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Finally financially controlling my future!!!!

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Finally financially controlling my future!!!!

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Hello you lovely like minded mortgage free wanna be's!!!   omg its been such a long journey to get into this position but I am finally in sole control of my financial future and let me tell you it feels amazing!  I am absolutely thrilled to be in this position.  So a bit about myself, I am a single mom to two little ones who are still in primary school.  I own my own mortgaged home and after an initial £28,000 lump sum overpayment this week my mortgage has been reduced to £71,600 approximately.  I have asked my bank to reduce the term down on all overpayments.  So I initially took the mortgage out earlier this year with 33 years to run on it and by my calculations it should come down to 22 years....in order to keep the same monthly payment.   I am waiting to receive my letter from the bank as promised.  I have a tracker mortgage with a wonderfully low rate of 1.49% and unlimited overpayments allowed.  So I will be doing my level best to utilise this facility to the upmost!  I plan to throw every single penny to it as its a two year product.  The overall aim is to clear this mortgage in four years to allow myself to reduce my working hours further as my kids enter secondary schooling.  

I have been on and off these boards over the last 10 years and have always wanted to achieve the dream of being mortgage free earlier but life has a funny way of changing directions sometimes! So this week has been a week where I have looked at my outgoings very closely.  I have applied to switch my gas and electric suppliers, set up direct debits for that too.  I have also paid my half yearly water bill and set up a DD for that too.  I have negotiated my car insurance premium and reduced it by 30% just by calling them up and asking very nicely if they could reduce it.  And lastly, I have cancelled three DD's that were no longer required.  I tend to save up and pay for the big one off bills in one go as i prefer to have less payments on a monthly basis.  My biggest spend is my grocery budget, which i will be tackling in August.  I will be transferring a set amount into an old account that I don't really use anymore but one that has a debit card and making sure i stick to it!  The problem is i have two young children who love fresh fruit and lots of milk! Albeit a nice problem.  I have a lot of food from scratch and do meal prep for my work lunches.  

I work part time and at the moment my job is secure but you really never know what is around the corner.  I have been listening to the Dave Ramsey show on Youtube for the last two years and I really do recommend his show and his money principles.  My take on his money envelope system will be tackling my grocery spends in August! I would have taken the cash out but most shops at the moment prefer you to pay by card.  

That's all for now folks, I will be back and submitting a SOA soon so you eagle eyed wanna be's can tell me where to shape up! 

Replies

  • SistergoldSistergold Forumite
    421 posts
    100 Posts First Anniversary Name Dropper Photogenic
    ✭✭
    👋🏾 
    Shinny new diary. Looks like you are doing all the right things to pay off your mortgage and I am sure you will easily achieve your mortgage free dream! 
    Just wanted to say hello! Am also a single mom to 4, cracking on her mortgage and aiming for mortgage freedom. 
    Good luck! X 
    Initial mortgage balance £487500,
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽‍♀️), 
    That’s 8418 days 😒
    Mortgage payments 13 out of 276
    Target is to pay it off in 10years(by 2030🥳). 
    MFW start April 2020 mfw#136
    £12K in 2020 challenge #148
    To save £100K in 48months start 01/07/2020 @£9000SoFar
    Am a single mom of 4. 
  • Squirrelz92Squirrelz92 Forumite
    110 posts
    100 Posts Photogenic Name Dropper First Anniversary
    Hello and welcome to the board! Congrats on your shiny new mortgage free diary (I shall be bookmarking :D). I am also a single parent to two children and I am just about to complete on a house too! Would kill to be able to pay a £28k lump sum off my mortgage! Looking forward to reading your blog :)
    Debt Free 19th March 2019
    Mortgage 3rd Aug 2020 £97750
  • newlife2016newlife2016 Forumite
    11 posts
    Fourth Anniversary 10 Posts
    Hi sistergold and Squirrelz92 for popping in! There are definitely financial drawbacks being a single income family but the advantage for me is that I no longer have to pay for someone else’s bad money mistakes! The lump sum payment consisted of £20,000 that when I recently remortgaged I took this money out because I was planning on moving but as that won’t be happening anymore I’ve decided to chuck it back at the mortgage.  And the £8,000 was just savings.  I’m hoping to be able to overpay by £1000 a month from August.  Will pop over to your blogs and have a read! 
  • newlife2016newlife2016 Forumite
    11 posts
    Fourth Anniversary 10 Posts
    Squirrelz92 I would heavily recommend overpaying from the start, even it its £25 a month.  It keeps you motivated and committed to overpaying.  The advantages of overpaying from the start has a really big effect! 
  • newlife2016newlife2016 Forumite
    11 posts
    Fourth Anniversary 10 Posts
    Morning folks, hope everyone is taking advantage of this glorious sunshine at the moment!  I had a lovely day at the beach yesterday with the little ones who thoroughly enjoyed themselves.   Although we kept the suncream on all day repeatedly we all still ended up slightly sun burnt...  Onto mortgage news, I still haven't recieved a letter from the bank about my reduced term so decided to call them up this morning.  The good news is that they confirmed that the big lump sum payment was been applied to the account and my term has been reduced to 21 years and 11 months from 33 years!!!!! So I'm off now to tackle the mountain of washing that has built up and cook something lovely for lunch.  Have a great day guys! 
  • Squirrelz92Squirrelz92 Forumite
    110 posts
    100 Posts Photogenic Name Dropper First Anniversary
    Squirrelz92 I would heavily recommend overpaying from the start, even it its £25 a month.  It keeps you motivated and committed to overpaying.  The advantages of overpaying from the start has a really big effect! 
    Definitely wanting to overpay from the get go even though the majority of any spare cash I do have will be ploughed into renovating my doer-upper. I am unsure of how to start overpaying as all I can find on my lenders website is setting up a direct debit for regular overpayments...but what if you want to pay different amounts during the month? 

    So pleased your lump sum payment has been applied to your mortgage officially! Incredible term reduction!!!
    Debt Free 19th March 2019
    Mortgage 3rd Aug 2020 £97750
  • newlife2016newlife2016 Forumite
    11 posts
    Fourth Anniversary 10 Posts
    Squirrelz92 I would heavily recommend overpaying from the start, even it its £25 a month.  It keeps you motivated and committed to overpaying.  The advantages of overpaying from the start has a really big effect! 
    Definitely wanting to overpay from the get go even though the majority of any spare cash I do have will be ploughed into renovating my doer-upper. I am unsure of how to start overpaying as all I can find on my lenders website is setting up a direct debit for regular overpayments...but what if you want to pay different amounts during the month? 

    So pleased your lump sum payment has been applied to your mortgage officially! Incredible term reduction!!!
    Hi Spuireelz92, 

    I would definitely call up your mortgage provider and ask them for the account number and sort code for your overpayments.  They usually ask you to put your mortgage account number as the reference.  With my old mortgage I used to make loads of Tilly tidies and overpay small amounts like under £5... it da n get quite addictive when you start!!!
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