FTB to MF ASAP

princess295

Ive become slightly obsessed with this forum over recent weeks and after seeing how much everyone has achieved through their threads I thought id start one of my own.
Im hoping to be a first time buyer soon, the application is being sent to the bank first thing Monday morning by the mortgage adviser, so although I'm not quite there yet i don't think forward planning is ever a bad thing so I've been thinking about clearing the mortgage as quick as possible. I don't have a set date just want it gone as quickly as i can manage, and i hope posting it all on here will give me the push i need to make it happen.

So a bit about me, I'm 26 I've wanted to gain a property for a long time however going to uni put a spanner in the works.
The house was on market for 85000, vendor has excepted 77500, mortgage is for 67000, the house is fab but the area not so great, but it a regeneration area so I've taken a risk as i believe the house will be worth a lot more in the future.

I've got a few ideas of how i can get this paid off asap and will share these later but would be grateful of any further ideas anyone would like to share

princess295

mortgage adviser sending full application today so fingers crossed everything will be fine but im on tender hooks waiting to see if i can finally have my dream of getting on the property ladder.

Ive had a think about how i can try make over payments and get the debt down asap, it isn't a plan that going to make me mega money but its a start

1) open 123 account- i have a halifax account wages get paid into with £5 a month reward, aim to set up standing order to my santander account and use this to pay all household spends and then use the interest/cashback from both accounts to overpay on mortgage.- DONE

2) Cashback- I need to buy everything for new house as i currently live with parents. I have used cashback sites for number of years so plan to use them as much as i can when buying items then use the money as over payment

3) savings pots- for last few months ive been placing money in various pots to cover council tax, tv licence etc so ive got used to the money going and ive already got some money when i do need to start paying these bills

4) Inbox Pounds - Ive used the site for about 2 years, using the 15p daily maximum allowance, will use this to overpay,

5) Surveys- ive tried over the years with surveys and go through periods of being motivated to do them and then loosing will to live with them, need to get refocused to start doing them again.

6) £50 over payment via Direct Debit- this is what i would like to start with, i will be able to pay more than this but for first few months i would like to start with this as a minimum until i have a better idea of the monthly cost of running the house.

I know these ideas are not going to make a lot of money quickly but i see it as good starting point.

edinburgher

Have a look at the Matched Betting forum. If you have a head for figures you could easily make 5% of your total mortgage amount over the next year, 10% if you put in a bit of effort. That would wipe years off.

princess295

Thanks for the suggestion, ive tried to understand matched betting before but couldnt get my head around it, ill have another read through and see if its something i could achieve

bexster1975

Hi princess

Hope the mortgage goes through OK.
don't knock your plans, they sound good to me. I began a couple of years later than you mortgage wise, but also started with £50 OP per month. I am now within 6 months of being mortgage neutral ( circumstances mean I will keep cash for the time being, but nice to know I could pay it all off anytime). That will be almost exactly 15 years early ( give or take a month!). My mortgage was a bit bigger than yours, but as I got wage rises I added more to the OP and here we are! Wise to start small, I think the biggest shock when I moved in was how much I needed and how quicly my "pot" for this was spent!

Will follow with interest

Bexster

Luckyinlife

Good luck Your in more or less the same kind of position as me im 27 with a 65k mortgage I have also just got the house 4 weeks ago
so can relate a lot.

Some great ideas there to save and overpay
Does the house need much work before you move in ?

princess295

Bexster- thanks for the positive words and wow 15 years early is fab, anything in particular you found helpful to get there so quickly? Im also due a wage rise in next 6 months, already worked out it will be around £160 extra a money to put towards the mortgage.

Luckyinlife- doesn't need a great deal, more cosmetic really, there is some damp but I've had it all looked into and it can easily be sorted.
How did it feel to get the house, it all seems scary at the moment and don't think it will feel real until i've got the keys, just hoping the bank say yes.

Luckyinlife

Personally when i was going thro the process i didn't have great expectations the house was 88k and i had a 25k deposit even so i only had 1 years earnings as im self employed but a broker got it done for me so when i had the letter that said yes i was cheffed

didnt feel real antill i got the key and started stripping it tho hehe I have a diary on here if you want some hope/motivation i started it before i got accepted :]

I hope you get good new

I had a plan 2 in mind which was to stay with family for a further 2-5 years and try every 6 months till i get accepted

bexster1975

Hi princess. Sounds like you already have the idea re: your pay rise. If you are wondering if it's worth paying the £160 off each month, try the overpayment calculator on the mortgage section of this website. I have taken the liberty of having a play. If you have 67000 mortgage at 2.5% for 25 years ( do not know if rate and time are correct) if you overpay £160 per month you would pay mortgage off over ten years early and save over £10,000 pounds. When you look at it like that it's a no brainer really

How did I do it? Much like the above. If I didn't have the extra cash, I didn't miss it. Knowing the long term difference it could make was worth it. I also hate my bl**dy job, so sooner I have the security of mortgage paid off, sooner I can leave!
Just think, if you could only pay off the extra £160 per month for the full term, you would be finished by the time you are 40!

Make sure you have an emergency fund ( and a life!) before you hit overpaying hard is my best advice. It's a long time if you never have any fun!!

Good luck, it's a very exciting time for you. You may find a lot of people in " real life" will think you are crazy!

Bexster

Monie

Nice advice Bexster.

No mortgage for me yet but applying all these tips to saving for a deposit then to the mortgage.

Will be reading with interest.

First ever post on here ever

princess295

Bexster, thank you for your comments it put a big smile on my face when i really needed it, most people are telling me im crazy to buy the house and its put me on a right downer, people should be pleased ive managed this instead of dragging me down for it.
the mortgage will be 4.19 fixed for 5 years- thats if it goes through it still being processed by the bank.

Monie- thank you for making your first ever post on my diary, there are great tips on here and helps with motivation.




good news, yesterday i found out i will be getting paid more next month, i didn't even realise this. i knew i would go up to the next pay grade giving me the extra 160 but this isnt for 6 months however id completely forgotten that im due to go up to the next increment of the pay scale that im currently on. A colleague mentioned it as she had double checked her contract and as we started the job at same time it means we will both get paid for from next month, ive worked out after deductions it will be around £35 so that will be going straight on overpayments.