6 years of saving so I could take out 35 years of debt.

Walker1

Started a thread a long way back while I was saving a mortgage deposit with the gf.

lost track of keeping it updated so have decided to start a new one now we’ve finally done it!

after moving back to my mums for “6months” i finally moved out 6 years later. Oops.

so…. We completed in October and are now settled in and feeling more and more at home each week.

we purposefully went for a cheaper house than we can afford as we hate the idea of paying a mortgage for the rest of our lives. 

Locked in for 5 years at 3.82%

Mortgage amount is 146,000

target is to overpay at least £130 a month which will take us down to 25 years.

I’m going to try to update the thread every month to keep track of my progress. 

Currently we’ve made 3 payments. The first month we didn’t overpay as the payment was around £350 more due to interest between completion and moving in.

month 1  - no overpayment
month 2 - £300
month 3 - £300

northwalesd

Welcome to the 'club' 😀

twinklie

Welcome and good luck! 

fjireland

Good luck ! 

Very much on top of it if you are overpaying already having just started the mortgage … stick to it …. You will see the mortgage being dented in no time  

Mark_d

Slightly different you Walker1

We bought a 2 bedroom flat in a very nice and very convenient location.  It was nearly the maximum we could afford, at 60% LTV, but we wanted comfort that we'd be spending the foreseeable future in a place where we're happy.

We took out a repayment mortgage with a 25 year term.  We will not make overpayments because there is a lot of evidence showing that the long term rate of return on investments is higher than average mortgage interest rate over an equivalent period.

My projection is that we'd be able to repay the mortgage within 15 years.  Repaying the mortgage early would increase our disposable income but keeping the mortgage until the end of the term would be taking the most advantage of the relatively cheap borrowing.

savingholmes

Good luck on your journey.

I save my OPs separately and invest in AVC linked to pension to create future tax free lump sum. Definitely consider pension and long term income and not just your mortgage. I am closer to retirement than you though.

Walker1

savingholmes said:

Good luck on your journey.

I save my OPs separately and invest in AVC linked to pension to create future tax free lump sum. Definitely consider pension and long term income and not just your mortgage. I am closer to retirement than you though.

Thanks for your input! Honestly it’s not somthing I’ve considered and maybe I should… will have a look into it.

Walker1

Mark_d said:

Slightly different you Walker1

We bought a 2 bedroom flat in a very nice and very convenient location.  It was nearly the maximum we could afford, at 60% LTV, but we wanted comfort that we'd be spending the foreseeable future in a place where we're happy.

We took out a repayment mortgage with a 25 year term.  We will not make overpayments because there is a lot of evidence showing that the long term rate of return on investments is higher than average mortgage interest rate over an equivalent period.

My projection is that we'd be able to repay the mortgage within 15 years.  Repaying the mortgage early would increase our disposable income but keeping the mortgage until the end of the term would be taking the most advantage of the relatively cheap borrowing.

Yeh…. Investments scare me 😂

at the moment I’m happy that the interest on our savings is higher than our mortgage rate but I realise that won’t last forever.

i honestly don’t know where to start with investments. And advice on things to look at would be much appreciated.

savingholmes

I think starting with a higher savings rate than your mortgage is a good entry level - as is ensuring you have a decent emergency fund (EF). I think cashflow is what makes the difference between keeping your home in difficult times and not. It's much better if that cashflow isn't reliant on credit cards and further borrowing as that may not be available if the proverbial hits the fan. Only once you have a decent EF in place would wider investments be appropriate. If you look up books like the £ or your life by V Robins or the simple path to wealth that may offer you a good start. Lots of useful summaries on utube and similar... 

LadyWithAPlan

Vanguard - their sipp and isa are v low cost, however yes get a EF in place
pension planning is the most tax efficient way to save especially if you start earning more...but not sure how old you are.
So a blend of sipps, isas, EDF and mortgage OPs will keep you balanced and busy

Walker1

LadyWithAPlan said:

Vanguard - their sipp and isa are v low cost, however yes get a EF in place
pension planning is the most tax efficient way to save especially if you start earning more...but not sure how old you are.
So a blend of sipps, isas, EDF and mortgage OPs will keep you balanced and busy

Thanks! 

Have an EF sorted already. Got around 12 months money put to one side which we have no intention of touching.