A journey to financial security

Hello all,

For the past 5 years I have been inspired and continue to be by so many of the diaries on this forum.

I am finally ready to stop hiding in the shadows and introduce myself.

Then

Back in my early 20’s in 2016 after a breakup left me in a rented house with pets, I knew instantly I needed the security that home ownership offers. A week after the breakup I viewed 4 houses, the following week I had an offer accepted and a few months later I had moved in! However this still did not feel secure enough as I had used every penny I had to get to this point and I only had myself to rely on. My initial 5-year fix mortgage was for £132,500 at 2.64% with a term of 35 years. I began overpaying by small amounts straight away and 4 years later in 2020 I had overpaid exactly £9000. On the day the 1st lockdown was announced in 2020 I made the decision to move in with my partner of only 5 months into the home he owns and rent my own home out. Seeking permission to let increased my interest rate to 3.64% so I investigated paying the penalty and re mortgaging. The overpayments paid off and with an LTV of close to 50% I was able to take out a new 5-year fix with a term of 21 years at 2.04% increasing my monthly payment by approx. £70.

Now

Fast forward to now and the overpayments are on pause as OH and I are saving for a new home.  Currently we are completely financially independent from each other. The expense and the income of my BTL is mine alone and I pay half of all bills and towards my OH’s mortgage as “rent” an arrangement I am totally happy with.

The Future

We intend to buy a house together in late 2022 but to keep our current houses as BTLs. Although there won’t be any OPs for now there will be a lot (hopefully) of saving going on with the view to OP both my BTL and the new home once we have it. This should hopefully all help on our way to financial independence a dream we both share.

I am hoping this diary will help keep me accountable of my spending, give me ideas for maximising my income and help with planning to achieve financial independence.

Thank you for reading  :)


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Comments

  • South_coast
    South_coast Posts: 4,775
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    Sounds fab, good luck with the plan 😀!
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
  • Thank you South Coast  :)

    A bit more background.

    I have two jobs and this has been the case my whole working life.  I started my first part time job at 15 and when I started full time work at 18 I could not bear to leave the part time job I loved so I didn’t and continued to work in it for at least 10 hours a week.  Almost everyone said “you will never manage to work two jobs” over 10 years later and I am still doing both.  I think that this is something many MFWs can relate to, people are not always understanding and supportive of our ideas but everyone is different and should do what is right for themselves even when it does not conform to the norm!

    Even though the second job is close to minimum wage the extra income over the years has been very valuable in helping me to save.  Other benefits include leaving me with less free time to spend, learning different skills than used in my main job and making many new friends over the years. But perhaps the biggest bonus is that this income allowed me to secure a larger mortgage.  It all counts to increase the income subject to the multiplier.  Given that I took out the largest mortgage I could to purchase my first home I could not have done it without this second job.  Considering OH nor myself are planning to sell our current houses to buy our next this additional income will be helpful in helping us to secure our next mortgage and the continuation of the 6 day working week will be worth it for me!

    I understand a “side hustle” is not for everyone however for anyone struggling to get a mortgage particularly FTBs it could be worthwhile considering a second job like this.  I needed 3 months of payslips to use this on my mortgage application.  Once the mortgage has been secured and you are safely moved in you could always leave the second job provided you can still afford your mortgage payments! This would have worked for me as my rent payments were almost £200 a month more than the monthly payments of the largest mortgage I could get.


  • You sound like you have a very clear vision for what you want and are clearly very motivated and determined. Good luck with it!

    My husband has worked two jobs for the past two years (originally one was full time and one was part time) and now he does both on a part time basis-the jobs are total opposites of each other and I think it’s been really good for him to branch out into something different-I can definitely see the appeal of a second job(besides the obvious financial incentive).
    Mortgage free wannabe #124
    Mortgage due to be cleared January 2036 / goal is 4/5/26 (40th birthday)
    Starting balance £117000 November 2010
    Balance as of 5/4/21(date decided I wanted to become mortgage free) £89426.62 / current balance £82000
    Daily interest at January 2021 £4.76
    Current daily interest £4.39

  • You sound like you have a very clear vision for what you want and are clearly very motivated and determined. Good luck with it!

    My husband has worked two jobs for the past two years (originally one was full time and one was part time) and now he does both on a part time basis-the jobs are total opposites of each other and I think it’s been really good for him to branch out into something different-I can definitely see the appeal of a second job(besides the obvious financial incentive).
    Thank you very much,

    My jobs are also the total opposite.  My main job is in a small office on the computer all day where there is little call for meeting clients/suppliers face to face.  In the other I am on my feet all day talking to members of the general public which has definitely helped me to gain people skills which I wouldn't have otherwise. Like your husband once I am further along on my journey I would definitely be more inclined to work in two different roles part time than sticking with one full time job.
  • I have been on furlough from my second job for much of the past year as it is in the hospitality sector and due to restrictions is one of the businesses that has been completely closed.  I have just officially been informed that it will be opening again from the 17th May. My regular shift is 12 until approx 10pm every Sunday. I have also been asked if additionally I would like to do one Saturday evening a month. In the past when single I have worked most Saturday nights, I do not mind having weeks with no days off.  However it is a more difficult decision to make now I live with OH because consideration must be made of how he would feel about this.

    I am inclined to say yes. After all the additional income would be saved towards my half of the deposit for our new home and given there is talk of enough land to rehome some donkeys we really are needing to save hard and sacrifices must be made! I guess I will need to discuss it with him this evening and see how he feels.

  • Well it has been decided that I will do the additional one Saturday night a month, this will be a minimum as I often cover holidays but I can decide those on an individual shift basis.  OH did not seem to mind, he is working a lot of Saturdays during the day by choice for the financial benefit. I am grateful we are on the same page; I do not give him a hard time for working when I am off and vice versa. We both lived alone previously so we do like our own space and in the grand scheme of things these are small sacrifices.

    A busy weekend has passed. MSE friendly activities included dog walking and cleaning my car inside and out, this must be done at my mum’s house as on street parking prevents this at home.  This makes it tempting to pay for a wash but I usually only succumb around once a year. Only spends were £3.50 at a local bakery for treats for myself, mum and OH. And around £30 at Bee&Emm for toiletries, dog treats and plant pots for repotting our seedlings. So far we have planted tomato, pepper, cucumber and courgette seeds. We are not particularly green fingered but hope to learn!

  • Sistergold
    Sistergold Posts: 2,000
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    Hello @MissMoneyManager
    I have really enjoyed catching up with your diary. You have a good plan going and well done for getting this far! It’s good that you have your own property and you will keep it! Most of us laddies did not do this and we paid a high price for it, having to take a mortgage when age was quite advanced but hey better late than never! Just wanted to join/check in! 🥰
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
  • Chiglepig
    Chiglepig Posts: 611
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    A busy weekend has passed. MSE friendly activities included dog walking and cleaning my car inside and out, this must be done at my mum’s house as on street parking prevents this at home.  This makes it tempting to pay for a wash but I usually only succumb around once a year. Only spends were £3.50 at a local bakery for treats for myself, mum and OH. And around £30 at Bee&Emm for toiletries, dog treats and plant pots for repotting our seedlings. So far we have planted tomato, pepper, cucumber and courgette seeds. We are not particularly green fingered but hope to learn!

    The car washing made me laugh - we have a very, erm, relaxed attitude to the car - there is actually moss growing in the some of the corners - but DH has decided it will go through the car wash today!

    The thing about growing from seed is to just give it a go, it's not nearly as complicated as some books and websites make out. I predict you will have a glut of courgettes and be trying to give them away very soon!

    2014 starting mortgage £165,000
    2015 second charge £20,000 - Jan 2021 paid off in full
    Current outstanding balance - £115,856



  • @Sistergold thank you for stopping by and your kind words. I think I have paid a high price in a different way, sometimes I feel I may have made too many sacrifices, I have spent my 20's working 6/7 days a week and also studying in my little spare time for 6 years. My social life has suffered and I find it difficult to truly relax. However my upbringing taught me the importance of being able to look after yourself so this was the path for me!



    @Chiglepig I fear you may have got the wrong impression, It is likely you will not hear of my car being cleaned again for months :smiley:

    I do hope so although OH decided to repot some of the seedlings last night and they are looking very sorry for themselves today, he is devastated. It was hard not to laugh when he looked at me with a truly sad expression and said "I can't believe i've killed the plants." Thankfully a family member gave us two healthy looking tomato plants at the weekend which I have put in the greenhouse so if all else fails we can count on them and try again next year. 




  • Chiglepig
    Chiglepig Posts: 611
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    You'll be proud of me, @MissMoneyManager, instead of going to a car wash, we went out for lunch and decided the car could wait until, well, whenever (if ever :p).
    2014 starting mortgage £165,000
    2015 second charge £20,000 - Jan 2021 paid off in full
    Current outstanding balance - £115,856



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