Lumiona's MFW Diary

As a forum lurker, I'm not a threadstarter but I figured like many of you that a diary is a good accountability method.
Ok so here goes:
Backstory, we moved to our current house in 2006, bought for £178k mortgaged at £130k for 30yrs. Interest rates were high monthly payment about £750, went up to nearly £900 at one stage.
We've wanted to remortgage to better rates in the last 10 yrs but circumstances have been against us.
Property prices crash in 2007-2008 our LTV shoots up.
DH made redundant 2009.
DH sets up business, doesn't really take off so he has career change at low wage in 2011.
I go part time for the children in 2012 after (definitely final) baby no 2.
Since then we've been building up our savings and making improvements to the house that were lacking over the years.

Jump to present: at the start Jan 2019 balance of mortgage is £95k, on a high SVR paying £598pm.
We finally remortgage using a lump sum OP to £86k at a better 5yr fixed rate now that our LTV is below 50%, monthly repayment of £432.

Our end goal is be mortgage free at the end of the fix in Feb 2024. Its ambitious for us and no-one IRL knows that we're doing this.
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Replies

  • LumionaLumiona Forumite
    127 Posts
    100 Posts Third Anniversary Photogenic
    As it's a new fixed mortgage, we're limited to the 10% annual overpayments based on the balance at the end of the mortgage year so we will need to save the lump sum of £35k or so that we are likely to be short at the end of the fix.
  • newgirlynewgirly Forumite
    8.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    Hi lumiona, welcome and well done starting the diary :) it’s definitely the way to go to stay accountable when trying to overpay. It’s such a long journey and having likeminded people on here most certainly helps :D
    MFW 67

    2021 £16,534.27 / £16,400
  • LeighofMarLeighofMar Forumite
    459 Posts
    100 Posts Second Anniversary Name Dropper
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    Welcome. 2024 is our target MFW year too. Nice to have others in the trenches with us who get it. Happy journey.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of July 2021 - $28,550.00
    Hope to be mortgage-free by 2023 
  • BachSoonBachSoon Forumite
    172 Posts
    Welcome like-minded person! :D

    That's a great goal to have... 2024 sounds so close...!
  • greentgreent Forumite
    10K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    Hello and welcome! We also had a mortgage of £130K but bought this house in Oct 2005 (and had children no 3 & 4 since moving here) - and my OH has since been made redundant twice and had 2 periods of unemployment of almost a year long each - so can understand some of your pain!

    You've come a long way and a diary is a great place to keep a note of your thoughts, progress etc - we can be your virtual cheerleading team! :D Look forward to following you along :)
    xx
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    Net sales 2021 £426.84/ £500 Decluttering 2021: 1100/1250
  • shangaijimmyshangaijimmy Forumite
    3.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    Welcome aboard. Small frequent goals for the first 12 months or so to get some momentum and you'll soon be obsessed...and inpatient!
    MFW: Was: £136,000.......Now: £66,357.66......
    Mortgage Neutral Deficit: £49,928.91... Mortgage Neutral Savings: £16,428.75
    MFiT-T5 #8 - £20,682 of £23,100 (89.53%)
    1% Mortgage Challenge - £645.54 of £705
  • LumionaLumiona Forumite
    127 Posts
    100 Posts Third Anniversary Photogenic
    Thanks everyone. Yay proper cheerleaders!!
    We're fairly frugal usually bar the odd splurge. However I'm an Accounts nerd and love a cash flow forecast so I can see where I plan to be in 5 & 10 yrs barring any issues.
    Goal no 1 is £8500 off this year.
  • HettyhoundHettyhound Forumite
    748 Posts
    500 Posts Second Anniversary Name Dropper
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    I’m a new diary keeper too and the support so far has been fantastic! I have a target for the year end but I’m already thinking about how I can increase that. I’m also a silent overpayer as I’m not sure those around me would be on the same page. I’m currently on 10% overpayment only but at the moment I can’t afford to overpay that much so no issue but my fixed deal ends November 2020 so I’ll have to consider my next move then.

    Best of luck!
    Grocery challenge November £149.43/£180; December £76.64/£200
    SPC #023 SPC 12: £125.86[/COLOUR]:SPC 13: £214.98: SPC 14: £297.41
    MFW #90 Mortgage start Dec 2015 £79,950; November 2021 £41,146.77 2021 OP £3469.86/£4800
  • wishingthemortgaheawaywishingthemortgaheaway Forumite
    2.5K Posts
    1,000 Posts Second Anniversary
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    Morning,
    We are looking at a 2024/2025 'finishing the mortgage' date too at the moment. (We'll likely move and increase the term again, but for now we are in that region.)
    It's great to have virtual support in these threads, people are so supportive and encouraging. Good luck with your journey.

    Wish
    Outstanding mortgage: £23,181 (December 19)
    MFW 2020 Challenge Member #10 0/£2318
  • LumionaLumiona Forumite
    127 Posts
    100 Posts Third Anniversary Photogenic
    It's been quite a week. Best laid plans and all that....
    My work has been strange for that few months in that they have sold up and kept a handful of us on for their next venture. I'm optimistic that they need me to stay however it is not 100%. DHs job was always secure until the last month or so when the contracts for his dept have gone fairly quiet so it's possible we might not be able to make this years goal but hold it in savings should the worst happen as a mortgage neutral fund.
    We have redundancy insurance as we've had to use it before so I'm not overly concerned at the moment.

    On the plus side we have been gifted unexpectedly a few thousand by the PILs, they knew nothing about work. I'm really uncomfortable with it (I don't loan or accept money off anyone) but they are lovely people and I know it comes with no strings and have insisted we take it. It will be added to the mortgage neutral/ emergency savings cushion (I need a better term for this).

    I'm still chipping away in tiny detail on the mortgage regardless. I'm rounding the bank weekly to the nearest £50 and sending the remainder off the mortgage, it hurts less and makes the bank look neat and tidy (saddo).
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