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  • FIRST POST
    • labradorlove
    • By labradorlove 21st Feb 18, 8:46 PM
    • 45Posts
    • 59Thanks
    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 1
    • beanielou
    • By beanielou 21st Feb 18, 9:05 PM
    • 56,263 Posts
    • 227,632 Thanks
    beanielou
    • #2
    • 21st Feb 18, 9:05 PM
    • #2
    • 21st Feb 18, 9:05 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • Kittenkirst
    • By Kittenkirst 21st Feb 18, 9:39 PM
    • 1,943 Posts
    • 10,430 Thanks
    Kittenkirst
    • #3
    • 21st Feb 18, 9:39 PM
    • #3
    • 21st Feb 18, 9:39 PM
    Hey Labradorlove
    Welcome to the boards with your shiny diary!

    Well done with the first two overpayments- it quickly gets addictive

    We have just organised our new fixed term deal and the overpayments have helped us get into a better loan to value range & get a better interest rate so the overpayments help save even more

    Looking forward to cheering you along!
    2018 MFW #20 - OP 2489.56/ 3000 83%
    May: 361.07 June: 182.76 July: 306.59

    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
    • Blibble
    • By Blibble 22nd Feb 18, 6:57 AM
    • 462 Posts
    • 805 Thanks
    Blibble
    • #4
    • 22nd Feb 18, 6:57 AM
    • #4
    • 22nd Feb 18, 6:57 AM
    Best of luck! You're in a similar situation to us, except we've got the 2 of us and a fluffcat. We found the first year was the most expensive, buying furniture & putting our mark on the house, so don't feel too bad if you can't OP straightaway as it'll come .
    Wedding fund - 3325.92 (2127.07)
    OP fund - 1859.60 (0)
    Emergency fund - 400.00
    • labradorlove
    • By labradorlove 22nd Feb 18, 11:34 AM
    • 45 Posts
    • 59 Thanks
    labradorlove
    • #5
    • 22nd Feb 18, 11:34 AM
    • #5
    • 22nd Feb 18, 11:34 AM
    Best of luck! You're in a similar situation to us, except we've got the 2 of us and a fluffcat. We found the first year was the most expensive, buying furniture & putting our mark on the house, so don't feel too bad if you can't OP straightaway as it'll come .
    Originally posted by Blibble

    Thank you Blibble! Similar ages too, I'm 22 this year and I don't feel like your typical 21 y/o when I'm counting down the days to payday so I can overpay my mortgage

    I've just had a read of your thread and you're doing so well with your overpayments! I haven't looked into these cash back surveys that everyone seems to doing though I will put it on my to do list if it'll help with my OPs.


    Congratulations on the promotion, and good luck with saving for your wedding too, exciting times ahead!
    • LadyGnome
    • By LadyGnome 22nd Feb 18, 11:40 AM
    • 453 Posts
    • 1,680 Thanks
    LadyGnome
    • #6
    • 22nd Feb 18, 11:40 AM
    • #6
    • 22nd Feb 18, 11:40 AM
    Welcome and very best of luck in your MF journey
    Mortgage
    Start Nov 2012 310,000
    Feb 2018 237,821.60 Reduction 72,178.40
    MFW 2018 #42 788.90/3100
    End Oct Sept 2034 but I have a cunning plan...
    • VDOT47
    • By VDOT47 22nd Feb 18, 12:19 PM
    • 138 Posts
    • 462 Thanks
    VDOT47
    • #7
    • 22nd Feb 18, 12:19 PM
    • #7
    • 22nd Feb 18, 12:19 PM
    131,500 for a 3 bed semi, blimey!! You are right to take advantage of having such a small mortgage and with your planned overpayments I'm sure you'll have that paid off, or a larger deposit for if you ever want to move, soon enough!


    Good luck and welcome!
    Original Mortgage (Feb '17) 269,995
    Current Mortgage (22/06/18) 244,902
    End Date July 2040 Original End Date February 2042
    • labradorlove
    • By labradorlove 22nd Feb 18, 1:46 PM
    • 45 Posts
    • 59 Thanks
    labradorlove
    • #8
    • 22nd Feb 18, 1:46 PM
    • #8
    • 22nd Feb 18, 1:46 PM
    Hey Labradorlove
    Welcome to the boards with your shiny diary!

    Well done with the first two overpayments- it quickly gets addictive

    We have just organised our new fixed term deal and the overpayments have helped us get into a better loan to value range & get a better interest rate so the overpayments help save even more

    Looking forward to cheering you along!
    Originally posted by Kittenkirst
    Thank you

    It really is addictive! Although it doesn't feel like I'm contributing a lot so after 6 months I'll reflect on the total and hopefully it will give me that bit more motivation.

    Well done , it makes it all worthwhile! I hope that's the case for us too when we go back after the 2 year deal ends, so long as I can stick it out.
    • Kittenkirst
    • By Kittenkirst 22nd Feb 18, 1:49 PM
    • 1,943 Posts
    • 10,430 Thanks
    Kittenkirst
    • #9
    • 22nd Feb 18, 1:49 PM
    • #9
    • 22nd Feb 18, 1:49 PM
    YOu can stick to this, keep posting on here regularly and it soon becomes habit. Even when money is tight I overpay small amounts (Tilly tidies) of a few pence etc as it helps to feel like Im still heading in the right direction!
    2018 MFW #20 - OP 2489.56/ 3000 83%
    May: 361.07 June: 182.76 July: 306.59

    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
    • labradorlove
    • By labradorlove 22nd Feb 18, 1:58 PM
    • 45 Posts
    • 59 Thanks
    labradorlove
    131,500 for a 3 bed semi, blimey!! You are right to take advantage of having such a small mortgage and with your planned overpayments I'm sure you'll have that paid off, or a larger deposit for if you ever want to move, soon enough!


    Good luck and welcome!
    Originally posted by VDOT47
    Thank you VDOT Can't wait to cut that term down and Be MF, but the road seems like a long one at the moment.

    The house is new-ish too, but we're second purchasers and didn't have to pay the premiums that come with new builds so we do feel lucky! Which also means we're still in the 10 year structural warranty period should the ceilings fall through or the wind blow it over (touch wood)
    • therocket
    • By therocket 22nd Feb 18, 3:06 PM
    • 47 Posts
    • 180 Thanks
    therocket
    Hi,

    Just subscribed, looking forward to reading how you get on. You are lightyears ahead of me when I was 21! The only thing I thought of on payday aged 21 years old, was when my mates finished work to go to the pub together!
    MFW - diary incoming!
    • labradorlove
    • By labradorlove 22nd Feb 18, 3:32 PM
    • 45 Posts
    • 59 Thanks
    labradorlove
    Hi,

    Just subscribed, looking forward to reading how you get on. You are lightyears ahead of me when I was 21! The only thing I thought of on payday aged 21 years old, was when my mates finished work to go to the pub together!
    Originally posted by therocket
    Thank you, I also look forward to that too, can't beat some good pub grub

    I'll be keeping my eye out for your own MFW journey so we can cheer each other on
    • labradorlove
    • By labradorlove 27th Feb 18, 11:25 AM
    • 45 Posts
    • 59 Thanks
    labradorlove
    Had a lovely weekend visiting family at the seaside with DF! Took nan out for a meal, walked the dog on the beach, then came home Sunday and ate out, can't beat a good Sunday roast

    Total spends for the weekend - 40
    Weekly spending budget -50

    I set myself a 50 spending budget for the week where I can spend it how I like. It does seem like a lot but as much as I want to overpay, I also want to be able to treat myself because there's no point saving for a better life and forgetting to live it in the meantime

    Whatever I manage to save from my weekly budgets, I will put to one side for when I make my monthly O/P on payday (16th every month)

    So far 10 saved! With 2 more weeks to go until payday. Hoping to save 30 from this weeks, got a family members 40th to go to this weekend, so will budget 20 for this. DF is only having the one drink as he will be driving and I'm not a big drinker so we'll go for a couple of hours to see everyone and hopefully stick to the 20 budget.

    Going to try and refrain from online shopping, we need a bedroom lamp as I can't read before bed without keeping DF awake!! Will wait to see if the council tax comes out this month, I can't remember if we pay over 10 months or 12, hopefully 10 so I can use money from the joint account to get my lamp. And maybe kitchen blinds I've been waiting for too.

    So goals for this week

    Save 30 from weekly budget
    Stay. Off. Shopping. Websites.
    Cook a Sunday dinner instead of going out for one
    Mortgage left: 118,502
    Car savings: 2,500/1000
    OP Target 2018: 2,400/400
    MBNA Card: 3,800/400

    • getmore4less
    • By getmore4less 27th Feb 18, 1:21 PM
    • 32,737 Posts
    • 19,701 Thanks
    getmore4less
    some numbers to give a targets for the 2 year renewal.

    135,000, 121,500 90% LTV 327months 2.21% is 495pm
    in 2 years you will owe 114,850 85% LTV.

    santander have lower rates at 85%
    If you overpay
    100pm 112,400 83.25%
    200pm 109,948 81.44%

    If we add on a little price rise say 2% you will hit 80% LTV

    something to aim for and if prices go up a bit more maybe 75% will be a new target
    Last edited by getmore4less; 27-02-2018 at 1:45 PM.
    • missplant
    • By missplant 27th Feb 18, 3:52 PM
    • 13 Posts
    • 24 Thanks
    missplant
    good luck with you journey me and my partner are putting a plan in place to make over payments as we bought last march and are similar ages to yourself. I look forward to reading
    • labradorlove
    • By labradorlove 1st Mar 18, 11:41 AM
    • 45 Posts
    • 59 Thanks
    labradorlove
    Thank you, and good luck with your over payments!
    Mortgage left: 118,502
    Car savings: 2,500/1000
    OP Target 2018: 2,400/400
    MBNA Card: 3,800/400

    • labradorlove
    • By labradorlove 10th Apr 18, 2:54 PM
    • 45 Posts
    • 59 Thanks
    labradorlove
    Ahhh I'm already slacking!


    5 weeks it has taken me to come back, I think it's because I feel bad about all the spending I've been doing


    The 300 car savings is now gone, we felt guilty about leaving the dog for our 2 weeks holiday at the end of this month, so we booked a UK holiday for this Autumn so we can take him with us. But I'm in no rush for a car so I'm not too bothered, I will just start saving again now that the mini break is paid for.


    Also I didn't overpay in March as I needed new holiday clothes which went a bit wild, I budgeted 50 a month for this over 3 months but over all I've spent around 300-350. I have no self control when it comes to online shopping I did use 10%-30% discount codes and student discount, plus free delivery by signing up to various newsletters so I did kind of save.
    I do feel a bit bad not sticking to over paying and I do feel a little disappointed in myself. But now I'm all shopped out I can start fresh on payday next week, and overpay on the day so there's no temptation.


    Food shopping budget is going very well. 60 each a month me and my partner contribute in the shared 'Shopping Purse' and we always have a couple of pounds leftover which is sometimes used to buy the odd scratch card (got to be in it to win it). Buying meat in bulk from the local butchers and tubbing leftover meals for work pack ups works for us both as there's almost always leftovers from our meals.


    Anyway, sticking to the 200 a month O/P target from Monday....


    Mustn't be distracted by clothes and I've forbidden myself from holiday shopping until the end of the year
    Mortgage left: 118,502
    Car savings: 2,500/1000
    OP Target 2018: 2,400/400
    MBNA Card: 3,800/400

    • labradorlove
    • By labradorlove 10th Apr 18, 3:01 PM
    • 45 Posts
    • 59 Thanks
    labradorlove
    Oooo and EON got in touch, energy bills will be reduced from 62pm to 42 as of June and we're due a refund of around 150-200


    Will keep that sat in the joint account though as it comes in handy in emergencies


    Also taken out joint life insurance for 22 a month so the money saved from the energy bill will just about cover this
    Mortgage left: 118,502
    Car savings: 2,500/1000
    OP Target 2018: 2,400/400
    MBNA Card: 3,800/400

  • E.ON Company Representative: Malc
    E.ON Monthly Direct Debit
    Oooo and EON got in touch, energy bills will be reduced from 62pm to 42 as of June and we're due a refund of around 150-200


    Will keep that sat in the joint account though as it comes in handy in emergencies


    Also taken out joint life insurance for 22 a month so the money saved from the energy bill will just about cover this
    Originally posted by labradorlove
    Morning labradorlove and glad we were able to give you a bit of good news. Sounds like the payment arrangement is coming up for its annual review.

    Not sure if you know but you can take more control over this arrangement through the Direct Debit Manager on our website? Provided you've registered with our website, you can use this tool to change the monthly payments to better suit different circumstances. If the account is billed up to the latest meter readings, payments can be changed by up to 20 per cent up or down. By up to 5 per cent up or down without readings. Before confirming the new amount, we'll let you know by how much we think the account will be in credit/debit by the annual review if the payments are changed but usage doesn't alter as expected. There's more about this tool on our website.

    Hope this is of interest labradorlove and good luck with the saving.

    Malc
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • dcfc67
    • By dcfc67 16th Apr 18, 4:09 PM
    • 46 Posts
    • 32 Thanks
    dcfc67
    Why stick with Eon. MSE are promoting a collective have a look at that it may be cheaper. I've always stayed away from the big 6 standard/fixed tariffs. Currently on a special collective deal through my trade union until July.

    Have a look at the matched betting thread on MSE. By following very strict rules you can easily earn 2-3000 with a few hours work each week.

    Best of luck in your quest to be mortgage free
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