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  • FIRST POST
    • Brindlebabe
    • By Brindlebabe 14th Apr 19, 9:15 AM
    • 19Posts
    • 17Thanks
    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 2
    • NorthernMonkey1
    • By NorthernMonkey1 16th May 19, 10:47 AM
    • 264 Posts
    • 1,039 Thanks
    NorthernMonkey1
    Hi there,

    Thought I'd crunch some numbers for you,

    With 210,000 remaining @ 2.29%, every month you're paying 388 interest.

    This means you're paying 344 off the capital every month. Every time you overpay by 344, you take a month off the term.

    It's a long term marathon to pay off so much, so don't sprint and burn out, but keep a realistic long term target that you can keep up for a long time. Consider a ratio of 344 as a target which means you can equate this to time off the full term.

    When I started out, I tried to take an extra month off the term every month, using a calculation similar to above.
    • Brindlebabe
    • By Brindlebabe 17th May 19, 9:51 AM
    • 19 Posts
    • 17 Thanks
    Brindlebabe
    Thanks Northern Monkey.

    I hadn't thought of it like that before.
    It's definitely a marathon not a sprint! Easy(ish) to decide to chuck a chunk of savings at it, but hard to make that an ongoing reality.

    I don't think 344 per month is realistic at the moment. But 172 may be. So that would be 1 month off the term every 2 months.

    Thanks
    BB
    Starting mortgage Jan 2019: 211,500
    Current mortgage Apr 2019: 207,239.58
    Target: mortgage free by 2032
    • JillyC8
    • By JillyC8 17th May 19, 5:39 PM
    • 146 Posts
    • 109 Thanks
    JillyC8
    Is there anything your OH could do work wise? It would probably help him get used to the area if he's out and about, meeting people and busy, plus the obvious benefit of the extra money ...
    • MalcRH12
    • By MalcRH12 17th May 19, 5:59 PM
    • 40 Posts
    • 27 Thanks
    MalcRH12
    Hey, nice to read through your blog. I earn around the same amount as you and also have a scary mortgage figure. Me and my wife sold our first house and moved into a nice 3 bed semi in January. Our mortgage started at 204000 for 27 years at 2.14% for 2 years. Also like you, we only have the one income but are managing to overpay the mortgage by 575 a month, mainly due to living frugally (not too much) and having a decent savings buffer. If you can reduce your outgoings somehow then that will help greatly with overpayments. I'll follow your blog with interest, good luck!
    • julicorn
    • By julicorn 17th May 19, 6:35 PM
    • 722 Posts
    • 3,057 Thanks
    julicorn
    Just wanted to stop by to wish you a very belated happy new diary! Looking forward to reading how you get on
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 171,500
    • Brindlebabe
    • By Brindlebabe 18th May 19, 10:06 AM
    • 19 Posts
    • 17 Thanks
    Brindlebabe
    "Is there anything your OH could do work wise? It would probably help him get used to the area if he's out and about, meeting people and busy, plus the obvious benefit of the extra money ..."

    Obviously this is the clear solution. He has bad anxiety, particularly social anxiety and has had bad experiences in work in the past which make him very nervous about re-entering employment. He's decided to enquire about volunteering in a local Buddhist cafe (which is really exciting!) and if that all goes well build up from there. Although it won't help bring any extra money in, I think it will help him with confidence and getting involved in where we live. I will let you know how it goes.
    Starting mortgage Jan 2019: 211,500
    Current mortgage Apr 2019: 207,239.58
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 18th May 19, 10:11 AM
    • 19 Posts
    • 17 Thanks
    Brindlebabe
    Had an interesting day yesterday. Went to a workshop on Social Ecology.. Not something I know very much about. However, it led me to thinking about how which aspects of the capitalist world that we're all trapped in that I dislike. Mainly adverts and pressure to spend money we don't have on !!!! we don't need...

    So I thought about the ways that I could improve my life without engaging in the capitalist machine. Like a quiet anticapitalist (or at least ambivalent capitalist) revolution. These are the things that I came up with. Some I do already, others I'd like to get involved with:

    Freecycle
    Parkrun
    Olio
    Charity shop shopping for clothes etc
    Grow your own veg and veg/seed swapping
    Liftsharing
    If eating out - eating at not for profit cafes

    Can anyone think of others? Or suggestions on the theme?

    BB
    Starting mortgage Jan 2019: 211,500
    Current mortgage Apr 2019: 207,239.58
    Target: mortgage free by 2032
    • Tartan Mum
    • By Tartan Mum 18th May 19, 10:52 AM
    • 140 Posts
    • 745 Thanks
    Tartan Mum
    Lurker here. I agree with your thinking. I’ve recently been enjoying the “beminimalist” site and blog about living with less. It’s an American site but the thoughts and comments resonate

    Good luck on your MF journey xx
    #68 MFW 2019 challenge
    2056.64/2400
    • Hazelnutty
    • By Hazelnutty 18th May 19, 3:38 PM
    • 211 Posts
    • 1,103 Thanks
    Hazelnutty
    Hey Brindlebabe! I'm in a similar position to you in that my OH isn't working with a long-term health condition but also anxiety and depression. I'm also hoping she'll start to volunteer as a way to re-familiarise her with working and build her confidence (and social networks). I'm also with you on the sceptical capitalist stuff. We're not buying any new clothes this year and Freecycle has been great both as giver and recipient (although I don't know if Freecyclers have got more like FB buyers recently - people just messing you about when before I'm sure it was a friendlier and 'honourable' experience, for want of a better word).
    Anyway, good luck with your challenge!
    Choose kind
    MFW 2019 #103
    • Hazelnutty
    • By Hazelnutty 18th May 19, 4:31 PM
    • 211 Posts
    • 1,103 Thanks
    Hazelnutty
    What's Olio btw?
    Choose kind
    MFW 2019 #103
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