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  • FIRST POST
    • rasputin_thorpedo
    • By rasputin_thorpedo 1st Mar 16, 7:18 PM
    • 323Posts
    • 1,881Thanks
    rasputin_thorpedo
    Man vs Mortgage
    • #1
    • 1st Mar 16, 7:18 PM
    Man vs Mortgage 1st Mar 16 at 7:18 PM
    Come on in and put your feet up!

    The aim is to be Mortgage Free by May23 - the same month I turn 40!

    I purchased a lovely flat in Brighton in May15, and after setting up and settling in, am ready to take on the big kahuna.

    I'm really fortunate that I am healthy, single (I'm 32), have a great job I enjoy close to where I live and can spend a lot of my time training for triathlon.

    I'm an analyst by trade, so I've crunched the numbers and here is what I found most interesting;
    1) I can take my mortgage from 30 years to 8 by overpaying and be Mortgage Free by 40!
    2) Using that plan (carved out in detail by month in Excel), every extra £1 I can save this year will save me £1.30 over the mortgages life.

    I have to say I'm being quite thrifty here and giving myself £10 a day to live off and £200 a month for fun money. I keep an Emergency Fund of £2k in my spare account so I can cover breaking my mac/iphone/bike etc.

    I've been through all my monthly and annual expenses and optimised them to within an inch of their lives!

    Finally, I'm buying the freehold of my flat with the other leaseholders (update - completed Apr16).

    My hopes are that I can achieve this and then spoil myself and my parents afterwards.

    My fears are that I spent my 20's scrimping to pay off my student loan and then saving for my own flat deposit - that I will end up doing the same in my 30's and never living!!!

    All thoughts/experiences/advice welcome
    Last edited by rasputin_thorpedo; 13-08-2016 at 9:30 PM.
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
Page 18
    • Karmacat
    • By Karmacat 3rd Oct 16, 9:31 AM
    • 26,541 Posts
    • 140,119 Thanks
    Karmacat
    Congratulations! Especially the LTV.

    I am having conversations with myself about whether to take the next months salary and spend it on things for myself or to keep the foot on the pedal and overpay. I could do with some stuff. Since I have to wait a month regardless (for payday) I will make a list and cost it up the cheapest way possible, then sort the stuff I need from the stuff I want and see how I feel about buying things versus overpaying.

    In fact, I might as well post that on here once I have it so I can get feedback
    Originally posted by rasputin_thorpedo
    I think the term "conscious spending" applies to that approach, which is brilliant

    Save
    Retired August 2016

    Goal: earnings of £25k from new opportunities from September 2016 to December 2020 when my state pension kicks in.
    Currently: 86.53/25,000
    Save
    • Fletchasketch
    • By Fletchasketch 3rd Oct 16, 7:08 PM
    • 329 Posts
    • 551 Thanks
    Fletchasketch
    Thanks for the stats, MvM, very interesting reading.

    One thing occurred to me though; your daily interest payment is quite high considering you have 30% equity. To give you an indication, I'm paying 1.5% on a much larger sum with 75% LTV and the daily interest payment is £8.21. My point is, depending on the early repayment charge to get out of your fix, you might actually be better off. Worth a number crunch I'd say...
    Debt @0% Jan '16; £9162, Jun '16 £5845, Jul '16 £3824, Aug '16 £3105
    #C25K Week 8 run1
    Student loan finally cleared!
    • rasputin_thorpedo
    • By rasputin_thorpedo 4th Oct 16, 8:06 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Hi Fletch,

    I reached 30% equity yesterday. I've had the mortgage for about 18 months and was on about 15% when I took it out I think.

    I got a 5 year mortgage and the ERC is 5%, currently that and the c£1k product fee and valuations would wipe out any benefits that I could reap by changing to a cheaper rate now. I did the maths about three months ago when rates dropped and, considering I am sticking to an accelerated plan and not the 30 year banks plan, the benefits really are minimal.

    It's definitely one to watch as a point of interest.

    For now, I am very happy (and there's a lot to be said for that!) knowing I have a credible plan on a fixed rate

    Has anyone else remortgaged early and found a benefit?

    MvM

    PS - Silly news - Flat 1 have purchased my wifi. Great. But have decided to pay it £5 a month for the next 12 months. Groan!!! Why not just set up a direct debit for £1 weekly instalments...! Still, into the Project Thousand pot it goes...
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • gallygirl
    • By gallygirl 4th Oct 16, 9:53 AM
    • 16,026 Posts
    • 105,200 Thanks
    gallygirl

    It's definitely one to watch as a point of interest.
    Originally posted by rasputin_thorpedo
    Ha - I see what you did there
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • Fletchasketch
    • By Fletchasketch 4th Oct 16, 7:28 PM
    • 329 Posts
    • 551 Thanks
    Fletchasketch
    Should have realised that you'd have already done the maths! ;-)

    Pleased it all works out for you, I couldn't quite believe that 1.5% was achievable with only 25% equity, so thought it was worth mentioning.
    Debt @0% Jan '16; £9162, Jun '16 £5845, Jul '16 £3824, Aug '16 £3105
    #C25K Week 8 run1
    Student loan finally cleared!
    • rasputin_thorpedo
    • By rasputin_thorpedo 5th Oct 16, 8:11 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Morning everyone, the O2 to GiffGaff transfer is done and my original number now works under GiffGaff

    Just need to ensure that O2 totally shut down my account - I have had nothing in writing since I cancelled, is that normal? I just don't trust them to have actioned this properly.

    Looking forward to them shutting me down, it's the final part of this process to complete it.

    As I said before, phone bill from £15.30 to £10.00 per month and no surprise charges on bills.

    ----------

    Going to a bar in town tonight, they are looking for casual staff so am heading out to chat to the bloke and see if I can be any use. I would only do a couple of nights and take home £40 a week which I would probably use towards Project Thousand. It's paid by BACS (I don't like the idea of cash in hand, especially as a qualified accountant!) every two weeks and more than anything I want a reason to go out and be social in the darker evenings now training season is over.

    Maybe potential to work more hours over Christmas and the like I suppose if I got it and liked it.

    Will let you know what happens

    ----------

    So with my main job we have a big department offsite to talk about how we work and about the new department structure. Everyone is being called in on it as a working group so that feels constructive. That's on the 18th I think so fairly close too . New director is doing a really good job of talking to us about what is happening and when, what happened with the old director was just 'this is happening now' and felt very unorganised and unfair. Let's see what the future holds here.

    ----------

    Have a great day

    MvM
    Last edited by rasputin_thorpedo; 05-10-2016 at 8:14 AM.
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • Teacher2
    • By Teacher2 5th Oct 16, 10:36 AM
    • 397 Posts
    • 2,039 Thanks
    Teacher2
    Hi there RT,
    I have just stumbled on your thread and was so intrigued I read the whole thing through in one go. Phew!

    Your enthusiasm and awareness seem larger than life and I see that you have attracted many comments from the Mortgage Free Wannabee 'community' who have been posting for years now.

    You have paid off ten grand of your mortgage with incredible focus and self control. At one point (earlier on) you seemed to be wondering whether or not to focus on the mortgage or diversify saving strategies. I think you are right to have one main priority as it keeps your attention keen and mini-successes give you instant rewards in your bank balance and your motivation and morale.

    Your focus, research and dedication in reducing your indebtedness remind me of my own circumstances a couple of decades ago. About twenty years back my DH and I took out a Virgin one current account mortgage to build a massive extension on our house. Luckily we both have the same attitude to debt, frugality and 'bang for buck' and are savers not splurgers. Of course, the Virgin One was frightening because with this product your mortgage is your overdraft so you have to be super disciplined in not spending unnecessarily but luckily we were.

    We realised that, because it calculated interest daily, that everything that went into the account reduced the mortgage, even our normal payday salaries. Thus, in those 'good old days' you were not penalised for overpaying but rewarded by lower interest costs.

    We threw every spare penny we had at the mortgage/current account including all our (then pitiful) savings and then redundancy payments and a small inheritance. Every penny paid back reduced the mortgage interest daily and the sum owed started to reduce at a visible rate. What we saved we ploughed back into reducing the mortgage further so it was a virtuous circle. We never gave up being disciplined and we were never tempted to spend on holidays, cars or 'stuff' because freedom was our true goal.

    At a couple of points we needed to up the money borrowed (children are very expensive and we had two!) but by then we knew we could plan to repay quickly in a disciplined way.

    What being on top of things has given us is choice and freedom. When my teaching job was threatening me with burnout and breakdown I was able to calculate that, if I took my pension early, the pension sum, coupled with much lower mortgage payments and a cessation of paying £800 a month to university accommodation costs for our last child, the amount left would only be £400 a month less than I was actually earning. In effect I was working full time as a teacher for £400 a month. I retired! Yippee!

    This is the sort of choice you will have if you keep chipping away at the mortgage. In fact I see from a recent post that you have already made such calculations as in one option you cited working for four days a week instead of five.

    It was interesting to see that for you saving into an actual penny jar rather than overspending for a £5 cashback amount worked for you. That was a useful insight. Sometimes control is better than a small amount of cash saved and I think you both made the right choice and learnt something.

    If I'd have any advice for a younger saver it is as follows:-
    -choose a partner with a similar attitude to money as you have
    -have long term and short term goals
    -monitor your finances daily and adjust accordingly
    -pay into a pension as early as you can
    -always be on the lookout for ways to cut costs: offers, discounts, vouchers, free competitions, knockdown stickers in supermarkets etc.
    -don't buy anything you don't need even if it looks like a bargain
    -enjoy the free pleasures of life: nature, reading, galleries, museums and sports, TV and other media, walks & cycling, friendship etc.

    To be honest, I don't think you need any advice as you are already doing most of this anyway. However, it is notable that you are not a mean or moneymad person as your kind posts about your sick friend showed. Also, on your very first page you say you want to be better off to help your parents to a nice life. That's balanced and creditable.

    Good luck with your goals. If only they taught this stuff in schools and everyone knew about it!
    • rasputin_thorpedo
    • By rasputin_thorpedo 7th Oct 16, 7:57 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Friday Morning Wibbles

    Teacher2, that is one of the nicest messages I have received. Thank you for taking the time and mindfulness to write that out. It's incredibly important to have an objective and set milestone goals along the way. And important to celebrate progress towards those milestones.

    When I got the flat I promised myself after years of restraining my spending to save for the deposit, that none of my friends were doing, this would be it, and I would dutifully pay the mortgage as planned by the bank and LIVE MY LIFE. Turns out I value overpaying more than I value boozing, wearing the latest labels, having a new phone every two years. The stressful part is watching other people glorifying these things so much that I want to shout to them - "there's a better alternative!". I guess everyone is different.

    Anyway, I am beaming this month after hitting my year end target at September payday. It isn't hitting the goal early, although that is great. It's getting back the feeling that I am the one in control.

    A £185k debt is mammoth and being single paying it I never considered would be an issue, but it turned into one for me straight away and I felt very exposed. What if my income stopped!? My mental health wavered, as I've written about before. I really feel I have knocked that on the head from a combination of a years experience and meeting my goal, boosting my confidence.

    Indeed, I am looking forward to 2017 which will be the first year I max out my OP allowance - then I will feel like I truly am doing everything I can

    ----------

    So I clicked a weird FaceBook ad survey link (I think it had Felix the cat food as a graphic) which promised £3 for completing. Did the survey then got told "thanks, we pay at the end of the month". I wrote it off completely as a con. Then yesterday I got an email from paypal saying On Device Research have paid you £3. So that's gone towards Project Thousand!

    ----------

    I went to the bar to see the guy. Looks nice! They're opening a smaller bar upstairs and it's a small Brighton style arty theatre in the evenings seating 40. Job is to bar-tend that at the back from a small bar two nights a week. Pay is fortnightly and each fortnight I would net pennies over £100. I quickly worked out that I could complete Project Thousand by mid January with this job. We left it that they would call me in for a trial shift, but that's a bit like hearing "I'll call you" at the end of a date...!

    ----------

    Free again this weekend, so will hopefully, finally, make it round to catching up on your diaries!

    Have a great Friday all!

    MvM x
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • rasputin_thorpedo
    • By rasputin_thorpedo 10th Oct 16, 7:51 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Still no word from the bar job so I messaged the guy again, trying really hard not to sound like a desperate lunatic.

    ----------

    Fun weekend, had a confusing coffee in town (ordered two black coffees to have in, waiter brought two black coffees to go and a latte in a coffee cup!?). Also went sloe picking with BF so we can make sloe gin. We cycled to a place in the country in which we were supposed to find bountiful fruits, and found a grand total of three sloes. Perhaps we were too late picking? Either way, we also found a great apple tree - we had to shake the apples down and they mostly bruised so they got juiced at home, and blackberries so if I do make gin then it will be hedgerow instead of sloe. That can be next weekends project.

    ----------

    Also, after my commuter bike got stolen from my back garden in the summer (later returned by my cop-friend from my triathlon club who while investigating a burglary noticed the offenders were riding my bike) the thief had stripped it of its lights. I purchased new lights - needed now the evenings are darker. Shelf price £24.99, scanned at £19.99.

    The thief got 18 months by the way for multiple offences - found that out last week.

    ----------

    18 days to payday, and a half day offsite this week and a full day offsite next week And a desk shuffle and a new started on my team this week which should make for an interesting week or two

    MvM
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • Karmacat
    • By Karmacat 10th Oct 16, 9:21 AM
    • 26,541 Posts
    • 140,119 Thanks
    Karmacat
    Sounds an interesting weekend, MvM!

    Sloes - they probably aren't quite ready yet, but any wild plants will vary in productivity from year to year, it just may not be a good year for sloes. I haven't checked yet - the sloes near me were all dug up a few years ago for a new housing estate but I know of quite a few trees near Wivelsfield station, and now that I'm retired and much healthier, I'll be checking them soon

    Have a good week!
    Retired August 2016

    Goal: earnings of £25k from new opportunities from September 2016 to December 2020 when my state pension kicks in.
    Currently: 86.53/25,000
    Save
    • rasputin_thorpedo
    • By rasputin_thorpedo 11th Oct 16, 7:20 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Hi Karma, I think we were a weekend late and the berries had been harvested or eaten by birds. Not to worry, the apples and juicing was just as fun and sloes can wait a year. Just weird that you cant find fresh sloes in supermarkets.

    ----------

    Just needed a little more patience - the bar manager wants me in for a trial shift Friday or Saturday so it is happening. I hope this works out for both parties.

    ----------

    Just want to check for anyone else who has an excel model - what do you use as your assumed inflation rates for salary and bills? I use 2%.

    Cheers!

    MvM
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • Teacher2
    • By Teacher2 12th Oct 16, 12:08 PM
    • 397 Posts
    • 2,039 Thanks
    Teacher2
    "A £185k debt is mammoth and being single paying it I never considered would be an issue, but it turned into one for me straight away and I felt very exposed. What if my income stopped!? My mental health wavered, as I've written about before. I really feel I have knocked that on the head from a combination of a years experience and meeting my goal, boosting my confidence."

    As you rightly say "a £185K debt is mammoth". However, I guess I would be teaching my grandmother to suck eggs to say that it is not just a debt but a loan secured on an appreciating asset. Your flat will be worth more than you paid for it already and, in a pinch, you could let it out and give someone else the chance to pay or help you pay your mortgage until you got back on your feet. It's a wise debt, unlike splurging on ephemera like 'stuff' which often only clutters your life and suffocates you.

    Your flat is in Brighton, too, which will always be desirable. Back when dinosaurs roamed the earth and I was doing my teacher training on the south coast Brighton was the destination of choice for my b/f (now DH of 37 years) and I for shopping and entertainment. My engagement ring was bought in the Lanes.

    I, too, have been out raiding the hedgerows and have a freezer drawer full of blackberries for crumbles. It's a beautiful October which makes it a pleasure to be out of doors.

    Good luck with the extra job, BTW!
    Last edited by Teacher2; 12-10-2016 at 12:12 PM.
    • rasputin_thorpedo
    • By rasputin_thorpedo 12th Oct 16, 10:51 PM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Woke up to the MSE newsletter telling me that T@lkT@lk prices were going up and the H@lifax bank reward was going from £5pcm to £3pcm.

    My budget can take the hit and I accept price increases but two in one morning was rubbish

    Good day today and team outing at work tomorrow

    MvM
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • Fletchasketch
    • By Fletchasketch 12th Oct 16, 11:25 PM
    • 329 Posts
    • 551 Thanks
    Fletchasketch
    Plus TSB going from 5% to 3%, sorry to be the bearer of bad news!
    Debt @0% Jan '16; £9162, Jun '16 £5845, Jul '16 £3824, Aug '16 £3105
    #C25K Week 8 run1
    Student loan finally cleared!
    • rasputin_thorpedo
    • By rasputin_thorpedo 13th Oct 16, 8:00 AM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Oh yes! I haven't had the TSB email yet but it looks like others have and it's going from 5% on £2k to 3% on £1.5k.

    Nobody has mentioned timescales yet. I wonder whether to just stick it all in the premium bonds pot, although this is around the 1% mark (not that it works on interest being a bond but you get the idea).

    MvM
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • zcrat41
    • By zcrat41 13th Oct 16, 9:10 AM
    • 1,400 Posts
    • 3,840 Thanks
    zcrat41
    My TSB email is from January 2017.


    Just in time for my regular saver to finish. Think I'll be moving!
    Started aiming for Mortgage Neutrality July 2016.
    Aug 2016 target - £277.30. Achieved so far £281.84
    Total saved since start: £458.97
    • rasputin_thorpedo
    • By rasputin_thorpedo 17th Oct 16, 9:05 PM
    • 323 Posts
    • 1,881 Thanks
    rasputin_thorpedo
    Hi guys!

    I got the TSB email today! Weird i got it so late but it's in.

    ----------

    So I had my first bar shift on Friday and... it was fantastic. It was easy, fun and interesting. I know going into things is novel and that effect wears, but for now I am just enjoying the moment. There's two other bar guys who work Fridays and Saturday too, so we'll be working together a lot. I got invited back to work Saturday night, and will have regular Fri & Sat shifts. I will net just over £200 a month. I haven't decided what to do with that just yet. Part of me wants to spend it, part of me wants to accelerate the mortgage plan EVEN FURTHER and part of me wants to put it into the Emergency Fund to raise it higher. I have reasons for all and reasons against all.

    Over the two nights, I got £15 in tips.

    And I got very tired the two following days from working late. It will be a good job for winter months.

    ----------

    Gonna check out some of your diaries now!

    MvM x
    May15 Mortgage - £185k | Dec16 - £162k | Dec17 - £142k | Dec18 - £120k | Dec19 - £97k | Dec20 - £73k | Dec21 - £46k | Dec22 - 18k | May23 - £0 Mortgage Free at 40 in May23!
    • Kittenkirst
    • By Kittenkirst 17th Oct 16, 9:55 PM
    • 834 Posts
    • 3,732 Thanks
    Kittenkirst
    Fab work on the bar job & the tips!!
    Emergency savings- £701.54 /£1000
    Mortgage Oct '16- £170.995 LTV- 90%
    2016 OP target- £14.58/ £150 -
    Mortgage end date- Nov '41

    NST: 42
    • giblet1979
    • By giblet1979 17th Oct 16, 10:32 PM
    • 846 Posts
    • 3,396 Thanks
    giblet1979
    Great news about the bar job, especially good to be enjoying it and making the extra money x
    Debt remaining:
    Mortgage - £122,780 (of £134,600)

    Work overpayment and home improvement loan paid back (£19200)


    • trix-a-belle
    • By trix-a-belle 17th Oct 16, 11:13 PM
    • 571 Posts
    • 2,395 Thanks
    trix-a-belle
    I also only got the TSB email today MvM, am still waiting on the Lloyds and Halifax formal notifications.
    Great news on the bar shifts, I seem to have ended up with 3 lodgers and a dog to add a little to the savings coffers.
    - Mortgage: £ 53000 0! Mortgage Free!
    - Student Loan: £ 7100 0!
    Swagbucks, Neobux, GiffGaff, Roamler, Qmee & Quidco; thank you MSE every little bit helps
    MFiT-T4
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