£99,963.74

Welcome to my first ever mortgage-free wannabe diary. :T

I purchased my home 6 months ago and am still recovering from the shock of the monthly interest payments. I bought it for £145,000 with a 95% mortgage at 4.04% fixed for 2 years. I would have liked to save up a 10% deposit to get a better rate but it wasn't possible due to various circumstances. I've been playing around with some mortgage calculators and, if I were to stay on this mortgage for the remainder of the term, it would cost me a whopping £99,963.74 in interest. :eek:

So moving forward, my first big mortgage-related goal is to reduce my LTV so that I can remortgage onto a better rate next year. I'm keeping a strict eye on my monthly budget and planning to use any excess towards overpayments. However, before I start making overpayments, I need to save up a cash emergency fund as I have just closed all my credit card and overdraft accounts and don't have them as a safety net any more!

Any advice and money saving tips are appreciated. :j
2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
Mortgage Overpayment Total: £22,397.1
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Comments

  • Nichelette
    Nichelette Posts: 2,090
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    Happy new diary :)
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • kaycastle
    kaycastle Posts: 355
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    Well done on starting a diary :)

    My first tip would be to scrutinise all your spendings with your goals in mind. Put it all in a spreadsheet if you haven't already. If you can, list out on here exactly where the spending goes each month and income. :)
  • Bored
    Bored Posts: 389
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    edited 8 September 2019 at 11:31AM
    It's payday tomorrow and I've spent the evening allocating it into various pots. There won't be anything left over for a mortgage overpayment this month but I'm laying the groundwork for future months.
    2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
    Mortgage Overpayment Total: £22,397.1
  • Bored
    Bored Posts: 389
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    kaycastle wrote: »
    Well done on starting a diary :)

    My first tip would be to scrutinise all your spendings with your goals in mind. Put it all in a spreadsheet if you haven't already. If you can, list out on here exactly where the spending goes each month and income. :)

    Thanks for the advice. I've allocated myself my spending money for this month and will be reporting back where it all goes (I suspect food is the main culprit :rotfl:).
    2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
    Mortgage Overpayment Total: £22,397.1
  • beanielou
    beanielou Posts: 89,341
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    Happy shiny new diary :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing [email protected]. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

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  • Tahlullah
    Tahlullah Posts: 1,086 Forumite
    Hi.

    Good luck going forward, but no money for water or for house insurance? Have you paid upfront?

    Tahlullah
    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.
  • Bored
    Bored Posts: 389
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    Tahlullah wrote: »
    Hi.

    Good luck going forward, but no money for water or for house insurance? Have you paid upfront?

    Tahlullah
    Hi :)

    I live in a large block of flats and buildings insurance and water are both included in my (rather extortionate) service charge. :D

    Contents insurance... I should probably look into getting. I'm a bit of a minimalist and have never really owned anything of great value before , but I guess I will accumulate more possessions now that I have a permanent place to live.
    2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
    Mortgage Overpayment Total: £22,397.1
  • jodles16
    jodles16 Posts: 1,477
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    Welcome, congratulations and good luck! We got a 95% mortgage for our place and it was a wonderful feling when we remortgaged to a better rate!



    Jodles :D
    MFW2020 #115 250/3000 J-250
    1% challenge- /1525
    Save 1k in 2020- /3000

    Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
  • Bored
    Bored Posts: 389
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    jodles16 wrote: »
    Welcome, congratulations and good luck! We got a 95% mortgage for our place and it was a wonderful feling when we remortgaged to a better rate!



    Jodles :D

    Thanks Jodles. It definitely feels like a bit of a precarious position at the moment but I'm hoping that feeling will dissipate as the mortgage balance goes down and my savings go up. :j
    2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
    Mortgage Overpayment Total: £22,397.1
  • Bored
    Bored Posts: 389
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    edited 8 September 2019 at 11:31AM
    Whoops, has it been two months already? I didn't do my monthly report for May and I also had a rather spendy month so I want to be more aware of my money for the June to July pay period!

    Feel like I have a good grasp on my bills but my spending was out of control last month. Each month I transfer £500 to a separate account to cover all spends but last month I overspent by £95. I've just done a Lidl shop for around £15.00 and am going to try to start taking lunches to work since the majority of my money seems to go on food. :eek:

    I am yet to make any overpayments on the dreaded mortgage. I am very tempted but I know that my emergency fund is still too low to cope with any major issues so all my spare money is redirected to the savings account for the moment. October will be one year since I bought the flat (and also one year until I can remortgage) so I need to get a move on.
    2023 Mortgage-Free Wannabe #19: £11,675.68/£13,000
    Mortgage Overpayment Total: £22,397.1
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