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  • FIRST POST
    • Brindlebabe
    • By Brindlebabe 14th Apr 19, 9:15 AM
    • 8Posts
    • 3Thanks
    Brindlebabe
    Start at the very beginning.
    • #1
    • 14th Apr 19, 9:15 AM
    Start at the very beginning. 14th Apr 19 at 9:15 AM
    Hello.

    My husband, doggy and I moved in to our first flat in mid January. We're finding the prospect of the huge mortgage debt somewhat intimidating so have decided the best thing to reduce our anxieties is to try to do something about it!

    Have been lurking on this forum now for a while, and making an occasional overpayment, so thought it was time to formalise the whole process and, hopefully, encourage me to make some more improvements.

    To summarise the situation:
    Bought flat for £235000 with £23500 deposit, so started with £211500 debt.
    Nearly 3 months in have got that down to £209339.
    Current rate is 2.29% fixed for 2 years - so will likely remortgage Jan 2021.
    Hopefully will stay in this flat until my current training contract finishes in August 2023, then planning on relocating (although details of this remain unclear).

    My take home pay is £2719 per month, with no real option to increase. Husband not working at present but may change. We're both in early 30s and don't like having any debt at all, but felt as though renting was an even worse financial arrangement so have taken plunge into mortgageland.

    Fixed outgoings:
    £732 for mortgage
    £125 per month to my mum to pay back money for some windows due to finish March 2021.
    £65 gas/electric
    £ 36 water
    £ 82 life/critical illness cover
    £48 phone bills
    £28 broadband
    £38 gym memberships
    £71 car insurance
    £ 39 professional subscriptions
    £150 longstanding debt to mother in law
    £88 Ikea payment due to finish Jan 2020
    £42 Doggy's insurance + health plan
    ??£100 council tax (not quite sure)

    Which adds up to £1644. Student loan repayment and pension comes out of pay before it gets to me. Not sure when student loan will be paid but hopefully in next 3-4 years.
    The rest of the money is used up on diesel (£200), Food (£280), entertaining ourselves (£?200)
    and ad hoc expenses. So doesn't seem to be much left over each month, but the plan is for whatever is left over to go on the mortgage.

    Plus my husband has got some ebaying to do which should go towards overpayments.

    Current bank balance is £7333 (all be it with 2 weeks until payday) and we tend to leave a £4000 buffer in case of general emergencies. I think this is a reasonable buffer, but might consider reducing it in favour of an overpayment.

    Also - have earmarked around £1500 for holiday (much, much needed), and new second hand car. So waiting until payday this month to see what I can overpay.

    The goals are:
    - Overpay as much as we can before remortgage in 2 years' time. Hopefully enough to get down to 85% LTV, which if the flat retains its value will mean overpayments on average of around £200 per month.
    - Overpay enough so that when we move in around 5 years' time we can take around £60000 on to our next house. (Around £200/month at present but depends on remortgage rates, plus house value, and moving expenses!! So not much idea really)
    - Be mortgage free by the time I'm 45 (13 years away!). (This may require some sort of windfall which I'm not sure where it's coming from - inheritance??!! - plus or minus a pay rise (which may be on the cards for around 5 years' time).

    Any advice from seasoned mortgage overpayers would be hugely appreciated.
    Hope that all makes some sort of sense.
    Will try to post weekly. Hopefully posts won't be quite so dry in future but wanted to get the figures all down whilst I was concentrating.

    Looking forward to it!
    Brindlebabe x
    Last edited by Brindlebabe; 14-04-2019 at 9:17 AM.
Page 1
    • Nichelette
    • By Nichelette 14th Apr 19, 11:35 AM
    • 1,820 Posts
    • 2,858 Thanks
    Nichelette
    • #2
    • 14th Apr 19, 11:35 AM
    • #2
    • 14th Apr 19, 11:35 AM
    Stopping by to say hello. You're right, our situations are so similar! I too an hoping my student loan should be paid back in the next 3-4 years, so that will be a bit extra in the pot. I'm so jealous you have a dog, sadly we work the same hours so it's not possible at the moment. I always had dogs growing up and it's one thing I really miss. I have a house bunny though (soon to be 2), so she fills the gap a bit.

    Anyway, I have subscribed and will be here to cheer your overpayments on
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £283,857.07
    MFW #86 - Aiming for 15k in 2019
    Overpayments so far: £3383.72
    • Lois_E
    • By Lois_E 14th Apr 19, 12:18 PM
    • 2,070 Posts
    • 15,085 Thanks
    Lois_E
    • #3
    • 14th Apr 19, 12:18 PM
    • #3
    • 14th Apr 19, 12:18 PM
    Hi Brindlebabe and welcome to MFW.
    I'm sort-of new but sort-of old, having been on here a lot until 4 years ago, and then not at all until this week.
    I'm with Nichelette in envying you having a dog. What kind of dog have you got? I've had dogs in the past and am hoping to get another one this summer maybe.
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
    • beanielou
    • By beanielou 14th Apr 19, 12:34 PM
    • 62,688 Posts
    • 272,187 Thanks
    beanielou
    • #4
    • 14th Apr 19, 12:34 PM
    • #4
    • 14th Apr 19, 12:34 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 12 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. ***Be the difference.***
    • Brindlebabe
    • By Brindlebabe 16th Apr 19, 6:21 AM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    • #5
    • 16th Apr 19, 6:21 AM
    • #5
    • 16th Apr 19, 6:21 AM
    Hi guys,

    My dog is a brindle Staffie cross. She’s like a giant Staffie. Some people are terrified when they see her bounding over in the park but she’s super soft and gorgeous.
    I would definitely recommend one if you can, but I know we can only have her because my husbands usually at home in the day. I am lucky in that regard.
    Plus she isn’t cheap to run!

    Spent £256 in ikea yesterday on house stuff. Just lots of small things to make it nice like plants, cushion, light shades etc. Not good for the overpayment situation but there isn’t any point having a mortgage if you can’t make the flat nice enough to enjoy and we don’t do it very often (at all!). So I don’t feel too bad.
    Still hoping to overpay at the end of the month.

    Thanks for stopping by - I feel more motivated already!

    BB
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • BachSoon
    • By BachSoon 16th Apr 19, 6:59 AM
    • 97 Posts
    • 149 Thanks
    BachSoon
    • #6
    • 16th Apr 19, 6:59 AM
    • #6
    • 16th Apr 19, 6:59 AM
    Training contract? Another legal bod...? Welcome!

    Good luck with your plans, you seem very determined by

    We have similar amounts to pay off.

    I also agree with the sentiment of spending on house stuff - it's a long old slog on a mortgage, so you do need one treats along the way. She says after spending £280 on revamping her bedroom at the weekend

    Good luck
    • Brindlebabe
    • By Brindlebabe 16th Apr 19, 5:00 PM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    • #7
    • 16th Apr 19, 5:00 PM
    • #7
    • 16th Apr 19, 5:00 PM
    Hehe. Not legal no. I thought lawyers paid for there houses in cash?

    Perhaps itís not as glamorous as it seems..

    Thanks for the support
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 16th Apr 19, 5:01 PM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    • #8
    • 16th Apr 19, 5:01 PM
    • #8
    • 16th Apr 19, 5:01 PM
    *their

    Isnít there an edit option??
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • Socajam
    • By Socajam 16th Apr 19, 5:08 PM
    • 163 Posts
    • 179 Thanks
    Socajam
    • #9
    • 16th Apr 19, 5:08 PM
    • #9
    • 16th Apr 19, 5:08 PM
    Is there any way you can pay off the student loan earlier which will leave you with one less debt in your life.
    You can then pay all the student loan money towards the mortgage.
    • Brindlebabe
    • By Brindlebabe 16th Apr 19, 5:53 PM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    Hmmm. Interesting.

    I could definitely pay it off quicker, but not all straight away. The student loan company havenít given me a stately for 2 years now, I chased it up about 2 months ago and Iím still waiting for an update - they had to chase up the taxman.. it wonít be down to a low enough level to pay off yet though.

    I hadnít thought about paying it off in preference to the mortgage. It comes off prior to tax, and with interest at the level of inflation so a much better kind of loan to the mortgage I thought. Would be nice to simplify the debt and get it down to the mortgage alone, but my student loan, ikea loan, loan to mum are all interest free/better rates, so was keen to concentrate on the mortgage. Husband does feel a bit uncomfortable having multiple debts though!

    Thoughts welcomed
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 16th Apr 19, 6:02 PM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    Hmmm. Interesting.

    I could definitely pay it off quicker, but not all straight away. The student loan company havenít given me a stately for 2 years now, I chased it up about 2 months ago and Iím still waiting for an update - they had to chase up the taxman.. it wonít be down to a low enough level to pay off yet though.

    I hadnít thought about paying it off in preference to the mortgage. It comes off prior to tax, and with interest at the level of inflation so a much better kind of loan to the mortgage I thought. Would be nice to simplify the debt and get it down to the mortgage alone, but my student loan, ikea loan, loan to mum are all interest free/better rates, so was keen to concentrate on the mortgage. Husband does feel a bit uncomfortable having multiple debts though!

    Thoughts welcomed
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • BachSoon
    • By BachSoon 17th Apr 19, 7:27 AM
    • 97 Posts
    • 149 Thanks
    BachSoon
    . Hehe. Not legal no. I thought lawyers paid for there houses in cash?

    Perhaps itís not as glamorous as it seems..
    Ah well, I just assumed because the 2 year training for a trainee solicitor is referred to as a training contract also

    Nope definitely not. Especially when you're only 2 years pqe and at a firm in a region rather than one of these big London firms. Not that I'd want that. I value my work life balance and my family over pots of money.

    Regarding paying off the student loan early, I wouldn't. Martin has written an article about it his approach is to see it more as a tax. I have a rather large student loan and it hasn't affected anything. Pre DH, I had a mortgage on my own where having a student loan made something like a £2.46 difference to my DIP! It's affected nothing since then. My opinion is that you'd be much better off paying towards other debts/saving/mortgage/pension contributions over making extra payments to your student loan.
    • Brindlebabe
    • By Brindlebabe 17th Apr 19, 3:47 PM
    • 8 Posts
    • 3 Thanks
    Brindlebabe
    Just overpaid by £2100. Odd number but it reduces the term to 34 years exactly so felt good!

    Had a chat to husband and we decided reducing our buffer in our savings account in favour of reducing the mortgage was worth it. Won’t be able to go on a foreign holiday for at least 3 months anyway so can save up for it again in that time and that way we bring the mortgage down faster.

    Really feeling motivated to reduce the loan to value bracket by the time our fixed term ends in 2021 and we remortgage. I know that depends on the housing market but that’s out of our control so concentrating on what we can control and that’s the overpayments!
    Starting mortgage Jan 2019: £211,500
    Current mortgage Apr 2019: £209,339
    Target: mortgage free by 2032
    • Nichelette
    • By Nichelette 17th Apr 19, 9:59 PM
    • 1,820 Posts
    • 2,858 Thanks
    Nichelette
    Well done on the overpayment. You inspired me to check how much student loan i have outstanding. Turns out it was more than I thought . I'm not going to pay that off, though I was looking forward to the extra in my pay. It seems I will be waiting a few years!

    We have a 7.5k emergency fund. I feel like it's a lot when our jobs are about as secure as you can get, but equally having the cushion stops me from having sleepless nights so I'll probably continue to sit on it.
    Finally bought a home
    Starting mortgage £289,500 31.01.19 - Current outstanding £283,857.07
    MFW #86 - Aiming for 15k in 2019
    Overpayments so far: £3383.72
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