise we have the mortgage on our home which we can overpay on and the buy to let mortgage that we cannot overpay on.

Home - 65,000 - 3.49% - 21 years
BTL - 49,000 - 4.59% - 20.5 years

Ideally I would like to pay off the BTL first as the interest rate is higher. However, we can't overpay, so when our fixed rate is up in just under 4 years we are going to look at reducing our length, even if it means us paying more than we get in rent. We feel that this would save us the most money in the long term, and that is what we are aiming for! I would like to have the BTL paid off in 15 years, if not sooner.

We currently overpay £100 a month on our home mortgage as even that makes a massive difference in the amount of interest we would pay overall and it also reduces the term by a good few years. When we have finished paying back our families we will take that extra £500 and use that to overpay as well.

Now the main reason we want to reduce our mortgage debt is because we want to move house. We thought the best way to get a substantial deposit would be to have it as equity in the property as if we put the £500 a month into a savings account there is a very good chance we would spend it :mad: We would have some very good holidays but we would be stuck living in this house forever complaining that we want better. Plus, in the long run we would be saving more money and this means more holidays :cool:

But enough of my holiday dreams and back to the house of my dreams. For our next move we are looking at our forever home so once we are in there and settled that is when we would be overpaying so that we could actually be mortgage free

My plan is to use this diary to keep me on track and motivated to really do my best.

Daisydoop

Hi, good luck with your equity building! We are doing the same, overpaying to build equity and hopefully move to our forever home! Will follow your journey with interest!

egoode

saver03 wrote: »

Mortgage wise we have the mortgage on our home which we can overpay on and the buy to let mortgage that we cannot overpay on.

Home - 65,000 - 3.49% - 21 years
BTL - 49,000 - 4.59% - 20.5 years

Ideally I would like to pay off the BTL first as the interest rate is higher.

In case you aren't aware it's actually usually better to pay your home mortgage first before the BTL purchase as the interest you pay on your buy to let is tax deductible so will reduce any tax you pay on the income from the property. So even though the rate is higher there are benefits to not paying it off before your home mortgage.

saver03

egoode wrote: »

In case you aren't aware it's actually usually better to pay your home mortgage first before the BTL purchase as the interest you pay on your buy to let is tax deductible so will reduce any tax you pay on the income from the property. So even though the rate is higher there are benefits to not paying it off before your home mortgage.

Ooh thank you, that is a very good point. :T

I think I might have a play around with numbers :think:

saver03

Well the weather is awful where I am today, I am not even sure it is bothering to get light :mad: And now it is trying to snow which is ok as long as it is all cleared by Saturday as we are in the process of having our roof fixed and they only need 1 more day.

As I have no plans to leave the house for the rest of the day I am plan to:

• Meal plan until the end of February
• Do the budget for February
• Ebay, ebay, ebay!!!

I am also toying with purchasing some Euros as the rate is amazing but I am not too sure what is happening with our July holiday, as in we don't know if it will happen yet. It's a group holiday and there are issues with others. But then we would want a holiday but it may not be within the Euro. :huh:

Well my mind is now wandering towards holidays so I better focus and do some eBaying so I can make a fortune. Ooh must check and see if we won last night's Euro!!!!

Today I will be a good girl :A and the perfect MSEr

saver03

Today my plan was to do a lot of ebaying but I thought I would come on here to motivate myself as I am an expert procrastinator :mad:

I have been on my Scottish Power account and changed my tariff so the direct debit is £20 less a month, I am just hoping that it stays so low after we have entered our meter readings in a few months. But as the weather seems to be warming up we should be ok.

I have also done my weekly checkout on Consumer Pulse but not many purchases to declare as we are trying not to spend as much.

Right enough messing around, or whatever else I have been doing, as it is so late and I have not accomplished much :mad: I need to do some serious ebay listing now to rake in the money!!

I will be a good MSEr all weekend :A

PS. I am just watching an old episode of "The Bill" which was first aired 30th January 2008 and they are in a Building Society with an esaver account with 6.30% gross aer, ah the good old days!

saver03

My plan is to be a very good girl this weekend and eBay as if my life depends on it! I have so many items to list it scares me

About 10 months ago I decided that I wanted to start my own party business so went hell for leather ordering all kinds of stock and in total I spent just over £4500 :eek: :eek: However, I didn't have any kind of plan, business or other! I set up a Facebook page and told my friends what I was doing so surprisingly I wasn't getting the orders flooding in, more like a slight trickle! I have done a couple of stalls at markets but they really weren't worth it. I do get the odd sale when I advertise on the FB sites but not enough to make a living from and to be honest I have lost interest now. My plan now is to list things individually, at fixed prices, on eBay and hopefully make some kind of profit or at the very least break even. So this is why eBaying is so important to me as all this stock takes up a lot of room and plus there is so much money tied up in it :mad: And then when I have finished getting all the new stuff on eBay I have a lot of my own unwanted goodies to list too, so I need to stay focused and work hard. I already have some bits listed that finish today and tomorrow so I am hoping for bidding wars, fingers crossed!

I have been reading other people's diaries in a hope to inspire me as I know that I am not working as hard as others to become MF and that has to change. We do still want to be able to live life and have holidays and enjoy meals out, the latter is going to be reduced to special occasions, plus we enjoy going to the theatre with the odd trip to London, so we need to strike some kind of balance. So this month we are starting with baby steps and have set up an OP of £100 a month and after motivating myself with the overpayment calculator I see that this will save us nearly £8500 and will hopefully not be too noticeable :j

Anyway, I best sign off as I have once again wasted the day but I can still do a couple of hours of eBaying so I feel that I have at least achieved something today.

saver03

I'm not sure if writing on here is really motivating me or am I just using as a procrastination tool :mad:

Today I have/will

• Transfer council tax and paypal funds to OH's ISA
• List at least 15 things on ebay
• Meal plan for rest of the month
• Put a jumper on when I get cold

I'm keeping it nice and short as I have a lot of eBaying to do. But on the plus note I get free insertion fees until 15th so I plan to make the very most of that, and hopefully that will work as a motivation tool!

saver03

:smileyhea HAPPY VALENTINE'S DAY :blushing:

Am I the only one who got a Valentine's gift and then thought, "I wonder how much he paid for this? And what else could we have used the money for?" I really should embrace his romantic gesture as I know he thinks it's "a con" :rotfl:

Anyway, TODAY I WILL NOT PROCRASTINATE, so I better get back to my ebaying as my free insert fees finishes tomorrow so I really need to make the most of it and get everything listed.

saver03

Today I am feeling extra motivated as the neighbours on both sides are being louder than usual :mad: It's days like this that I wish we could move so much sooner.

Now I may have mentioned that we like a holiday, and I have done something naughty, but I am so happy about it I don't even feel guilty! We have booked go to New York over New Year :j:j:j:j It is slightly more than we would pay for a holiday but it's a once in a lifetime kind of holiday and it will be totally worth it.

We will still be overpaying our mortgage by £100 a month and then when we are back from New York we can look at maybe overpaying more. Our main goal is still being mortgage free as the saving on interest has the potential to be 10s of thousands. We just need to stay focussed on what we want to achieve and I am sure that we can do it.

On an excellent note selling my goods on Facebook and eBay has been going so well and the money really came in last week :T Just need to get the rest of my stuff on eBay and hopefully it will sell. A lottery win would be preferable though :rotfl:

Luckyinlife

Great stuff life is for enjoying just as much as it is for paying stuff off :]

Will be nice to see how you get on this year :]