A journey to financial security
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.
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.
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.
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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