Big mortgage, small steps

Hi there! I've been lurking/reading on this forum for a few years now, so thought it was time to start my own thread.

I (31/f) live with my husband (34/m) and our two cats, in the south-east of England. It's an expensive part of the country but we're both from the area so never been tempted to move further afield (yet!)

We bought our first home in February 2015 for £235,000 and sold in December 2019 for £285,000. We then moved in to our current home (a 4-bed new build, forward planning) which we bought for £475,000, with a mortgage of £356,000 (75% LTV).

We moved part way through a 5-year fix so our mortgage is split into two parts. In January we'll move onto a new 2-year fix for part of the mortgage, so come January 2024 we can bring it all back together again and make it all easier to keep track of

In 2019 we took out a 30 year mortgage, so without any OPs we'd pay it off right before I turn 60  :#

Current mortgage (new figures starting in January, as we've made our last payment on our current rate):
Sub account 1: 1.45%, fixed until January 2024
Sub account 2: 1.88%, fixed until December 2023
Outstanding balance: £332,000
Monthly payment: £1233
Mortgage end date: December 2049

In 2021 we got into the habit of overpaying each month, and managed to overpay 1% of the starting balance (£3,4500 over the year). We had a slow start to the year as I was out of full-time work and freelancing for a bit, so to hit the target we've been paying £400/month for the last few months, which has felt OK - especially as both me and my OH have been fortunate enough to get pay rises (me) and promotions (him) over the past few months.

As a starting point, we'll try and overpay £500/month for the next couple of years. The overpayment calculator suggests that if we keep that up, we'll be hovering around the £300k mark when our fixed rate ends at the start of 2024. Still so much money, but it'll be a nice milestone to hit!

Let's see how things go!
My MFW diary: Big mortgage, small steps

Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
Overpayments 2020: £1550
Overpayments 2021: £3550/£3450

MFW 2022 #48 progress: £3400/£6000
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Comments

  • I'm in the last few days of isolating at home after testing positive for covid about a week ago. Thankfully my symptoms were mild and I'm feeling better, but I'll be glad when I can head out again - especially with Christmas coming up and lots of bits still to do!

    Anyway, while I'm sat at home not doing much, I thought I'd tell you all a bit more about me/us.

    COVID times have been a mixed bag in this household - thankfully we've both been healthy and able to work* remotely throughout. Pre-pandemic we were both working in London, commuting in most days at an eye-watering cost of £500 per month, EACH.

    My OH is a software developer, his company was unaffected by the pandemic so he's worked full-time, full-pay throughout. 

    In March 2020 I was working for an events company (lol) so the pandemic hit it hard. Everyone in the company took a 15% pay cut. And then I was furloughed, though the company asked everyone to "chip in and help out" putting on the next lot of virtual events to keep the company going. So like a dummy I did, and kicked-off the most toxic, draining 9 months of my working life. By December 2020 I was super burnt out, still technically furloughed and working more than full time, so I handed in my notice and left at the end of the year.

    Thankfully I picked up enough freelance work to cover my essential outgoings/existential guilt for a few months, and then I started my current job in March 2021.

    Now I'm technically self-employed, work as a writer for a US company that can't employ me properly so I'm a contractor for them. It works pretty well - I get paid holiday and sick pay, but I have to sort my own taxes and don't get any retirement contributions.

    I'll do another post with some numbers & stuff, but that can wait for another day :) 
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
  • I was going to share some number-crunching but had some unexpected (good) money news in the last few days!

    A startup I used to work at has been acquired, which meant I got to sell my shares in the company. This came completely out of the blue and I ended up with £2400 in my account after a small fee and currency conversion from dollars!  <3

    Currently trying to work out what to do with that money - I'd like to use a bit of it on something nice for myself, as a kind of memento for all the hard work I did in that job, and the great times I had with that team. I'm also thinking of giving some of it to my sister as she had some horrid luck a couple of months ago when the house she was trying to buy fell through last-minute and left her out of pocket due to solicitor's fees etc.

    In non-covid times I'd probably put some of it towards a trip, but that doesn't feel like a responsible choice right now :(

    Still - a very nice conundrum to think through over the Christmas break, and I'm sure at least some of it will end up in the mortgage OP fund...
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
  • savingholmes
    savingholmes Posts: 27,347 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Just popping along to wish you good luck on your journey.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Also popping along to wish you good luck (we have a similar size mortgage and live in the SE so feel your pain!).

    On another note, it was completely illegal for them to ask you all to work while furloughed. Given you no longer work for them you should consider reporting them, it's not right that they claimed that money and got you to work.
    Current mortgage (1 Jun 2022): £289,501 - originally £351,999 got to love London sized mortgages!
    OP Goal 2022 = 3.75% in OPs: £6,975 / £13,200
    Emergency Fund Target: 3 months saved ✅
     
  • Thanks for stopping by @savingholmes and @rugbymadfamily! Happy new year to you both  :)

    Re: furlough - yes, I've been thinking about reporting them for a while. It just seems so... mean? It's like... I want the company to have been reported but I don't want to be the one to do it because it makes me feel bad, if that makes sense. But if I don't do it, I don't think anyone else will. (Equally, I could be wrong and other current/former employees might've done so already.)
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
  • Made my first (and biggest ever!) overpayment of the year - £1000  B)

    Half of that came from the money I got from those startup shares, and half came from my OH's end-of-year bonus. We're aiming to OP £500 a month this year, but I haven't worked out if we're going to do our 'regular' monthly overpayment this month as well as this 'extra' one.

    From that startup money (£2400) I have:
    - Given £500 to my sister as a gift <3
    - Paid £500 onto the mortgage as an OP
    - Put £400 into my pension (so fun.)
    - Put the remaining £1000 aside to do something fun with.

    I've been back to work today as I don't get UK bank holidays (work remotely for a US company) so it's quite nice to get back into my routine. It's helped that my OH has been out all day, so I haven't felt like I was missing out.
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
  • savingholmes
    savingholmes Posts: 27,347 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Lovely way to start the year
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • YAY! Well done on your big OP. Enjoy your remaining £1000!
  • almalobana
    almalobana Posts: 18 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Well, hello again! I made a good start to this diary at the beginning of the year and then -- to be honest -- the forum thing logged me out and I forgot my password so couldn't log back in again. But there we go, I'm back now.

    We've done quite well at keeping up our overpayments after that good start in January:
    • February - £300
    • March - £550
    • April - £500
    I set us an ambitious target of £6000 for the year so we're nicely on track with that at the minute, but we'll see how that changes with the rising energy costs and the like.

    We've got a couple of unwanted / uncertain costs coming up. First is my OH's commuting - he's a civil servant and they're getting the push to go back into the office for... reasons? Except his team isn't all based in the same office any more, so if they do go in they'll still spend hours on video calls which he can do much better from home, without a 90-minute commute each way, and without spending £40 on the train each time :angry:

    The other is our car - we had a 2 year lease on an electric car which comes to an end in July. We're hoping we can just extend for a bit because lead times on electric cars at the minute are ridiculous, and also it means we don't have to decide what to do about the car for a bit longer... Before this we owned our car and had had it for probably 5 or 6 years? I don't remember. But anyway, this is our first time leasing and it's a new problem to have. I don't really have any interest in cars myself, so if it were up to me we'd just keep the same one until the wheels fall off. 

    Other than that, not much to update. As my lovely nan used to say -- bye for now!
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
  • almalobana
    almalobana Posts: 18 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    @VelvetFreak and @savingholmes - a very belated thank you for your kind words (and for dropping by my diary :smiley: )
    My MFW diary: Big mortgage, small steps

    Mortgage start: £356,000 - December 2019 £345,052 - December 2020 £331,976 December 2021
    Overpayments 2020: £1550
    Overpayments 2021: £3550/£3450

    MFW 2022 #48 progress: £3400/£6000
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