Onwards towards mortgage free living

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  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    This month has been tight towards the end of the month. I am not too sure why its different than others but having looked at my finances it looks like I've been a bit loose with the food/general shop each week so need to be better at setting a list or budget and sticking to it. 

    I have still managed to overpay £750 for the month but it's been awhile since I was this close to 0 in my account before pay day. 

    Next month I am going to try a different tactic and pay my various accounts at the start of the month so that I I can only spend what is left. May make me think twice before purchasing things.
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • Zerforax
    Zerforax Posts: 353 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Ended up reserving my mortgage at 4.58% a few days prior to the rates being increased which was a relief. I chose slighter higher interest without a fee as it seemed to be cheaper over the course of the two years and I didn't really want to part with £999 at this point. So have until May 1st on my current rate before interest doubles. 

    Made an overpayment of £450 to start the month off - hopefully looking to be around 650-750 for this month too. Looks like I am target to end up around the 124k mark before the remortgage takes place.

    With your new rate being ~2% higher than your old rate, is that going to hurt your overpayments going forwards?
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Zerforax said:
    Ended up reserving my mortgage at 4.58% a few days prior to the rates being increased which was a relief. I chose slighter higher interest without a fee as it seemed to be cheaper over the course of the two years and I didn't really want to part with £999 at this point. So have until May 1st on my current rate before interest doubles. 

    Made an overpayment of £450 to start the month off - hopefully looking to be around 650-750 for this month too. Looks like I am target to end up around the 124k mark before the remortgage takes place.

    With your new rate being ~2% higher than your old rate, is that going to hurt your overpayments going forwards?
    My mandatory mortgage amount will be going up by just over £100 so in theory it would hurt my overpayments a little. However, I had planned to slow my overpayments a little after switching anyway in order to start building my savings back up. So instead of aiming for £750-800 a month I'll be aiming for around £400-500 a month in overpayments. 

    I put a massive push towards my mortgage over the last six months to try and get my mandatory payment down as much as possible (I am already in the 60% LTV so wasn't going to make significant gains by dropping a band). My house price has continued to rise which has helped with LTV too.  
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Got paid today but found out last night that something has gone wrong with reporting my salary to HMRC which is causing me to take a hit going forward in my tax code. Hoping it will get sorted quick and I don't have to interact with HMRC as it appears to be an error on my company side. Still not great to see.

    I've also just cancelled my prime membership which was due to renew in April at the more expensive cost of £95. In the past 12 months I've used the one-day delivery 24 times and watched 69 movies/tv shows. So for £95 I don't think I'm using the service enough therefore I've binned it. 

    Having been paid, I have now cleared the loan I took out for a new phone, so that's £50 a month back in my account in May which is a nice feeling. I've also topped up my savings accounts now at the start of the month rather than the end of the month. Although I still have really easy access I think knowing I had money in my debit account was causing me to be a little less tough around what I was buying the last few months. Now it will require me to log-in and transfer the money before making purchases that are not essential. 
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Hadn't realised I'd left it an entire month! 

    April has been a tough month. I've cut it down to the wire again in terms of amount left in debit card. I had TV licence to pay which always creeps up on me so that was an expected unexpected cost and took a chunk out of my plan when I had to readjust. 

    Unfortunately, I couldn't resolve my tax issues before this pay so I ended up with about £120 less in my pay packet this month. Hoping it will get fixed by next pay. My company has contacted HMRC and I've also submitted adjustments but will just need to wait and see. Not the end of the world just frustrating if I end up with £120 less for the next few months. Was informed HMRC are due to go on strike soon too which is a pain. 

    May brings about the new mortgage deal and an adjustment to my overpayments going forward. I want there to be a focus on  on my savings and Emergency fund goals over the next 6 months (up to October). I want to have topped up each account by about £2000 each as I've neglected them in sight of reducing mortgage as much as possible before April. So this means my overpayments will be about a minimum of around 200-250. Then if I have money left at the end of the month may pay more to mortgage. 
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Paid £200 overpayment so far this month. Saved around £600 so far into EF, savings, and holiday fund. Will see where I end up at the end of the month and whether they'll be money left over.

    One thing I have been thinking about more this weekend is whether or not I want to move closer to my family. I am currently about an hour away and although I love my current house I do miss the ability to pop to my parents or be with family really quickly. 

    Moving house isn't something I'd do quickly. More like a 5 year plan, especially as houses in that area would require a budget of somewhere around 300-400 thousand pounds. Currently, I can roughly afford a house of about £280,000 (cash from a house sale plus an increased mortgage - effectively starting back at the beginning of my journey.) so I have a fair bit of saving to do if its something I want to make happen in 5 years. Lots to of thoughts to chew on...
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Not had a great month - ended up having to go to into my workplace more than I expected plus a trip to London (with work) so spent more than anticipated. I have needed to take about £50 to £60 out of my savings to cover the month end. Still saved around £500 total for the month which is good. 

    Really need to sort out where I am spending my money and on what. My gut says the small trips to the local shop during the week is one of the problems although need to do the maths to confirm how much of a problem it is...
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    Well...been a long time since I checked in here. 

    Not been that great since I last wrote a post to be honest. This month especially. Let's start a few months back though.

    I have ended up getting carpet put in and taking out a 12 month 0% interest loan with the company. So paying that monthly with the option to overpay and settle when needed. I technically have the savings to cover the cost of the carpet first hand but decided that a small monthly payment with me overpaying from savings every month might be better financially in the long run (turns out I couldn't have been more right!). This small monthly payment has meant I haven't been saving as much each month so my savings progress has taken a hit a little.

    However, onto the worse part of my time away...I stupidly forgot that my car insurance and tax needed to be paid by Sep 1st which caused me to have a small panic attack when I first saw the figures. £180 for the car tax and over £600 for next years insurance (which is just over £200 more than last year's insurance and I now have no claims bonus!). 

    I have managed to get my car insurance down to just under £500 by looking at what I had included and making a few changes to mileage. So that felt a little better. Thankfully...again...I have savings so have been able to pay for both with little strain on my day to day life but so annoying that I forgot about it and hadn't been putting money specifically aside for it. Lesson learnt! 

    I've still been overpaying on my mortgage although this month financially has felt pretty horrible. Need to start using this forum more to stay accountable and check-in. I seem to be a little less "on-it" when not keeping this journal.
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • gillynomad
    gillynomad Posts: 102 Forumite
    First Post First Anniversary Photogenic Name Dropper
    So sat down and had a think about my finances. I've decided to do the following two things as soon as I can:

    1. Pay off my 0% loan as soon as money is available (in a Zopa account but don't get access until mid-sep). I took the loan to give me some breathing space in terms of savings. It was helpful when realising I hadn't saved for my car insurance/tax but as I have the money from my renovation fund I'd rather pay it all off and not have the monthly payment. 

    2. Change my phone contract to a cheaper contract. I've been out of contract on my sim only for awhile but never got round to doing anything about it. I've been looking at the options available and at my usage. Turns out I barely use my data...so paying for over 100GB a month is a waste of money. Looks like I can save about £10 a month on my phone bill.

    I also need to making more of an effort on saving. I've been a bit lax in self-discipline for purchases around leisure and groceries - Need to start making lists and taking more time to consider if I do need whatever I am purchasing. August has been a heavy month on purchases and not the normal (but need to make sure it doesn't become the normal)
    Mortgage: £116,060 (Apr 2024)
    Initial MF date: Apr 2048
    Current MF date: Dec 2044

    MFW 2022 #98 £2,2000/£1,800
    MFW 2023 #35 £7,510/£7,500
    MFW 2024 #24 £1,225/£5,000
    MFi3-T6 #41  £21,231/£27,495 (Mortgage Target £110,000)

    Weight Loss Q1 24: 5/12lbs
  • selloptape
    selloptape Posts: 632 Forumite
    First Post Combo Breaker First Anniversary
    Sounds like great next steps to take :) x
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