Forum Home» Mortgage-Free Wannabe

Twenty-something's aim to be mortgage free

New Post Advanced Search

Twenty-something's aim to be mortgage free

144 replies 4.3K views
wh_emwh_em Forumite
131 posts
Fourth Anniversary 100 Posts Name Dropper
Hi all!
I've been lurking around this forum for quite some time but have put off creating a diary of my own because I wasn't feeling confident enough to do it. But here we go anyway!
I'm a 28 year old on the south coast, my partner and I bought our first home (a lovely 3 bed flat) in December 2019 with a mortgage of £266,000. We relocated from our place 2 hours away so we didn't move in until February/March 2020 after we finished up our jobs where we had previously been living.

The aim of this diary is to track our progress to being MF. Mrs wh_em isn't quite as obsessed with the finances as I am but she has expressed an interest in getting the mortgage paid off quicker than the 35 year term! Whilst it would be lovely to be mortgage free as soon as possible, my main priority is becoming somewhat financially independent and being MF is on the road to that. So I will be taking a longer road to a MF position by balancing over payments, pension contributions and keeping our S&S ISAs topped up.

Thanks very much for reading, looking forward to keeping this updated :)

MFW 2020 £152.53/£1000
Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
«13456715

Replies

  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    I'm currently on furlough so I'm not earning as much as I used to, while Mrs wh_em has started back full time at her job (she wasn't able to be furloughed as she started the same week lockdown started! - she was reduced to part time though). It's been a stressful 6 months, especially in March when my new job shut down and I thought I would have no income for the foreseeable future! Luckily, my old job agreed to rehire and furlough me as I finished with them on the 28th Feb. It was a complete relief!

    Despite money being tight in the last 3 months I have been awful with budgeting and I'm hoping this diary can get me more motivated to be better with it. I've been spending money in a bid to cure my boredom, buying new things for DIY and garden projects to keep me busy has been nice but my emergency fund has taken a hit and it really shouldn't have. 

    Aims for the rest of the year are as follows
    1. Have £4000 in my emergency fund
    2. Overpay the mortgage by £1000 (and try to further overpay the missing 3 months of our covid-19 mortgage holiday)
    3. Repay a personal loan of £1000 to a family member
    4. Repay £7500 to Mrs wh_em for my share of the house renovations

    I'm sure I will have more goals to add later.
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • discotekdiscotek Forumite
    17 posts
    10 Posts
    Good luck on the MF adventure - we took a mortgage holiday too as my partner is self-employed and hasn't earned 'wages' for the last three months but fortunately was eligible for the grant. If you manage to achieve all those goals within the year that would be amazing!
    Save 12K in 2020 #145 - £6,900.88 / £10,000 (Aug-20)
    MFW 2020 #146 - original balance £147,188 (Sept-19) current balance £142,426.31
    2020 OPs: £3,283.41
  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    discotek said:
    Good luck on the MF adventure - we took a mortgage holiday too as my partner is self-employed and hasn't earned 'wages' for the last three months but fortunately was eligible for the grant. If you manage to achieve all those goals within the year that would be amazing!
    I think I keep forgetting that they year has carried on despite not having a job! 6 months to achieve all those targets is quite a stretch, maybe I won't put an end date on them but try to do them as soon as possible!

    I'm glad your partner received the grant! That must have been a very stressful time for you, what a relief that we could both get the mortgage holiday
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    On Saturday Mrs wh_em's paperwork for her work based pension came through so I contacted her last two pension providers to get them to send over the funds to the latest pot. She has no interest in finances but I always make sure I talk her through any big things like this. I think she glazes over when I speak most of the time  :smiley: She's got about £4,000 across the three accounts which is more than I thought she would have. The £7500 I owe her she wants paid straight into her pension which is a good idea.

    Yesterday was payday (I get paid weekly) so I allocated my wages to their different categories on YNAB. We've got £800 for the first instalment of our mortgage when the holiday ends. And I'm up to £837 for the emergency fund. I think I will feel better once the EF has reached £2,000. 
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • kaycastlekaycastle Forumite
    198 posts
    Third Anniversary 100 Posts Name Dropper Photogenic
    Well done on starting a diary and sorry to hear its been a tough time. 
    I'm not a financial expert or anything and this is probably the most "intefering" comment I've ever made but it isn't meant that way - just want to prompt you to consider all options :) I was wondering whether paying the £7500 you owe her wouldn't be better spent on the mortgage, especially as money spent on renovations is money added to the value of your property. Its just you're both a long way away from drawing from your pension. But this is coming from someone who is totally biased towards paying off mortgage first :) Just wanted to see if you had thought about using that money for anything else? 
    Mortgage: Oct 2017:£228k, May 2020: £206k.
    Goal: £121k by 2024. Mortgage free in 10 years.
    Emergency fund goal: £4200
  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    kaycastle said:
    Well done on starting a diary and sorry to hear its been a tough time. 
    I'm not a financial expert or anything and this is probably the most "intefering" comment I've ever made but it isn't meant that way - just want to prompt you to consider all options :) I was wondering whether paying the £7500 you owe her wouldn't be better spent on the mortgage, especially as money spent on renovations is money added to the value of your property. Its just you're both a long way away from drawing from your pension. But this is coming from someone who is totally biased towards paying off mortgage first :) Just wanted to see if you had thought about using that money for anything else? 
    You do make a good point! But for various reasons that I won't get into she would prefer the money go to her pension. We are a long way away from drawing our pension, you're quite right, but she feels a bit behind already!
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    kaycastle said:
    Well done on starting a diary and sorry to hear its been a tough time. 
    I'm not a financial expert or anything and this is probably the most "intefering" comment I've ever made but it isn't meant that way - just want to prompt you to consider all options :) I was wondering whether paying the £7500 you owe her wouldn't be better spent on the mortgage, especially as money spent on renovations is money added to the value of your property. Its just you're both a long way away from drawing from your pension. But this is coming from someone who is totally biased towards paying off mortgage first :) Just wanted to see if you had thought about using that money for anything else? 
    Also, just to add kaycastle, your diary was one of the ones that inspired me to give my own a go! It was nice to read about somebody who's the same age and has a similar-ish mortgage to me!
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • edited 3 June at 10:36AM
    wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    edited 3 June at 10:36AM
    So far this morning I have:
    - Compared car insurance quotes, mine runs out end of this month. Still waiting for my current insurer (Admiral) to send through their renewal quote. The cheapest one was £677 for quotemehappy... never heard of them but they're underwritten by Aviva so I might give them a go or get Admiral to match it.
    - Sent £44 to my LISA (originally used my LISA for flat deposit funds, now I've opened a S&S LISA for retirement. A free £1000 a year, yes please!
    - I also set up a DD for my LISA, just £100 a month to start with as I have contributed a single penny this year yet.
    - Bought the last of Mrs wh_em's birthday presents. Our birthdays are very close together and every year I can't enjoy mine because I'm so worried about hers! I think next year I will have hers all planned out and presents bought a month in advance so I can sit back and relax for mine!

    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
  • kaycastlekaycastle Forumite
    198 posts
    Third Anniversary 100 Posts Name Dropper Photogenic
    wh_em said:
    kaycastle said:
    Well done on starting a diary and sorry to hear its been a tough time. 
    I'm not a financial expert or anything and this is probably the most "intefering" comment I've ever made but it isn't meant that way - just want to prompt you to consider all options :) I was wondering whether paying the £7500 you owe her wouldn't be better spent on the mortgage, especially as money spent on renovations is money added to the value of your property. Its just you're both a long way away from drawing from your pension. But this is coming from someone who is totally biased towards paying off mortgage first :) Just wanted to see if you had thought about using that money for anything else? 
    You do make a good point! But for various reasons that I won't get into she would prefer the money go to her pension. We are a long way away from drawing our pension, you're quite right, but she feels a bit behind already!

    That makes a lot of sense - and I'm excited to continue reading your diary and journey. :) 
    And aww thanks - I'm glad my diary was an inspiration to someone - that's really sweet!! I must admit reading your intro - I was like this is a bit deja vu!
    Mortgage: Oct 2017:£228k, May 2020: £206k.
    Goal: £121k by 2024. Mortgage free in 10 years.
    Emergency fund goal: £4200
  • wh_emwh_em Forumite
    131 posts
    Fourth Anniversary 100 Posts Name Dropper
    The weather has gone quite grey today so I'm doing some "inside" jobs instead. I really want to get our spare room looking a bit nicer. Although it had a fresh lick of paint on the walls before we moved in a lot of the woodwork needs to be redone and its become a bit of a dumping ground for all of our stuff. I repainted one of the wardrobes last month, the difference is amazing.

    Today, in a bid to make the room feel more useful I set up my desk and printer properly for the first time since moving in! I'm hoping that when my industry starts back up I'll be in a fortunate enough position that I could work from home. When I'm actually working I do 55 hour weeks plus a 1+ hour commute each way. Whilst I don't mind the hours nor the commute that much I had 2 weeks of working from home in March and it was LOVELY. If it was offered to me again I would bite my boss's hand off. Staying in bed until 7:55am and clocking off at 19:01? Yes please! And I would probably saved £300 in fuel every month!
    MFW 2020 £152.53/£1000
    Original settlement date: Dec-54 Projected: Jul-55 (due to 3 month mortgage holiday!)
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support