The Long and Winding Road

This seems like an appropriate thread title given the very long path we have to walk to get even close to mortgage free, but we're certainly thinking about it and have been taking note of small milestones already.  Hopefully this thread will see our walk turn into a canter.  Except with one significant and self inflicted bump in the road!
I am a long time DFW diary hopper, but finally taking the plunge into the MFW boards after a few years as an inbetweener - a debt free saver not focusing on the mortgage.
So, long and winding story short, we bought a house in 2021 with a 75% LTV mortgage totaling £394,000.  Fixed for 5 years at 1.8% with a payment of £1,350pcm.  We have since done the house up and with regular payments we have brought the mortgage down to £370,000, which now represents approx. 50% LTV (due to simultaneous house value increase).
We are hoping to extend this/next year and plan to take out additional borrowing of £80,000, taking us to the 65% LTV bracket and adding approx. £420 to our monthly payment (hopefully will be less than this as rates come down a little, we'll be taking that as late as possible into the process, possibly around 6 months time) 
When we first took out the mortgage, our interest per day calculated to be over £21 per day, it is now down to £18.70.
So my idea is to track all these elements:
     Mortgage total:  was £394,000, now £370,000
     LTV: was 75%. now 50%
     Interest per day: was £21+, now £18.70
     Time remaining: 29 years 4 months

I'll then add in the additional borrowing with the same metrics once it has been taken out.

In the meantime, I am squirreling away as much as we can into savings, hence the signature targets in place for 2024.  Once the additional borrowing is in and we are paying out for it, our ability to save will obviously be diminished by that £420 (or so) per month but we will still have scope to continue building savings and hopefully that will only increase moving forward - touch wood.

Thanks for reading so far, any tips and tricks welcome, any ideas of other things I should/could be tracking also very well received.
Debt Free I FFEF I Building Savings I 2024 Plan:
  1. Slush/Tax Fund £4,350/£5,000
  2. Additional Pension Contributions £0/£5,000
  3. Regular Savings £1,120/£15,000


#47 Save £20k in 2024 - £5,470/£20,000 (27%)

Comments

  • beanielou
    beanielou Posts: 89,341
    Academoney Grad I'm a Volunteer Ambassador Mortgage-free Glee! Name Dropper
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    Happy shiny new diary  :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing [email protected]. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • redofromstart
    redofromstart Posts: 3,934
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    wishing you luck with your journey.
  • t2rry
    t2rry Posts: 1,018
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    Thank you @beanielou and @redofromstart - I'm anticipating a slow but long lasting one!
    Debt Free I FFEF I Building Savings I 2024 Plan:
    1. Slush/Tax Fund £4,350/£5,000
    2. Additional Pension Contributions £0/£5,000
    3. Regular Savings £1,120/£15,000


    #47 Save £20k in 2024 - £5,470/£20,000 (27%)
  • t2rry
    t2rry Posts: 1,018
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    Staring longingly at February payday in the distance and this additional borrowing however many months away and I'm thinking of reviewing our outgoings like we've not done for a while.  We have some lifestyle creep, albeit lifestyle creep we debated hard before entering into. that I'm thinking of stripping out...and yet struggling to decide:

    Cleaning
    - We pay £78 per month for two visits (2 hours each time) from a cleaner.  We justified it because we both work full time, actually more than full time if we're honest as I am both employed and self employed and the latter encroaches on our weekends a lot.
    - We pay £30 every 6 weeks for the window cleaner.  Windows still never look clean, as we approach an extension build maybe I could just drop this and do it once in a while ourselves until the house is finished and look at it again then?

    My own personal care:
    - I get my nails done, £30 per month.  Justified because otherwise I am very frugal when it comes to personal care, I buy limited skincare and make up, when I do it's from the supermarket, I buy fewer clothes than is probably necessary and I have a very small wardrobe.  I get my nails done because otherwise I am embarrassed by them, always have been, tried everything to keep them nice (I don't bite them, but they are very weak) but nothing but getting them done properly works.
    - I get my eyebrows done too, £30 every other month.  Justified for same reasons above to save me time and effort (that I probably just wouldn't do except maybe once in a blue moon) 
    - I get my hair done, £100 every 3 months, obviously getting it coloured for that price, been to the same salon for years, I'm sure it would be cheaper elsewhere but trust is a big deal, if I didn't get it coloured I'd look unwell but maybe I could drop this to once every 4 months at the very least or maybe for now I just batten down and accept looking bedraggled for a while

    The only other things we have that aren't necessary are for the kids, the usual extra curricular sporting stuff, we won't take those away.  Otherwise it's our in-month unplanned spending across the usual; food/petrol/birthdays/social/clothes/miscellaneous and I never feel like we're able to do much about these, we don't go out much, we rarely get takeaways.

    We take home approx. £5,350pcm, we save around £1,300 of that, we also save pretty much all my self employed income (average of £10k per year after tax & additional pension contributions).  That is plenty, but our additional borrowing will add around £420 payment, which takes that £1,300 per month down to £880.  I realise this is a first world issue, but given all the above 'non-necessary' items add up to approx £180pcm, it feels like a decent chunk proportionally.

    I'm back and forth on it a lot, OH points out that it's all 'my' stuff, and it's the only 'my' stuff that really exists, but I've done without it before.  I feel like with such a large expense around the corner, maybe we should cut back to bare bones for a while.  I don't know, where should the line be!?
    Debt Free I FFEF I Building Savings I 2024 Plan:
    1. Slush/Tax Fund £4,350/£5,000
    2. Additional Pension Contributions £0/£5,000
    3. Regular Savings £1,120/£15,000


    #47 Save £20k in 2024 - £5,470/£20,000 (27%)
  • beanielou
    beanielou Posts: 89,341
    Academoney Grad I'm a Volunteer Ambassador Mortgage-free Glee! Name Dropper
    Ambassador
    I don't think an average of £68 pm is bad for personal care.
    Your cleaner costs are average I think.
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing [email protected]. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
    One debt remaining. Home improvement loan.
  • t2rry
    t2rry Posts: 1,018
    First Anniversary First Post Name Dropper
    Forumite
    Thanks @beanielou I hadn't framed it that way before.  I'm going to compromise with myself and reduce frequency, even £100 every 4 months instead of every 3 etc. means I won't go without, but feel like I'm cutting back a little.

    End of the month here so officially £817 reduced on the mortgage, additional borrowing looking like it'll come towards the end of the year so in the meantime we squirrel away as much as possible.  Car tax due this month so not the best month for savings but automated savings puts away £800 plus an extra £400 from zero based budget and I have self employment income hopefully landing this month and next that will give us a boost as well.
    Debt Free I FFEF I Building Savings I 2024 Plan:
    1. Slush/Tax Fund £4,350/£5,000
    2. Additional Pension Contributions £0/£5,000
    3. Regular Savings £1,120/£15,000


    #47 Save £20k in 2024 - £5,470/£20,000 (27%)
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