Chipping away one day at a time

Hello! After having a good lurk on these threads I thought I'd join (I'm hoping having somebody else reading might make me more accountable!
I took a mortgage out on a two bed semi detached house in July 2018. I took a mortgage of £99,000, over 25 years with a five year fixed rate of 2.14%. I was really frightened about Brexit and interest rates (still am!) which is why I decided to fix for 5 years.
I'm hoping that in the 5 years me and my boyfriend might sell and buy together (he is unable to get a mortgage as works on a temporary contract currently). I would possibly like to do this before the 5 years but I am unsure how that all works really.
There is quite a bit to do to the house (new carpets, plastering, a new kitchen etc), but I am trying to decide if I should delay these until I have a bit more paid off on the mortgage. It's nothing I can't live with, it would just be nice to have, but I think if I do this it could add to the houses value. Though I still have quite a bit of things in boxes and I am also attempting to declutter so my thinking is that it will be much easier to decorate when there is less stuff in the house.
I have a small pay rise in April, plus I'm thinking that when my mortgage overpayment allowance is 'up' for the year then I can put money towards decorating savings again. I can overpay 10% of my balance a year.
I initially did not overpay, just transferred extra money to another bank account as I was scared that as soon as the money was gone then I would need it! Early February I bit the bullet and made my first overpayment of £4900. This took my length of time owing down to 22 years and 9 months. A week later I then overpaid another £850, taking it to 22 years and 7 months, and a few days ago I overpaid £1887.90, taking it down to 21 years and 11 months (which is still a very long time away!). My current balance is £89294.62. I have downloaded the app and it feels scary seeing the interest going up.
I have approx. 6k in emergency funds and £170 in my 'normal' account until payday. I have no other 'debt's other than student loans and these come off my wage every month with my pension.
I am due to get paid soon and then will be making another overpayment. I am hoping this thread will keep me overpaying, get rid of things I don't need and help me to stop buying things I don't need! I would also like to find ways of being more MSE, and a way of understanding spreadsheets (I have a written version as I'm clearly not good enough with computers!).
I am going to try and do a bit of overtime where I can, and try to sell bits I don't need. I binge-watched Marie Kondo on Netflix and am trying to be a bit more minimalist.

Thanks for reading x

Replies

  • LeighofMarLeighofMar Forumite
    515 Posts
    500 Posts Fourth Anniversary Name Dropper
    Forumite
    Welcome. You're already off to a great start. Mortgage overpayments are definitely addicting.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of December 2022 - $19,999.00
    Business Savings $54,345/100k
    Hope to be mortgage-free by end of 2023 
  • coffeeandbiscuitscoffeeandbiscuits Forumite
    22 Posts
    Fourth Anniversary 10 Posts
    Forumite
    It's been a long year, but I remembered this diary and thought I should check in! I'm hoping if I can keep up with this it might help me keep a record of how I'm doing. 

    It's been a long year! Last Summer me and my partner got married, and finally decorated the living room. Newly plastered walls and new carpet, which made it look a lot nicer. We decided to sell our house last November after finding out we were expecting a baby. We saved money in the bank to top up the additional money we were going to borrow and continued to save. We were supposed to complete in March, but Covid-19 put an end to that and the chain unfortunately fell apart. In the meantime our baby girl arrived, and we are so in love (though tired!). I am still desperate to move house, and if I am honest I feel really down right now living here. I'm not sure if some of that is to do with Covid-19 and feeling uncertain about the future. 

    I could overpay until the end of June, so overpaid the max I could and our new balance as of today is £72842.01. We chose to bring the term down instead of the payment, so if it was to run as normal, it would be paid off in 17 years, when we would be 46. 

    I am hoping that our new plan will be to put the house up and hopefully sell, and move to a larger house with a garden. My husband is still on furlough, and I come off maternity in February, so I don't even know if a mortgage is on the cards for us at present unfortunately, although our broker did say he thought we would be ok. 

    In the meantime we have started to do some more DIY, and have started on our spare room (what will be the babies room!). This will hopefully make me feel happier and make the house more sale-ready for when we put the house back on the market. 

    Today we are going to the bank to reinstate my husbands HTB ISA, buy some supplies for the spare room, and fill and send the child benefit form. I am going to look at changing energy suppliers, have started shopping at Aldi, and I am going to see if I can find time to have an ebay sale. 
  • LeighofMarLeighofMar Forumite
    515 Posts
    500 Posts Fourth Anniversary Name Dropper
    Forumite
    Wow. A lot has changed in a year. Congratulations on your marriage and new baby. Hopefully, your house with the garden will come soon enough. In the meantime, as you said, doing little things to make your home a happy place will make you feel better while living there and will also attract buyers when it's time to put it on the market again. Best wishes.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of December 2022 - $19,999.00
    Business Savings $54,345/100k
    Hope to be mortgage-free by end of 2023 
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