Our forever home

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bellevie
bellevie Posts: 875 Forumite
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edited 31 July 2021 at 4:36PM in Mortgage-free wannabe
I'm a new mfw 😊, moving over from the dfw board. 
We moved into our forever home on 16th November 2020.
90% LTV, 25 year mortgage. 

We've just paid our first standard monthly payment so only 299 more to go!!!

We'd like to actually pay it off a little sooner, but due to home improvements and our saving pot for IVF it's likely to be a few years before we can put some serious overpayments in. 

For now at the very least we will be aiming for small but frequent overpayments to get into good habits and see if we can knock a little time and interest off... That's the plan anyway. 

Going to sign into Internet banking and see how to go about sending over the first overpayment!

I can't quite believe we are paying our house off instead of someone else's, not long ago I really didn't believe this would ever be possible!! 
MFW
Starting debt :£287,410 -11/2020

2022 Closing balance £271,402.45 

2023 closing balance £263140


Original end 11/2045 
New end date :....... 

Overpayments to date £534.4 (5/24)



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Comments

  • FtbDreaming
    FtbDreaming Posts: 1,121 Forumite
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    Aww good luck with your journey! I started in august on a 30 year term. 
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,200 (59.9% LTV)
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
  • bellevie
    bellevie Posts: 875 Forumite
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    Aww good luck with your journey! I started in august on a 30 year term. 
    Thank you, good luck to you too! 
    MFW
    Starting debt :£287,410 -11/2020

    2022 Closing balance £271,402.45 

    2023 closing balance £263140


    Original end 11/2045 
    New end date :....... 

    Overpayments to date £534.4 (5/24)



  • bellevie
    bellevie Posts: 875 Forumite
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    Tentatively sent over our first overpayment of £20 last night. I'm always anxious of sending money to new accounts. 

    I had a play with the mortgage calculator and was surprised to see such a small overpayment made monthly could take 6 months off the mortgage!
    6 months doesn't seem like much, but actually if we are still working full time 6 months worth of mortgage payments could be a nice addition to our retirement pots. I would actually like it paid off a tad sooner, but no fixed timescale in mind at the minute. We've been thrown a few curveballs the past few years so we know how quickly life can change. If 6 months is all we shave off it's better than nothing! 

    Our usual monthly repayments are £1402, the first payment with added interest was £1876.... We were thankfully prepared but I still hated seeing that amount leave our bank! 




    MFW
    Starting debt :£287,410 -11/2020

    2022 Closing balance £271,402.45 

    2023 closing balance £263140


    Original end 11/2045 
    New end date :....... 

    Overpayments to date £534.4 (5/24)



  • FtbDreaming
    FtbDreaming Posts: 1,121 Forumite
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    Wow! I didn’t realise how big your mortgage is... you could buy our whole row of 4 houses! 

    £1400 is a big payment. How much is coming off the capital each month? I’m really sad get excited for the last day of the month to see what the interest payment is then calculating the capital to bring it down to the next £100. 

    I completely understand the curveball business as you read my thread you’ll know I got my first curveball as a homeowner within 9 weeks of owning the house which is my typical luck. I’ve set a very tight goal of 7 years but my mortgage is quite small compared to most and I thrive when I have a target to reach xxx
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,200 (59.9% LTV)
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
  • bellevie
    bellevie Posts: 875 Forumite
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    It's house prices in the area, we'd probably have to cross over into another county to get much cheaper then travel costs just take up savings. 

    We paid £319 for a 4 bed terraced which needs some work - all functional but imagine 80s style decor, windows, doors :) 
    We were originally looking for a 3 bed, all were around £315-330 so when this one came up knowing with DH skills we could make it perfect for us, we'd have an office /guest room space it was a no brainer. 

    At the moment I think around 630ish goes towards the repayment. It isn't until around year 3 our debt repayment becomes a little higher than the interest payments.... It was a surprise to see that when we were first house hunting quite daunting really. 

    I saw your thread @FtbDreaming my heart was in my mouth reading, I do not know how I'd cope in your shoes so soon after buying too

    Xx
    MFW
    Starting debt :£287,410 -11/2020

    2022 Closing balance £271,402.45 

    2023 closing balance £263140


    Original end 11/2045 
    New end date :....... 

    Overpayments to date £534.4 (5/24)



  • LeighofMar
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    Welcome and congratulations on your forever home. Mortgage overpayments are quite addictive but fun, and I wish you well on your journey.
    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 
  • bellevie
    bellevie Posts: 875 Forumite
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    Thank you leighofmar 🙂
    MFW
    Starting debt :£287,410 -11/2020

    2022 Closing balance £271,402.45 

    2023 closing balance £263140


    Original end 11/2045 
    New end date :....... 

    Overpayments to date £534.4 (5/24)



  • couth
    couth Posts: 60 Forumite
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    edited 4 December 2020 at 4:39PM
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    @bellevie that's a sizeable mortgage but at least there's two covering it and you're getting more bang for your buck. It could be worse :wink: ... I'm single and living in greater London and my mortgage is currently around £195K and that's for a 2-br flat.
    Congrats on starting early on the overpayment journey - that really makes a difference and it becomes addictive. At the beginning I used to overpay small amounts here and there but earlier this year I decided to overpay by direct debit (currently around £300 extra) and I do small amounts on top of that whenever I can or feel like. Sometimes I see the balance and if it's close enough to a whole number I'll just round up to get it down to that number e.g. end of December it will be a little over £194K, I will have to find a couple of hundreds to get it  to <£194K. 

    Good luck! 
  • bellevie
    bellevie Posts: 875 Forumite
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    Thank you @couth 🙂
    Absolutely easier with both of us working.
    I was single for many years at most locally I could have got a 2 bed via shared ownership even then with the rental side prices on new builds it would have been a push!
    We are very close too two other county's we lived in one, DH works in the second, I worked in the 3rd but to stay local without rocketing travel costs to work there wasn't a huge price difference. 
    Still counting our lucky stars we found this place to be honest ✨❤️

    I saw the DD overpayment option, I got so excited I'm planning to get my spreadsheet out and see how much we can comfortably put aside without impacting the other savings pots 😁
    The other pots to be fair are mostly temporary, so I'd envisage we should be able to set up higher Overpayments certainly in the next 3-4 years...thats the plan anyway 🤞

    Thank you for your encouragement and good luck to you too! 

    MFW
    Starting debt :£287,410 -11/2020

    2022 Closing balance £271,402.45 

    2023 closing balance £263140


    Original end 11/2045 
    New end date :....... 

    Overpayments to date £534.4 (5/24)



  • MFdreamer
    MFdreamer Posts: 101 Forumite
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    Good luck on your journey!
    I’ve recently started mine and am already becoming a little obsessed with my spreadsheets! 🙈
    I have a fixed regular OP each month via direct debit which I’ve done for a while and it works well for me as in my head it’s just the mortgage payment so I treat it as non-discretionary!
    I look forward to following your journey! 🙂
    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 🙌


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