New Empty Nest Mum starts battle of mortgage ...

shopaholicnumber1
shopaholicnumber1 Posts: 152
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edited 20 September 2019 at 10:32AM in Mortgage-free wannabe
I've lurked and read diaries on here for months to inspire me to start my mortgage free journey so hello!

A little bit about me. I have been a single mum of 2 for the last 14 years and it's fair to say have struggled to the point where every one of the various boards has been a lifeline at one time or another. In 2008 (3 years single with a 7 and 9 year old) I had to start a DMP with some £45K of debt :eek: This was finally completed paid off in 2015 which was a huge relief!

Next, I relocated from Derbyshire to Lancashire as my "partner" got a job there ... it was too soon and didn't work out. I rented out my house in Derbyshire but my children had made a life here and were doing well, so I sold it in 2018 and set about buying a new one up here. I opted for a new build (I know, I know!) as I needed the Help to Buy in order to get something big enough for 3 adults, a dog and a cat. Anyway, the developer only built 5 houses and, as it turns out, the build quality is really good and despite my reservations during the buying process, I moved in and fell in love with it (thankfully!) in March 2019.

Within 12 months of moving north my "partner" walked out, leaving me with no permanent job and rent of £800+ per month. Perhaps stupidly we then tried again with my DS and I moving in with him again in late 2017 when my DD started university. This was even more disastrous than the first time -but did give me the opportunity to sell my Derbyshire house and save a little bit so not all bad :T

I had to buy my new house in total secret and moved out one day while he was at work - leaving 95% of my possessions behind. The whole thing was more than a little bit stressful! I did feel guilty hiding something like that, but the relationship was emotionally and financially abusive and I needed to get not just me, but my children out of there and had a real fear of being out on the street with no family within 100 miles if I was upfront about it. Anyway, that's all in the past and now my little family have a lovely, sunny and happy home again :-)

So, after 6 months of spending lots of money on setting up home again (at age 48 for heaven's sake!) and haemorraging money setting DS up for his first year at university I am finally in a position to start making small overpayments on the dreaded mortgage!

DS was safely deposited at university last week (with a few tears from me) and DD will be deposited at her university tomorrow to start her final year (with possibly a few more tears!). She will be moving back though next May (yay!) and started a Teach First 2 year training course next September. My babies are learning to fly :heart:

So, enough of my boring tale and to the financials...

House price: £138,000
Help to Buy loan: £27,600 :eek:
Deposit: £29,400
Mortgage (March 2019): £81,000
Term: 20 years
Interest rate: 2.29% fixed for 5 years

The plan:
Goal 1: To overpay enough to be able to afford to remortgage at the end of the 5 year fix for enough to pay off the Help to Buy loan
Goal 2: To overpay enough to finish the mortgage by the end of 2032 - 7 years early
Goal 3: To increase my diminished emergency fund from £2500 to £8000 by the end of the 5 year fix
Goal 4: To increase my pension contributions by 1% per year (employer contributes 7.5% so a decent enough scheme) so I can survive in retirement!
Goal 5: To locate all my little pension pots and get advice on how best to sort them out

Steps taken so far:
1. £100 monthly overpayment set up to start asap (possibly too late for September payment)
2. To get around to finding a local TSB branch to get them to sort out my access to online mortgage - awful, awful website that just won't accept my details!
3. Pension just increased to 6% from this month's pay so my first tick done! :D
4. Monthly standing order set up for £100 into savings pot, first payment set for just after payday this month
5. Pension providers tracked down (I think!) and contacted. Response from one of them so far.

I don't earn a fortune so things will be tight but I'm hoping that this diary - and reading all of your wonderful inspirational diaries will keep me on track during those times when I just want to give up! If you've got this far -thank you and well done!
Mortgage: £81,154.58 (03/19) - £64,380 (07/22)


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Comments

  • Hello,

    Wishing you lots of love and happiness for the future. Will be looking out for updates and cheering you on !

    Good luck x
    June 17 £16,000 debt ~ nov 18 DEBT FREE •June 21 £16,308 debt / july 22 debt free •Original mortgage free date 01/06/2059 current mortgage free date 01/05/2046
  • longway2go
    longway2go Posts: 1,006
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    Good luck with your plan.

    We have a Tsb mortgage and gave found them helpful when you call. I have set up the online banking app it only gives you the balance but is useful for motivation.
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
  • beanielou
    beanielou Posts: 89,220
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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.

    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • Well, that was quite a weekend! Road closures, accidents, roadworks and then a home match on the same day as freshers arrive! 8 hours to Newcastle and back but DD safely and happily ensconced in her lovely flat and ready to smash her final year. Now to get used to being a household of one!

    Financials look set to head in the right direction too (once my poor bank account has recovered from the spend-fest that is university!). Npower have just reduced my direct debit to £56 a month from £84 so that will help. Next task is to live on the random contents of my freezer for the next few weeks to get ahead. If all goes to plan I can make an extra OP in October! Exciting!
    Mortgage: £81,154.58 (03/19) - £64,380 (07/22)


  • Well, first time going home to an empty house last night and it was actually quite nice! House not totally empty - my little dog was so excited to see me as she is used to having the kids around so must have thought she'd been abandoned! The cat, meanwhile, couldn't have cared less :-)

    Leftover slow cooked chicken curry defrosting for tea so the freezer emptying has officially commenced too. At least I hope it's curry - must get better at labelling stuff ...

    Payday tomorrow thank goodness! £1.16 in my bank account which took a battering last month with tons of uni stuff. So this month is mega-frugal month and (hopefully) first OP month which I feel ridiculously excited about! £100 off an £81K mortgage is hardly worth putting the bunting out for but it'll add up I suppose.

    Best get back to work really.
    Mortgage: £81,154.58 (03/19) - £64,380 (07/22)


  • Hello - we have a help to buy that we are remortgaging hopefully this year to pay off. There are quite a few fees involved which I hadn't been aware of as you have to pay for a survey and an admin fee. It all feels like money for old rope! anyhow just thought I'd mention in case you weren't aware when you come to do the same. I love having a new build - never thought I'd say that, but I find it has been hassle free and nice and warm!
    MFW #69 Mortgage remaining Jan 2021 £221,644; Jan OP £1000;
  • longway2go
    longway2go Posts: 1,006
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    Hey,

    I started having a look at the batch lady stuff the other day and have been inspired... I'm really rubbish at freezing things but looks like she has some fab ideas which may really help save time and money.

    How did you get on with Tsb in the end? I have found each time I make an OP they send me a letter which is quite nice.

    In relation to the 100 not being much. Maybe try to look at the amount of interest you will save by making the payment. I use the OP calculator on this site to work it out and for me is about half the amount I pay.... So if I paid 100 off then I save about 50 in interest so therefore have really made the equivalent of 150. Also, every time you make a payment just think your debt is never going to be that high again.

    I mentally split by remaining mortgage by room and am going to aim to own one room at a time which helps to keep it more realistic and the motivation going.
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
  • Welcome and congratulations on your new home and your new status as an empty nester. We are empty nesters too and we love it! Feels like this is "our time" now and I hope you will find all the fun ways to make this time "your time" too.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • Thank you all!

    Yoga - I knew there were fees but the legal costs are ridiculous! I'll definitely have the factor that in.

    LongWay2go - I haven't spoken to TSB yet as its difficult to get any privacy at work. I sent off a form they said to download on the website and sent it off just over a week ago so fingers crossed it was in time for this month's mortgage payment which goes out tomorrow :-). I've taken your advice and run some numbers and if I carry on just on £100 a month I'll knock 4 years and 7 months off the term and save almost £5K in interest! These are rough figures as I've not OP'd for the first 6 months but do hope to OP more than £100 when I can - I'm super-motivated!

    LeighofMar - It's quite nice at the moment to get home to a clean, tidy house but I do miss them :-(
    Mortgage: £81,154.58 (03/19) - £64,380 (07/22)


  • longway2go
    longway2go Posts: 1,006
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    That's great news. I have been working out how much a specific one off payment will make by using the op calculator. I put in all the normal info and then if I am making a payment 2 months into my mortgage just move the payment date forward by 2 months.... I think that should give a workable figure if that helps.
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
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