Boo's MF Dream

boo.boo · 17 September 2018 at 5:38PM

Hi all,

After being a long-time lurker, I'm finally putting my fingers to keys and starting my own diary. You are all so inspiring and I feel I have already gained so much knowledge reading many of your diaries.

So a little breakdown of my situation:

Property value: £500,000
Mortgage debt: £326,550
Interest rate: 1.41%
Monthly repayments: £1,200
Length: 30 years, now 28 years and 2 months left.
Over-payments: Approx £6,000 to date due to a small inheritance and I tend to overpay by £100-£200 per month.

My current deal is about to expire, so I'm beginning the process of remortgaging for the first time- looking at 3 or 5 year deals to protect myself from the impact of Brexit.

My dear daughter was born 3 weeks ago (first child), so money will be quite tight, especially from March 2019 when my wife's maternity stops and we will only be living off my income. The goal is to shave 10 years off the mortgage length and being MF in 18 years time. That would mean I have to overpay £450 pm which really doesn't seem feasible atm.

A little about me, I suffer from a chronic illness, that could impact my ability to work in the future. As a result, I try to save between £500-£750 per month which I put into a savings account rather than overpaying the mortgage. I do this so I'm able to have access to cash should something happen and I'm unable to work.

Cheers and wish me luck.

:beer:

the_cross_rabbit · 18 September 2018 at 6:32AM

:jWill cheer from the sidelines:j

julicorn · 18 September 2018 at 6:36AM

Happy new diary Boo, and congratulations on your little one! :heart2:

bexster1975 · 18 September 2018 at 6:39AM

Best of luck boo boo. Congratulations on the birth of your daughter

Bexster

Youthgonewild · 18 September 2018 at 11:25AM

Good luck on the MF Journey! Congratulations on the birth of DD!

boo.boo · 18 September 2018 at 3:31PM

Thank you all!! It's been the most incredible 3 weeks so far. I'm returning to work next Tuesday after my paternity leave ends and I'm already dreading having to leave her everyday.

So our mortgage broker recommend our new remortgage deal today - she wants to put us on the HSBC 3 Year Fix - 1.74%.

It will increase our monthly payments by £27 per month so overall I'm pleased with that, but having a look at the interest breakdown, it will mean paying an extra £80 per monthly instalment in interest which makes me sad but just encourages me to get it paid off ASAP and stop giving the banks our money!!

Going to work on my SOA and post it on here soon.

Thanks everyone