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  • FIRST POST
    lulabelle1
    Lulabelle's MFW Diary
    • #1
    • 8th Nov 11, 10:54 AM
    Lulabelle's MFW Diary 8th Nov 11 at 10:54 AM
    Good Morning fellow MFW's

    After posting a thread wondering where to get started, I have decided to take the very important step of officially becoming a MFW and starting my very own diary.....

    DH and I purchased our current property 5 years ago for 240K (worth a bit less now but hey ho) and at the time our mortgage was for around 195k. As you can tell by approximate mortgage amount, I never really looked at these things too closely back then, but that has changed!

    We originally took the mortgage over 30 years, reducing it to 20 years and increasing the payments a few years later when my income increased a little bit.

    Since we moved here, DS1 started school and then DS2 arrived just over 2 years ago. So as one lot of nursery fees stopped, another lot started!

    I've checked my online banking and spoke to the BS and I have the following figs:

    Mortgage 1
    Currently o/s 51,957.34
    this includes overpayments of 16,500
    Int rate on this one is 5.63% fixed until next Summer
    My current payment is 549 per month

    Mortgage 2
    Currently o/s 82,352.79
    this includes overpayments of 5934
    Int rate on this one goes down to 2.5% (BMR) from 1st December
    My payment will reduce from 653 to 525 but I have just asked them to increase this to 650, meaning that an automatic overpayment of 125 will be taken every month without me needing to do anything.

    Total mortgage o/s is currently 134, 310 as of 8th Nov

    Without changing my lifestyle dramatically, I will be able to make overpayments of around 500 per month (on top of the automatic 125 collected by DDM).

    If I take on board lots of the advice from this forum, then in theory i should be able to increase this a little bit.

    I haven't worked out exactly what this means in regards to when I can be mortgage free but I guess this will be my next step so that i can have a date in mind to aim for. I believe that this is probably essential in order to keep the focus/motivation etc. If anyone can help me with this, then that would be really appreciated.
Page 36
  • nattypants
    Seriously, I could never meet this level of O/P (well not the way I am with MOPS)

    I am so looking forward to getting my tax code sorted out for once and for all - although that won't happen until April 13 so should be able to up the MOPs at this point.

    Then November 2013 my monthly payment should drop (as product ends), although - although this is where I embarrassingly don't know what to do for the best, would you recommend that I keep monthly payments the same and decrease the years or with the new decreased monthly payment, go hell for leather on the overpayments?

    Help
    February13 - 94010.85 (or thereabouts)
    MND - Let's go for 2020 'cos it's got a nice ring to it
    C'mon nattypants
  • lulabelle1
    When my mortgage rate was due to end I received a letter..... I had already decided that I would let it revert to the BMR which is 2.5%. We'd been on 5.69% from a 5 year fix so were overjoyed with the new rate.

    Anyway, once we had the letter I just called them and asked for my payment to be amended so that it stayed the same and asked that they also leave the term as it is..... So we ended up paying the same each month and keeping the term the same.

    I did think about reducing the term, but with my lender I am able to take back any overpayments..... Part of me thinks at this isn't a good thing due to the temptation, but at the back of my mind I think about LC's and perhaps B2L so I like to have a little bit of flexibility just incase.... Easier than having to apply for additional borrowing should I need the money for a new project.

    I guess because of the flexibility, I am able to throw a lot more at the mortgage, knowing I have access should I need it. Tbh, the only time I have ever taken money back was earlier this year when I bought my new car. The feeling of buying the car with a debit card was amazing and I would never have even dreamt about being able to do this. If it wasn't for my MOPs I never would have been able to do that!

    Have you worked out exactly when you would have liked to have paid the M off etc? If so, use this as a guide when thinking about MOPs and terms etc. I have the target of Dec 2016 implanted, so its always lurking at the back of my mind when I'm making other plans for the money!

    I honestly have no idea whether we will be mortgage free anytime soon, but I figure that if we OP as much as we can, then it will buy us some flexibility and options for the future, whether it's to do a LC, invest in B2L or get a bigger house.........

    Good luck xxx
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • gallygirl
    I guess because of the flexibility, I am able to throw a lot more at the mortgage, knowing I have access should I need it. Tbh, the only time I have ever taken money back was earlier this year when I bought my new car. The feeling of buying the car with a debit card was amazing and I would never have even dreamt about being able to do this. If it wasn't for my MOPs I never would have been able to do that!
    Originally posted by lulabelle1
    Ah yes, the bank of Lulabelle as opposed to the bank of mum & dad . I did the same when I bought my car, I hope you tried to act as nonchalant as I did as if 5 figures sums popped out of your debit card all the time . Paid it back to myself (well, Mr GG & me ) in 2 years and kept a record so I could keep track.

    Re the house spends. I do think you need to be careful as you could get carried away (with your history and all, and it's harder to send posh carpets back than posh coats ......... ). But the alternative is to live in a hovel (ok, gross exaggeration) till the mortgage is paid off, then do it up. In say 5 years time the mortgage is paid off and you have a lovely home. Is it worth paying like crazy for 4 years and then doing up, or doing a mix of both and having a nice house in the meantime? I know what I would go for .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Interim target: 100k by Aug 13 - met Sept 13 Next: 50k by Sept 14 - met Aug 14 Final: 0 by 1/9/15, currently 24.4k 24.3k 22.6k 19.7k 15.7k
    "Do what others won't early in life so you can do what others can't later in life"
  • lulabelle1
    Lol, I've never had a bank of mum and dad. I'm proud to say that since I got my first job, I've never had a single penny off anyone including my mum and dad.

    Everything Ive got I've worked for. I'm the breadwinner in our house and DH leaves all things financial to me.... Good in some ways but can be a bit of pressure too. Tbh I like it this way, for various reasons I like to know that should I be left alone, then I could manage by myself financially. (a mum married 4 times has this affect on you as a child!)

    Growing up we had very little, new shoes and coats etc would come with Santa as there just wasn't enough money..... I guess this is why I'm so focused on being financially independent. Thankfully I'm fortunate to bring home a reasonable salary, so tbh if I decide to treat myself to a nice new coat or similar, I'm just really grateful that I'm able to do it. Of course, treats for myself come after everyone else is taken care of, all bills are paid and savings and MOP are made.

    For me, a happy balance is paramount. I could think of nothing worse that having to scrimp and save and have no fun along the way..... Sadly I've had some close friends become very I'll recently, and it highlights what we all know, life really is too short. So a happy balance will win hands down with me every time.

    Wow, very serious for a Wednesday morning. I'm starting to think that this that's is providing me with some sort of therapy...... (and I don't mean shopping therapy GG!).....
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • lulabelle1
    Ah yes, the bank of Lulabelle as opposed to the bank of mum & dad . I did the same when I bought my car, I hope you tried to act as nonchalant as I did as if 5 figures sums popped out of your debit card all the time .
    Originally posted by gallygirl
    Yes, it was great - I loved refusing their "kind" offers of "great" finance and advising that I would "just be paying for it"...... Apparently quite unheard of in these days!
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • gallygirl
    Yes, it was great - I loved refusing their "kind" offers of "great" finance and advising that I would "just be paying for it"...... Apparently quite unheard of in these days!
    Originally posted by lulabelle1
    Mr GG is renowned for having crappy cars (I hated going fast in one as I had visison of a big bang, then it all falling apart with us sitting on the ground on the seats with Mr GG clutching the steering wheel ).

    When he finally bought a decent one all his friends and I got hours of entertainment, it was so funny watching him squirm at the thought of spending proper money. He had no idea if he was getting a good deal or not but insisted on negotiating money off so I felt like phoning the garage in advance and saying 'bung 2k on the asking price so he thinks he's really negotiated well ). When he went to pay with his debit card it wasn't an account he usually used and couldn't remember the pin. I took a cracking photo of him standing over the machine with his head in his hands, which obviously got circulated with how much pain he was in at having to fork out proper money .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Interim target: 100k by Aug 13 - met Sept 13 Next: 50k by Sept 14 - met Aug 14 Final: 0 by 1/9/15, currently 24.4k 24.3k 22.6k 19.7k 15.7k
    "Do what others won't early in life so you can do what others can't later in life"
  • Mortgage Reduction Novice
    I took a cracking photo of him standing over the machine with his head in his hands, which obviously got circulated with how much pain he was in at having to fork out proper money .
    Originally posted by gallygirl
    GG you are so mean!
    MFW: Nov 2008 156k, Jan 2015 131k
  • Fortune Smiles
    For me, a happy balance is paramount. I could think of nothing worse that having to scrimp and save and have no fun along the way..... Sadly I've had some close friends become very I'll recently, and it highlights what we all know, life really is too short. So a happy balance will win hands down with me every time.
    Originally posted by lulabelle1
    With you on that one...

    "When you have only two pennies left in the world, buy a loaf of bread with one, and a lily with the other."
    Although I may have been concentrating on the lilies recently.

    We're all different and need to get there in our own way.

    Fortune x
    Emergency Savings: 100% Wedding Contribution: 30% Mortgage: 72% paid Home Improvements: 8 Weight Loss: 3 lbs

    "When you have only two pennies left in the world, buy a loaf of bread with one, and a lily with the other."
  • lulabelle1
    With you on that one...

    "When you have only two pennies left in the world, buy a loaf of bread with one, and a lily with the other."
    Although I may have been concentrating on the lilies recently.

    We're all different and need to get there in our own way.

    Fortune x
    Originally posted by Fortune Smiles
    Thanks Fortune, we may have a few too many lillies too

    Painter man is still here - hall/stairs/landing look fab. Gloss next - we're just having all of the gloss work in the hall and landing done along with the kitchen and bathroom........ It was going to take him forever to do the whole house and whilst it would have been "nice", it wasn't essential. Hopefully he will be finished tomorrow..... It's impossible getting any work done whilst he is here as he whistles, sings and talks to himself all of the time - I'm not grumbling - it's nice to here someone so happy but difficult to make sales calls with it all going on in the background

    So, off to London in an hour or so for a meeting - keeps me out of the house. Will need to wrap up warm, blooming freezing outside.
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • nattypants
    Hope the meeting went well and you kept warm. No snow where I am (as yet) but very, very cold

    I ordered snow boots last night (keeping this off my own diary) as I hate the thought of icy, slippery walks with the dog.......trying hard to stay away from expensive gloves that rhyme with mug
    February13 - 94010.85 (or thereabouts)
    MND - Let's go for 2020 'cos it's got a nice ring to it
    C'mon nattypants
  • lulabelle1
    Natty - I wish I'd known that you were interested in those gloves before I returned the ones I ordered..... I got them for 59 instead of 115 but the guilt made me return them.

    Still lots of painting to be done, I really can't see that he is going to be finished tomorrow, so I'm going to get him to forget about the kitchen and just get the kitchen done in the new year. I really don't want to have to fork out for more than 4 days work as this is what I have put to one side...
    Last edited by lulabelle1; 06-12-2012 at 9:38 PM.
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • nattypants
    Oh no don't worry about the Mugg gloves, as even at a bargainitious 59, GG would only catch up with me and have me hung, drawn and quartered

    I'll buy regular cosy gloves instead....I can only find one of my 'year before last' gloves otherwise I would have made done with the ones I had.

    I have some money left from a secret birthday I secretly had last weekend so will buy sensibly

    How are the carpets?
    February13 - 94010.85 (or thereabouts)
    MND - Let's go for 2020 'cos it's got a nice ring to it
    C'mon nattypants
  • lulabelle1
    Congrats on the secret birthday, I hope that you had the most fantastic secretive time?!

    I'm still loving the carpets, really transforms the house... I just feel rediculously content, cosy, appreciative and very lucky at the moment.
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • lulabelle1
    Btw - you do realise that the missing glove will turn up minutes after the purchase of new gloves....
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
  • gallygirl
    Oh no don't worry about the Mugg gloves, as even at a bargainitious 59, GG would only catch up with me and have me hung, drawn and quartered

    I'll buy regular cosy gloves instead....I can only find one of my 'year before last' gloves otherwise I would have made done with the ones I had.

    I have some money left from a secret birthday I secretly had last weekend so will buy sensibly
    Originally posted by nattypants
    Kept that quiet missus , hope it;s still fresh . Birthday money can be spent on anything frivolous, you go ahead hon . But best tie a string on them so you don't lose one .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Interim target: 100k by Aug 13 - met Sept 13 Next: 50k by Sept 14 - met Aug 14 Final: 0 by 1/9/15, currently 24.4k 24.3k 22.6k 19.7k 15.7k
    "Do what others won't early in life so you can do what others can't later in life"
  • nattypants
    Carpets have that effect, as do tumble driers

    Thank you both for my secret birthday wishes, I like turning 40 - again.

    X
    February13 - 94010.85 (or thereabouts)
    MND - Let's go for 2020 'cos it's got a nice ring to it
    C'mon nattypants
  • HelenDaveKids
    We had a whole year of renovating with no kitchen from April till November but the day we finally got carpets.... I went to work and boasted.. if you came to my house you can walk round without shoes!!! Oh it was lovely, no more danger of gripper to your heels or even rubble between your toes! Took months for that feeling to wear off, "we have carpet at our house"

    Np - i feel as though Im stalking you through the diaries!!
    Morgage till Nov30 MFW Sept 2016
    MFiT-3(38) Aug11 - 100K May 16K
    2014 GOAL HIT 5 Stone!2015 Goal is to maintain.
    "A goal without a plan is just a wish"
  • nattypants
    I went the opposite way and lifted the carpets up (hall and my bedroom which will revert to a dining room in the future) and arranged for floorboards to be sanded.

    Thinking, in the future that I might also have living room floorboards done so only carpets in the bedrooms....but only maybe as carpet definitely way cosier.

    I quite like that we are able to continue our conversations on each others diaries in a nice wee seamless transition....other people reading must be thinking wtf though
    February13 - 94010.85 (or thereabouts)
    MND - Let's go for 2020 'cos it's got a nice ring to it
    C'mon nattypants
  • HelenDaveKids
    Yes, tis true NP! Feel like your my MFW BFF!!

    I do have none carpet rooms, bathrooms, hall, kitchen, utility. Old house we had lovely stained wood floor in dining room but unfortunately hasnt been an option here.

    Do prefer carpet in lounges though as like say feels cosier.
    Morgage till Nov30 MFW Sept 2016
    MFiT-3(38) Aug11 - 100K May 16K
    2014 GOAL HIT 5 Stone!2015 Goal is to maintain.
    "A goal without a plan is just a wish"
  • lulabelle1
    Our entire downstairs is wood flororing but we have a massive rug in the lounge to add cosines! I do sometimes think it would be lovely to have carpet in the lounge but every time something is spilt (fairly often), I breathe a sigh of relief.
    As of 20/Apr/15:
    Our House - o/s Balance of 135,200
    B2L 1 - o/s Balance of approx 80,000

    Next Steps:
    Enjoy the present whilst planning for the future
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