Diary Mortgage Free Road To Change My Life

Firegirl

Your doing great!!!! It will all be worth it!

Luckyinlife

Hay sque how are you doing thank you :]

So as its the first mortgage payment next week i thought i would sort out how much over payments i can afford ect as im self employed this is hard to say month on month but working out a few figures

68k mortgage over 25 years at 6.4% for 2 years dropping to 5% after this

Im charged 3% in the first year for over payments and 2% in year to

So if i pay £1000 ill be charged £30 and £20 in year 2 on 1k over payment

so i doubt ill be overpaying at all in the first year or 2 as i may as well save each month and keep in in a pot ready for when its free in year 3

so if i save

option 1
save £200 a month that's £4800 over 2 years will save me £16000 in interest and knock off 3 years 11 months

option 2
Save £400 a month that's £9600 over 2 years saves me £28,129 in interest and knocks off 7 years off term

option 3
save £600 a month Thats £14400 over 2 years saves me £37,349 in interest and 9 years 7 month of the term

So My life target would be to be mortgage free by 40 im 27 years old now so to be mortgage free by this time id need to pay off an extra £300 A month on average over 10 year so my aim is to save as much as i can for 2 years and ill see where i am then

Im sure ill visit this post many of times over the years hehe :]

Luckyinlife

So i been to price up a kitchen and if i go down the value route its going to be around 2-3k if i go slightly up market its be more 5k

So im undiced what to do about the kitchen currently ideally id like to wait 3months or so to get this fitted as i have a lot of stuff to get done in the mean time electrics plaster work and boiler

not much planned this weekend now watch f1 horse racing and cinema with my boy happy days :]

Firegirl

Save your extra and regularly pay to an ISA. Go for an amount you know you can save each month..... And you can always transfer more when you can. I like a regular amount cause it's just gone and you don't think about it. ISAs tax free.

I've completely fallen off the wagon. Have still been ebaying but less successfully these days for some reason. Also really want to paint my kitchen and cause it's a new build house to afraid to do it myself cause ill mess it up so getting a quote for that on Friday. Also went on a wee holiday with my sis and bought loads of clothes. Lucky we save every month so didn't hit to hard.

Your kitchen- could you get it somewhere that you could pay for it monthly, only if you could get interest free? I did this because you can get what you need without spending your savings and means I still have my savings and the dd comes out as soon as I'm paid so I'm just left with what I'm left with.

Hope your enjoying your new home.

Luckyinlife

Bluefire wrote: »

We couldn't get over the difference in kitchen prices once we'd finished shopping around - what I'd designed with one company came out at 10k, and the one we ended up going with just over 5k! For pretty much exactly the same thing.

Enjoy the cinema!

Ya i know iv got about 12 units in the kitchen itself so its a U shape where the window is and on the other side there will be a fridge and washing machine with a work surface small cabinet and 2 units on the wall. so not a massive amount really i was hoping to get one for less than 3k which will be possible but this i think is going to be my max really

Thanks for popping in :]

Luckyinlife

Sque wrote: »

Save your extra and regularly pay to an ISA. Go for an amount you know you can save each month..... And you can always transfer more when you can. I like a regular amount cause it's just gone and you don't think about it. ISAs tax free.

I've completely fallen off the wagon. Have still been ebaying but less successfully these days for some reason. Also really want to paint my kitchen and cause it's a new build house to afraid to do it myself cause ill mess it up so getting a quote for that on Friday. Also went on a wee holiday with my sis and bought loads of clothes. Lucky we save every month so didn't hit to hard.

Your kitchen- could you get it somewhere that you could pay for it monthly, only if you could get interest free? I did this because you can get what you need without spending your savings and means I still have my savings and the dd comes out as soon as I'm paid so I'm just left with what I'm left with.

Hope your enjoying your new home.

Hay sque i hope your having a nice weekend :]
Ya my income is all over the place i will have my fixed bills now to come out and then save for the tax man and costs for work itself and hopefully have enough to put aside for the overpayment pot i think im going to aim to save £300 a month as this is the amount i need to bring the term down to 10 years :] if i can save anymore i defiantly will

Ya with my ebay stuff has been going ok not out of the world but iv been spending the money on stuff i need for the house saves breaking into the bank account as its thro paypal :]

Ya if i can get one interest free at a good price i will do it even if its only 3k iv got to go agine now on Tuesday to spend a hour or so with them so they can lay it out ect for me and then i can talk prices i guess its with wren

Ya i love spending time there now even tho its a bare shell more or less ill spend 2 full days working there next week now last tip run and rip a few trees out and the electrician will be in on Saturday to get to work :] i can step back then for a week or 2 whilst the plaster is there

Firegirl

£300 extra a month is a big amount and imagine being mortgage free at 40!!!! That would be totally amazing!

As you see all your hard work taking shape it will be well worth it!!!

Luckyinlife

Thanks sque ya £300 is a lot and ill be able to do that this 40 is the target we got to aim high aint we hehe :]

Ya defiantly cant wait now till its all left to paint and get the floor in lol :]

Firegirl

Go for it, sounds like you can do it and your determined !!! I'm gonna update my figures next month now. See how I go cause I have the 'outlaws' visiting for 3 weeks!!

Luckyinlife

thanks sque i wont know what i can save till it all settles down really but ill still be saveing :]

wow 3 weeks charge them rent haha