Purchase on first home completed - Time to start making a dent in the mortgage!

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  • Merlin's_Beard
    Merlin's_Beard Posts: 1,414
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    Good job on the six months expenses - massive peace of mind there and definitely one of my goals.
    Start mortgage date: August 2022; Start mortgage amount: £240,999; Original mortgage free date: August 2056
    Current mortgage amount: £233.529.75
    Start student loan 2012: £29,750; current student loan: £11.400.50; OP offset fund: £750
  • madhatter83
    madhatter83 Posts: 62
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    edited 9 July 2022 at 7:23PM
    Thanks ManekiNeko and Merlin's_Beard !

    We are also building up supplies of food, we have limited space due to it being a small place - but have quite ample kitchen storage - if something we consume is on offer we are stocking right up - and example would be Weetabix (well tescos own) - they had 24 packs on clearance at 60p each so we bought 8 boxes! 

    I see it as inflation proofing in a small way and also emergency preparation too, if you have ample food stocks then the emergency fund if ever needed will stretch further - However only works with products you only know you will use in the timeframe. 
    122k mortgage started 10th June 2022.
    Mortgage overpayments in 2022 - £3515
    Mortgage overpayments in 2023 - £600
  • savingholmes
    savingholmes Posts: 27,092
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    Thanks

    Glad you have an EF in place. I can see why you don't want to automate if you are reliant on overtime for OPs. Keep doing what you are doing. It's working!
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • killerpeaty
    killerpeaty Posts: 2,644
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    A good sleep will make life a lot better, regardless of whether you are overpaying or not! My mattress ended up being a cheaper one, but not cheap cheap. It just happened that when I was trying mattresses it was this one that fitted me best. I would have paid more.

    How are you organising your stock? I've an assortment of goods which now just annoy me when I look at them. They're just so messy.
  • ManekiNeko
    ManekiNeko Posts: 238
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    Good idea mad hatter, when I've lived in my own place I've always gradually built up a stock of food, laundry powder, toiletries, etc. My first ex was a total spendthrift and also had the fun habit of coming home from work to tell me he'd quit his job, so this was my way of making sure we were never left unable to eat. But nowadays I'd do the same thing for extra financial peace of mind, in case of getting ill and not being well enough to go to the shops for a few days, etc.

    peaty - it depends what kind of stuff you've bought. If it's food, I pretty much just put the new tins behind the old tins, stacked two high. So the one closest to expiry was always visible and the easiest to hand. Otherwise, closed storage is your friend - things always look messy on display.
    Completed on first home: 30 June 2022
    Mortgage outstanding: £68,499 £64,841.60
    OPs made or saved (2022-23): £315.52
    OPs made or saved (2023-24): £690.24
    OPs made or saved (cumulative): £1,005.76 (1.47%)
    Interest saved to date: £ *to add*
    % of mortgage paid off: 5.34%
    MF date: June 2056 October 2055
    Daily interest costs: £3.10 £2.90 and a half pence (as of 12.02.2024)
    Emergency fund: £0
    Debt to DS: £10,000 £7,209.01. 27.91% repaid (DFD: Aug 2027 Nov 2030)
    Debt to DP: £1,423.55 (this will increase until DS repaid)
    Debt to non-profit: £4,500 £4,239. 5.8% repaid


  • Cornish_mum
    Cornish_mum Posts: 628
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    Congratulations on your new home!

    I also have food storage; as it’s how I was brought up. I built it up slowly, when items we regularly use are on special offer. I also bulk buy rice etc from the world food section. I just hold staples we use all the time so don’t waste anything. it’s been really helpful as when items aren’t available or only expensive substitutes are in stock (I buy own brand mostly). I just skip purchasing for a week or two and use up what we have. I also store veg, a few ready made items and portions or components of homemade meals (I use the menu of an very expensive ready meal supplier as inspiration) in our freezer. 

    Best of luck on your journey CM
  • Schoolworker
    Schoolworker Posts: 499
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    You are doing so well with your overpayments when you have just moved in. Remember it’s a marathon rather than a sprint which I have to keep on reminding myself that too as I would love to pay off most of our mortgage but hubbie does not in case things happen with jobs etc.

    we are with nationwide too and I was under the impression that when I pay a small amount is under £500 it adjusts the amount of mortgage debt, but if I pay over £500 I have this set to reducing my mortgage term and you get a letter about it. 

    Good luck and enjoy your home.
  • madhatter83
    madhatter83 Posts: 62
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    edited 10 July 2022 at 8:51PM
    A good sleep will make life a lot better, regardless of whether you are overpaying or not! My mattress ended up being a cheaper one, but not cheap cheap. It just happened that when I was trying mattresses it was this one that fitted me best. I would have paid more.

    How are you organising your stock? I've an assortment of goods which now just annoy me when I look at them. They're just so messy.
    So true, Im not convinced this is the right mattress yet but giving it a fair trial, have the option to swap once at john lewis when using mattress protector, went for a firm as seemed to support well but might go back to a medium. 

    For the food organizing we are keeping it simple, one large cupbord for tins (rotating dates - many dated till 2024) one for cereals, and one for drinks. 

    Good idea mad hatter, when I've lived in my own place I've always gradually built up a stock of food, laundry powder, toiletries, etc. My first ex was a total spendthrift and also had the fun habit of coming home from work to tell me he'd quit his job, so this was my way of making sure we were never left unable to eat. But nowadays I'd do the same thing for extra financial peace of mind, in case of getting ill and not being well enough to go to the shops for a few days, etc.
    Now you mention not being able to get to the shops that kind of reminds me of the crazy panic buying at the start of the pandemic! Whilst i dont think food will run out I do think the price is only going one way so makes sense to stock some:)

    Congratulations on your new home!

    I also have food storage; as it’s how I was brought up. I built it up slowly, when items we regularly use are on special offer. I also bulk buy rice etc from the world food section. I just hold staples we use all the time so don’t waste anything. it’s been really helpful as when items aren’t available or only expensive substitutes are in stock (I buy own brand mostly). I just skip purchasing for a week or two and use up what we have. I also store veg, a few ready made items and portions or components of homemade meals (I use the menu of an very expensive ready meal supplier as inspiration) in our freezer. 

    Best of luck on your journey CM
    Thank you! That's a great idea about freezing some components of home made meals, we are going to try and make more home made stuff, we never have takeaways but everything we eat is mostly oven ready stuff - again trying to save the pennies! 

    You are doing so well with your overpayments when you have just moved in. Remember it’s a marathon rather than a sprint which I have to keep on reminding myself that too as I would love to pay off most of our mortgage but hubbie does not in case things happen with jobs etc.

    we are with nationwide too and I was under the impression that when I pay a small amount is under £500 it adjusts the amount of mortgage debt, but if I pay over £500 I have this set to reducing my mortgage term and you get a letter about it. 

    Good luck and enjoy your home.
    Thank you:) that's very true - it is a marathon , but I certainly want it to be a shorter one :D the emergency fund will stay in place though.

    I think I'm going to go with minimum overpayments of £500 now.

    Does anyone include easily sellable luxury assets in emergency funds or just liquid funds? for example I splashed out on a omega watch a while back that sells for 3k instantly -and whilst i love it, it isn't sentimental and could easily be liquidated within 24 hours if needed.. worth including in funds or just treat as a "if all else fails" thing..
    122k mortgage started 10th June 2022.
    Mortgage overpayments in 2022 - £3515
    Mortgage overpayments in 2023 - £600
  • savingholmes
    savingholmes Posts: 27,092
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    It is up to you to define your EF. I personally wouldn't include it - there's a risk you could lose it or it be stolen... or damaged.


    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • madhatter83
    madhatter83 Posts: 62
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    It is up to you to define your EF. I personally wouldn't include it - there's a risk you could lose it or it be stolen... or damaged.


    That's a very valid point and highlights why it shouldn't be included. 

    A sale and overpayment might be on the cards though. 
    122k mortgage started 10th June 2022.
    Mortgage overpayments in 2022 - £3515
    Mortgage overpayments in 2023 - £600
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