The second hurdle - Nichelette v the huge mortgage

Hello! 

I thought I would start a new diary as we attack the second phase of our mortgage...

In Jan 2019 we bought our first (lovely, but little) house for 320k with a 10% deposit. South east prices :s . With the fees we began our journey with a mortgage of £289,500 over 30 years. To be honest, whilst it was affordable to us, the thought of owing so much made me tetchy. In March 2019 we began attacking the mortgage, and after trying our best we've been able to overpay by exactly 30k. 

Yesterday we were able to move on to a new three year deal effective from the 1st. We currently owe £246,966, and with a bit of good fortune due to the recent bounce (not that I like increasing prices, but that's another issue) have reached 75% LTV. This means we have gone from paying £1161 a month to £919 which is very welcome, as come early April we should be joined by our first little person (unless bunnies count?) which will be a massive change. Having a baby during a pandemic isn't ideal, but at 34 & 35 time wasn't really on our side. The plan was to get to a point where we could reduce the mortgage by a good chunk before being affected by childcare, but best laid plans and all that. 

We are very fortunate to both work in secure jobs. As much as any job is nowadays anyway. My ancient car died recently so we replaced it in January with an ex demo one which we own outright, and should hopefully last us a long time. I'd always wanted a black Golf and finally treated myself. It's so lovely :heart: .  

We currently owe 5k on a 0% credit card. The rate changes in July so I'm building up the money to pay that off in June by stashing it in premium bonds. I'm also building up an emergency fund again as we were chucking everything at the mortgage to get to the 75% band. Any overpayments we make are a sort of emergency fund anyway as we can use them to take payment holidays if we ended up in a situation where we needed to. 

The amount we owe is still more than I would like, so this diary will track my journey to reducing it. I'll do an SOA shortly, but this is where I record my overpayments: 

https://docs.google.com/spreadsheets/d/11fXpW2AxAFC5v_8kMQtj9R_qJqgCndrM/edit#gid=912173961

I'm going to do some projections in time to factor in the new addition as I'm not sure exactly how much we'll be able to overpay now. The plan is to move in the next 3-5 years as we'll definitely run out of space in the longer term. It's a shame because I really do love it here and there is lots I will miss.

Anyway, please feel free to follow my journey :)
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
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Replies

  • edited 22 October 2020 at 5:36PM
    NicheletteNichelette Forumite
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    edited 22 October 2020 at 5:36PM
    SOA at 22.10.2

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2028
    Partners monthly income after tax....... 2217
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 4245

    Monthly Expense Details
    Mortgage................................ 919
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 20
    Council tax............................. 170
    Electricity............................. 36
    Gas..................................... 36
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 22
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 25
    Groceries etc. ......................... 150
    Clothing................................ 40
    Petrol/diesel........................... 70
    Road tax................................ 15
    Car Insurance........................... 40
    Car maintenance (including MOT)......... 15
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 25
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 0
    Entertainment........................... 400
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2096

    Assets
    Cash.................................... 0
    House value (Gross)..................... 330000
    Shares and bonds........................ 1500
    Car(s).................................. 17000
    Other assets............................ 0
    Total Assets............................ 348500

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 246966...(919)......1.71
    Total secured & HP debts...... 246966....-.........-   

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit card....................5782......130.......0
    Total unsecured debts..........5782......130.......-  

    Monthly Budget Summary
    Total monthly income.................... 4,245
    Expenses (including HP & secured debts). 2,096
    Available for debt repayments........... 2,149
    Monthly UNsecured debt repayments....... 130
    Amount left after debt repayments....... 2,019

    Personal Balance Sheet Summary
    Total assets (things you own)........... 348,500
    Total HP & Secured debt................. -246,966
    Total Unsecured debt.................... -5,782
    Net Assets.............................. 95,752

    Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.

    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
  • SandyShoresSandyShores Forumite
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    Good luck on your new journey Nichelette.  You are doing so well.  Have just subscribed and look forward to following along :smile:
    To Do List: 20 - crossing them off one ToDo at a time
    MFW 2021#29 OPs: £923.22/£1200
    Christmas Saver:  2021#5: £365/£365 - 2022#x £0
    Healthy Journey current 12st 9lb : target 11st 13lb (10lbs to go)
    Run/Stretch/Walk/Weights; Read and Learn; Declutter and Decorate
  • Ah - second phase! Very exciting. Congratulations on your pregnancy! My husband and I are (as of this week) the same ages exactly as you and yours, so you've made me feel as though the clock may be ticking a little.. But I've only recently decided that I might want them, and we definitely have a bit of getting life sorted out (including money wise) before we're ready so it will just have to tick a bit longer! It seems like the world's wives are all expecting at the moment so at least lots of other peoples' babies to enjoy! 
    Also congratulations for getting to the 75% LTV bracket! I guess that takes the stress of a bit because the minimum payment goes down, so with uncertain costs that babies bring, and the financial stress of mat leave you've got some more flexibility. Well done you! 
    Will continue to follow with interest. 
    Much love
    Bb x 

    Jan 2019: £211,500
    September 2020: £197,600
    Target: mortgage free by 2032
  • twinklietwinklie Forumite
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    So very exciting. Congratulations on your womb gremlin (sorry I heard that phrase for the first time this week and have been dying to use it). I totally agree, take as long for maternity leave as you can/want to. I took a loan out so I could extend the time off with my second and don't regret it for a second. Money well spent I'd say. I also went back part time which for me was totally the right decision, but I have friends that went back full time and prefer it that way. 
    We owe a bit less than you, but our on a similar trajectory I suspect. We are due to remortgage in 3 years time, with an approximate LTV of 70% so hopefully our minimum payment will come down by then. But who knows with Brexit in the offing. I shall follow your journey with interest. 
    Good luck. 
    Daily mortgage interest Oct 21 - £14.35 Reduction interest - £2.11
    % of house owned/% of mortgage paid off.
    Oct 21 - 21.87%/12.73%
    MFiT-T5 #13 £25,541/ £30,000 at last update July 21
    MFW 2021 #6 - £1,385.74/ £600 Oct 21
  • Womb gremlin??! Where on earth did you hear that 😂
    Total unsecured debt January 2020: £36k current £15268




  • twinklietwinklie Forumite
    4.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    Womb gremlin??! Where on earth did you hear that 😂
    I don't even remember now, but it's had me giggling all week. I keep wanting to call my children womb gremlin's but they are both autistic and don't like it if I call them anything other than their proper names. So I'm well chuffed I finally got to use it. :smiley:
    Daily mortgage interest Oct 21 - £14.35 Reduction interest - £2.11
    % of house owned/% of mortgage paid off.
    Oct 21 - 21.87%/12.73%
    MFiT-T5 #13 £25,541/ £30,000 at last update July 21
    MFW 2021 #6 - £1,385.74/ £600 Oct 21
  • MFdreamerMFdreamer Forumite
    100 Posts
    10 Posts First Anniversary Name Dropper
    🤣 womb gremlin! 
    Congrats OP and good luck with your plans! 
    MFW
    1 Nov 2020 @ 
    £42,204 to go in 34 months! (£1,241 a month)
    1 September 2021 £17,500 to go in 24 months (£729 a month)
    MFW 2021 #3 - £24,148/ £17,500 🙌


  • NicheletteNichelette Forumite
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    Thanks everyone :). Sorry for posting and running, not a lot has been happening of late! 

    Baby is doing well (love womb gremlin haha) and last month we found out he is a little boy (like I'd always thought!). I'm almost under 100 days to go and I'm definitely on the countdown and very impatient for him to arrive. Pregnancy seems to agree with me and I've been very fortunate with how I'm coping physically, lack of sleep excepted. This year has been so rubbish with covid and it's nice to have something happy to look forward to. My husband felt him move for the first time a few weeks ago and it was so lovely. He lost his mum a year ago and having something nice has, I think, helped him with some of the pain, though we both wish she was here to see for herself. 

    @Brindlebabe We felt like that too. We got lucky 11th month of trying, though I think that was partly because I was a bit blasé about it as the females in my family seem super fertile and I was convinced it would happen quickly. I'd honestly started to wonder if I was infertile because just coming off the pill and not tracking dates didn't work. It happened quite quickly once I paid attention to dates, so if you do try in time I'd focus on them. It was never a full gone conclusion that we'd have any at all, but I've very much warmed to the idea now and am very excited for him to arrive. 

    Financially we're very fortunate because I get 6 months full pay, followed by 3 months statutory then 3 unpaid, plus I can do up to 10 keeping in touch days and they'll bump my pay up to a full day if I do them within the last 6 months when I'm on lower pay. Since finding out I've been very strict with my holiday and will go on maternity leave with (hopefully) 20 days left. I will also accrue 'nearly a years worth whilst I am away, so I'll 'technically' be going back after 10 months, but using the 20 days I've saved, and the nearly years worth so I get full pay for months 11 & 12. The timing is also good as I'll go back in April and get a whole new year worth of holiday in May as it's based on my birthday month. 

    We were due to look at a nursery on Wednesday but that has been moved to Jan as they're low on staff due to people self isolating. That will be a huge outgoing but we do at least qualify for the tax free childcare. I will be going back to work full time as I can't do my job part time, and I do already feel a huge amount of guilt about it. I have resolved to keep going because I know in the longer term being financially stable will benefit him too, and to be honest we will need my wage to move to a bigger place in time. The nursery seems lovely and it backs on to a farm so the kids get to meet the animals and things. My gut feeling is that it's a nice environment and will ease my guilt a bit when we can see it. It seems strange to be looking at a nursery when he's not even here yet, but their waiting list is usually a year plus so it is the right time really. 

    Mortgage wise, mentally it's so good having the monthly payment under 1k! I'm still ploughing money into premium bonds and will be fine to pay off the credit card when the 0% ends. The balance has gone up a bit where I've used it to buy baby bits, but I have all the big things now so it should only be smaller things left to go. We've made a couple of small overpayments but that's it. We get paid tomorrow so I've overpaid just shy of £200 from my monthly sweep of accounts. We unexpectedly ended up getting the fascia on our house painted so that was £400 gone that I hadn't budgeted for as I didn't think it would be possible until spring, I do think it's money well spent though because it was peeling really badly where I don't think it had ever been done. It now looks lovely and the wood is protected again so I'm happy. 

    We've hit peak expensive bills time and have the following in December/Jan time:
    • Street management fee - £140
    • House insurance - expecting at least £130
    • Bunny vaccine & dental - £275
    • My car insurance - £240ish, thankfully I did the tax for 6 months the first time to shift that to summer...
    • 6 monthly water bill - £180ish (our water bills are killer)
    • Xmas
    • Nursery deposit in Jan is £200! 
    Anyway, in happy news we're nearly at the council tax free months and soon once those have passed we'll be in a position to overpay more. Finally, I've signed up to the MFW challenge again. My projections suggest we'd be able to overpay 23k this year, but I'm being cautious with baby and am aiming for 18k. 

    I think I've rabbited on enough now so I'm going to sign off and try not to leave it 2 months before I post again. I hope you all get to enjoy a nice, safe Christmas :).
    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
  • savingholmessavingholmes Forumite
    16.5K Posts
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    Great news glad you are doing well and posting again
    During 2021: Target 1) Clear CC debt - £1788 to go (but debt neutral) @ 0% Target 2) Lose weight 3) Write regularly 38113/70000 words Book 2 4) Promote book(s) 5) Develop passive income streams 6) Build 3-6 mths EF 7) Declutter
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