Getting shot of the mortgage sooner than 2049!
So... 2049... yes, that’s the current end date for our mortgage and at that point I’ll be (gulp) 61 and my husband Red will be 64! I DO NOT want us still to be paying a mortgage in our 60s and so I’m starting this diary.
I’ve had a diary over on debt free wannabe for the last 8-9 months and it’s been so much fun writing it, but we are debt free now (mortgage and student loan aside) so now it’s time to focus on saving, investing and mortgage overpayments.
It’s a good time for a fresh start as our circumstances have changed quite a bit already in 2021.
On New Year’s Day I was a SAHM with zero intention of working for another 2-3 years - I was loving being at home with my two kids (DS5 and DD2), cooking & baking from scratch, trying with limited success to grow veg, learning skills like sewing and knitting etc.
About ten days later my old manager from my last job, three years ago, called me up totally out of the blue to ask me to apply for a job in her team. After much emotional turmoil I realised this opportunity was too good to pass up - it came with a promotion and the pay is good, I like the work and team, and I’m able to work from home and part time hours (finish at 3 and a Friday off).
I’m really enjoying being back and of course, even with childcare to pay, it’s still resulted in much more free cash for our family each month - we were only getting by before through very careful budgeting and strict frugality. We do hope to keep this up while using most of the increase in income to save and get ahead with our mortgage.
So a few facts about us, if you haven’t been on my old diary:
- we have two kids, Monkey who’s 5 and Bambi who’s 2
- we have three lovely chickens who help keep our egg bill down (though our chicken feed bill cancels that out!)
- we live in Glasgow
- my husband Red fixes and makes things as a hobby, mainly out of wood but he’s partial to using copper too, and he’s trained in gas & electric too through his work - so we are always doing random projects at home
- I LOVE to make endless lists and budgets so if you hang around here you will be subjected to a few!
And about our mortgage:
- as of today we owe £112,843.07
- interest rate 1.89% fixed til Feb 2025
- monthly repayment £421
- we bought the house 6 years ago for £155k (yes, we remortgaged the term up to 30 years again in 2019 which doesn’t sound sensible but we were struggling with the payments on one salary) and I think it’s worth roughly £170-175k now.
I’ll do a rough budget below though I use YNAB, which encourages flexible budgets, so it does vary each month as we move money between categories. This two income budget is new to us too so there will no doubt be some changes!
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- 340.1K Banking & Borrowing
- 249.1K Reduce Debt & Boost Income
- 448.3K Spending & Discounts
- 231.9K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
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