Silver-mystic optimistic

girlie1412

I’ve spent far too much time reading everyone’s stories and celebrating small and big victories with you all. 

I decided to start a diary as my own motivation tool and accountability as well. 

We finally got our mortgage, contracts are exchanged and completion date is this Thursday. Very exciting stuff, I am surrounded by boxes and everything is dismantled ready for the move. After renting for the past 4 years excitement of owning our own house is unreal. I am bit worried to be honest about completion date and until we have keys in our hands I won’t settle. 

So now that we got mortgage I naturally want to try to be mortgage free ASAP. 

Our interest rate is HUGE 4.69% - I know at this time when people are getting 1% and below however our situation was far from good regarding getting a  mortgage even so I am happy that we finally got one. 

Interest rate is fixed for next 5 years and I really really want to do everything possible to repay as much as possible each month in order to save ourself paying this huge interest and reduce term. 

Our mortgage allows unlimited over payments however charge for early repayment is huge not that I can even imagine paying it before the 5 years expire. 

I will need some help along the way regarding some calculations I have used calculators provided snd it looks like we will be paying £25.00 daily interest in our mortgage, it makes me sick even thinking about it but I’ve already mentioned that we were desperate for a mortgage so we accepted this rate. It is explained that first £5000  OP is used to reduce interest and next £5000 is used to reduce capital and so on. 

Mortgage term is 12 years and I am hopeful to bring it down to 8 years therefore completing  by the time I am 50 and OH 66. 

We live in an area where rental is very expensive and our mortgage to our most beautiful home is very similar to what we had paid in rental. 

I know that first 6 months will be expensive and especially with ideas regarding decorations and some improvements I have in mind and have them booked already however I am planing to start even small OP monthly snd increase them from Jan 22 to £500 per month which is the idea. 

We love our holidays and I still want to be able to have them whilst making a dent in our mortgage. 

I will be working with written overpayment diary as well as excel spreadsheet. This will require a lot of dedication but I have to say that months and months of reading your success stories have motivated me enough to start my own story! 

I am off to pack some more boxes and I’ll keep you updated with the move, first mortgage payment and subsequent OP. 

Shiny new diary starts today with h to e hope of helping me be more accountable and organised. 

Speak soon xx

MissLemon

Good luck with your move and your first steps to being mortgage free 😀

Sunday88

Good luck hope the move goes well! 

ElmoR

Exciting! Good luck on your journey

L9XSS

Best of luck for Thursday and your MF journey.

caledonian_princess

Hope your move is nice and smooth and good luck with your MF journey.

LadyGnome

How exciting. Best of luck with your MFW journey.

girlie1412

Thank you all for your lovely messages! 

D day tomorrow around lunch time I hope. Everything is packed and ready to go. Paranoia setting today that vendors may still be in situ when we arrive, I just think my stress levels are at the all time high. 

It’s been hard 5 months and I’ve been waiting for this day for so long. So many plans for the new house and also plan to start repayments as soon as I can. 

When will our first mortgage payment be? Some say after a month so September in this case. Hopefully lender will send direct debit soon so everything can be put in place. We are also due to travel in august to an amber country so stressing about tests and everything. This trip was cancelled last year and rebooked got this year before we thought we will have a mortgage.
I’ll keep you updated

girlie1412

Hi all, so we moved into our house and after initial problems, broken stuff, unclean property and a lot of repairs and a lot of tears we have spent  first Xmas in our forever home and I now feel comfortable to start our MFW journey.. 
my first overpayment was made in December £300.00 only but it is a start. 

First 5 months drained our savings completely  due to some unforeseen issues and repairs that we had to make. 

Our mortgage interest rate is hugeeee and overpayments make a lot of sense. 

I will do our statement of affairs hopefully next week and post it to keep me grounded, I’ve also joined New 3 years challenge to keep me motivated and challenged myself to overpay £50k in 3 years! 

In between of planning my overpayments I am also planning big family holiday for 2023 to Florida and trying to simultaneously save for that as well so this will be interesting journey. 

We have no limit on overpayments however first £5000 per year goes towards the interest and not capital so whilst is reducing interest it’s not shrinking years of the mortgage which is my main goal! 

Daily interest is currently £24.00 per day (I know huge) and my online mortgage account doesn’t currently make much of a sense as I thought that by resulting capital monthly interest will be getting smaller which is currently not the case somehow or maybe I am getting this all wrong! 

Any tips are appreciated I will try to provide weekly update as some overpayments will be made weekly due to my weekly pay! 

girlie1412

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 2400

Partners monthly income after tax....... 1900

Benefits................................ 0

Other income............................ 1000[b]

Total monthly income.................... 5300[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1773

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 25

Council tax............................. 173

Electricity............................. 80

Gas..................................... 100

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 63

TV Licence.............................. 15

Satellite/Cable TV...................... 20

Internet Services....................... 30

Groceries etc. ......................... 400

Clothing................................ 0

Petrol/diesel........................... 150

Road tax................................ 3

Car Insurance........................... 40

Car maintenance (including MOT)......... 50

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 410

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 10

Contents insurance...................... 10

Life assurance ......................... 67

Other insurance......................... 160

Presents (birthday, christmas etc)...... 100

Haircuts................................ 20

Entertainment........................... 25

Holiday................................. 100

Emergency fund.......................... 100[b]

Total monthly expenses.................. 3924[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 300000

Shares and bonds........................ 0

Car(s).................................. 5000

Other assets............................ 0[b]

Total Assets............................ 305000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 187000...(1773).....4.69[b]

Total secured & HP debts...... 187000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Vanquis .......................1300......100.......39.99

Credit union ..................5500......400.......0

Very...........................500.......50........0[b]

Total unsecured debts..........7300......550.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 5,300

Expenses (including HP & secured debts). 3,924

Available for debt repayments........... 1,376

Monthly UNsecured debt repayments....... 550[b]

Amount left after debt repayments....... 826[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 305,000

Total HP & Secured debt................. -187,000

Total Unsecured debt.................... -7,300[b]

Net Assets.............................. 110,700[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

girlie1412

Anticipated January pay is nearly here … well it will be here tomorrow and I’ve spent some time today planning my bills savings abs first overpayment of this year! I’ve settled that I can overpay £476 this month which is great trying to make nice round payment to the mortgage. 

I may of overestimated my overpayments in the next 3 years but this diary will keep me grounded and help me reach the goal. 

I’ve done a massive shop this week and I am in the process of planning meals for next two weeks with shifts work for me I am not always at home to make meals and after a long shifts we all result in a takeaway food which I am trying to minimise In February and increase overpayments I’d possible. 

Also planning to contact my mortgage provider and enquire about overpayments and when is best to make them. Our mortgage started 29th July last year and this will be my second overpayment only as first few months seen us trying to get this house sorted and refurbishment of property was more important than reducing term of our mortgage. 

More sensible living from February for all of us, with no holidays planned for this year I should really be able to overpay mortgage by at least 6k. 

I’ll be back tomorrow to report my overpayment officially with the hope that each month I’ll be back with at least same or higher overpayment!