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  • FIRST POST
    • labradorlove
    • By labradorlove 21st Feb 18, 8:46 PM
    • 65Posts
    • 100Thanks
    labradorlove
    Journey to a mortgage free future
    • #1
    • 21st Feb 18, 8:46 PM
    Journey to a mortgage free future 21st Feb 18 at 8:46 PM
    After almost a year of reading peoples mortgage free diaries, I've finally decided to start my own! I'm not very good at sticking to things, especially diaries! but hopefully by starting this thread it will keep me on track of my own mortgage free journey

    Me and my fiance bought our first home together on the 2nd June 2017! It's just me, him and our furry child at the moment, who is laid at my feet while I post (the dog not my DF)

    We put down a £13,500 deposit on a £135,000 3 bed semi-detached house, not a lot of money, but we worked very hard and it got us on the property ladder with a good interest rate.

    Mortgage taken out £121,500 at 2.21% (fixed for 2 years) with Santander with a term of 27 years and 3 months

    I'd never considered over paying before my plan was to get on to the property ladder and that's that. But then while house hunting and reading all these diaries and journeys it just made sense to put our disposable income to some good use!! We don't drink a lot, neither of us smoke, neither of us have any debts apart from the mortgage we now have together, we love to save and there are no children on the scene yet! So what better time to start cutting that mortgage down?!

    I wanted to start overpaying straight away but they aren't lying when they say the first 6 months are the most expensive!

    So we managed to make our first over payment last month of £200, I was so excited ringing them up I couldn't wait for payday, such a good feeling knowing you're one step closer to paying it off, even if it's one out of a thousand steps!

    £200 is the monthly target I am setting myself for this year, so anything I manage over is a bonus So far this month £100/£200 has been paid. Waiting for DF payday to pay his half team work makes the dream work and all that.

    Looking forward to sharing my journey, and hearing about everyone elses

    Going now to get a nice early night before work and the gym tomorrow!

    Labradorlove x
    Last edited by labradorlove; 24-04-2018 at 8:30 AM. Reason: spelling grr
Page 5
    • kev2009
    • By kev2009 19th Apr 19, 12:42 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    Hi,
    Have you re-checked the mortgage rates? I see Santander are doing a 2.14% 5 year fixed with 0 fee, maybe you can switch to that? It's based on 75% LTV also which I believe you have?

    Maybe worth checking?

    Kev
    • Hodge58
    • By Hodge58 22nd Apr 19, 12:43 PM
    • 22 Posts
    • 4 Thanks
    Hodge58
    Overpaying is great but you are only paying 2% interest. Have you considered an isa using hargreaves lansdown. No advice fee and you can choose the funds and a far better chance of growing your money quicker than 2%. you can cash in at anytime and no penalties. You can vary the amount as well. My pension fund is growing at 14.6% and i,m cautious!
    • labradorlove
    • By labradorlove 29th Aug 19, 10:37 AM
    • 65 Posts
    • 100 Thanks
    labradorlove
    No I havenít considered this before, I arenít very educated when it comes to shares/investments itís something Iíve always thought Iíd wait until after the mortgage is paid off to think about. Do you think itíd be worth me starting something now? Isnít it a bit risky though what if I lose the money?
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • labradorlove
    • By labradorlove 29th Aug 19, 11:53 AM
    • 65 Posts
    • 100 Thanks
    labradorlove
    New update, I havenít posted in a while so letís see whatís new!

    1. Major financial change. I finally bought a bloody car! Only 3 years after passing my test. I took out a £3,000 loan over 12 months with Zopa, with a low interest rate at 5.9% annually. Which means the total interest over the 12 months is £169, works out at £14 a month interest, which isnít bad! With the £3k, I bought a reliable cheap to run car for £2,300, insurance was £550, tax was £125, so all in all, £500 under budget. And I still have £900 in my savings that I havenít touched, this is sat aside ready for next years Service, MOT, Tax and insurance renewal. After all my bills, the loan, £100 overpayment, I still have £170 spare. And this goes into my savings (unless thereís an event I havenít accounted for or someoneís birthday, I really need to start a Ďrainy dayí pot and a Ďbirthdayí pot.)

    So after all the drama, Iíve decided that I donít like driving, I hate it actually. I started around 4 weeks ago and everyone has said youíll get used to it! Will I? Will I really? I just hate driving and making mistakes so I am currently buying a bus pass for my work commute and only driving on evenings and weekends to build my confidence. 3 years and not driven since passing my test is a long time! Who knows, my next update I might have just sold it


    2. My new job is going great! Almost 9 months in and still enjoying it. Always on the look out for something bigger and better though. I need more money if Iím going to crunch this mortgage down! I never did get that £600 increment, work introduced a new pay scale and I feel a little bit robbed! Still got a rise just not as much as I expected, but any little helps :Beer: So new take home pay after Tax, NI and pension is £1,456. Which is great! It allowed me to get the loan for the car over such a short period. This time next year when the loan is gone Iíll see more of my wage which means more over payments which means being a step closer to becoming MF!


    3. My DF is now my DH! We finally tied the knot Very small affair as weíve always spoke about. Just decided one day letís just make the arrangements and do it. Booked the ceremony 6 weeks in advance, I bought a non traditional but lovely dress for £80, DH wore a suit he already owned, we took a friend each to the local town hall, I did my own hair, make up and nails, took a few photos on our phones and it was perfect. DH family was supportive, mine were supportive but also didnít hold back on their disappointment about not being there. I have anxiety and didnít need the stress and it was such a lovely intimate stress free service. Went to Wales with the Labrador straight after for a long weekend.
    I am really enjoying married life and so glad we did it this way. I think we spent in total just over £1,100 in total and almost £800 of that was on the rings alone!


    4. Christmas savings are looking healthy, already got £525 in the Christmas pot, this is from our shared £60 monthly contributions, including £25 cashback from joining Shell Energy for our gas and electric, and a £50 amazon voucher from renewing another insurance, canít remember which one! Weíll probably have more than we need when it gets to Christmas so weíll either roll it over into next years fund, or weíll treat ourselves a little bit more


    5. The sofa we got on finance when we first moved in is also paid off. 5 years interest free we both opted for 2 years ago but paid it off at the end of April 19, it was just under £600, but that freed up £20 a month in our joint account where our joint bills come from. We signed up to postcode lottery for £10 a month (got to be in it to win it) and the other £10 will balance out as the new mortgage deal came into place and weíre paying an extra £6 a month since June.


    6. Nothing to do with my finances, but DH also took out quite a large bank loan for a fancy new car. Think he borrowed £9,000 or £10,000 over 3 years and bought a £14,000 car as he had equity in his current. In my opinion itís not the best financial move but itís none of my business, itís his own disposable income, as long as he has money for our bills and can match what I overpay to the mortgage then he can spend his own money as he pleases. And cars are his Ďthingí and it makes him happy to have a nice car. If his track record is anything to go by, he will be bored in 6 months and trade it in for something cheaper and more efficient.


    7. Anyway, the most important news and most relevant to this thread, is that the overpaying is going AMAZING! Honestly I thought weíd have got bored by now and miss the £100 a month each but we have been treating it like another bill and just not even really seeing the money come and go, so far this year alone we have over payed £1,300, tomorrow when DH gets paid we can make this months OP and it will go up to £1,500 total, almost reaching our goal!! Weíre doing massively better than last year anyway and Iím literally watching the money go down on the app with a big smile on my face, feeling quite proud



    8. Also, a good idea for those debating on whether they want to spend all that money to go abroad or just not have one this time round. We were going to go on a last minute holiday in September this year, but when it actually came to it, and totting up how much it would cost for flights, accommodation, new clothes, spending money, insurance, dog boarding it was around £2,300. And to be honest, we hate leaving the dog. So instead we both have next week booked off work, we have hired a hot tub Mon - Sun and have planned some lovely days out in Yorkshire, going to the Zoo, visiting nearby cities, doing activities, eating out, having time to cook together etc. For all this, hot tub rental, food costs, petrol, activities booked in it will cost us £500, thatís £250 each. M a s s i v e savings. A holiday literally from home and weíre so excited. So many things booked in that we wouldnít usually do on a typical weekend, and a bonus, we come home to our dog every night. Just an idea

    Anyway, thatís all I can update on so far, I say Iíll post an update again soon, but I probably wonít, so maybe again in another few months because Iím terrible at keeping my thread updated.



    Things to think about for next time

    - Do I really need/want this car? Something to reeeeeallly think about. Financially Iíd be better off without, however, location of job is changing and they donít know where, one potential location is 1 hour 40 minute bus drive, 40 minute car journey, so would need it for that. Must wait for new location revelation before deciding on this.

    - Do I really want to start this one day a week college course next month, or am I just bored and need to take the next step with my company?

    - Do I really need to be booking a holiday abroad for next year BEFORE paying off this 12 month loan? Especially when I only have £170 a month to play about with.


    - Need to do more surveys, need to come up with a way to bring in more money. Must do some research on this, any tips Iíd be grateful. Use prolific at the moment but they have problems cashing out to my paypal.


    Hope everyoneís enjoying the rest of the great British summer Hope you are well.


    Labradorlove x
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • kev2009
    • By kev2009 29th Aug 19, 3:19 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    Congrats, sounds like its all going really well.

    Driving takes a bit to get used to if you not driven for a while but the convenience is great, just pop to the shops, go for a day out somewhere etc.

    DH sounds like he has a nice car, congrats

    Glad you managed to stick to mortgage OP so far. I made 1 last year (small) but i'm hoping to make a larger OP this year, fingers crossed. I think i'm on target to atm.

    What did you do in the end RE mortgage? Did you simply call them or did you have a option to choose a mortgage renewal from online portal? Mine is due next year so just getting a idea. I'm planning on not going with a broker and remaining with current bank, just wondered how much hassle it is or if its as simply as login to online banking and choose a deal and that's it. No checks and needing proof of x,y,z etc.

    Thanks

    Kev
    • labradorlove
    • By labradorlove 29th Aug 19, 10:47 PM
    • 65 Posts
    • 100 Thanks
    labradorlove
    Hi Kev

    We ended up doing it over the phone I got them to read my options out and explain them, made a note, went away thought about it, compared with what was currently on the market and ending up staying with Santander. A lot more straight forward than I thought it would be.

    Congrats with last years OP!

    It is great for convenience but not good for my nerves!!
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • kev2009
    • By kev2009 2nd Sep 19, 9:48 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    Hi labradorlove,

    Ah ok, sounds fairly straight forward. Did you need to provide anything like proof of income or bank statements or get property valued/looked at?

    I'm currently expecting to remain with Santander, they were god enough to give me a mortgage in the first place and there rates so far seem fairly average for banks i know. I've had no issues with them to date. I believe they have a OP option on there online banking now too but I've not looked at it fully yet, waiting will I get nearer to this years OP first but i'd probably do it over the phone just to be sure all is ok

    Kev
    • kev2009
    • By kev2009 2nd Dec 19, 2:16 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    Hi @labradorlove,

    How are things going? OP's still being made at same rate or have they reduced in favour of something else? How is driving going? getting better or have you sold it?

    Kev
    • labradorlove
    • By labradorlove 4th Dec 19, 2:00 PM
    • 65 Posts
    • 100 Thanks
    labradorlove
    So it's been over 3 months since my last check in on my diary, time for another one.

    I actually enjoy doing it this way as you can really see how far you've come!

    1. So, biggest change of them all is my finances, I have secured a new role internally, only a temporary one for 18 months, but I'm now earning 25k a year instead of 22k. Might not seem like a lot to some people but to me, it is the most I've ever been on and I'm bloody chuffed with myself. The role isn't permanent, but after the 18 months I can return to my previous role, however I have no plans to do this, I will try and move another step up the ladder, either that or take a side step, a permanent one. So with the extra bit of income, I have another £150 a month to play about with.

    2. I just want to say, I am an actual drama queen! I didn't sell the car in the end, although I came very close. I persevered and I am now confident behind the wheel, I actually can't imagine not having a car now I absolutely love being able to hop in and go where I please. For my new commute, I have to drive and then take the bus, so travel expenses have gone up an extra £60 per month, but in the grand scheme of things, I don't mind, I am growing, learning and progressing, and sometimes you have to give a little to get where you want to be. The car loan I had taken out is now 1k down, 2k more to go, last payment July 2020, although depending on how healthy my savings look nearer the time, I might be tempted to pay it off early.

    3. Career wise, I'm still undecided, I'm going to get to 50 years old and still be deciding what I want to be when I grow up!! I ended up enrolling at my local college centre part time, started a Level 3 in an area I am interested in, although the more I learn, the more I fall out of love with it. Also the job prospects after graduating are slim to none! But anyway, one step at a time, I am enjoying it but don't think I'll go into further study with it. I've been in my new role 6 weeks now, already a little bored, will stick it out and then move on. On to what, who knows! I just can't settle!

    4. Christmas shopping is 97% complete, saving £30 each throughout the year is honestly the best idea, it enables you to start shopping early, without putting a dent in your bank. DH has chosen a few gifts from me but he hasn't used up his 'budget', but that's all then start the pot again in January. We didn't end up having more than we needed, instead managed to spend every last penny!! Oops, but I suppose that's what it's there for.

    5. Overpaying has been a massive success this year, overall, £1,700 paid this year, with a further £200 to add at the end of this month. Not hit my set target, but still massive!! Super proud of me and the hubster for sticking to it this year. Will lower the target next year and 2020 WILL be the year we overpay £2,400!!! Love seeing it drop down

    6. Currently have £1,300 in my savings, hopefully this will rocket up next year now I'm in my new job and after the car is fully paid off, I really want to have £5,000 in savings by the time I'm 25. Just a personal goal, for a bit of financial stability too. I have calculated, and to realistically achieve this in the next 20 months, I need to be putting away at least £250 a month, (I am taking into account car insurance, MOT, tax and service for 2020 and 2021 also) which at the moment is a struggle to do, with £270 coming out for the Zopa loan, but I have successfully put £200 away this month and that's with sooo many Christmas activities going on, so next month should be easier. Fingers crossed.

    7. No holidays abroad booked, we had a week off work in September and crammed in lots of fun activities to do. It was a massive success, and got to come home every night to the dog, bonus!! Saved so much money compared to what we would have spent going abroad, and had just as much fun. Definitely not planning anything else until August 2020 now when the ZOPA loan is well and truly gone! DH 30th next year, 6 months to go so I need to pull something good and exciting out of the bag. Any ideas would be fab!
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • labradorlove
    • By labradorlove 4th Dec 19, 2:08 PM
    • 65 Posts
    • 100 Thanks
    labradorlove
    Hi Kev,

    We didn't need proof of income or anything, it was pretty much done there and then over the phone, no documents needed! Jus general GDPR questions before they go into details!

    Things are going really well, still the £200 month OP, steady away. I have just posted an update.

    How are you getting on?
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • kev2009
    • By kev2009 6th Dec 19, 3:48 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    Hi,

    Sounds like things are going really well, congrats ad congrats on the new role! Hope things continue!

    Thanks, hopefully mine I can choose from online to avoid phoning them up

    I just made another OP also for the year, as you may recall i tend to save what i can and then make 1 OP per year, providing i can. So this one was for more than my small OP last year, took me a while as was trying to weigh up, do I make OP, do i keep the cash in the bank etc.. in the end, i decided to OP. Time will tell if i made the right choice or not, fingers crossed i did. No other changes here to speak off.

    What GDPR questions do they ask as i not really been involved much with GDPR related questions.

    Kev
    • labradorlove
    • By labradorlove 9th Dec 19, 10:55 AM
    • 65 Posts
    • 100 Thanks
    labradorlove
    Oh lovely, congrats on your OP! Bet it felt good seeing the difference on your mortgage

    Just the standard, confirm your full name, confirm you're the account holder, your full adress and sometimes your D.O.B too
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
    • kev2009
    • By kev2009 9th Dec 19, 5:26 PM
    • 545 Posts
    • 641 Thanks
    kev2009
    ah great, thanks! I thought maybe they wanted you to re-confirm mortgage type questions as opposed to your generic identification questions, sounds great!

    I'm thinking next year, i'll phone them up to make OP and get them to advise what my new rate would be IF i OP & reduced term so i can weigh up best option.

    I was bit hesitant as was largest sum I've ever OP on mortgage to date and kinda thought am i doing the right thing or not... but then even more worrying, it disappeared form my current account instantly BUT didn't show up on mortgage account till following day - i was worried they had paid to wrong account.. it was done as a transfer too - i was expecting it to update with in an hour at the most but nope not till next day... feels good to see the lower amount, I've broken the barrier i wanted to break by 2020 so that's good. Now to try and aim for as much as i can for next year to make my new fixed rate the best option possible Plus i have to stay ahead of you in terms of owing less lol

    Kev
    • Olivia Jefferson
    • By Olivia Jefferson 8th Jan 20, 9:00 AM
    • 1 Posts
    • 1 Thanks
    Olivia Jefferson
    Good luck with your goal!
    • labradorlove
    • By labradorlove 8th Jan 20, 2:38 PM
    • 65 Posts
    • 100 Thanks
    labradorlove
    Thank you! I'm going to need it!
    Mortgage left: £111,797.22
    Savings: £5,000/£1,300
    OP Target 2019: £2,500/£1,700
    Emergency fund: £1,000/£553.85

    Christmas pot: £660/£700
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