FinancialBliss: My mortgage free journey…

financialbliss · 17 October 2008 at 7:33PM

Claire / Stuart,

We've not ate yet this evening either! Was going to attempt to look at an offsetting sheet later, as I suspect we'll slip onto a SVR rate after the fix or look into offsetting.

Financial Bliss.

StuartGMC · 17 October 2008 at 8:09PM

To fast-track how I've done this, I'll paste data from my spreadsheet so I don't mess up references, but it is probably easier to see the spreadsheet itself :rotfl:

(I hope I haven't missed any cells here; this only uses standard sum formula so works in OpenOffice and Excel)

a) Start with the data input for interest rates (earned & charged):
Mortgage APR in cell M22
Savings APR in cell M23
Current A/C AP in cell M24

Tax rate in cell M25 enter as 20 for 20% and 40 for 40%

b) Offset position
Monies in savings in cell I18
Current account in cell I19
Mortgage debt remaining in cell I20 (as a negative number!)

Therefore Offset monies are, put in cell K20:
=SUM(I18:I19)

So interest is on the amount remaining, put in cell K21
=SUM(I20+K20)

The actual amount of mortgage incurring interest is, in cell L21
=SUM(K21/I20)

c) Calculations
c-1) For Savings:
Rate after tax put this in cell O25
=SUM((M23*(1-M25/100)))

Saving contribution put this in cell O26
=SUM(O25*I18/100)

c-2) For current account:
Rate after tax put this in cell O28
=SUM((M24*((1-M25/100))))

Saving contribution put this in cell O29
=SUM(I19*(O28/100))

c-3) So if interest was paid it would be, in cell O30
=SUM(O26+O29)

c-4) Mortgage capital incurring interest in cell O32
=SUM(K21*(M22/100))

c-5) Considered as amount the spread over capital in cell O34
=SUM(O32-O30)

c-6) Effective Mortgage % Rate in cell O35
=SUM(O34/I20)

Obviously, if you have several savings accounts then you'd need to put separate functions in for each and of course, if you offset against Cash ISA then this too would need to be included (although the latter carries a long term benefit of the money being in the wrapper after it has been used to assist in reducing mortgage interest).

NorthernAngel_2 · 17 October 2008 at 10:32PM

Hello FinancialBliss :hello:

Ive just spent the last 2 nights reading through your diary, what a fabulous journey you and your family are on!

I just wanted to congratulate you and your hard work and commitment and to wish you all the best in reaching your goal. :beer:

NorthernAngel.x

CountingPenniesClaire · 17 October 2008 at 10:56PM

Thanks for taking the time to explain Stuart. This looks very impressive - I've tried to follow it through but it is either my incompetence with excel or one drink many that has me struggling! We've been with Northern Rock on a fixed rate of 5.69% for 7 years (capital borrowed £150,000 - first mortgage, first property) which expires in Feb 09. We've worked hard on overpaying (no penalties) and have overpayed by £30k. We've now got 60% equity and we're moving to First direct offset BOE tracker (+0.79% & no fees at all or lock in). With the control that an offset gives us we think it will be a good incentive to see how the numbers will come down by working it all out in a clever little spreadsheet. Sadly I'm not equally clever little person so if you can show me an example I'd really appreciate. Thanks Claire

StuartGMC · 17 October 2008 at 11:01PM

CountingPenniesClaire wrote: »

Thanks for taking the time to explain Stuart. This looks very impressive - I've tried to follow it through but it is either my incompetence with excel or one drink many that has me struggling!

If it is only one too many then that is certainly within MSE rules

:D:D:D

I'll PM my e-mail address to you so you can respond and I'll send the spreadsheet. You should be able to lift straight into your own system (I use OpenOffice but it also outputs in Excel)

financialbliss · 18 October 2008 at 3:21PM

NorthernAngel wrote: »

Hello FinancialBliss :hello:

Ive just spent the last 2 nights reading through your diary, what a fabulous journey you and your family are on!

I just wanted to congratulate you and your hard work and commitment and to wish you all the best in reaching your goal. :beer:

NorthernAngel.x

Hello back NorthernAngel :hello:

Always nice to see someone new dropping in and saying hello. A post such as your is a real inspiration to not only keep plugging away at the mortgage, but to keep documenting the ups and downs of journey as we progress towards our goal...

Financial Bliss.

financialbliss · 18 October 2008 at 11:02PM

A quick round up of a few things going on in my little corner of the world...

Kaupthing Edge.
Tried a “test” £500 transfer out of Kaupthing Edge last Monday by BACS. Was hoping that we’d receive this within the typical 3-4 day BACS window, but nothing has turned up just yet.

Rather than transfer the remainder out after the test, I’m considering opening a fixed term for 6 months product. Why? According to the BBC and elsewhere, we could see base rates drop like a stone over the next 3 to 6 months:

http://news.bbc.co.uk/1/hi/programmes/moneybox/7677797.stm

As ING appear to be honouring the Kaupthing Edge rates, at least at present, seems like a sensible move to open a fixed term account for 6 months.

Nationwide.
Still on the subject of base rates, Nationwide finally broke the silence on the matter this week and announced that they’re dropping the rate of their BMR mortgage:

http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1280

Mind you, they have only dropped it by 0.30%, but according to their press release, their base mortgage rate (BMR) is the lowest standard variable rate product on the market.

For now, I’m presuming that I’ll drop onto Nationwide’s BMR product at the end of my fix. Before the drop, if I’d equalled out the payments needed to clear the mortgage by 12/12/12 starting from 1st November 2008, it worked out at 1,359.45 a month until December 2012.

Due to the rate change, I’ve now worked this out to be 1,358.01 – a difference of 1.44 a month.

No spend days.
This is going quite well. I’ll not give out any details just yet – you’ll have to wait until the end of the month.

Pay review.
I'd drafted this up first, but as I got to this bit, I thought I'd check the unison web site to see if there was any more recent news and I've spotted this:

http://www.unison.org.uk/news/news_view.asp?did=4921

which suggests I may see a 2.45% pay increase before Christmas, so I scrubbed my original notes I'd drafted.

Financial Bliss.

financialbliss · 20 October 2008 at 7:18PM

Sickly stuff at the bliss household…

#1 was sick at school on Friday afternoon. Suspect a bug. School reports that there’s been a bout of vomiting in recent days.

#2 has been sick twice this afternoon, suspect the same bug that #1 had.

Mrs bliss is under the weather too, but she’s plodding on regardless – think mum’s just do that. I’m sure mumto5 or someone else who is a mum will confirm that.

Me, well I beat them hands down…

Went to the toilet at 04.45 this morning and afterwards, I thought I was going to be sick. The rest is rather hazy, but I understand from Mrs Bliss than I ended up kneeling in the en-suite doorway and I passed out.

I got the impression that I was out for ages, disorientated?, but Mrs Bliss said it wasn’t long. The next I remember was lying on the floor – mrs bliss was shouting at / trying to get me to wake up, I felt she was shouting from the end of a long tunnel and it took me some time to become focussed / well enough to sit up again.

Went to our local accident and emergency – got there about 05.50 – got seen immediately as it was quiet. Spent the next hour or so on an ECG machine – stickers and wires everywhere. Blood pressure checked and blood was taken and checked there and then.

Everything came back all clear, so no clues as to why I passed out.

Stupidly (and I say that with hindsight), I went into work this morning, but decided after an hour and a bit, that that was a bad idea!

I’ve spent the afternoon in bed, and now feel a little better.

You may have noticed from my diary, that I’m a bit of a night owl. I’m intending to have a very, very early night, so perhaps no more posts from me this evening…

Financial Bliss.

shopgirl2512 · 20 October 2008 at 9:31PM

_pale_ Good Lord FB! Sounds dreadful! Hope you're feeling better soon...

gallygirl · 20 October 2008 at 9:54PM

:eek: Yikes proper man sick, not man flu :eek:.

Bl**dy typical man going into work :rolleyes:.

Hope you enjoy early night and feel better for it tomorrow xx

FinancialBliss: My mortgage free journey…

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