Lift Off!

So here goes. The start of my brand new diary to keep me motivated on my mortgage free mission. At the grand old age of 44 the penny has dropped that time is ticking by and it's time to get focussed. I am very impressed by everyone younger that got focussed early on. So impressive!
So our situation is that we have c. 200k on our own mortgage to pay off and we also own two properties. Both cover themselves in rental income but between the two there is c. 215 k owed. We have not been overpaying on any mortgages to date but choosing to put any savings into funding the two flats in the hope that ONE DAY we will reap the rewards as income in our retirement years. However I would really like to start chipping away at these eye watering balances.

I've been giving quite a bit of thought regarding a strategy. It makes sense to work away at the one with the worst interest rate I.e. The 2.15 per cent buy to let) All rental income will be paid into the mortgage at the end of the year ( c. £1000 per month) as we can pay up to 10 per cent of the mortgage total each year. I would like to get the loan to value down to 60 per cent so we will be able to get better rates in 2 years time when our fixed rate ends.

To complicate things we are about to start a house extension which we have saved hard for over the last 3 years but cannot say for sure exactly how much it will cost until it finishes. Therefore I need to ensure any savings I make can be accessed just in case we go over budget.

I am so determined though to work as hard as I can to start addressing our debts especially as a big part of the mortgage on our own house is interest only and due to be paid off in 7 years.

So what will my tactics be? So far I am doing the following:
1. Have reviewed 4 months credit card statements to see how much we are spending. Some real eye openers such as how much I am spending each month on coffees. This will be stopping!! Have set new budgets for all categories.
2. Keeping a log of every penny spent in my little red book. This is keeping me really focussed.
3. Set target for saving £1000 per month but if strict think could see more.
4. Thinking before I spend. Do I really need this. What is long term value?
5. Looking at my motivations behind spending. Have realised that I waste money when I am not organised and impulse buy. I wil be more planned and not shop as a distraction from other things that need doing.
6. Make a list of things I enjoy/ could do that don't involve spending. E.g getting house ready for extension and selling stuff on gumtree etc to make money and clear house at same time. Feeling very chuffed as this weekend sold 3 bikes in under 24 hours on Gumtree. With hindsight think I sold them too cheap but glad to have made something. I then put this money in my Cash ISA rather than leaving the cash in my purse.

Anyway enough for now with first post. Glad to be making a start. Thanks to everyone on these boards for providing inspiration and sharing tips. Will try to share mine when I get a chance.

Replies

  • LadyGnomeLadyGnome Forumite
    801 Posts
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    Forumite
    Welcome and best of luck
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
  • TahlullahTahlullah Forumite
    1.1K Posts
    Good luck on your journey!

    Tx
    Still striving to be mortgage free before I get to a point I can't enjoy it.

    Owed at the end of -
    02/19 - £78,400. 04/19 - £85,000. 05/19 - £83,300. 06/19 - £78,900.
    07/19 - £77,500. 08/19 - £76,000.
  • edited 27 April 2017 at 12:56PM
    dark^knightdark^knight Forumite
    524 Posts
    Part of the Furniture 500 Posts Photogenic
    Forumite
    edited 27 April 2017 at 12:56PM
    Hi and welcome to the world of mfw!!!

    Two things that came to mind for me:
    1, Budgeting - are you budgeting?
    There are good tools for budgeting...a quick online search will help you.
    2, SOA: a statement of affairs will allow other people on here to help you:
    http://www.stoozing.com/calculator/soa.php
    ...complete that and copy/paste in this thread.
    Good luck on your journey!
  • themadvixthemadvix Forumite
    6.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Good luck! :)
  • Thank you dark knight- I've been playing around with a budget using the budget calculator on the mse website. I've now got target monthly spend worked out for each category that will enable me to save £1050 per month if I keep on track.
    I've had a quick look at your link for the SOA and I'll have a stab at completing this.
    I'm a higher rate tax earner and will exceed my £500 personal savings allowance so trying to work out if best to put the money I save each month for overpaying the mortgage into a savings account a Cash ISA or straight into the mortgage. Our mortgage that I want to reduce first is a buy to let at 2.5% I think.
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