BachSoon's mortgage mission

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BachSoon
BachSoon Posts: 172 Forumite
edited 30 April 2018 at 9:36AM in Mortgage-free wannabe
Hello :hello::hello:

Long time lurker here. I read your diaries and have been inspired to create my own. I've been particularly inspired by MuseumWorker, Sellotape, ShanghaiJimmy, Beanylou, Waty, amongst many others! I originally had one, way back in about 2014 when I brought my house on my own, when I was young, free and not quite single, but not committed :rotfl: At the time I had taken a salary drop to take a job in which I could progress and was away from the toxic atmosphere of my previous job. I made some small-ish regular overpayments while I had that mortgage, but nothing great as life events got in the way... in the form of an engagement, marriage and pregnancy!

Fast forward to now, we are me, DH, both 30, and DS, 9 weeks and our absolute best ever achievement:smileyhea

While we were expecting, we sold my house and brought one half way along DH's (previously long) commute to work. It now evens out both of our commutes and means DH gets more time at home with me and DS :T We fell in love with the house for it's original features, but it is currently having building work done, as the survey flagged up damp, so we decided to get that done before we moved in, but also decided to skim the walls, new carpets etc, as it had previously been neglected. Unfortunately when we got the keys, the work ended up being a bit more extensive when we discovered the kitchen units... gone? Also, we decided to get rid of the 'orrible bathroom and replace it with a nicer one :D:o We justified it with the fact it didn't have a bath, and we [STRIKE]need[/STRIKE] want a bath :o especially with a child/future children. Long story short, it ended up being a bit more extensive than originally planned, but 1. it's nearly finished, 2, DH hasn't needed to do it, so it's taken months rather than years as it would have been around work, 3, we won't have to do anything to it pretty much forever now and 4, it's our forever, family home.

DH has previously (before me) been financially irresponsible, but is now converted to saving, budgeting and overpaying :rotfl: He still leaves it all to me :rotfl:, but is happy for it to go ahead and for me to report back on progress, as long as it leaves enough disposable income for him to have a beer or two at the weekend and a nice camping or caravan holiday to France each year ;) (we have another 4 years until this has to be in the school holidays, so we get a decent holiday for £500 in May ish :D).

We took on a mortgage of £225,250, with a current balance of £224,108.86 over 25 years, well, we're now down to 24 years and 10 months :eek: but we're intending to make this much less. Travelling the world in early retirement anyone? :rotfl: :cool: We're in a 5 year fix at 2.15%, for an 85% LTV. Since I showed DH the overpayment calculator, and the fact that we can reduce the mortgage to 19 years with an overpayment of a mere £250 per month, he's happy to go for it :T I'm planning to overpay as much as possible while DS is so young and while he's an only one, as I need to remember that we are MFW not DFW as I can be quite [STRIKE]obsessive[/STRIKE] enthusiastic about it. Also, DH and I were extremely lucky growing up as we both had music lessons, dance/sport and scouting/guiding opportunities, which have been absolutely fantastic, so we want to make sure that the children have the opportunity to do the music/extracurriculars/clubs/sports that they want to do (within reason :rotfl:) and that we will need disposable income available for these!

My plan is that once we have moved in (currently squatting with my mum :rotfl:) and our budget is a bit clearer, each month we are going to save X amount into our general savings, make a regular overpayment of £250 to the mortgage and any extra bits that i can squirrel away towards the mortgage, into a separate account, so that we can then make an extra yearly overpayment of anything that's 'spare' i.e. still in the account. However it will have to wait a few months, as our project has gone a little over budget (kitchen, I'm looking at you), and when we move in, we'll have an overdraft and a 0% finance to pay off. I'll be hitting the overdraft first, then the 0% finance just to get rid of it really. Plus, I'm currently on maternity leave and about to enter my 3 months of half pay and then 3 months of SMP. So my mortgage mission won't start immediately, but as soon as practically possible.

How am I going to go about it...
DH and I are both generally quite frugal. We don't go out drinking, or holidaying to far flung destinations (yet, and ignoring our honeymoon....). We don't eat out often as our socialising is generally with our siblings/their families or friends with either 1, the same goals as us, or 2, small children as well. I'm veggie so we don't buy/cook meat unless we are entertaining. DH is not fussed by meat and has no desire for it at home :T as his parents are veggie and he grew up with a veggie diet. DS can choose for himself hen he is older.

I intend to:
1. Batch cook/freeze. I did a lot of this in our last house, but it hasn't been feasible while living with parents.
2. Remember to wash the nappies every day so they dry in time for me to not need to supplement with disposables :eek: :(
3. Express, express, express! for when I am back at work, DS is breastfed, but we had difficulties at first and thought we'd end up expressing and bottle feeding for the duration. So we went out and brought an electric pump, but fortunately managed to get DS back on the breast after 2 weeks. Seeing as we have an all singing, all dancing pump, I'm continuing to express to freeze it for the day feeds when I go back to work in November, as DS will be 8 1/2 months old and still needing his calories from milk. This will hopefully avoid the need for formula feeding if I can stash enough to last until he is a year old. Have you seen how expensive formula is?? :eek: and hopefully the health benefits will continue :T
4. Make sure I shop around for insurance renewals, any big purchases etc.
5. Stick to the budget... when it's in place :rotfl:
6. Continue with surveys - I do OnePoll and Prolific Academic which gives me a bit extra/treats money. Any suggestions for others? I don't get on with swagbucks.
I think that's it for now but I shall continue reading your diaries for further inspiration :D Fancy coming along for the ride?? :D

Off to put the nappies in the washing machine and shower, as in a non MFW fashion, off to meet a friend for a coffee [STRIKE]and scone[/STRIKE]. We'll see how virtuous I'm feeling...


Toodle-oo!
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Comments

  • Runders
    Runders Posts: 292 Forumite
    First Anniversary First Post
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    Happy New Diary! Good luck on your MFW journey :)
    MFW Start:[STRIKE] Sep 2014 - £110,844[/STRIKE], July 2019 New Home £190,995 :eek:
    Current: £82,999.69, £190,972.18, £188,091.57, £180,026.25
    2021MFW #97 OP Goal £296.36/£3000
    2020MFW #97 OP Goal £3104.09.09/£3000
    2019MFW #109 OP Goal £1024.99/£1000
  • therocket_2
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    Happy new diary!

    Our situations are both quite similar as we are the same age, have a young son, have a similar mortgage debt and have done house renovations before we can start our MFW career! Look forward to reading how you get on!

    Best of luck!
    MFW - diary has finally arrived!
  • Youthgonewild
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    Good luck Bach x
    Mortgage balance October 2015: £99875 Mortgage balance June 2023: £69999.40
  • BachSoon
    BachSoon Posts: 172 Forumite
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    Blimey am I bad at keeping a diary :eek:

    Well, life happened and it wasn't really possible for us to make any dents in the mortgage until now. A spell of post natal depression meant it wasn't really a priority. Our house renovation went over budget and our credit cards took a bit of a hammering and needed paying off over the following months. I'm back at work now which makes everything a bit easier, even with the cost of nursery :eek: but fortunately, we have grandparent assistance two days a week which helps hugely.

    Almost a year on, our current balance is roughly £217,600. I have made the first overpayment of £150 this month. The MSE overpayment calculator tells me this has saved us £101 in interest over the term of the mortgage which pleases me. I don't have the financial savvy to be able to calculate some of the things that other people do, but seeing a reducing balance and knowing we're saving interest is enough for me!
    In the interests of future planning, I've also increased my pension contributions and we're saving into several 'pots' - future, holidays and for DS.
    I'm recording what we spend, but I'm yet to go all guns blazing at the household budget ;)
  • beanielou
    beanielou Posts: 90,268 Ambassador
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    Good to see you :wave:
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  • BachSoon
    BachSoon Posts: 172 Forumite
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    Decisions decisions.

    Current account is £50 in credit following an under budget month. I get paid at midnight tonight, DH gets paid Thursday, so effectively, it's spare money.
    I'm undecided what to do for the best, options are below.

    1. Mortgage overpayment. We set a goal on moving in of £200 per month. This £50 will take us to our target for this month and our first concerted effort at overpayments :T it will also save us £34 in interest over the life of our mortgage :j
    2. Save it in general future savings.
    3. Split it between specific savings pots - house renovations / holidays.
    4. Leave it as 'float' in the current account. Less keen on this as DH would see it as available for spending :D whereas telling him that we've had an expensive month and therefore we only have £x left for the month is entirely accepted :rotfl:

    Any thoughts please oh wise ones? What should I do? I'm erring towards sending it to the mortgage :money:
  • BachSoon
    BachSoon Posts: 172 Forumite
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    Money shuffle done.... I do enjoy pay day :D

    I sent the extra £50 to the mortgage after all... Meaning we have reached our overpayment target for the first month - Martin's calculator tells me that this will save us £134 in interest over the life of the mortgage :beer: I have also set aside £200 for mortgage overpayments for this month, but I'll probably wait a bit further through the month to actually send it just in case.

    Money sent to savings also, split between general, holidays and house renovations. It's looking like it will be a reasonably priced month, so there will probably be some additional savings left over at the end of the month :money: DH's pay day is due tomorrow to top up our account after I've transferred all my pay out :rotfl::money:
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    Great decision on the £50. Its always a tough decision. My head says split between mortgage and family activity. But my recurring obsessive overpayment chimp tells me "OP OP OP OP OP"!
    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
  • BachSoon
    BachSoon Posts: 172 Forumite
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    Exactly Shangaijimmy, I hadn't realised how addictive it would be once I got started :o still, there could be worse things to be addicted to I suppose! :D
  • Nichelette
    Nichelette Posts: 2,090 Forumite
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    Thought I would swing by your diary. We seem to have a lot in common! My husband was an absolute financial disaster before we met so I'm the one in control of the money too. We're also pretty frugal and I do lots of things on the side to make us a bit extra. Am keen to see how you get on :).
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
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