Mortgate Free Challenge - we're (nearly) back on track!!!

Hiya All

Well can somebody tell me where the weeks are going? It's been a while since I last posted and updated you on my Mortgage Free Challenge. My last update was pretty doom and gloom as we'd just found out that my hubby had lost his job and I was feeling somewhat guilty about the mortgage over payments I'd been making when suddenly we found ourselves strapped for cash. Well I'm unbelievably thrilled to report that hubby has landed himself another job!! It's still early days but what a difference it makes - not only to the financial worry of potentially getting into debt but also the fact it's lifted the mood of the family no end.

My thoughts had been turning to having to borrow on the credit card, or rather not being in a position to pay off the bill at the end of the month, cutting down on shopping bills - most significantly, not letting my boys place anything and everything into the shopping trolley (boy they have not been impressed - thankfully it has only lasted a few shopping trips!). And my biggest fear has been the thought of defaulting on my mortgage repayment. The fear of this was so great that I even found myself having nightmares of the consequences. The act of having a default payment on your mortgage is so significant as it has such a negative affect on your credit rating - and a long lasting one at that. In fact, I think once it is on your record, I'm pretty sure it stays there, thus drastically affecting your chances of obtaining another mortgage in future.

I know I'm waffling but it's scary to think how quickly things can snowball out of control and before you know it, you're in a dire situation. Thankfully, this hasn't happened to us, and boy am I relieved that this is the case. So as the title suggests, we're very nearly back on track with ploughing our hard earned cash into our mortgage pot.

Hope 2010 is treating everybody well - keep reading, keep overpaying and lets get rid of that mortgage and be mortgage free sooner rather than later!!

Px

13 Days to the start of The Mortgage Free Challenge - T2!!

Hiya All

13 may be unlucky for some but there's only 13 days left to the start of The Mortgage Free Challenge - T2 and it feels like Christmas is coming early, I'm that excited!!

I know this sounds crazy but since joining the Mortgage Free Challenge on Martin Lewis's Money Savings Expert website, I've never felt so focused in my life - OK, obsessed is probably a more accurate description but if it means my family and I become Debt Free sooner rather than later, then that's OK with me.

My last Mortgage Payment before the challenge begins is due to go out next week and I can't wait to ring up the Mortgage Provider for an Outstanding Balance quote. I've already set an objective but I think it's a touch too optimistic. I will be making a final decision next week and will update with my Starting Mortgage Balance along with a new End Target Balance.

I have talked of a spreadsheet I have created (thanks to financialbliss!) that helps to calculate the effect of the Mortgage Payments, but more interestingly, the effects of Mortgage Overpayment's - it's so addictive that I am playing about with different figures the whole time.

Although this challenge is for 3 years, I have extended this spreadsheet to the end of the term of my Mortgage. Interestingly, I have worked out what my Outstanding Mortgage Balance will be at the end of my 5 Year Fixed Mortgage Deal I have in place now. The Outstanding Mortgage Balance after 5 years will be significantly less after making the Mortgage Overpayment's - which is great - but it also means I will have a better Loan-To-Value Ratio (LTV) and as you all know, I'm sure, this will help me find a better deal next time, meaning my Mortgage Overpayment's will work even harder in future!

13 Days and counting - Role on 12/12/09!!!

Px

Spending went down the Bowling Alley - postal strike partly to blame

Ok, so today hasn't been the best day in terms of saving the pennies but we had a great time and you sometimes have to put this mortgage free challenge into perspective. My eldest is having his 2 friends over for a sleepover tonight and the idea was to take them Ten Pin Bowling (during hapy hour - of course!) then out for a meal at Bella Italia courtesy of Tesco Deals Vouchers.

All was going well. I booked the lane for 6pm - these lanes usually sell out very quickly, Tesco vouchers converted on-line, and table booked at Bella Italia. All looking great for a fun filled evening. However, by this morning, slap bang in the middle of the postal strike, no Tesco vouchers materialised!! We had to use money that we hadn't accounted for but at the end of the day, there were 6 mouths to feed and we were at a bowling alley - it was never going to be the cheapest, most healthy set up but do you know what, we all loved it!!

Oh well, this was a one off and like I said to begin with, we all had a great time and I know my eldest will treasure the memories for many more years after I've paid the mortgage off

Px

Start Raiding the Penny Jar!!

Hi All

Ok so keeping my 12/12/09 mortgage challenge in mind, it struck me tonight that I was about to go to the cash machine to withdraw £10 to buy a loaf of bread. Instead, I decided to raid that money jar that I'm sure we all have that contains loose change - you know the one, it contains 1p's, 2p's, those dreaded 5p's (are they even worth anything!!) etc, etc.

I mustered up just enough pennies (£1.45's worth) and went to my local shop to buy what I needed - and that was it. No 'buy one get one free' or 'half price' offers - I got what I needed, nothing more, nothing less. OK, so the loaf of bread may have been cheaper at the supermarket - but it would have cost me a whole lot more!!

So back to my point, start raiding that penny jar on occasion and you'll be amazed at how much you can save - it saved me withdrawing £10 and wondering where it all went within 24hrs.

So go on, give it a go :-)

Pintsized1 x

ps - I was out on a cubs fundraising night last night and won a grand total of £1.05 - yeahh!!! OK, so the £1 went into my money saving tin and the 5p went into the pennies jar :-)