Mortgage Free Wannabe Story Begins June 2015

Mat_Lock

Hi all

Last weekend (13th June 2015) we finally fully moved in to our new home. 2 bedroom 1st floor flat (3 floors) with kitchen, bathroom, lounge & a balcony and also a garage en bloc.

Mortgage is currently on a 2yr fixed deal @ 3.49% which goes to 3.99% for the rest of the mortgage (28yrs, I will be 67 mehh). We were kindly given a gift of £20k for the deposit from my parents to enable us to buy and we got the property for £196,000 so a mortgage of £176,000.

Our first payment was made on 17th June 2015 for £994.87 which included more interest as we actually completed on 22nd May 2015. Normal payments are about £793 a month.

Not really sure what else to put down on this thread for now but please if anyone has any views or pointers to try and keep us above board all the time that would be awesome. I am not sure as yet if there are penalties for overpaying but I think there is something as it's from Nationwide. We have £1k debt just now because we needed homewares and we are still waiting for our rental deposit back from landlord to pay that off. Details in my signature.

Thanks for reading and I will be back with more.

Mat

edit 06/07/15: So from reading other diaries I think I need to say a few more things. Currently both myself and partner are working but partner is 29 weeks pregnant so will be going on maternity leave mid August. I am on a fairly good wage but now travelling 50 miles a day commuting. Using a 1.8l petrol so not ideal at moment but have no extra money to buy a diesel and could work out a bad move if I buy an older diesel. Current car runs fine (touch wood) so the fuel burn doesn't outweigh the inconvenience of buying another car.

My partner has built up a little savings pot for when she goes on maternity leave so she can dip in to that when she wants to. I am trying to save £500 a month extra so that if anything crops up I can pay for it. Once she goes on maternity leave I will be paying the mortgage and all outgoings relating to the flat. Partner will be buying food and baby stuff with her maternity pay and child allowance.

I don't think we'll be able to overpay anything in the next year or so until we know where we are with costs when baby arrives. So for now we're just trying to save as much as we can and also get the flat in tip top shape while we still have time.

juststuff123

Congratulations on your new home. Good luck with your mortgage free journey. 1st step prepare a budget, see where your cash is going and what potential you have for over paying. If you don't already, you will learn to love the spread sheet!

getmore4less

Welcome,

I see you have been posting on the DFW so probably know about SOA and spending diary.

SOA to set out the plans and goals set up.

New flat needs the spending diary to establish the new costs to make sure the SOA is correct
House needs emergency fund building.

Focus on free cheap stuff before spending loads on things, freecycle...

A want/need list with a target price can be usefull then wait for the deals. In the mean time start saving for things.

Your mortgage payment line should reflect the capital paid off not the payment made, will be a bit over £300pm

Using
http://www.whatsthecost.com/mortgage.aspx
£178k over 28 years @ 3.49% gets £821pm
With very close to £100k in interest might be something to target.

Seanymph

welcome and good luck

enjoyyourshoes

Check with mortgage company what you can overpay and if there are any early repayment charges.


Then go to an online early repayment calculator and ascertain the potential savings on interest on different amounts of monthly repayments.


Work out what your objectives for your life are, and then start calculating how you can achieve this within your financial envelope. (might be to pay off mortgage early etc, might be something completely different)


Go to some of the forums here to get tips an hints on being more 'efficient' with your £ and therefore use your £ more 'effectively'.

beanielou

Happy shiny new diary

Mat_Lock

I've updated my signature now and read the mortgage details. Looks scary how much we would actually be paying off.

Start Mortgage: £176,499.00
1 payment: £1323.29
23 monthly payments (3.39%): £797.35
324 monthly payments (3.99%): £852.96
Total amount pay back: £296,643.39 (4.0% comparison)

Overpayments, I've taken a screenshot as too much wording. Not really sure what it all means.



[STRIKE]Can I use a calculator from the information given to see what I can overpay, if any.[/STRIKE]I used the MSE one and can see for my overall 4% rate if I pay £250 a month extra it could shave 10 years off the mortgage.

I am still waiting for direct debits to be fully setup, namely utilities as SSE and ScottishPower are not playing ball.