£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
2021 Mortgage Free Wannabes #123 - £1395/5000
Overpayment Total: £7500
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Replies

  • NicheletteNichelette Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    Happy new diary :)
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £230,859.00
    MFW #86 - 15k overpaid in 2020 / aiming for 12k in 2021
    Overpayments since 27.03.19: £38,788.10
  • kaycastlekaycastle Forumite
    321 Posts
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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. :)
    Mortgage: Oct'17:£228k Current: £182k.
    Short-term: Loft conversion target: £26k/£45k. Emergency fund: £1439/£2500
    Long-term Goal: Mortgage neutral by 2031 (age 40)
    Pension: £22k
    My mortgage neutral and maternity prep diary
  • edited 8 September 2019 at 11:31AM
    BoredBored Forumite
    341 Posts
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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.
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
  • BoredBored Forumite
    341 Posts
    Part of the Furniture 100 Posts Debt-free and Proud!
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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:).
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
  • beanieloubeanielou Forumite
    77.9K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
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    Happy shiny new diary :)
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • TahlullahTahlullah Forumite
    1.1K Posts
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    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.
  • BoredBored Forumite
    341 Posts
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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.
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
  • jodles16jodles16 Forumite
    1.5K Posts
    Car Insurance Carver!
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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!
  • BoredBored Forumite
    341 Posts
    Part of the Furniture 100 Posts Debt-free and Proud!
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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
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
  • edited 8 September 2019 at 11:31AM
    BoredBored Forumite
    341 Posts
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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.
    2021 Mortgage Free Wannabes #123 - £1395/5000
    Overpayment Total: £7500
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