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Getting a mortgage and then becoming mortgage-free!

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Getting a mortgage and then becoming mortgage-free!

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
1.7K replies 170.3K views
KittenkirstKittenkirst Forumite
2.2K posts
Part of the Furniture 1,000 Posts
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edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi all!
So from my title you may have guessed I don't yet have a mortgage, however I am hoping that will all change within the next few weeks.
I will then start on overpaying the mortgage and really penny pinching to try and reduce it down as much as possible!

I'm hoping this is alright to start my diary in here? :-)

The story so far, my lovely girlfriend and I have been discussing getting a place together for some time. We started looking at houses (al very small and far from her parents- which is a no-no, we want to be close to them to visit regularly). Last weekend we went to see a new build development and fell in love with a house- less than 2 miles from her parents, perfect size for the two of us and within our budget (from getting mortgage in principle information and confirming monthly payments were well within our budgets).

Sooooo we took her parents round for their seal of approval, spoke with an agent we know through the family about pertinent questions to ask, did lots of number crunching and then placed a reservation.....

....so we've now got paperwork from solicitors re the conveyancing etc and paperwork from the mortgage advisors to sort out this weekend.
We have re-jogged our budget to ensure we had the deposit in savings by end of Feb (we thought we'd have a few months before we found anywhere) so are ready to almost hand over £18500 :O

I have agreed to move into her parents house and pay rent in mid March to prevent paying rent, bills and food (will save an extra £500 a month) so we should be in a good position for when the house is ready September/October time!

Does anyone have any hints or tips so far?

Our brokers/solicitors are ones recommended by family who've used them and really recommend them and we've sense checked the rates the solicitors charge to ensure its competitive.
2019 MFW #20£1172.70/ £4500 26%

Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
«134567166

Replies

  • KittenkirstKittenkirst Forumite
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    Part of the Furniture 1,000 Posts
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    Oooh prob an important point to note is that I haven't done an SOA as the situation will change twice in the next 8 months or so.

    I do however have a fancy-pants s/sheet with all accounts, details of lump sum payments (car insurance etc) for both of us and potential for savings and paying off credit cards etc.

    If you'd like to see a SOA or think it may help please do tell me (it's hard to know sometimes what the best approach is )

    :-)
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
  • SueP19SueP19 Forumite
    1.7K posts
    Tenth Anniversary 1,000 Posts Combo Breaker PPI Party Pooper
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    Welcome to the best board...................an SOA is a constantly evolving thing, so do one and put it up, then when the time comes adjust it, again and again

    Good luck x
    Mort Oct 15 [STRIKE]£70,353[/STRIKE] [STRIKE]£66,422[/STRIKE] £58,804 MF [STRIKE]Dec 31[/STRIKE] Jun 31([STRIKE]191[/STRIKE] 176 mnths)
    EF 2016 £700/£1,000 Debt [STRIKE]May 09 £30,217[/STRIKE][STRIKE]Oct 17 £14,093[/STRIKE]Nov 18 £6,336.12[/B]
  • Hi and good luck


    We bought a new build and it was quite nice reserving in May, but not completing til December. Gave us a few extra months to save up before we started paying the mortgage, because we found it sooner than we thought we would too. I'd say save as hard as you can while you can, so you have a buffer for anything unexpected when you move in and any extra furniture/other housey things you may need to buy.


    TSG
    Mortgage [STRIKE]£126746 DEC14[/STRIKE] [STRIKE]£122423.53 DEC15[/STRIKE] [STRIKE]£115041.70 DEC16[/STRIKE] Remortgaged Sep17 to pay off HtB loan £150000 - £140500 JUL19
  • KittenkirstKittenkirst Forumite
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    Thanks SueP19 & Twentysomethinggirl I'll sort out an SOA over the weekend and pop it up!

    I set up a help to buy ISA but unfortninately we need the deposit cash earlier so nipping to town tonight to close it and pay into my standard savings account. I've also found an old online saver for £5.50 that I need to close so taking that paperwork in today too! Only a fiver but it all helps ��
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
  • KittenkirstKittenkirst Forumite
    2.2K posts
    Part of the Furniture 1,000 Posts
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    Morning!
    Yesterday was a busy day, called the mortgage broker and had a chat. As the house won't be ready until Sept/oct there's not really much point getting mortgage offers as they are valid only for 6 months.
    He's calling the sales manager Monday to check this in which case we may have slightly longer to get the deposit- we'll still work on the original time frames though so it's sorted.

    That's more a mental stress thing as in our budgets it's not gong to change but knowing the deadline is longer in reality will prevent me getting too worked up about it (I hope!)

    Went to the bank and closed my help to buy ISA so my standard savings account is looking healthy! Also closed that small savings account with Santander so that's in the savings pot now too!

    Today I'm going to be packing at my old flat, then calling Tesco to close that old credit card down.

    I will also call first utility as based on recent readings I think they owe me a rather chunky amount (over £100) so either want a refund or for the DD to cease this month and next month (move out officially on 17th March!)

    When these are done I will do the SOA maker with current outgoing a, I can then update it once moved with new totals :-)

    Oh and we be had solicitors letter outlining all the conveyancing fees etc :o HOW MUCH!
    After the initial falling off chair moment, I checked the budget and we'd budgeted for this too so not really an issue.

    Tomorrow my 6 items on EB*y will end- 3 have met their minimums (hurrah!) so they'll be packaged after that. I've got two more items to post tomorrow and hoping to have a little more once I've done some packing today 💜
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
  • jodles16jodles16 Forumite
    1.5K posts
    Car Insurance Carver!
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    Hey Kittenkirst! Welcome to the board, this is the perfect place to begin your MFW journey! I still cant believe how much all the bits around buying cost, even though budgeted I still found it painful passing over the hard saved money! Will keep bobbing in and seeing how your doing!

    Jodles :D
    MFW2020 #115 250/3000 J-250
    1% challenge- /1525
    Save 1k in 2020- /3000

    Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
  • edited 7 February 2016 at 2:48PM
    BookWormBookWorm Forumite
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    edited 7 February 2016 at 2:48PM
    Welcome to the board :)

    You sound very organised and I hope all goes smoothly for you with the purchase. I don't have any tips for you I'm afraid as don't know about new builds but look forward to following your journey

    BW x
  • edited 7 February 2016 at 3:04PM
    KittenkirstKittenkirst Forumite
    2.2K posts
    Part of the Furniture 1,000 Posts
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    edited 7 February 2016 at 3:04PM
    Welcome both Bookworm & Jodles :-) nice for you to pop in!

    Today has no movement on mortgage/deposit situation however a chicken is happily roasting away in the oven (found lurking in my freezer!) and I made sugar cookies last night from a mix also hanging around my flat!
    eB*y goodies are up to £19 on three of the items and my gf and I have spent the morning doing some decluttering for her and photo'g more stuff to go on tonight.

    My payday is the 15th and I'm dangerously close to the Odraft limit already so I'm wishing the days away until payday, at least it's sunny outside and as part of my decluttering/moving I've found so much food for lunches this week- pasta with pesto/Sauce, couscous etc so will prep out food for the week including dinners for college and dance class nights.

    Bit worried about the mortgage guy so will be anxiously awaiting his call tomorrow re whether we need all the paperwork and do the process now or wait another month or so- we've paid £500 reservation fee on the house and I'm so excited already.

    So excited that i may walk over to the show home for a mooch and idea gathering re decor- I can then work out how to do it the cheapest for when the time comes :-D

    I'm then going to do the SOA maker tonight too and post it on here for any pointers!

    Hope you're all enjoying your Sunday's!
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
  • KittenkirstKittenkirst Forumite
    2.2K posts
    Part of the Furniture 1,000 Posts
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    Statement of Affairs and Personal Balance Sheet[/b]

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1498
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1498


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 360
    Management charge (leasehold property).. 0
    Council tax............................. 85
    Electricity............................. 16
    Gas..................................... 16
    Oil..................................... 0
    Water rates............................. 16
    Telephone (land line)................... 25.7
    Mobile phone............................ 35
    TV Licence.............................. 1
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 20
    Clothing................................ 30
    Petrol/diesel........................... 90
    Road tax................................ 11
    Car Insurance........................... 42
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 23.5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 14
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 5
    Entertainment........................... 40
    Holiday................................. 50
    Emergency fund.......................... 0
    Total monthly expenses.................. 950.2



    Assets

    Cash.................................... 6700
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 8700


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclays.......................1460......45........0
    Total unsecured debts..........1460......45........-



    Monthly Budget Summary

    Total monthly income.................... 1,498
    Expenses (including HP & secured debts). 950.2
    Available for debt repayments........... 547.8
    Monthly UNsecured debt repayments....... 45
    Amount left after debt repayments....... 502.8


    Personal Balance Sheet Summary
    Total assets (things you own)........... 8,700
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -1,460
    Net Assets.............................. 7,240


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    [/font]
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
  • edited 5 March 2018 at 12:02AM
    KittenkirstKittenkirst Forumite
    2.2K posts
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    edited 5 March 2018 at 12:02AM
    A few points re my SOA:
    - I don't have a tv licence as I watch programmes via my pc in my flat- this is only catch up or Netflix so have completed the self disclaimer.
    - phone contract ends at end of April so am changing to sim only from then
    -previously I paid into a share save through work (£200 a month) but have cancelled that and put funds into my main saving account.
    -groceries are covered currently by vouchers from work for sainsburys and wait rose which are deducted from salary already.
    2019 MFW #20£1172.70/ £4500 26%

    Mort- Oct16 £170.995 (end Nov 2041) Dec18 £152,838

    Overpayments 2016 £255.50 2017 £2600.40 2018 £4500
    Referral codes= Prolific- 8JXN5BVG shopmium- ACEAHKFA Shoppix- 57VB13QH
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