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  • FIRST POST
    • lippy1923
    • By lippy1923 9th Aug 15, 11:30 AM
    • 1,204Posts
    • 3,351Thanks
    lippy1923
    My MF Mission 2015
    • #1
    • 9th Aug 15, 11:30 AM
    My MF Mission 2015 9th Aug 15 at 11:30 AM
    Hi all,

    I've threatened a diary for a while now, but with my wedding to pay for it's been a very expensive year so far. I get married this month so everything is almost paid off now and from September I can really start my MF Mission.

    Option 1 -Pay off in less than 10 years with intention to rent out
    Option 2 -Pay off AMAP to gain higher equity to use for up-sizing

    Option 2 is most likely IMO as we may have another child in the next 10 years which will mean up-sizing is almost inevitable.

    Mini targets-

    Dec 2016 - Balance below £100k - COMPLETE
    Dec 2017 - OP £6k

    Overall target 120 Payments to go (just under 10 years)

    Lets see how I do

    Mortgage Term Reduced by 3Yr 5 mth

    BALANCE AT START OF MORTGAGE - £140,000


    Mortgage Dec 2015 - £110,580
    Mortgage Dec 2016 - £99,932
    Last edited by lippy1923; 01-06-2017 at 7:49 PM. Reason: Updated mortgage term reduction
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

Page 20
    • lippy1923
    • By lippy1923 11th Jan 17, 6:00 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    1st week into the new year. Lost 2lbs, OP £500 and submitted my request for training to work! Resolutions looking good so far.

    Still over 2 weeks until payday :-( on the bright side I've been taking lunch into work rather than buying expensive meals on the day which has saved me a fair bit I've realised.

    Got our annual mortgage statement in the post today. Nice to see the balance in the 5 figure sum. And the OP figure of £15k
    Another nice thing I saw was the current fix deal which is due to end this year! Hopefully can get off the 3% rate and get into the 2's at least. Aiming for something in the 1's tho lol
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 23rd Jan 17, 11:16 AM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    Added another £100 to the savings pot. Not sure how long it will stay there but hoping I don't have to dip in any time soon. Payday on Friday

    I know it's pointless but as my fixed rate mortgage deal is coming to an end in the summer I have been looking at current deals. Some pretty decent deals going at the moment. If they can hang on for another 4/5 months that would be grand.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • hiddenshadow
    • By hiddenshadow 23rd Jan 17, 12:16 PM
    • 2,124 Posts
    • 9,561 Thanks
    hiddenshadow
    Not sure if you're planning to stick with the same provider (or if this applies even if you switch?) but we were able to lock in our rate once we were within 6 months of our deal ending.
    MFW: Dec '13 £197,100 / Dec '14 £180,691 / Dec '15 £161,669 / Dec '16 £119,669 / June '17 ££105,686 (£4,186 offset)
    Payment 41/84 / 2017 MFW #56: £13,981/£20,000 69% / MFiT-T4 #15: £53,813/£90,000 59%
    • lippy1923
    • By lippy1923 23rd Jan 17, 12:39 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    Yes the same provider has some great deals and can switch 3 months before it ends so will be April/ may time. They also do cash back for staying with them on a new deal which looks good. Will look around fully nearer the time to make sure I get the best rate.
    Only thing I want to change about my mortgage is the amount I can overpay. Being limited to £500 pm is annoying. I would have made at least an extra £10k in OPs last year if I had been able to. Ideally I want an offset mortgage where I can op and have the money available to use if need be, or an unlimited overpayment mortgage.... If these even exist!
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 26th Jan 17, 1:28 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    I'm a bit puzzled. I want to be able to OP £15k when my FR deal ends in the summer, but I also want to secure a new deal 3 months before its due to end. I'm guessing I wont be able to reserve a new deal as when the current term ends, the new one will begin straight away, stopping me from being able to OP a lump sum.


    I will have to speak to my mortgage provider and find out, but my gut feeling is I will need to wait until the term ends and I go onto the SVR to make my OP. Then from there I will have to pick a product that is available at that time. I think that's how it will work.


    Some good news. My employer has agreed to fund the next level of my course *need to engage brain for the rest of the year!*
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • hiddenshadow
    • By hiddenshadow 26th Jan 17, 2:35 PM
    • 2,124 Posts
    • 9,561 Thanks
    hiddenshadow
    I think our provider gave us the option of when our fix would start - obviously we chose the day after our fix ended, but if yours has the same flexibility you could possibly lock in the rate for the following day and make your big OP on the SVR in between?

    Congrats on the course - I hope it goes well!
    MFW: Dec '13 £197,100 / Dec '14 £180,691 / Dec '15 £161,669 / Dec '16 £119,669 / June '17 ££105,686 (£4,186 offset)
    Payment 41/84 / 2017 MFW #56: £13,981/£20,000 69% / MFiT-T4 #15: £53,813/£90,000 59%
    • lippy1923
    • By lippy1923 26th Jan 17, 5:51 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    I think our provider gave us the option of when our fix would start - obviously we chose the day after our fix ended, but if yours has the same flexibility you could possibly lock in the rate for the following day and make your big OP on the SVR in between?

    Congrats on the course - I hope it goes well!
    Originally posted by hiddenshadow
    Yeh hopefully I get an option to start it after a certain date. Will have to check nearer the time.

    Thank you I hope it goes well too!
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 1st Feb 17, 11:41 AM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    -£500 OP made for Feb.
    -2 month reduction on mortgage term
    -1 brick to colour in


    Can't believe in just 2 years I have shaved off 3 years on our original mortgage term
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 5th Feb 17, 5:42 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    I have done some thinking and planning for the new year ahead. Mainly thinking about my new course/ planning my studying around my life as well as paying off my CC debts by the end of the year.

    I've sat and made up a spreadsheet with my revision plan all mapped out. I have a set amount of revision hours/ tuition per week, which I am determined to stick to.

    I have also done a separate spread sheet with all my current outgoings and debts. I plan to have paid off my two 0% CC's by the end of the year as well as reduce my current outgoings by..... maybe a bit ambitious..... £600pm.

    That's right. This time next year I hope my outgoings will be at least £600pm less than they currently are. This will be achieved by a combination of the following;

    -£100pm min payment stops on the 0% CC's
    -£250pm saving in childcare costs (free 15 hours a week starts)
    -£200pm saving in mortgage payments (when I remortgage)
    -£35pm 0% loan ends on the bed purchase last year


    Watch this space!
    Last edited by lippy1923; 11-02-2017 at 9:34 PM.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • hiddenshadow
    • By hiddenshadow 5th Feb 17, 5:49 PM
    • 2,124 Posts
    • 9,561 Thanks
    hiddenshadow
    All sounds very exciting! (And practical.) £600/mo reduction in payments would be amazing.
    MFW: Dec '13 £197,100 / Dec '14 £180,691 / Dec '15 £161,669 / Dec '16 £119,669 / June '17 ££105,686 (£4,186 offset)
    Payment 41/84 / 2017 MFW #56: £13,981/£20,000 69% / MFiT-T4 #15: £53,813/£90,000 59%
    • lippy1923
    • By lippy1923 5th Feb 17, 7:48 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    All sounds very exciting! (And practical.) £600/mo reduction in payments would be amazing.
    Originally posted by hiddenshadow


    It would be amazing. I'm so excited just thinking about saving an extra £600pm. That means I could continue to OP £500PM and save £600pm into savings. That all coming true would mean I could be MF by the time I am 30!
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 22nd Feb 17, 1:36 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    I've been reading about the LISA that will become available in April and it's got me questioning everything I am doing financially.

    I was going to use my EF to pay a chunk off my mortgage in the summer but now I am not so sure.
    Should I instead pay £4k into the LISA to get the 25% and use this as a savings vehicle for retirement along side my pension?

    I have worked out if I kept up with the £4k payments each year I would have the following-

    23 years x £4k = £92k! by the time I am 50
    23 lots of £1k gov bonus - £23k by the time I am 50

    Total £115k (not including any interest)

    If £115k sits in there earning say just 1% over the next 10 years that's another £11500 so come my 60th birthday it will be a pot worth over £125k tax free for me to take and do whatever I want.


    This seems like a no brainer to me, but then my plans and hopes of becoming mortgage free will go out the window

    I have questions about the LISA that I haven't been able to find the answers to yet.

    1) What are the chances of the gov raising the age limit from 60, to be able to cash in your pot? I have a horrid vision of me slaving away saving religiously every year for them to tell me after 20 years, that I actually cannot reach the money until I am 70 as they raised the age limit! That would **** me off to no end!


    I did have more questions but cant remember them now! grrrrr
    So confused as to what to do.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • hiddenshadow
    • By hiddenshadow 22nd Feb 17, 1:49 PM
    • 2,124 Posts
    • 9,561 Thanks
    hiddenshadow
    Using a future value calculator it works out to £128,581.51 at the end of 23 years, assuming 1% interest. If you assume something a bit more ambitious like 3% growth, it's £162,264.42.

    (http://www.calculator.net/future-value-calculator.html?ctype=endamount&cyearsv=23&cstarti ngprinciplev=0&cinterestratev=1&ccontributeamountv =5000&ciadditionat1=end&printit=0&x=55&y=12 if you want to see for yourself/play with the numbers)

    I suppose it depends on why you want to be MF. If it's to reach FIRE then a LISA won't really help unless your FIRE date matches the date the government decides you can access the funds. (To answer your question, I wouldn't be surprised at all if the rules changed, though I think there would be a lot of backlash if they tried.)

    It's all about compound interest - with 23 years to grow, your £4k annually packs a bigger punch in a LISA than being paid off to your mortgage. On the other hand, say you become MF in 10 years, you could then throw £4k/year into a LISA then and still end up with a decent pot (calculator estimates just over £78k at 3%). Bear in mind that you could just use the LISA sum to pay off your mortgage, thus still being MF immediately when it's accessible.

    If it were me, I'd probably play both angles. If stock market is currently doing well, throw everything into LISA to take advantage of higher interest rate than mortgage. If stock market does poorly, throw everything at the mortgage because it's a better "savings" vehicle. You can do this on a month-by-month basis so that you get dollar-cost-averaging (no need to try and time the market re: LISA), and so that you can change course mid-way through the year if desired.

    We're probably going to scale back our OPs to max out the LISA, but we're not going for MF per se anymore, just more equity in the house/lower mortgage payments for better cash flow, with the plan to downsize house in the future and be MF then.
    MFW: Dec '13 £197,100 / Dec '14 £180,691 / Dec '15 £161,669 / Dec '16 £119,669 / June '17 ££105,686 (£4,186 offset)
    Payment 41/84 / 2017 MFW #56: £13,981/£20,000 69% / MFiT-T4 #15: £53,813/£90,000 59%
    • lippy1923
    • By lippy1923 22nd Feb 17, 4:22 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    Thank you very much for your post Hidden. Some excellent points and a bit of thinking for me to do.


    Cheers
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 1st Mar 17, 10:57 AM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    March update

    -£500 OP
    -£100 into shares
    -1 extra month mortgage term reduction
    -1 brick to colour in


    Savings will be going down this month as I am paying off a £600 credit card. It will be hard seeing the money leave my savings account but nice to say goodbye to a debt.


    I am still deciding on OP'ing / LISA but think I will do a split approach. I think its def worth contributing the £4k per year to get the 25% bonus and interest. So my aim is to do that as often as possible and any extra will go as OP's to the mortgage.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • clear_as_mud
    • By clear_as_mud 11th Mar 17, 12:55 PM
    • 68 Posts
    • 75 Thanks
    clear_as_mud
    Awesome progress
    • lippy1923
    • By lippy1923 13th Mar 17, 12:59 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    £600 paid off a credit card today. That is 1 less credit card to worry about now. I feel sad that a chunk of money is now missing from my bank account but a relief that I now only have 1 credit card left with a balance on it.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • lippy1923
    • By lippy1923 18th Mar 17, 6:15 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    Done some jigging of the budget. I paid my final childcare bill before the free hours each week kicks in. Next months outgoings should be a lot less now, combined with the savings from one of my cc's being paid off.

    Childcare savings for April should be £210!
    Not paying for a credit card any more should be £40 savings pm.

    Total of £250 expected savings next month :-)
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,300

    • Firegirl
    • By Firegirl 18th Mar 17, 6:28 PM
    • 662 Posts
    • 2,708 Thanks
    Firegirl
    Fab savings Lippy!!!! Well done!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £201695
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
    • Firegirl
    • By Firegirl 18th Mar 17, 6:46 PM
    • 662 Posts
    • 2,708 Thanks
    Firegirl
    I've looked into the LISA a lot and although it is seriously tempting there are a lot of reasons to be put off depending on your situation. I'll list my thoughts.

    If you work for a company and have a pension that will match your contributions you may better to pay into your pension and take a company match. The contributions you make to the pension will be tax free which isn't much less than what your getting from the government in the LISA. Check your own tax rates etc.

    Also if you pay into a pension, you are likely to be able to access this before you are 55. Check this too. All the new pension rules give you much more flexibility with a pension.

    A big one- LISA will be treated as savings and a pension is not, if you need to claim benefits at any point. Life can change very quickly and unexpectedly so although you think you are not likely to have to claim benefits, there might be a time that you will before your 60.

    Saying all this, I'm still going to open a LISA because psychologically it feels like savings where a pension sort of doesn't. Also I'm out of work at the moment so don't have the company match pension option. If you do decide to open a LISA then you could treat it in your head like you know that will come off your mortgage so you know when you have built up enough in the LISA you know your mortgage free.

    Oh I have gone on a bit!!!! I don't like the fact that there are massive penalties for taking money out early should you need to.

    Hope this is helpful!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £201695
    Target for May 2018 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £205, 020
    14 Year Target Balance MF50= £191, 314
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