Tip toe towards my goal

Faith76

Well I read mortgage free diaries all the time and find them motivating. So going to do a diary myself and log how I get on. Property purchased five years ago for £155000 now has I think £119570.24. This was a five year fix and and at the end of December will have 19 years and 4 months left. It has interest at 2.99%. I think the five year fixed ends in Feb 2022 and from then we will be on the variable rate. Looking at re-mortgage as soon as fix ends but have said to DH no spending so we can get our bank statements tip top before looking at deals. So will find a mortgage broker in March/April time and try and get sorted. Tried to work out the value of our home but I think it is just the same even though house prices have generally risen in some areas. No one has recently sold on our street apart from a house across the road which sold for £158000 in March 2020. I have looked at zoopla and it just seems wildly inaccurate to me. I then looked at another one which was much more realistic in my opinion and said roughly worth between £149000 and £190000. I am going to go with the bench mark of what we paid for it in case the mortgage provider should estimate it at a lower value than what we think if we went with what zoopla says for example. Would a mortgage provider say it is worth more if we underestimated? Not too certain about this. We sold our first two up two down to get this semi detached so the girls could both have their own rooms. Love living here and this will be our forever home unless I win the lottery. Have set up a first standing order overpayment of £60.00 due out at the same time as this months November payment. Had a chat with DH and he is going to start putting extra in too but will remind him in the new year and get Christmas out of the way first. Have no debts and have about 10k in savings but want to keep saving and use to pay off house in the end as well as still having savings. Any spare overtime or money acquired through surveys, cash back sites etc will go towards overpayments.
Today has been an online Christmas shopping day via the cash back sites and I think I am nearly there with shopping. Enjoying my evening before back to the grind tomorrow. 

Coffeekup

Good luck on the diary... I'll pop in along the way and catch up...on a side note
I'm no mortgage guru, but I do know...
*Ideally you should be looking a few weeks ago at mortgage's and have a AIP now. But you still have time, but the low rates are slowly dwindling apparently.
*Understand your LTV rate whether is be 90/75/60 or 50%. The interest rate on say 60% mortgage over 5 years will be better than a 75% mortgage over the same term. Tweak your house value see if you can fall into the bracket. In the mean time if you have any savings and can afford to overpay to help fall into the next LTV bracket. 

There is a few people on this forum that are good at number crunching... Now's the time to ask... It can save you thousands over the next few years.

Good luck

L9XSS

Good luck with your journey. You can usually lock into another fixed rate deal a few months out, in my case NWM would arrange a new deal, 3.5 months before the end of the existing fixed rate deal. As has been said you are fixing at a good time, plenty of 2 and 5 year deals about, but they will start to rise. A 5 year fix imho would be the way to go. Keep posting and keep us updated. I will slay the mortgage dragon in 5 months and 2 weeks!!!!

Faith76

Evening folks! Well I have arranged for a chunk of my savings £2500 to put towards the mortgage when standing order is due out in a week or so for the mortgage, gulp! I am nervy about it as just think oh no my savings but I also know it is the right thing to do. Had a chat with DH last night and told him what I was trying to do. I am trying to get it to 75% LTV. I will also put another chunk in , another £2500 in December then will watch and wait. I will have 5k of savings left but I am so going to be a frugal squirrel and get my savings back up again. I just want that fall back of if anything goes wrong on the job front I will have something. We are having a restructure at work at the moment but have been told we will have a job so that has been my concern with the money from savings. Having said that if I did not have a job I would get a payout as have been there about 18 years. This has led me to be nervy about it all. Just looked through my paperwork to find out when my deal ends and it is 28th Feb 2022. Glad I checked so I know exactly where I am at. Right going to take my mind off it now. Enjoy your evening

Faith76

Hello, well just an update. My first £2500.00 chunk has been paid towards capital on mortgage. I rang the mortgage provider to double check it would all go towards capital and it does. Next chunk is due out on 23rd December then will check where my balance leaves me. Aiming for 75%LTV. Then in January going to re-mortgage. Have some Christmas savings from work due back only about £50.00 from a lottery syndicate. This will be ending so anyway this money will go into my reduced savings. Going to really try and get my savings up again. Savings will stand at about £5000 once my lump sums have gone out. Have earned a little bit on shopping savings sites *UIDco and To* Cash *ack I think about £4.00 so that will go to savings. DH said he wants to pay £1500 lump sum to mortgage so will ask him after Xmas. Other news DD primary age has tested positive for Covid so isolating, thankfully can work from home. Myself, DH and other DD are just waiting for PCR results. Fingers crossed we are negative. Have a good Sunday folks

L9XSS

Thats a decent overpayment to make. Great progress. 

Faith76

well re-visiting my old diary and hello. My mortgage is at £89509.05 now as it stands. 5 year fixed rate ends April 2027. Making about £40.00 overpayments every month and have recently discovered a Sprive app linked to shopping and popped £2.00 across this morning from that to overpay every little helps right? Watching closely interest rates but who knows what this will be but one things for sure my house value would have increased I think at least £190000. Last time I re-mortgaged I managed to shave off a couple of years so 13 years to go. Hopefully sooner fingers crossed.

beanielou

You are doing well.

Faith76

Thanks beanielou well miscalculated how many years to and will be 11 by time of re-mortgage so happy it is less years. I am 50 this year so if I could pay it all by 60 that will be good.

beanielou

Even better then.