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  • FIRST POST
    • labradorlove
    • By labradorlove 21st Feb 18, 7:46 PM
    • 61Posts
    • 100Thanks
    labradorlove
    Journey to a mortgage free future
    • #1
    • 21st Feb 18, 7:46 PM
    Journey to a mortgage free future 21st Feb 18 at 7:46 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 7:30 AM. Reason: spelling grr
Page 5
    • kev2009
    • By kev2009 19th Apr 19, 11:42 AM
    • 434 Posts
    • 602 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, 11:43 AM
    • 21 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, 9:37 AM
    • 61 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: £114,203.85
    Savings: £5,000/£552
    OP Target 2019: £2,500/£900
    Emergency fund: £1,000/£500

    Christmas pot: £660/£380
    • labradorlove
    • By labradorlove 29th Aug 19, 10:53 AM
    • 61 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: £114,203.85
    Savings: £5,000/£552
    OP Target 2019: £2,500/£900
    Emergency fund: £1,000/£500

    Christmas pot: £660/£380
    • kev2009
    • By kev2009 29th Aug 19, 2:19 PM
    • 434 Posts
    • 602 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, 9:47 PM
    • 61 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: £114,203.85
    Savings: £5,000/£552
    OP Target 2019: £2,500/£900
    Emergency fund: £1,000/£500

    Christmas pot: £660/£380
    • kev2009
    • By kev2009 2nd Sep 19, 8:48 PM
    • 434 Posts
    • 602 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
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