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  • FIRST POST
    • rasputin_thorpedo
    • By rasputin_thorpedo 1st Mar 16, 7:18 PM
    • 390Posts
    • 2,670Thanks
    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

    Archive:
    Original Targets
    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!
    Last edited by rasputin_thorpedo; 17-12-2016 at 12:09 PM.
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Page 29
    • rasputin_thorpedo
    • By rasputin_thorpedo 13th Jul 17, 8:57 PM
    • 390 Posts
    • 2,670 Thanks
    rasputin_thorpedo
    Hi all,

    Firstly, THANK YOU to everyone who read my last post and to those who left a comment. I'm not ashamed of leaving my May23 goal behind, but as with anything you work towards it's still there in my DNA. It's okay though, and we move onwards

    A handful of you commented on having £300 (£400 once I've paid off a loan I took out earlier this year to leverage my mortgages LTV and secure a fantastic rate) a week pocket money. I can freely say that it hasn't been hard to spend it this month, if anything my mindset has been TO spend it. I have, in these first two weeks of July, re-acquainted with friends, taken the friends who helped me out for dinner, beers and/or experiences. I have made myself splash out on some home stuff, new clothes, tri kit.

    And the result?

    It's nice. But it's not life changing. Other than treating my closest friends, it's been fun to pass the time but that's all. Stuff I buy just clogs the flat up and I have to get ride of other stuff in return to keep space free. Beers are fun at the time, and I had forgotten the ways of the 'pub friend' who is always there when it's my round and never seems to be theirs...

    The best thing I have done this month is visit the Escape Rooms in Brighton - if anyone has not heard of these, you are locked in a room for 1 hour with one starter clue and a series of tasks to work out/complete/solve etc - these have been ABSOLUTELY fantastic.

    So I resolve that while I will be a lot more flexible with the spending, it certainly won't be squandered. I will spend on experiences, and the odd job at home - if there's cash left, it goes into a holding account until I decide to put more towards the Loan (taken out to lower the mortgage LTV), £10k Premium Bonds goal, Mortgage or something else.

    This month I reckon I will have £200 spare as it is payday in two weeks and I don't think I can go out and spend all the cash I have allocated to myself as pocket money - NOT a gloating comment, I am just learning how to manage all this...

    SSS - I have let lunch cash go this month, and have been back on it already tonight making meals for tomorrow and preparing a shopping list for Saturday. The waters have calmed and I've got going out every night out of my system, back to meal prep Upside of that is it was good to have a reminder how piddly lunch portion sizes are and how much they are. £7.20 for a chicken burrito!? That can make me three BIG lunches from home.

    Haha, I already feel like my old self again.

    Frugal wins this fortnight:
    - First overpayments on the loan were received by loan company Because they added interest up-front every payment I make gets extra - e.g. I pay £100, they deduct £110 or whatever number to account for the interest they shouldn't have charged. Fun but keeping this at round £100's will now be impossible :'(
    - Have set up a new sinking fund for the lease extension on my flat. I own the freehold too, so that won't be legally problematic - I just know that I have to renew the lease before 2050, so I have set up a new e-savings account and a direct debit for £5 a month so when I get closer, that will be covered (even if partly)
    - I've also considered setting up similar sinking funds for the big things in life that WILL go wrong for me, these things being bike sinking fund (it will get stolen), phone sinking fund (it will get lost/smashed/stolen/lost), laptop sinking fund, holiday sinking fund (I already do this but it will move banks), is there anything else to consider here? I don't have a car. Maybe the boiler? I'm not sure here - I have a £1k Emergency Fund in place, and I am saving my £10k. Ugh, over analysing again. Just the Lease Extension fund needed for now... let's get the loan paid off and the £10k storm fund covered first

    That's everything that's in my head for now. I have a few things to look forward to in the first couple of weeks in August: Brighton Pride (PET SHOP BOYS LIVE!), A Midsummer Nights Dream and Fiddler on the Roof. But the next two weeks should be just what I need - peace and quiet.

    Early bed tonight The house is cleaned and the washing machine is nearly done

    MvM x
    NEW SIGNATURE COMING SOON
    • Busy Mee1
    • By Busy Mee1 14th Jul 17, 7:16 AM
    • 340 Posts
    • 1,173 Thanks
    Busy Mee1
    Hi MtM I have been reading along with interest and it seems to me that you have developed a really healthy approach to your MF journey. I think "going hardcore " as you did initially has been really helpful in giving you the knowledge of what matters to you in terms of spending and I think what you have discovered is that being savvy with money gives you choices. Already you have decided that although you have £400 "spending money" that it is a waste buying lunches, because it is expensive and you just don't get the quantity and quality you get if you make it yourself. I think this journey really helps us to focus on what we want to spend our money on and what is simply a waste of money.
    My approach it to try and have balance. We don't waste money, we try and save as much money as we can for our retirement (which is looming for OH) but we do spend money on the stuff that matters to us, family and travelling. I didn't have the opportunity to travel when I was young ( married at 19, 15% mortgage interest rates and then kids ) and therefore I feel like I need to do it now while we are still fit and able. If I was in your shoes that is what I would be doing with my spare money, I would be trying to travel and get as many fantastic experiences as I can. I can honestly say that I have never felt like any money spent on travel has been a waste, but I know this might not be for everyone. You are already finding out where you want to spend your money and where you don't .

    Best of luck with it all, I look forward to reading about what you get up to : )
    • EatingTheElephant
    • By EatingTheElephant 14th Jul 17, 7:17 AM
    • 1,081 Posts
    • 5,790 Thanks
    EatingTheElephant
    Great to see you back, I've just caught up with your recent posts. Fantastic work on getting the mortgage rate down.

    I'm definitely with you on the whole experiences vs stuff thing and I think money spent on experiences will be memories banked for life.

    Good luck with your new goals, which I am sure you will smash.
    • shangaijimmy
    • By shangaijimmy 14th Jul 17, 7:31 AM
    • 2,172 Posts
    • 9,793 Thanks
    shangaijimmy
    You'll get the balance just right. ~Think of it in terms of percentages. 33% towards debt, 33% towards living costs, 33% towards savings/retirement (i split this block to 15% retirement and 18% cars/holidays/kids university etc...). This may be a method that works for you.
    MFW: Turning June 2036 into March 2023... 29//120 Payments Challenge, Diary Reduction £30,703.25
    Aug 2009: £163,051 // Current: £105,296.75 // Avg Daily Interest £4.73
    MFiT-T4 #8 - 47.86% of £41,000
    • Mortgagefreeby50
    • By Mortgagefreeby50 14th Jul 17, 7:42 AM
    • 497 Posts
    • 1,903 Thanks
    Mortgagefreeby50
    Great to see you posting again! I'm sorry that the relationship didn't work out, definitely his loss. I liked the checklist of financial things to get in order, I have taken a screenshot and will get planning. It does worry me that we don't really have any savings. Assets, yes, cash savings, no.

    Keep posting, your enthusiasm is infectious!
    Slow progress is better than no progress.
    • museumworker
    • By museumworker 15th Jul 17, 9:54 AM
    • 1,871 Posts
    • 10,754 Thanks
    museumworker
    It's good to take a break from MSE ways sometimes, and check whether we need to adjust our money mindset. Experiences, family time and travel are very important to me. I count eating out as an experience only if it's something I really enjoy, rather than just needing to eat because I'm hungry! Sounds like you have a lovely August planned, enjoy!
    Mortgage 16/03/2011: £190K 01/01/2017: £107,729.65 01/07/2017: £95,979.89
    OPs 2011-2016 = £45K 2017 OPs = £9250.20
    • Yaz_2016
    • By Yaz_2016 22nd Jul 17, 9:27 PM
    • 21 Posts
    • 94 Thanks
    Yaz_2016
    Miss you mvm. Please pass by often x
    • rasputin_thorpedo
    • By rasputin_thorpedo 31st Jul 17, 8:27 AM
    • 390 Posts
    • 2,670 Thanks
    rasputin_thorpedo
    Hi guys, I am not going anywhere, promise!

    Ironman is in 3 weeks, yesterday I cycled 100 miles with my club as some final prep

    This weekend coming is Brighton Pride, I have a friend down for that and, THANK THE LORD, I not only won free tickets for it, I won free VIP tickets (free booze, free food, free entry, great seats for the Pet Shop Boys!). So that's this weekend sorted - of course, all that on Saturday comes after a trip to kent at 6am to swim 4 kilometres. Ironman.

    Then also this week I have my best friend moving in with me for ten days because she is moving north to be with her fella, has moved out of her place yesterday and doesn't finish her job for ten more days - so that's going to be going on in the background too.

    It's great to be there for friends, right?

    I guess this weeks frugal win was getting free pride tickets from work and winning the VIP competition (name as many songs with the word LOVE (only L.O.V.E., no variations) in the title as you can in two minutes). Most people got 2-5, i got 8 Seems easy? try it on your family and see how many they get!

    Also i leant my spare road bike to a mate of mine so he could come on the 100 miler yesterday, in gratitude he got the food in at the stops we did. I didn't ask him to do that, he offered, but yeah I took him up on it.

    Got a shower shelf I've been needing for ages, put it up and was really happy with it. Until day 2 when it promptly fell down. Booooooo. It's only adhesive, but still, I can't stand it when companies sell stuff that just doesn't blimmin' work!!!

    ----------

    Food budget has been going to plan. This month has my trip to Copenhagen for Ironman, so i reckon i might be able to put £100 extra away towards loan/sinking funds. Will see in time.

    ----------

    October annual leave booked - I'm heading out to a silent retreat - effectively it's a buddhist retreat where you cannot speak or make eye contact for 10 days. You're fed and the only tasks are about 8 hours of meditation today. I'm always into the extreme stuff, so this will be a new challenge for me. I haven't told anyone in real life about this yet because I don't want and preconceptions or judgement, I am really looking forward to it.

    ----------

    Hope everyone is good - I need to update my signature to reflect current goals!!!

    MvM x
    NEW SIGNATURE COMING SOON
    • moneymanager
    • By moneymanager 31st Jul 17, 9:31 AM
    • 328 Posts
    • 1,378 Thanks
    moneymanager
    Hi MvM

    I have been lurking the background with your diary. Gosh doing an Ironman? I am just struggling to get the miles in my legs for a half marathon in 2 weeks.

    Well done on getting the free tickets for pride. I am sure you are going to enjoy it especially knowing you didn't pay for tickets.
    SPC10 #283: £79.96/£150 | £2 #58 | 50p #27 | 20p #35 | ROADKILL: £0.05
    2017: TESCO CHRISTMAS SAVER: £90/£200 TESCOS VOUCHERS: £29 BONUS: £3 TOTAL £122
    Total Debt: £7,518.20/£419.70 = 100%/5.58% | Mortgage £61,490.79/£61,088.86 | Car Loan: £
    My Money Managing Ways
    • Lomcevak
    • By Lomcevak 31st Jul 17, 5:54 PM
    • 646 Posts
    • 3,939 Thanks
    Lomcevak

    Food budget has been going to plan. This month has my trip to Copenhagen for Ironman, so i reckon i might be able to put £100 extra away towards loan/sinking funds. Will see in time.
    Originally posted by rasputin_thorpedo
    Enjoy Copenhagen, it's a lovely city so hopefully you have a little time to enjoy it before the event - a couple of years ago I flew back from Copenhagen the day after the Ironman and was sitting next to one of the competitors on the flight home, spent the whole time talking about the training. I'm an exercise geek, so was fascinating. I can do the distances for all three disciplines individually, but it's an amazing achievement to do in a single event. Can't imagine starting a marathon having already been on the go for seven or eight hours.

    Good luck!
    MFiT-T4#126, £135k to 60k: £37,081/£75,000(49.45%), 2017 MFW#11 £4,800/£10,000 (48.00%)
    £30k-in-’17#56 £21,090.46/£30,000 (70.30%)
    • lavinia21
    • By lavinia21 6th Aug 17, 9:30 PM
    • 274 Posts
    • 1,971 Thanks
    lavinia21
    Wow mvm the silent retreat sounds hardcore but I bet it will be enlighing to say the least I bet you will learn so much about yourself. Good on you.
    Positivity is the key there is a reason why life happens. Find your rainbow and ride it.
    • rasputin_thorpedo
    • By rasputin_thorpedo 8th Aug 17, 7:08 PM
    • 390 Posts
    • 2,670 Thanks
    rasputin_thorpedo
    Hi guys, thanks for your comments recently

    As predicted, the last week passed in a blink. Brighton Pride was FANTASTIC. As before, I had won VIP tickets which was incredible luck that i don't normally have in life, and I made the most of them. A bottle of champagne (proper stuff), no toilet queues and a lunch included in the VIP tent, I was there from 11am to 11pm and spent £0 of my £100 budget. WIN! To be fair, my friends I gave free entry to also got me drinks in, so everything evened out I guess and I probably have some favours in the bank still Pet Shop Boys were amazing live, and to be so close to the stage was just great.

    With that cash saved I've gotten my train tickets for the silent retreat in October now, in case fares go up.

    ----------

    This week I've had my best friend move in with me before she heads off to live in Nottingham. She's taking me out for dinner on Thursday which is good. I've had friends stay before, but never for longer than two nights. I was worried the flat would be cramped and it can be, but we're coping fine It's good to be there for a friend.

    ----------

    Generally this month then I currently have enough cash in my pocket money account for food for the rest of the month, I have stuff already booked for each August weekend and it's all pre paid.

    I have £250 leftover, which I am tempted to pay towards into the loan/sinking funds (not the mortgage, this is still being transferred over in the remortgage so will complicate) but I will wait until I am back from Copenhagen before I do that.

    ----------

    Otherwise, I am currently holding back from making overpayments until the remortgage has finalised. Once I know where it lands I will redo my signature and targets for the loan repayment, emergency fund and mortgage

    Gonna catch up on some diaries now.

    MvM x
    NEW SIGNATURE COMING SOON
    • apple muncher
    • By apple muncher 8th Aug 17, 8:26 PM
    • 6,171 Posts
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    apple muncher
    Just wanted to say that we are now in the situation where our combined income is the same as the amount I used to overpay the mortgage by. However, as an astute friend pointed out, we do not have to fret about paying the mortgage because we paid so much off it when we could. I guess that hindsight has allowed me to see that I did a very MMM thing, doing something that my future self would thank me for. Likewise, you have paid your mortgage down a lot and sorted out your finances, and your future self will be very pleased withwhat you have done.

    Go you MvM!
    NST SS #10; NSD 6; Ex 6; craft 150; remove 510
    2017 MFW#63 Pay off: £2239/£4050; 2
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    Mortgage £24,831 (01/14: £78,201; 01/15: £59,629; 01/16: 39,915; 01/17: 27,295) MFWDate Dec 2018
    • rasputin_thorpedo
    • By rasputin_thorpedo 10th Aug 17, 4:19 PM
    • 390 Posts
    • 2,670 Thanks
    rasputin_thorpedo
    Yeah, it's REALLY taken the stress off, Apple Muncher.


    When remortgage has gone through mortgage will go from £850 to £700 a month, £200 saving from the new interest rate and £50 from having overpaid so much (would have been more but also reduced the term )


    I am thanking myself every day!


    Still work to do though. I want to get the loan I took out to OP the mortgage and reach the LTV threshold for the lower rate paid off as soon as I reasonably can then top up my emergency fund to £10k - currently at £5,400.


    After that - who knows - living combined with mortgage OPs I guess


    MvM
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