Mortgage and debt free before we are fifty?
ceb1995
Posts: 388 Forumite
We've bought our first home just under a month ago, a 1980's three bed semi that has thrown us a few things to fix. It's just me (23 tomorrow) and DH (26) and we've a 5 year fixed rate mortgage with a 40 year term so our (slightly ambitious) goal is to pay it off early whilst balancing having some other financial commitments (our current mortgage balance is just £141,170). Short term we want to throw what we can at the mortgage and our few loans once they start over the next three months over the next couple of years before thinking about the possibility of sprogs.
Current goals:
Try and earn at least £20 on surveys and put that towards debt payments.
Try and Have at least 5 no spend days whilst on holiday later in the month.
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Current goals:
Try and earn at least £20 on surveys and put that towards debt payments.
Try and Have at least 5 no spend days whilst on holiday later in the month.
Use cashback sites, freebies and coupons as much as possible.
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Comments
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And here's the obligatory SOA
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 977
Partners monthly income after tax....... 1300
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2277
Monthly Expense Details
Mortgage................................ 670
Secured/HP loan repayments.............. 305.55999999999995
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 101 gas and electric and combined
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25.91
Telephone (land line)................... 0
Mobile phone............................ 59
TV Licence.............................. 21
Satellite/Cable TV...................... 0
Internet Services....................... 27.46
Groceries etc. ......................... 183.33
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20 no car and we walk to work so this is buses
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16.67
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.56 contents is included in this
Contents insurance...................... 0
Life assurance ......................... 19.27
Other insurance......................... 13.07 payment protection insurance as our emergency funds are pretty bad so need it for DH
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100 Included haircuts in this
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1711.83
Assets
Cash.................................... 2500
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 152500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 141170...(670)......4.84
Hire Purchase (HP) debt ...... 5849.72..(110)......4.9<
Windows........................6480.....(108)......6.9<
Bathroom.......................2101.39..(87.56)....4.9
Total secured & HP debts...... 155601.1.-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
My CC..........................3000......5.........0
DH CC..........................200.......5.........0
Total unsecured debts..........3200......10........-
Monthly Budget Summary
Total monthly income.................... 2,277
Expenses (including HP & secured debts). 1,711.83
Available for debt repayments........... 565.17
Monthly UNsecured debt repayments....... 10
Amount left after debt repayments....... 555.17
Personal Balance Sheet Summary
Total assets (things you own)........... 152,500
Total HP & Secured debt................. -155,601.11
Total Unsecured debt.................... -3,200
Net Assets.............................. -6,301.11
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.0 -
So we've made our second mortgage payment today and seeing how much interest has already been added on is a bit depressing so hoping we can start making overpayments a bit sooner than previously hoped.0
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Good luck on your journey to be MF, our aim is also to be MF before 50...:money:0
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Good luck - always a bit depressing to see the interest added in the first few years.
You have a good surplus each month.Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,6000 -
louloubelle79 wrote: »Good luck on your journey to be MF, our aim is also to be MF before 50...:money:0
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Oh man a 40 year term sounds so long! I'm in a similar boat, our 4th ever mortgage payment will be coming out tomorrow and seeing the interest added is a BIG incentive to save and overpay.
Hard in the first couple of months as we've had decorating and furnishing costs but we have now started to make small overpayments.
Even small overpayments can make a big difference though when you're at the beginning of a long mortgage term!0 -
Happy shiny new diaryI am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"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. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
Good luck and you have a nice surplus to be able to overpay :j
Have you thought of 'snowballing' those unsecured debts....get rid of the small ones first so it extra motivating/more of a relief as they're cleared. And you can focus on one at a time.
Once you clear your non mortgage debt you would have an extra £300 a month to chuck at the mortgage without other pesky bits of debt getting in the way.0 -
I agree with the plan to attack the unsecured debt and just get rid of it. In addition make a payment extra to your mortgage every month, £20 makes a different, £50 will knock off a few years. Payments in these early years really pay off over time.0
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runninglea wrote: »Good luck - always a bit depressing to see the interest added in the first few years.
You have a good surplus each month.0
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