It was a Hobbit Hole, and that means comfort.

Eowyn1

I wasn't sure about starting a diary, but on reflection I think it's good to get this written down. At the grand old age of 30-something I picked up the keys to my first property last Friday! It still doesn't seem quite real if I'm honest. I saved for years to get together a big enough deposit (buying on my own and live in an expensive part of the country so knew I would need a large amount).

Inevitably, there were a couple of bumps along the way in terms of getting the mortgage. Despite always paying off my credit card in full every month, never being in debt or going into my overdraft, a combination of my fixed-term job contract (I work in a sector where this is standard) and my student loan monthly repayments reduced my affordability significantly - which I only found out after I'd had an offer accepted on a property! I had got a DiP beforehand, and despite my student loan payments being on my payslips they weren't taken into account. And a bit ridiculous, because if I lost my job tomorrow the one thing I wouldn't have to worry about is the student loan.

Anyway. Long story short, the only way I could meet the bank's affordability requirement was to take out a 40-year mortgage term  this is obviously not ideal, as I certainly don't want to be paying a mortgage into my seventies! So the plan is to start making overpayments as soon as possible.

The total mortgage is for £215,500, fixed at 4.58% for the next five years. Because I need to buy furniture and a few other bits for the flat (all budgeted for), I'm going to start off with small overpayments of just £50 a month, hopefully increase to £100 by the end of this year and then get to overpayments of £200-£250 the year after. It's a difficult balance, because I also want to build my savings back up for an emergency fund and a general rainy day fund, and doing this on my own. And enjoy life a bit too. But, I shall get there! And even a small overpayment has to add up over time, right?

I will try and use this diary to post updates on my progress - not expecting anyone to read this, but it will be helpful to keep track of how I'm doing!

South_coast

They definitely do add up! And the sooner you start, the better, as the impact is the greatest then. Good luck with your plans - it will feel like you're making no progress to start with, but suddenly the cumulative effects really start to take off 😀

beanielou

Happy shiny new diary 

Archerychick

Even a small amount like £50 will make a significant difference! 

Jessy103

Happy shiny new diary. Even a small amount makes a huge difference. Good luck with your journey 🙂

Eowyn1

So the first mortgage payment went out today, and I also made my first overpayment of £50! Now in an ever-so-slightly smaller amount of debt, hurrah.

Yesterday was a day of heavy spending as I bought a bed and mattress. Put both on the credit card to be paid off in full in July. I was pleased with the mattress as I managed to get it half price. And a good bed is probably worth splashing out on a bit - it's not as if I'm going to be buying a new bed every year! Also went to the Swedish flatpack shop and got some bits.

Eowyn1

I've been feeling a bit depressed about my savings, or rather my lack of savings. The rational part of my brain recognises that this is ridiculous, because the whole point of building up such a large savings amount was for a house deposit, so it's gone to a good cause, and I will build savings back up again. But there's another part of my brain telling me I need to build them back up right this instant to get a proper safety cushion in place again. The end result is I'm constantly dithering about what to do with even tiny amounts of money.

I have about £2,800 left in savings, which I would like to build back up to at least £15k by the time my current job ends in 2026. That would give me a healthy emergency fund to cover the mortgage and other expenses in case I don't start another job straight away after this one ends. But I would also like to build a separate fund for house emergencies too, and a general 'rainy day fund'. I will get there, I just need to accept that it will take time. But the indecision about where to put my money is driving me a bit mad. For some reason I've always felt the need to have a fairly hefty 'cushion' in my current account just in case I need it for some unspecified emergency, even though said emergency has never arisen and if I did need to pay a heavy bill I could transfer the money over from savings quite quickly. I'm also trying to think strategically about interest rates. I have an easy access ISA that will be at 4.35% until January, and an easy access general savings account that will be at 4.6% until January. So in theory I should throw all savings at the general savings account, but I'm a higher rate taxpayer so can only earn £500 in interest pre-tax ... but then realistically will I earn £500 in interest on that account this financial year given that the sums in it are so small ... argh. It's all a bit of a headache.

Jessy103

Hope you're able to figure out what to do for the best Eowyn. Try not to get down about it though and be proud of yourself for doing so well and making such plans 🙂

Money_Monkey

You might not like this, but I think it would be wise to pause your aspirations for mortgage-freedom, until you have enough money for your increased expenditure (furniture, emergency fund). Enjoy your new home without the pressures of wondering where to put surplus income.

Eowyn1

Well the bed delivery has turned into a bit of a saga. Bedframe arrived on schedule, started to assemble it and realised it was faulty (screw holes on the headboard and plinth do not align). I took said headboard back into the shop, they agreed it was faulty, but the supplier isn't playing ball. I've sent photographs and yet to hear anything back. Grr!

On the plus side, I've been given a large chest of drawers for free from friends who have also recently moved house and realised that said furniture doesn't fit in their room.

I should be all moved over by the end of the month - currently at the family home sorting through various bits and pieces in the attic to move back up with me. Lots of books (I have bookcases but it will be interesting to see how much space is left on them!), and a goodly amount of kitchen things too.

LadyWithAPlan

I think your stress on your currently depleted EF is partly cos you are single so you have all your own responsibilities.. I am the same - feeling the need to have more as no one around to bail me out 

so I think getting the EF up to 10-15k as an emergency before you start buying loads of new furniture and OP your mortgage would be my first call 
you can get more second hand /free furniture in the short term 
I do understand re the bed and mattress but filling a house with stuff you live can be v expensive and we all have to pick our battles 

maybe once you filled your EF back up then save for a new piece of furniture every 2-3 months and also put money aside for over payments 

plus if you are a HR tax payer maybe look to add a bit more into your pension to reduce your taxes once you have got that EF back up to comfort zone 

I have been saving forever for a big house deposit but I already know I will be keeping 4-6 months expenses held back as I need to feel safe as ;I am also a contractor and single