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  • FIRST POST
    • Brindlebabe
    • By Brindlebabe 14th Apr 19, 10:15 AM
    • 39Posts
    • 66Thanks
    Brindlebabe
    Start at the very beginning.
    • #1
    • 14th Apr 19, 10:15 AM
    Start at the very beginning. 14th Apr 19 at 10:15 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 10:17 AM.
Page 3
    • Brindlebabe
    • By Brindlebabe 7th Dec 19, 10:49 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    One other thing.
    HMRC got in touch to let me know I have a £2500 tax bill that they (for a reason that I don't understand) can't reclaim by changing my tax code... So I've had to set up a direct debit of £100/month for 2 years to pay off. Which is flipping annoying. I have a few Direct debits finishing soon (IK*A loan for the furniture when we moved in £88/month) finishes in January so I was looking forward to using that towards savings/mortgage. It's because my job/pay changes in the middle of tax year almost every year and the tax people can't keep up with it.

    Anyway, its just annoying.
    At least they don't want it all back straight away. Then I'd be really in trouble!
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Moneyfordreams
    • By Moneyfordreams 7th Dec 19, 6:06 PM
    • 1,632 Posts
    • 7,583 Thanks
    Moneyfordreams
    I cancelled my TV license when we moved 18mths ago. We lived in an hotel for nearly 3months and definitely had no TV for 3 months. They still make you pay year on year... I had to back pay from when I left which was super annoying. My arguments didn't cut it. Check it out first if you plan to stop and restart.

    Very annoying re tax... I hate HMRC.
    Mortgage restart June 2018 £119950
    Re mortgage August 19 £110470, HSBC £3000cc, Hfx £6500, NW £5150 M&S £1100,
    CC 16150 Ö Mortgage £107900
    plus car £6000 , it's coming down
    • Brindlebabe
    • By Brindlebabe 26th Dec 19, 7:41 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Happy Christmas everyone!
    Back to work today, Christmas Day successfully navigated (largely thanks to dogs and wine). Didn’t spend too much this year (so far...) some money on work meal out, some on family meal out and a bit (but not excessive) on presents. Husband coming in under budget on the family meal largely because I told him he had a £25 budget and if he didn’t spend it all he could keep half the rest (leaving half in the account). He spent £10.95. Very proud.

    The challenge this month is to make the pay Check last 5 and a half weeks!

    One good thing is that £88/month ikea loan finishes this month (1 year after moving in) had been looking forward to adding that to mortgage overpayment, but now I need it to pay the taxman, never mind though. Still nice to cross one loan off the list!
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 28th Dec 19, 3:51 PM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Having a good day today!

    Just cancelled V*rgin broadband £27/month deal about to expire. Have set up with P*st O**ice instead at £20.90/month. It's not so fast, but it will be fast enough! Was supposed to get a £65 A*azon voucher by doing it online but it didn't work. I phoned and mentioned it to the lady on the phone and she's taken £65 off direct debit for month 2 instead which is great! Feel proud of myself that I haven't put it off until too late and ended up paying too much until I get sorted.

    Have also done a monthly budget. I knew it was going to be a tight one because January always is, but looks like I can still save £340 (minus MOT costs) this month which is great.

    Mortgage overpayments still limited to £12/month at present but that's ok. Better than nothing, and we are building the savings back up instead.

    Also - Ikea loan has one more payment. Also, have cancelled gym membership (£80/month for both of us) because we're not using at the moment and we can always run round the park or do yoga videos online for a bit. Probably will re-join the gym when there's an offer on if we're missing it. Also - have realised that council tax 2 months off (£145/month) falls exactly right to pay for my Glastonbury ticket (hooray) so that won't need to come out of savings.

    I would like to overpay mortgage - that is the whole point of this forum!! - but am enjoying the progress anyway, and mainly, celebrating taking (and retaining) control of our finances.

    Hope all is well with everyone. Happy post-Christmas weekend.
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 13th Jan 20, 7:38 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Feeling a bit down this morning.

    My husband isnít really happy in our flat. Itís too noisy and he doesnít like the city we live in. He wants to go back to Wales where we lived before and to somewhere a bit greener and quieter. He resents the huge mortgage on what he thinks is an overpriced flat (it is overpriced, but in line with the city and housing market as a whole).

    We have 1 year left on our fixed rate and it would cost £6000 to get out earlier so thatís not really an option. And my job is tied to this city for 3 and a half more years so when we sell this flat weíll need to rent most likely until I finish this contract and get another job, which hopefully would be a permanant contract so a good point to settle, probably in Wales.

    I donít really want to sell, but I realise we have to leave the flat as soon as financially possible otherwise my husband wonít cope. I donít know whether the flat will have increased in value, given that we will only have had it for a short time, we have put some double glazing in but not much else. It needs painting which seems like a massive chore if weíre just going to sell in a year and not get the benefit. Paying the mortgage seems much less motivating if weíre going to sell soon anyway and the savings on interest will just be redirected to estate agents and solicitors. I just feel really demotivated in general. Husband is trying to save so that we can Ďget out of here quickerí but we canít leave until the fixed rate is up anyway. In the mean time, we need to plan some treats like weekends away otherwise itís going to be a very long year indeed... but going away isnít cheap and to get abroad we need to pay for doggy care which seems like a lot of money so we usually donít bother.

    Suggestions welcomed.
    Bb
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Moneyfordreams
    • By Moneyfordreams 13th Jan 20, 9:05 AM
    • 1,632 Posts
    • 7,583 Thanks
    Moneyfordreams
    Could you rent out your flat and you rent somewhere else?
    I think I've recalled you job (or what I think it is ) and I imagine it would be difficult in a training type role to move except at certain points.

    Did your husband not enjoy the caf!? Is he isolated whilst you are busy?
    Mortgage restart June 2018 £119950
    Re mortgage August 19 £110470, HSBC £3000cc, Hfx £6500, NW £5150 M&S £1100,
    CC 16150 Ö Mortgage £107900
    plus car £6000 , it's coming down
    • Brindlebabe
    • By Brindlebabe 15th Jan 20, 7:07 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Thanks,

    I think renting out would be possible, itís certainly a rentable flat. I think we would need to change the terms of our mortgage which I guess may cost. After paying an estate agent to run it Iím not sure weíd make much money but should be able to cover the mortgage costs, so itís an option, but to be honest, we donít need more complications in our life so if it was faff free we might go for it but I think weíd rather get rid of the flat all together if weíre not living here.

    The cafe fell through for various reasons. Have been ups and downs since then but heís actively looking for voluntary posts again, in fact heís got plans to go to a community garden/allotment today and an interview for something else next week, so Iím hoping that will work out. I think he feels trapped in the flat a lot, and still lacks some purpose.

    Moving my job would be hard. But probably not impossible, but Iíd really rather not move, it would compromise my training a bit and I really want the stability of staying in the same training rotation for 5 years! Iím just starting to get to know people and it would be disruptive to move (not to mention the application process again!).

    Anyway, weíll see. Ups and downs. We celebrated a year in the flat yesterday and reflected on some of the good things about it, so not all gloom. Will try to keep you updated.

    Oh - and car passed mot. Only £40. Miraculous!

    Thanks
    Bb
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Brindlebabe
    • By Brindlebabe 21st Jan 20, 7:43 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Morning,
    Things looking up a bit.
    Husband seems a bit happier about things than he was last week. A few sunny days have made a lot of difference and heís got an interview today for a voluntary post helping a good distribution charity which he feels positive about. Heís got plans to go back to the community allotment and do some vegetable growing tomorrow too which sounds very good for his soul!

    Had a lovely day on sunday. Went for a long walk with husband and sister and brother-in-law and took a picnic so was a spend free day.

    Made up for it yesterday by buying flights to Spain for 5 nights with 2 of my old friends next month. Iím leaving husband at home to look after the doggy. I really need a proper break so Iím looking forward to it hugely. Feel a bit guilty about the cost (itís only £70 so far for train, flights and travel insurance, but accommodation and food and drink may add up I suspect!). Plus I still have to pay for the Glastonbury ticket. But you do need something to look forward to, so Iím trying not to feel too bad. Plus since Cancelling my gym membership is a big saving but I will miss the yoga classes terribly so I am making sacrifices..

    One possible good thing is the horrible £2500 tax bill I got before Christmas is possibly the result of my workplace from 2017 continuing to tell hmrc that I work there, when I definitely donít. So Iím hoping I can sort that out and the taxman will drop the bill.. Iíve set up a £100 monthly direct debit so would be really great if I could cancel that! Fingers crossed. Just need to spend probably about 3 hours in phone calls first..

    Hope all is well
    Bb
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
    • Moneyfordreams
    • By Moneyfordreams 21st Jan 20, 10:00 AM
    • 1,632 Posts
    • 7,583 Thanks
    Moneyfordreams
    Well done on booking your holiday.
    Mortgage restart June 2018 £119950
    Re mortgage August 19 £110470, HSBC £3000cc, Hfx £6500, NW £5150 M&S £1100,
    CC 16150 Ö Mortgage £107900
    plus car £6000 , it's coming down
    • Brindlebabe
    • By Brindlebabe 22nd Jan 20, 7:16 AM
    • 39 Posts
    • 66 Thanks
    Brindlebabe
    Thank you.
    Itís not as easy as it sounds!
    Iím very glad itís booked though,
    Starting mortgage Jan 2019: £211,500
    Current mortgage October 2019: £204,906.74
    Target: mortgage free by 2032
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