The second hurdle - Nichelette v the huge mortgage

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  • savingholmes
    savingholmes Posts: 27,334 Forumite
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    House prices have gone crazy in the last few years - something was always going to come along and derail that at some point. Hopefully things will improve by the time of your remortgage.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Nichelette
    Nichelette Posts: 2,090 Forumite
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    Long time no post..

    Making slow progress! Was ill for 3 weeks all over the Christmas and new year period unfortunately. 

    • Most importantly, baby is well and another boy (as I thought) so that will save us a fortune in clothes  :D. 23 weeks on Monday and getting to the point where I'm struggling to get my socks on now, but looking forward to being a 4 and hoping chunky is happy to be a big brother. Will be lovely to have the summer to enjoy spending more time with him too. My work friend is also pregnant and due a couple of months after me (she has a daughter about 6 months younger than chunky) so will be nice to be able to spend time with her again too like first mat leave.
    • Planning financially for mat leave. Will get 26 weeks full pay, 13 statutory, 13 unpaid then I'll go back to full pay as I'll use my 21 days holiday I've saved from this year and the 33 I'll accrue whilst am away. Worked out dates, and based on atual due date only leaves about a month to bridge until chunky gets the 30 hours on 1st Sept which is better than anticipated. 
    • Still waiting on hearing about car. It's all postal and takes forever, especially with the strikes. Hoping no news is good news and VW have ignored CC too due to time..
    • Won £50 on PB's this month (woop)
    • Payday yesterday so swept accounts. Put £950 in PB's to take us up to 6k and paid remaining £222 off mortgage
    • Spent £650 on ex display pram and another £180 on a second 6+ month seat. Chunky is so chunky I needed a double where each seat is tested to 22kg. I also wanted a tandem as paths here are narrow and we don't have a massive car so could only find one option. Have been looking for a used one for ages but they're either no good, silly money or too far away. Saw one that was perfect for £500 and was first to message. Asked if could collect either evening or weekend as was 45 mins from us and we both work f/t. Apparently someone messaged after and asked to collect it next day. Was so annoyed because I could have asked my sister who probably would have got it if I'd actually been given first refusal. So anyway, got sick of chasing a unicorn because it's stressing me out and just bought the ex display one from ebay. It does look brand new at least I suppose, just annoying couldn't get a used one. They do hold value so hopefully can keep it in good nick and recoup a good chunk at the other end. 
    • Have updated forecast 2026 and am back to trying to track all spends. If we stick to budget it says mortgage will be 176k by December (I say that, it will be 176 or could be that if offset by savings as I'm still keeping more cash back at moment). Can't see us making the target as things happen, but even close would be great. DH is a bit of a spender but is on board and has been doing much better lately. 
    • Read on here that they're expecting mortgage rates to be 4-4.5% by the end of the year which I'd take given the way things have been as was braced for 6-8%. If that's the case there is the possibility it won't be loads more than it is at the moment as I think we'll have a better LTV than last time we remortgaged.
    Onwards and upwards..
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • savingholmes
    savingholmes Posts: 27,334 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Glad things are going well. Hope when you come to remortgage interest rates are lower still
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Nichelette
    Nichelette Posts: 2,090 Forumite
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    Haven't been here for sooo long, so to summarise..

    • Baby 2 arrived in mid May weighing exactly the same as his brother at 8lb 11oz. I ended up with pre eclampsia again, but the birth was so much better than the first. It was very healing. Life with 2 and a smallish gap is exhausting though. Waiting to go back to work for the rest! Baby is currently 98th centile but he's longer and slimmer than chunky (99th). He's soo long bodied. Don't know why I have elephant babies when we're both pretty average sized! Think I'd have liked a bigger gap if not for my age. Having chunky at school would have given me more time with baby as I feel like I've been robbed of this early period a bit (and a lower monthly nursery bill). It's hard as I feel like they are both short changed where I can't split myself between them. 
    • We've got £12,600 in PB's which is to get us through maternity leave though I'm trying not to touch it if I can avoid it. Next month will be my last month on full pay for a while. 
    • We're not able to move because of the cost of everything at the moment. It was going to be hard with the two nursery bills anyway but it's impossible with the cost of everything else thrown in too unless we go for less than what we want, and I don't want to move twice so we're staying put. We're going from 1.71% to 5.61% for 5 years from 1st Feb, though I am continuing to check if anything comes down so we can change it. We don't plan to be here for 5 years and will likely port or pay early redemption if the sums work out, but it's important for us to have the security of knowing our outgoings. Payment will go from £919 to £1287 though we're in 60% LTV bracket now. The 2 year fix was about £100 more a month and may work out better overall, but as I said, stability is important to us through the nursery years. 
    • The changes to nursery mean that chunky will get 15 hours in April (still feel a bit robbed as he'll be 3 lol), but it will go up to 30 in September. He's currently only at nursery on Tuesday and Thursday until I go back to work. To be honest having only taken 4 days annual leave (mostly when chunky was ill) over the 13 months I was back working I'm completely burnt out. Instead of us splitting our annual leave and having 4 nursery days until older starts school I'm currently thinking of doing it for the first 6 months then going up to 5 nursery days because I'm exhausted and need a break (plus house needs so much doing where we don't have anyone who can really look after kids for a bit so we can get stuff done).
    • As we've not been able to move and DH needed a new car he's now got a new (to us, it's a 19 plate) civic. There was no way his car was getting through the MOT without spending a lot on it so we bit the bullet. In fairness it was 16 and had served us well. Hopefully both of our cars will be okay for a while now. 
    • VW have defeated me. I haven't got the energy to fight it anymore, but I'll never buy another one and would advise anyone else not to too. I've honestly been shocked by how awful they have been. I've already asked them to remove me from their contact list twice but they keep sending me things. I think I'm going to go nuts if I get another one  :D
    • Mortgage balance is currently £209,430 as I've not been overpaying where I've been keeping money back for maternity leave
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • Nichelette
    Nichelette Posts: 2,090 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Managed to get mortgage for 5.4% now. This is going to be a fun game until the end of Jan  :D
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • Well done on the new baby. I thought I posted the other day. Good news the fix rate is dropping compared to what it would have been.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Nichelette
    Nichelette Posts: 2,090 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Thanks @savingholmes :)

    Won £50 on PB's today and mortgage rate is down to 5.2% (£1,235 a month). When I first looked it was 5.78% (£1,312 a month). Hopefully it will continue to reduce a bit in the next few months as we can still keep adjusting down until the end of Jan. 

    What a time to be alive  :D
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • savingholmes
    savingholmes Posts: 27,334 Forumite
    Name Dropper First Anniversary Photogenic First Post
    I don't envy you monster childcare bills and major mortgage increases. Sounds like you are adjusting well though.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Nichelette
    Nichelette Posts: 2,090 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    I don't envy you monster childcare bills and major mortgage increases. Sounds like you are adjusting well though.
    I don't envy myself either lol. Positive is we'll feel rich once we're no longer paying for nursery  :D
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £207,243.66
    Overpayments since 27.03.19: £46,161.46
  • savingholmes
    savingholmes Posts: 27,334 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Dare I mention you'll then need to save for uni and your own retirement!!

    One problem at a time. You are doing well if you are cashflowing nursery and not going into debt. That's a huge win right there. On top of that you are tackling your mortgage another win. You have savings - woohoo - even better.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
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