Just at the start but already planning to be MF ASAP

Theatregal83 · 21 April at 2:46AM

Apologies in advance for the ramble….

So, it's been well over a decade since I was on here. Back then, I had some debt, and sound advice on here helped me pay it off. Now I'm onto the big guns as a First Time Buyer, and MSE and TikTok have been helpful yet again.

I've had an offer accepted on a house, spoken with a mortgage broker, and my mortgage application has been sent off to Barclays. I have also sorted out my solicitors. I am very privileged because of my job; I have year-round accommodation, but term time is all-consuming.

This has allowed me to save £30,000 in a LISA over the past few years for my deposit and £15,00 for house costs, renovations, etc. I have gone for a house that is £95,000 up in the northwest. (During term time, I live down the southwest, but the northwest is home.)

With my chosen mortgage, I will have a £65,000 mortgage, which works out to about £360 PCM (which I know is very low), 4.3%, 5-year term fixed over 25 years. Because of my current salary, I could have gone for a higher-priced house, but I have a plan.

The Plan:

I want to pay off my mortgage as soon as possible. With my current salary, I could more than double my mortgage payments and still have money left for savings and outgoings.

My mortgage is hopefully with Barclays, and looking at their fine print, I see I can pay off 10% each year (which is what I would like to do either monthly or a lump sum)

I can work overtime with my job during term time and the holidays, which I have been doing for the past couple of years. However, I do want to spend time at my house.

I’m 50 in seven years, and I would love to have paid off my mortgage by then so I can honestly think about changing jobs and moving back to the northwest to be nearer family. The house I am hopefully buying is a small two-bedroom terrace house, which is perfect for me. It has parking and is freehold. I’ve worked hard for this, doing overtime at work, some side hustling, and getting a second job (in fact, side hustling just paid for my home buyers’ insurance without touching my savings – Thank You Prolific)

Because of my job, my outgoings are low, I don’t pay bills and get food during term time, so I have been saving like the clappers. I know that I am very, very privileged with this. However, since I turned 40, I have a life audit, and whilst this job has amazing benefits and a nice salary, I am single, and my family is up north and not getting any younger. So, by aiming to be MF by 50, I feel I could look at moving up north, having a slightly less stressful job, and not minding being on less money.

If you have read this far, thank you. I will keep you updated on the house-buying process.

Side Note (before anyone asks, my house is near my family (next road over) so that they can look after it- I thought about getting a lodger- but I like my space in the holidays- I am also planning on getting VeriSure, some family members have it and can't say enough good things about it)

powerspowers · 21 April at 8:40AM

Sounds like an excellent plan!

Some things come to mind-

What’s your pension provision like and are there any opportunities to pay more into this while you’re earning well? Mortgage free is just part of the puzzle. Your low mortgage should mean the house is affordable even on a part time wage so I’d think about the whole package not just MF in 7. Something I’ve had to talk to myself about as MF feels more tangible than pension saving!

In terms of the OPs I’d pay monthly to see it making progress or put in a fixed savers if the interest is higher and then pay each year. You can also make big lump sums when a fix ends with no penalty.

Good luck with your house buying and the MF plan!