Where to start...

KirstyO

OK,


So I'm about 7 months into my mortgage, and home ownership is treating me well. Finally getting a grip on where everything is going, how I want to run my home etc.


I had this great idea that when I was settled I would make an overpayment every month in a bid to being mortgage-free. At the moment that feels completely unachievable, as I'm running my home on a single income. I feel that making small overpayments of anything less than £10 is not really achieving anything, but medium-long term I can't guarantee that I'll be able to have anything more than that left in the budget to overpay with. Is it worth overpaying by £10 or less?


It's not major to a lot of people, but it is to me. I want to be able to know that I'm working for the day when I am free of this huge loan, and can one day be a cash buyer for another property. On top of keeping the home running, saving, and living a fairly modest lifestyle (nothing extravagant in the supermarket trolley, no unnecessary spending, working to a budget etc.) there doesn't seem to be anything else left, and it bugs me!


I know there MUST be a way to improve this. I'm working on lowering my bills, when my mobile is up for renewal I think im going SIM only, i'm £100 in credit on my energy bills so hopefully my provider will rejig my direct debit soon, I've just had a water meter fitted, im on a healthy eating plan so meal plan and only buy what I need, I bulk buy non-perishables from cash and carry etc.


I've thought about trying increase my income. I don't really have the time or energy for a 2nd job. I thought about being a distributor for utility warehouse or a rep for body shop at home, but I have social anxiety issues which make it very hard for me to see that type of job as right for me. I work mon-Fri 9-5 but all bar two evenings a week are regularly committed to other things, and I go to church and do my chores on a Sunday, so Saturday is really the only day I get to do things I really want to do for myself.


Please note, I'm not trying to complain. Having been in debt just over 18 months ago I am so grateful for the advice and patience of people on here and the people that have supported me to get here now. I'm just frustrated that I can't find a way of doing more to help myself at the moment.


Ideas welcome, sorry for the essay!

lincoln-potter

Its always during the first year of moving into a house when you will spend more on items that are needed. Once things settle down you get a good feel for what you can overpay and whether that is a little or a lot it will all make a difference to your overall term and ultimately how much interest you can save.

If you can't increase your income there are always plenty of ways to lower your bills.

- LED lighting
- Showers rather than baths
- Timers to reduce standby costs
etc, etc

All these small things an add up to a lot in the long run.

Good luck!

bexster1975

Hi and welcome!

Congrats on the new home. A few observations:

If you were in debt 18 months ago and now have a mortgage and are planning to overpay - very well done, you have achieved a lot in less than two years!

It's likely you are currently earning as little as you will during the duration of your mortgage - as and when you get pay rises, add them to the pay off pot!

Remember mortgage free wannabes are in a marathon, big a sprint. If you make it unpleasant you won't stick with it. You need to buy " unnecessary" things sometimes.

When I began I OPd £50 a month. I now have paid off the mortgage in ten years. ( I have savings offsetting the last bit, but it's the same thing!).

I would suggest starting with your outgoings. All essential outgoings should cost as little as possible. I bet the water meter will save you money. It almost halved my bill when I switched.

Above all, try not to give yourself a hard time. You sound to be doing really well. One step at a time.

Best of luck

Bexster

BookWorm

Hi Kirsty,

Just wanted to stop in and wish you well on your MFW journey.

I regularly pay small amounts as OP's (as do plenty of others around here!) so don't feel you are on your own. The thing with small amounts is they soon add up. And any £10 you overpay, that is £10 that you won't have to pay interest on in the future

Be careful though, as OP'ing can get very additctive

BW

elleandie

Welcome and good luck!

I too am on a single income which can be hard, but I also know that I'm in control of my own destiny and no partner can sabotage my efforts with over spending so it works both ways.

I've found mini goals help like breaking down the mortgage into little mini challenges, eg £100, and throw all spare money you have or find at the £100. You tend to find that money starts to appear, refunds here and there, cash back, pennies in drawers etc.

Pennies make pounds which make mortgages!

LadyGnome

Hi Kirsty

Welcome. Don't hold off from the small repayments. I'd happily pay off £3 when the mortgage was over £300K. Partly it was about mindset, I was doing something about the mortgage no matter how small.

Like Elleandie, one thing that helped me was to breakdown the mortgage into smaller chunks. In my case 1% at a time. If your goal is £3,100 the small repayments matter much more than when its £310,000 (using me as an example). If you have a smaller goal, then things like surveys, TCB, Quidco and the like seem more worthwhile.

Best of luck

Moneycoach

Budget, budget, budget.


What can you sacrifice to achieve your long-term goal, sky? Coffee? Drink? Etc


You get my point, how can you stretch that spare £10 to £100 per month to throw at your mortgage.


You are doing well so far.