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  • FIRST POST
    • julicorn
    • By julicorn 29th Apr 18, 9:24 AM
    • 355Posts
    • 1,277Thanks
    julicorn
    julicorn's journey
    • #1
    • 29th Apr 18, 9:24 AM
    julicorn's journey 29th Apr 18 at 9:24 AM
    Hi everyone! Thank you all for sharing your journey to being mortgage free, it's really inspiring.

    My husband and I bought a 1 bed flat in December, for the bargain amount of 270k (gotta love living in the South East!). Luckily we had been able to save for a decent deposit, so our mortgage was 202,500 plus fees (closer to (203,500), out of which we still had just over 201k left as of yesterday.

    Our mortgage is 2 year fixed at 1.41%, but that appears to be based on the mortgage offer date, so running out in July 2019. I would love to reduce our mortgage as much as possible by then, and just in general.

    The things that have given me a bit of a kick in the butt to start overpaying now, in no particular order:
    1. Logging into my online account and seeing "24 years 7 months remaining" is daunting. That's a crazy long time. If we got to that, I would have spent half of my life paying off a 1 bed flat.
    2. The fact that we have already paid almost 1k in interst in just a few months isn't great either. The more we can shave off total interest, the better.
    3. When saving for the flat, we managed to put away over 1k every month, and that was while paying rent that was slightly higher than our mortgage. If we managed to do that now, we'd have the flat paid off 15 years early.
    4. While over the last few months, we spent money on lots of the stuff we missed out on while saving for the flat (booked a holiday, got tattoos, all that super grown up jazz) and also put quite a bit of money into furniture and redecorating, I've also noticed that a lot of the extra money just sort of slipped away. For example, our diet has gotten a lot worse because we seem to be getting take out a lot atm.
    5. In some weird way, I really miss saving. There was something really satisfying about seeing our savings account growing so quickly, and I think seeing our remaining mortgage amount reduce will have a simar effect (psychologically speaking).

    So, is the aim really being mortgage free in 10 years? Realistically - no. I know we won't prioritise overpaying I over certain life experieces (currently holidays mainly), but also, the aim is to stay in our flat here for around 5 years or so, and then see whether we want / need something bigger. But even if we do buy somewhere more expensive then, it can only help to have reduced that outstanding debt more quickly. And that's how I see it - I think for a lot of people a mortgage is just something everyone has, but for me it feels like "being in debt", which is something I have mostly avoided so far.

    So based on all of this, we made our first overpayment of 900 yesterday. For the first few months, I want to build up our ISA savings a little more again (to 10k or so) in parallel for "just in case", and then concentrate mainly on paying off our mortgage. (side goal: no more take outs! Need to learn to cook a decent curry ).

    Thanks for having me
Page 2
    • julicorn
    • By julicorn 8th May 18, 6:09 AM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    We got our first weather forecast this morning for our mystery trip next week - Monday 25 and cloudy, Tuesday 27 and cloudy. Sounds perfect to me! Still no idea where we're going, although I couldn't resist looking up the weather forecast for a few cities. Madrid comes pretty close for the temperature, but it says sunny there. Will see!
    • NorthernPeach
    • By NorthernPeach 8th May 18, 8:38 AM
    • 56 Posts
    • 145 Thanks
    NorthernPeach
    Looking forward to following you on your journey and intrigued to see where your surprise holiday takes you to!

    *subbed
    OP's 2018 = 487.84 / 1000 Emergency fund = 468.92 / 1000
    Target 1: 1037.00 / 2471.97 Pay off first 10k of mortgage!
    1% challenge No 65
    • JennyP
    • By JennyP 8th May 18, 8:48 AM
    • 956 Posts
    • 733 Thanks
    JennyP
    I love Bath. Hubby proposed there in the Roman Baths one night just before it closed. Unplanned. He didn't have a ring which was good as I have rather particular tastes. We found a secondhand brown diamond a few weeks later - had never heard of brown diamonds but it's very me. I want to go back to bath and go in the spa bit!

    That website sounds great. Wonder where you'll end up.

    Bexster, in theory i could do that as am also a qualified teacher but I think I want a way of earning money that would be more doing stuff when I feel like. Rather than scheduled. Partly because I have bad migraines!

    Julicorn, have a lovely trip. Am off to look at that website!
    • julicorn
    • By julicorn 8th May 18, 11:16 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Looking forward to following you on your journey and intrigued to see where your surprise holiday takes you to!

    *subbed
    Originally posted by NorthernPeach
    Thank you! <3 I'll update you all as soon as we find out Monday morning. Our weather forecast has been updated again already, 28 and sunny now. My cheeky weather app searching is still proving completely useless

    I love Bath. Hubby proposed there in the Roman Baths one night just before it closed. Unplanned. He didn't have a ring which was good as I have rather particular tastes. We found a secondhand brown diamond a few weeks later - had never heard of brown diamonds but it's very me. I want to go back to bath and go in the spa
    Originally posted by JennyP
    Wow, that sounds incredible! I had to look up brown diamonds as well, but they look absolutely stunning. And that just sounds like such a wonderful proposal. I agree, Bath is such a nice place. Could see ourselves living there one day (but we're not tired of Brighton just yet).
    • julicorn
    • By julicorn 14th May 18, 12:42 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Just thought I'd stop by to tell you where our surprise holiday has taken us - MADRID!

    Loving it already, and we're just going to try to have a few nice and relaxing days here, with plenty of tasty Spanish food and not too much planning. If any of you have any "must see" tips though, then let me know
    • julicorn
    • By julicorn 20th May 18, 8:44 AM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    We're back from an amazing few days in Madrid. We had SUCH a good time, honestly loved every minute of it. I would definitely recommend it, both Madrid as a city and the surprise holiday as a concept - hopefully we'll be able to book another one sooner rather than later!

    I also made another spreadsheet to track our spending. It's really hard to see for me at the moment whether my overly ambitious overpayment plans are actually achievable, and I guess tracking our spending and then working up a budget is a good first step.
    At the moment, I'm thinking we might set up two overpayments. One just after payday (with the minimum amount we'll decide to overpay), and then just after payday, with money that's left over for the month. Still trying to get my head around it all though, don't know why I'm finding it so tricky to work out!
    • julicorn
    • By julicorn 21st May 18, 8:39 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Just paid 250 into my ISA, that's the amount of money I have "left over" for the month. It doesn't feel as satisfying as paying it into the mortgage, but I'm determined to get our rainy day fund back up to 10k.
    What my husband has left over just before payday is going to the mortgage, I reckon it will be around 200.

    Our payday coincides with our regular payment date. I'm slightly curious if they change our standard direct debit amount because of the overpayment last month... guess I will find out on Friday. I'm hoping not for now, would make it that bit more fiddly trying to adjust for lower standard payments as well as other overpayments.
    Either way, after payday, the aim is to overpay 1k and see how we get on with the remainder for the month. Would be amazing if we could keep up that sort of level, but at the moment it still feels a little ambitious. It feels like it's worth a shot though.
    • newgirly
    • By newgirly 21st May 18, 9:51 PM
    • 6,466 Posts
    • 44,974 Thanks
    newgirly
    Hi juliecorn, just caught up with your diary and wanted to wish you a belated welcome
    MFW 21
    Target for 2018 40k/13,632 paid so far

    Mortgage 36,193 3yrs 9 mths left. Total owed 47,059 plan to clear in 12 months
    • julicorn
    • By julicorn 21st May 18, 10:01 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Thank you newgirly!
    • JennyP
    • By JennyP 22nd May 18, 8:21 AM
    • 956 Posts
    • 733 Thanks
    JennyP
    Never been to Madrid and always quite fancied it. My degree is in Spanish but am very rusty now!



    Looked at that website for surprise holidays but realised I enjoy planning the holiday to the nth degree almost as much (if not more!) than the actual holiday.



    They wrote to me to tell me they changed the direct debit amount. So if they haven't, maybe yours hasn't changed.
    • julicorn
    • By julicorn 22nd May 18, 6:00 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    I can thoroughly recommend Madrid, JennyP! It was honestly so awesome, and had never been on our radar to be honest. I'm sure we'll go back there at some point.

    Haha, and I was always a big holiday planner. I don't know, I blame work for not getting quite as into the planning any more. I manage 7 project managers who all handle a stupid amount of projects now, so in some way it was nice to just have a nice trip away that I didn't have to plan. (Mr Julicorn doesn't really plan, it's just so not his thing, so it's always me ). What was nice though was that it was just flights and accommodation booked, so we could spend the days however we liked (with some last minute planning, of course! ).

    That's good to know that you're provider gave you a heads up as well! I'll report back.
    • julicorn
    • By julicorn 24th May 18, 7:13 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    A mini update to say that I got paid a day early (woohoo!), so have put 700 from that into the mortgage. Tomorrow is the day our regular payment goes out, and also Mr Julicorn's payday, so we should be able to OP 300 from his wages on the weekend. Exciting times!

    We've also been logging all of our spending over the last week. Once a month is over I will have a better idea of our outgoings, and then I'll set up a proper budget for July. We've never actually worked with a budget before, but I think it seems like a really good idea (even if it's just to ensure we still allocate some money to 'fun stuff' without me feeling a bit guilty).
    • di-di-di-dah-di-dah
    • By di-di-di-dah-di-dah 24th May 18, 9:10 PM
    • 13 Posts
    • 23 Thanks
    di-di-di-dah-di-dah
    1000 in a month in over payment really well done, congratulation.
    • julicorn
    • By julicorn 24th May 18, 9:43 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Thank you! I'm hoping we can keep that sort of level up, but it's quite hard to tell when I've not really been keeping track of spending. Ah well, something to shoot for!
    • julicorn
    • By julicorn 26th May 18, 7:09 AM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    So, they did keep our regular repayment amount the same, which is great.
    I also just made the additional overpayment from Mr Julicorn's account, bringing our total OP for May to 1,200. Yay!
    Not only is our balance now below 200k, it's know actually just over 198.5k (before it creeps up again with the daily interest) - if my super magical spreadsheet is right, then we would have only reached that balance in September, had we not overpaid.

    One thing that's confusing me: Our mortgage is with Accord, and we have a pretty cool online account so we can see the balance at any point. Thing is, it also has a 'current LTV' field, which now shows our current LTV to be 72%. Thing is, if my maths are right, it should still be 73.5%, so I don't understand what they're basing that number on? Are they somehow upvalueing the flat automatically, just because some time has passed? I can't really think of any other explanation, do any of you have an idea?

    Anyway, hope you all get to enjoy the long weekend
    • NorthernPeach
    • By NorthernPeach 26th May 18, 12:26 PM
    • 56 Posts
    • 145 Thanks
    NorthernPeach
    Congrats on the huge overpayment for May
    Regarding the LTV mines the same I can't work out what they base the LTV off, its so out based on my own calculations unless they take in to account house price inflation. I jumped a whole 3% one month (I definitely didn't pay 3% off)
    OP's 2018 = 487.84 / 1000 Emergency fund = 468.92 / 1000
    Target 1: 1037.00 / 2471.97 Pay off first 10k of mortgage!
    1% challenge No 65
    • julicorn
    • By julicorn 26th May 18, 1:17 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    Thanks NorthernPeach, I'm really happy with it!
    And that's good to hear yours is like that too, sounds like they really might take inflation into account... I mean otherwise there'd be no reason to get that wrong, it's such a simple calculation. 3% is a huge jump!
    • kev2009
    • By kev2009 26th May 18, 3:44 PM
    • 262 Posts
    • 367 Thanks
    kev2009
    Congrats!

    I'm currently looking at mine but something isn't quiet right on my spreadsheet... IF i make a over payment and keep the term the same, then monthly figure then decreases. So i then add a over payment to bring it back up to the amount i normally pay and in the 11th Month, I make a one off payment of 10% - the over payments i have already made as I can only overpay 10% per year max... after doing this, at the end of 5 years I end up owing more money than if i just paid a 10% lump sum off each year... doesn't make sense so i'll need to just try it and see for 1 year maybe and see how it reflects. I'm considering making a very small 1 off over payment this year if i can of 1k.

    Kev
    • julicorn
    • By julicorn 26th May 18, 5:58 PM
    • 355 Posts
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    julicorn
    I think my lender just adjusts the payment amount once a year, in December (so for the payments from January). I think for me, it works out better to overpay as soon as possibly because it immediately reduces the interest (not by much atm, of course, but every little helps!).
    • julicorn
    • By julicorn 26th May 18, 9:06 PM
    • 355 Posts
    • 1,277 Thanks
    julicorn
    In other news, my 'cooking take-out meals at home' plan is going swimmingly at the moment. Have so far made a really nice Sag Aloo, a Thai red curry and of course pizza. One of our local shops has also finally started stocking more obscure Mexican ingredients, which is great because I've got a few Latin American cookbooks I never got to use much.

    I also signed up to a trial of YNAB today. The first half an hour of using it really made my head hurt, but I think now I've understood the general principle, it looks like SUCH a useful site/app! Will figure out whether it's actually worth spending money on (feels counter intuitive, of course), but so far, so good.
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