Pay off mortgage and start having fun!

getmore4less · 2 July 2015 at 8:27AM

Just looking at the hard numbers.

If you want to pay off this mortgage then it is about the numbers.

The issue now is every month you are short of target, the amount is spread over a shorter future time.
Every £100 short adds about £1.40pm, in a year it's £1.50

Your income probably can support the outstanding mortgage but the longer you leave it the harder it will get.

Refinancing may be an option in the future and probably the sensible route to rebalance but until that looks like a realistic option you need a plan.

Bottom line
You say you need £1838pm over the next 7 years

what have you averaged over the previous 5years?
Looks like...
£57600+interest (say 5%) that's £1100pm
interest on the £138k, £350pm

£1450, so only another £400pm to find to be on target.

To put where you are in perspective £204k over 12 years after 5 would be around £127k so from MFW view you are £9k behind.

..................
I did notice this on your list the other day.

1).Go on a cruise....
2).Holiday with extended family

Cruises make very good multigenerational holidays and are not as expensive as people think when you search around.

If you want to get those ticked off the list that is one bit of planning I can help with.

ajmoney · 2 July 2015 at 10:21PM

newgirly wrote: »

Thank you fancy Nancy and Mrs E ,this is very strange as I always feel like I'm chattering on to about two people at most on a daily basis, its great when its more

I am always reading in the background but sometimes feel a bit thick/stupid with my brain unable to process the figures sometimes so I have been staying quiet! I miss being more involved in all your diaries but I am struggling with motivation and keeping my head straight at the moment. I almost found it a chore to do the money shuffle yesterday:eek: so I hope to get my mojo back soon x

newgirly · 3 July 2015 at 6:55AM

Sorry to hear you have lost your mse mojo aj, did you get that money shuffle done?

Get more for less, thank you for posting, if we do go on a cruise it will be just us on a last minute three nighter without the family, much cheaper! We are taking all the family to centerparcs for a few days in summer , its more the kids and grandparents type of thing.

I have splashed out on a fantastic cake for DDS 18th :j she is no longer in having a party and probably will just have a meal a few weeks after , so I upgraded her planned cake . as I'm an idiot a can't remember how gallygirl told me to link pictures

but its a choccywoccydoodah cake ,a large chocolate tower cake with marshmallows on top and chocolate running down all over it , with a pink chocolate heart with her name on. Serves 30 so should be just enough for my three kids :rotfl: £70 incl courier from carnaby street , but its a beauty and I have been mse by making her cakes for the last 18 years , at least that's my excuse

getmore4less · 3 July 2015 at 8:28AM

newgirly wrote: »

Get more for less, thank you for posting, if we do go on a cruise it will be just us on a last minute three nighter without the family, much cheaper!

We stopped doing those they got too expensive.
OK when around £50pppd but most are around £100pppd these days.

Whenever people say what they pay for CP my eyes water.

getmore4less · 3 July 2015 at 6:14PM

I will throw this in for what's it's worth.

To have a target of paying off the mortgage as if it was a repayment needs £Xpm, as you have the benifit of interest only every time you dont put aside £Xpm(total:payments/overpayments/savings) you are in effect borrowing the money at the mortgage rate.

ie. if you had a repayment mortgage you would not have the luxury of underpaying and would have to borrow elsewhere.

newgirly · 3 July 2015 at 7:02PM

The mortgage is io as we needed another bedroom and bathroom, we could not add to our mortgage but could go io and take a loan out for most of the cost of the work. This was then changed to 0% CCS as and when it could be and has been (2\3) paid off in a year and a half.

We would not have know then that changes in the law mean affordabily is now a criteria to go repayment , as at the time they assured us that would never be an issue as they want you to pay it back, ditto extending the term as we were in our thirties.

The mortgage was repayment for a few years before that and we did make every payment , we did not borrow any extra to survive , until we decided to extend the house other than move to a cheaper area.

Seven years ago we were over 30kin debt from overspending ,we cleared the whole lot and I started oping the mortgage , we have stayed debt free until we borrowed to extend,so for us as spenders not savers we have not done too badly.

With the cruises,we will only go for a few days as I don't like to leave the kids as I miss them, so far we have had one free cruise from a friend and one three nighter that cost about £249 Each for a balcony room. Centerparcs is a lot but its my 40th and DDS 18th this year and that is what the kids voted for (only UK options were available !)

Alchemilla · 4 July 2015 at 8:27AM

Have you got big things planndd this weekend?

newgirly · 4 July 2015 at 8:53AM

Morning al, a full weekend or sorting out and shifting furniture, assembling chairs , gardening, cleaning , washing, finding and wrapping DDS presents, writing her a poem and making a card with photos of her on it

Alchemilla · 4 July 2015 at 12:13PM

A poem, how lovely.

newgirly · 5 July 2015 at 9:02AM

Its raining, I'm so glad as most of my list is not completed and I have to get it all done today, when its hot I'm even more lazy than usual

Visited gran yesterday, then went for a walk to the park she overlooks afterwards, a council run one two minutes from a main town but it was gorgeous, huge lake with swans and big fountain and over the other side lots of lovely houses whose gardens backed onto the lake, I think I want to live there now!

Long to do list still even though I did do loads yesterday,house cleaning should go to the bottom as it will all need doing again at the end of the week before DDS birthday saturday , best prioritise jobs which won't need repeating

Went over the £60 budget for food yesterday in aldi, spent some if the boot sale money we got last week, as I thought I might end up doing , accounts need looking at and I need to decide how much cash to give dd for her 18th and wrap her pressies.

Pay off mortgage and start having fun!

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