Hope is not an Effective Financial Strategy

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  • lippy1923
    lippy1923 Posts: 1,374 Forumite
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    One of us has to be the money freak in a relationship :rotfl:
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • hiddenshadow
    hiddenshadow Posts: 2,525 Forumite
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    lippy1923 wrote: »
    One of us has to be the money freak in a relationship :rotfl:

    DH doesn't understand why it drives me nuts that he puts any change < 10p (or maybe 20? I don't know! *sob*) into a money box.

    As we operate on a zero-based budget, every penny is accounted for - having change mysteriously disappear is frightening (though his counter-point is that we find "new" money later when we eventually take it to a bank).

    Plus, y'know, those £3-4 are better served earning/paying off interest than sitting in our lounge. :rotfl:
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    I regularly lighten Mrs SJ's purse for her, but at least the small change goes to our "pay off mortgage charity". Anyway I have to snaffle it before it lands in DS1's avengers money tin! That little pest never spends it!
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    Well I threatened to list some targets for year 2 following an immensely successful year 1, so here goes... Given our current 1.99% fix ends in 12 months it makes sense to view it in those timescales and set milestones along the way.

    I've gone ambitious and am aiming for £600 a month OP as this will enable us to remortgage for 110k, and equate to a 26k reduction in the 2 years of our fix (when diary and mega plans started).

    Milestones:
    • June - £119k's
    • October - £114k's
    • December - £112,500
    • Feb 17 - Remortgage for £110k

    After going through our budgets with Mrs SJ at the weekend I do feel we can throw another £100-£150 at the mortgage depending on what happens that month in relation to birthdays, mini caravan breaks and anything that needs spending on the house. Now to hit the £600 a month I'm going to have to state it as an average of £600, as this month is likely to be £750, so I know I have some surplus for the month after if we struggle.

    Now should we hit these targets and working on FD's current mortgage offers we'd be able to get a 2yr fix at 1.74% for £594 a month, a reduction in monthly commitment of £93. Or a 5yr fix at 2.29% for £622 a month, a reduction in monthly commitment of £65. That would give me decision dilemma's!
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • hiddenshadow
    hiddenshadow Posts: 2,525 Forumite
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    Very nice goals! :)
  • mrsp1987
    mrsp1987 Posts: 815 Forumite
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    I was thinking about all this when I was remortgaging 2 years ago. Do I fix for two, three or five years? At that time there was a lot of speculation that interest rates would start rising soon which is one of the reasons why I fixed for 5 years. Now, Mark Carney is saying he doubts that there will be any rate rises for at least 12-18 months. There's also the referendum in June which could have serious implications on interest rates, potentially.
    It's better to wait until much closer to the time as there are so many variables but I know the nature of the beast is to want to plan, plan, plan!!
  • lippy1923
    lippy1923 Posts: 1,374 Forumite
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    Sounds great SJ. I love a well thought out plan! Good luck. Im sure we will see you smashing the targets this time next year.
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • Moneyfordreams
    Moneyfordreams Posts: 2,442 Forumite
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    Hi SJ,
    I can't wait to have figures like yours... your are very driven.. thank you for giving me the courage too and you hidden shadow :D
    Mortgage restart June 2018 £119950Re mortgage August 19 £110470, … Mortgage November 22 £85600 final 0% CC 3300Home renovations - £65000, mid 2018 - mid 2022
  • debtfreeoneday
    debtfreeoneday Posts: 4,814 Forumite
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    The decision on length of fix is soo hard.. we went for 5 years as we just wanted the security of knowing the repayment figure month in month out
    DFW (08/08) £64,346.53 Gone (02/19)
    MFW (08/08) £118k Gone (09/23)
  • Lexi-lu
    Lexi-lu Posts: 173 Forumite
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    Hello SJ:hello:

    Thank you for stopping by my diary.

    Good Luck with your target for year 2, will be following to see how you get on.

    You made excellent progress last year, very inspiring.

    LL
    Mortgage Balance £0
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