First Timer

Hi all,

I've been following MFW for a little while but decided it time to stop talking about getting rid of the mortgage and start doing something about it.

A little about us - its just 2 of us (both 38) and 2 dogs, 2 horses and a cat - no dependants and no plans to have any. We both have good jobs and good incomes plus I can pick up work externally which helps from time to time. We have recently moved to new house :eek: but managed to keep our old property to rent out. Since moving in we are just about back on our feet financially and its time to think longer term.

Situation :
Current mortgage on the new house is £367,000:eek: LTV approx 70% - mortgage @ 2.54%
Current Mortgage on old house £157,000:eek: : LTV approx 75% - mortgage @ 3.4%
No debt (cleared £18k of debt - :j mainly loans and CC;s and not going back)
Cash ISA Savings - approx £25k - want to keep this as emergency money

Plan
I've just done an brief analysis of finances and its pretty depressing - :mad:. We always save every month but we live a very convenience lifestyle and pretty much have what we want when we want it - we don't eat out too regularly but we can make massive savings in our food bill (last month we spent over £1000 although we did host 2 big BBQ parties:)) as well as other areas
As a start I want to overpay £1500 per month which would reduce the mortgage term to about 11yrs but tbh I really want to clear it in 8 years (before my 45th B'day). Its our forever home and probably jumped a rung or two up the ladder to get what we wanted - now we've just got to pay for it!!

Anyway - I'll update as regularly as i can - advice welcome!

dannyboy2012:beer:

Replies

  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    ✭✭✭
    Sounds like youv got a good grip on things a good emergency funds and payed of any debt im sure you'll make light work of them big mortgages

    good luck mortgage free before 45 would be amazing with such an expensive place :]
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
  • Hi Dannyboy. Welcome. I have only joined the MFW club but it’s really changed my outlook. Like you we used to buy things as and when we wanted. We didn’t have a budget or any clue about where our money was going. First step do a statement of affairs with a detailed break down on monthly spends. Be honest with yourselves.
    I added up all the annual costs like life assurance, car costs etc and divided by 12 so we save for these annual costs monthly now.
    I actually have a food budget and our eat8ing out which was a major expense comes from our individual spends funds for the month. DH and I get £115 each for the month for eating out, clothes etc.
    We are still having our luxuries like holidays etc but it’s all now financially planned for. Admittedly it is my first month but I already know where our money is going and we will hopefully have £1100 left for OP this month as opposed to massive credit card bills to pay.
    Anyway wishing lots of luck on your journey x
    1.7.15: £157,469.64, 10.02.16: £93,434.74
    FIT-4 #34, MFW 2016 #89 (£7350/24000)
    Target MFW Dec 2018
  • Thanks Luckyinlife,

    Should have said - plan is to pay off the new mortgage - the BTL we will keep as it is and hopefully release equity from in it many years to come.......
  • Thanks Diamondsonly - nice to know we are not the only ones with runaway spending habits with nothing to show for them........:rotfl:
  • I just got an alert that my last post was 2yrs ago :

    Brief update :

    I've been sticking with it - Mortgage was £367,000 - now £320,000 - which is good but still along way to go. We have been overpaying every month and since getting a new job have been able to make slightly bigger OP's although £1500 is still the baseline. I've also started paying off the mortgage at the beginning of the month rather than seeing what was left (which was invariably not much). Also I took the opportunity to re-mortgage to lower rate (1.49%). I think the hardest thing is feeling like throwing money into an Abyss - but it is nice to get the letter every month from the mortgage company with the Overpayment acknowledged...

    I still lurk on the forum and won't post too often but every sunday i read a few threads. IF i carry on at my current OP which has increased since a pay rise happened:j I'm hoping to be down to the £100k marker in about 54 months. We have a second property that has £80k worth of equity in it so hopefully in 4.5yrs time it will have gone up a bit to. At that point i will relax and re-invest the money elsewhere.

    Cheers:beer:
This discussion has been closed.
Latest MSE News and Guides

NS&I to change Premium Bond prize rate

It will rise to 1.40% from June

MSE News

Compers of the MSE Forum:

Show us the prizes you've won recently

Join the MSE Forum discussion