Bricks Not Books

The first day of a New Year seems like the best time to start this diary! I was on this board under another name for a number of years, but I felt like a change of name as well as a change of diary, so here I am!

Completed on new home with OH in December, we haven't even owned it for a month yet. But we have a mortgage of £160k and we both hate being in debt, so we've already made plans to start overpaying. OH isn't in the best paid job (Civil Service) and I'm on a temporary contract, albeit with a manager who is keen to keep me on, but I hate the uncertainty of it. So I'm definitely going to be job hunting, and he will be too in coming months.

Mr VH has never lived away from home before. I moved away at university, moved back after graduation, moved out a few years later and spent 4 years as a lodger in a flat in London with a lovely couple, and then moved back with parents again. I've spent over a year sleeping on a sofa there as what was meant to be "temporary while we look for a place to rent" turned in to "let's buy a house together". Had a bit of a nightmare with the purchase, and we're still not actually in the house properly as it needs some work done on it. We've got a 5 year fix from Halifax at 2.74%, with monthly payments that are affordable. As we've never owned property before and it's been years since I had to work out budgets for bills (been paying all-inclusive rent at London and with parents) we decided to err on the side of caution. We set ourselves a realistic amount for repaying the mortage each month, and the one we eventually got came in £30 under that amount. So we're already going to OP £30 as our budget allows us that flexibility.

But even though we're not under the roof yet we still have a mortgage to pay XD First payment comes out in 3 days time and then we're on the path to 29 years of a mortgage. I'm 31 and OH will be 30 in a few months, and this is our first home. Not a forever home, we don't have children yet but want them in the future and this place is just about big enough for small ones, but would be cramped for older children.

Our house is currently going through some work due to years of being a student let, the last owners were intent on bleeding the place dry and then dumping it. We're going to look after this place, but it's taken up a lot of our savings. I've factored rebuilding the savings in to our budget, and also set up a spreadsheet to see the impact our OPs will have on the term, daily and monthly interest.

So our targets to start with are;
  • Build an emergency fund of £1000
  • Match the budgeted £30 a month overpayment through wombling, discounts, roadkill, earning extra pennies, saving loose change, and Tilly Tidies, so we’ll aim to be OPing over £60 a month.
  • Drop below the £155k mark by January 2017.
  • Enjoy living in our new home together :)

Fun Numbers;
- Without overpaying we’ll go under £155k in May 2017.
- With £60 a month OPing we’ll go under £155k in February 2017 – only need a little extra stretch to remove that last month!
- Without overpaying we’ll drop under £11 daily interest in August 2020!
- With £60 a month OPing we’ll drop under £11 daily interest in February 2020.
- Without overpaying we’ll take 29 years to pay off the mortgage.
- With £60 a month OPing we’ll take 25 years to pay off the mortgage!
- In order to pay it off in 20 years we’d need to OP £200 a month.
- If we OP by the monthly interest (c. £320 a month) we’d pay it all off in…16 years!

I think we’ll stick with £60 for now XD

And as for the diary title - between me and OH we practically own a library :rotfl: Need to cut back on paper purchases in favour of paying off more of the house!
"You won't bloom until you're planted" - Graffiti spotted in Newcastle.

Always try to be nice, but never fail to be kind - Doctor Who

Total overpayments in 2021 - £901.28!
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Comments

  • VintageHistorian
    VintageHistorian Posts: 887
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    edited 3 January 2022 at 5:39PM
    Overpayment totals!

    2017 total overpayment - £1111.74!
    2018 total overpayment - £949.73!
    2019 total overpayment - £707.82!
    2020 total overpayment - £867.15!
    2021 total overpayment - £901.28!
    "You won't bloom until you're planted" - Graffiti spotted in Newcastle.

    Always try to be nice, but never fail to be kind - Doctor Who

    Total overpayments in 2021 - £901.28!
  • CathT
    CathT Posts: 7,109
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    Hi VH, good luck with overpaying this new mortgage. Your figures show just what a difference small overpayments make.
    Feb 2024 - part 1 - £32,339 part 2 - £25,218 Total - £57,557 45 months to go!
  • BachSoon
    BachSoon Posts: 172 Forumite
    Good luck! I shall be reading with interest :).
  • Hi VH

    Your title caught my eye I also recently started a diary here - I love reading! Good luck - I've subscribed, look forward to following your progress
    Food Shop March £85.55 Petrol March £45.78 Socialising March £60.65 on 5 adventures
    Overdraft 04/02/2019: [STRIKE]£1500[/STRIKE] /£
    Mortgage: [STRIKE]£140,000[/STRIKE] £57,565.14
    Annual Target £6845 Currently At £
  • edinburgher
    edinburgher Posts: 13,423
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    Are you in Newcastle? £160k mortgages wouldn't get you much in the SE! One of my siblings lives in that neck of the woods, some great deals to be had.

    Former BTLs can be quite.... colourful. Mrs E's sister bought one and found an exploded bottle of fizzy drink (glass) set into the glacier that was the freezer compartment! :eek:
  • Thank you for the warm welcome everyone!

    CathT- I know, I couldn't believe it when I started typing things in to the spreadsheet!
    BachSoon- Thank you!
    CharlieKat- Good luck with your MFW journey too! It'll be great to see where we are this time next year!
    edinburgher- No, not Newcastle, I just spotted the graffiti a few years ago on a train journey back after visiting...well, your city XD Our house is near Colchester, although thankfully not in the city itself. We had a 15% deposit (most OH's savings) and then my savings covered all our purchasing fees and stamp duty, and will be going on the bathroom refurb. Little 3 bedroom (3rd bedroom is very small) terraced house, perfect older-FTB property! :)
    "You won't bloom until you're planted" - Graffiti spotted in Newcastle.

    Always try to be nice, but never fail to be kind - Doctor Who

    Total overpayments in 2021 - £901.28!
  • Good luck on your journey. You sound very sensible but I hope you still get to buy the odd book.
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • Tropically
    Tropically Posts: 427
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    Good luck on your journey. If you can part with some of those books, there are loads of easy to use book selling places like Ziffit or momox.
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
  • michelle09
    michelle09 Posts: 912
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    Hi VH! Looks like OH and I are very similar to you guys, will be watching with interest. :)

    I hate being in debt too, even if a mortgage is not bad debt, I am still very twitchy about the whole thing.

    Good luck with your OPing! Do you have any books you are happy to shift? I got rid of several boxes on webuybooks. It was really helpful pre move.
  • I'd happily get rid of some of the books, but I already had a clear out when I moved from London, and OH would never, ever consider getting rid of any of his, and I wouldn't want to force him. We see books differently, he likes to treasure every one that he buys, whereas if I know I'm not going to read it again I donate it to a charity shop.

    This afternoon I cashed out some money from Quidco, once it hits my account I'll earmark it for an OP. I set up Quidco to pay cash outs in to my savings account rather than my current account, so they're instantly out of sight and out of mind.
    "You won't bloom until you're planted" - Graffiti spotted in Newcastle.

    Always try to be nice, but never fail to be kind - Doctor Who

    Total overpayments in 2021 - £901.28!
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