Viking's Diary

So I'm a recent convert to MSE, oddly directed here by my FIL's love of the Martin Lewis Money Show. We're trying to move house right now to a place closer to work, which will actually involve picking up a much bigger mortgage, but having lurked for a few weeks I finally worked out yesterday that our current mortgage is costing us £15.50 a day in interest, (fixed at 3.5%) and this means more than half the monthly payment is interest. I practically fell off the couch.

This deal comes to an end in August so even if we can't sell our house we can refix at less than 2% with the same provider - and hopefully that's the deal we'd be getting on the new, bigger mortgage. I've never OP'd before, but tomorrow I am going to remove the £65 that has been maundering in an old building soc account for more than 5 years and pay it in so I can make my first ever OP.

I really am a complete newbie - this is our first month of budgeting our spending (OH has done his for years but I do most of the money making and spending including the money he hands over for bills); I'm trying to meal plan more productively; I'm reading the Millionaire Next Door and I'm thinking far more carefully about the choices I make than before.

So I think a diary will really help move things along. I'm not aiming for early retirement but I would like to not be living month to month so much with a really decent combined salary. My aim is to be able to pay down the mortgage and reduce the daily interest in the first instance. I might be looking to shave a couple of years off right now, but I expect that if we do manage to move then we'll be looking to pay down as fast as possible to reduce the monthly bill.

I've been hugely inspired by so many MFW diaries on here and I thought I might as well give it a go!

Viking_MFW
«13456723

Comments

  • PrincessLou
    PrincessLou Posts: 503 Forumite
    Good luck - it sounds like you've had your light bulb moment! Everything's sounding really positive and motivated :)

    Have you thought about doing an SOA? That's usually the best way to start in seeing what you have, what you're spending and how you could possibly cut back.
    Mortgage - £105,500
  • Viking_mfw
    Viking_mfw Posts: 573 Forumite
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    Thanks PrincessLou, that's a useful suggestion. This month's budget is supposed to help move us towards that, to find out what we actually do spend our money on... so hopefully at the beginning of August I will be in a better position to do an SoA.

    V
  • Viking_mfw
    Viking_mfw Posts: 573 Forumite
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    Hurrah! I have officially made my first ever OP on the mortgage :T

    The £65 had accrued an extra £5 in interest since I last looked at it, so that's £70 sent to the mortgage, which also tests the process (it seems deceptively simple...) I excitedly told DH, who gave absolutely no indication of having heard at all... sigh.

    Nice to get a win since today's been pretty crappy - one of those days when you have to implement something at work that wasn't your decision or your timeline but you have to be the announcer and take the flak when it comes back...
  • Kittenkirst
    Kittenkirst Posts: 2,563 Forumite
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    Sorry to hear you had a pants day at work!

    But WAHOO :beer: :j :money: on your first OP! I will warn you that it becomes massively addictive.

    I've been doing the 'Tilly Tidy' method (named after a forum member!) to up my overpayments- essentially you round down accounts by moving it across to the mortgage. I round down our joint account to the nearest £ whenever a debit goes out, other people do it to the nearest £5 or £10.

    Anyways, however you do it, good luck and keep us updated. We're all in this for the long haul :D
    First home- Oct’16 until June’21: £170.995- Overpayments made £13,784 (25% extra!).
    New forever home- Sep’21 £309,449 @ 2.05%. Plan to clear it before 30 years!!!!!!
  • Viking_mfw
    Viking_mfw Posts: 573 Forumite
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    Thanks Kittenkirst :) Looking forward to it being addictive...!

    The Tilly tidy was what got me reading these diaries in the first place - found a reference to Tilly Tidies somewhere and had to go looking for what one was, ended up reading her entire diary over a period of about three weeks. I am a bit nervous about them - I am paranoid about ending up in my overdraft at the end of the month. Maybe when I have a bit more confidence about my budgeting skills :)

    Nothing exciting to report today... although it was a NSD, so here's to small victories.
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    Shiny new diary :hello:

    Tilly's are a great way for daily motivation and momentum and you generally end up with about £20 a month to OP, which you don't normally miss (especially with your new budget).

    I found the best method to engage Mrs SJ was the picture of the house on the fridge, and then when each £1k is paid off i colour in a brick. That alongside constantly telling herwhat our daily interest is and was.

    I'm sure you'll find what works and you'll have plenty of support on here which makes up for lack of it at home.
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34

    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • Viking_mfw
    Viking_mfw Posts: 573 Forumite
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    He's keen, just distracted :D

    I will try TTs as of tomorrow. Nervously :)

    Also went on Swagbucks while waiting for the washing machine to finish and tipped myself over into a £5 Amazon voucher, so there's today's exciting news.
  • Jessy103
    Jessy103 Posts: 1,821 Forumite
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    Good luck with your journey Viking and well done on your first OP!
    Mortgage Balance as of Jan 24 £36,500 Starting Mortgage Balance (June 2019) £72,000. 2024 Overpayment Challenge: Jan £558.40, Feb £588.11, Mar £497.32
  • Happy new diary Viking! All sounding very positive. Well done on doing your first OP. I will stick around and cheer you on. Good luck!
    "Why not now, OK so when and how," ElephantChunks.
    Electrics re-wire savings Oct 18 - March 2020 WE GOT ELECTRIC!
    Heating Loan Sept 0/£5000
    SPC14 #65
  • Hi and welcome :hello:

    Good luck with your overpaying, as they say..every little helps!

    TSG
    Mortgage £126746 DEC14 £122423.53 DEC15 £115041.70 DEC16 Remortgaged Sep17 to pay off HtB loan £150000 - £140500 JUL19 Moved house Oct19 £230000 £230400 DEC20
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