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    • Tropically
    • By Tropically 12th Sep 16, 9:56 PM
    • 40Posts
    • 106Thanks
    Getting rid of a London-sized Mortgage
    • #1
    • 12th Sep 16, 9:56 PM
    Getting rid of a London-sized Mortgage 12th Sep 16 at 9:56 PM

    I tried to look for other situations which were like mine but you all seem to have everything so under control. You are all very inspiring so I thought I would put up my story too.

    I bought a house in June with my partner for £425,000 (London) and our mortgage is £318,000. Our mortgage payments are about the same as we were paying in rent but we have over 3 times the space now. Yes this a huge mortgage, no, we don't make a lot but the time came for us to buy instead of rent.

    1. Call bank tomorrow and see if I can 'round up' our mortgage which will cut off 2 years from the term.
    2. Get £10,000 in savings again as an emergency fund before over paying mortgage - I don't have any money at all any more.
    3. Get in a tenant from November 1st and rent the second bedroom for hopefully £700/month and apply that as over payments.

    It would be amazing if we could pay off the mortgage 10 years early. I would be just over 40. I have a lovely spreadsheet which calculates all of this for me. If we were to only apply the extra rental money to the mortgage, we would be able to pay off 10 years early.
Page 2
    • EatingTheElephant
    • By EatingTheElephant 21st Sep 16, 6:58 AM
    • 547 Posts
    • 2,598 Thanks
    Sounds like you are on the right track to reduce your outgoings by identifying where it is all disappearing
    • Moneyfordreams
    • By Moneyfordreams 21st Sep 16, 9:21 AM
    • 575 Posts
    • 2,569 Thanks
    good on you for having all the information at hand.... it took years for my OH to stop spending, and he learnt the hard way...... the drip drip drip of information does eventually get through (then he can use it or ignore it)

    No spend October is on the cards for us too.... can't wait
    Mortgage Feb '13 £200000, end 2038. Aiming for before March 2025 (crunched to 2034)
    January 16 £182800 : minimum £360 OP but needs to be £600 to achieve 2025
    Current mortgage £169310
    Car loan finished oct 16
    h@lifax CC £5460 0% until May 2018.. will pay minimum for now, slow stooze
    • McTaggus
    • By McTaggus 21st Sep 16, 5:15 PM
    • 215 Posts
    • 239 Thanks
    Loving seeing another crazy South East mortgage on here - I was having a panic I was the only one daft enough to get myself into that much debt

    Mini-goals are definitely a great way forward... I set myself my OP per month goal (can you accrue in savings if you can't regularly OP?) to stick to, but its heavily linked to my "not so mini-mini goal" which is to at least to break out of the half of million of mortgage debt I'm now technically in, and into the four hundred bracket within the next 18 months if I can!

    Wishing you the very best with your journey! Have subscribed for motivation - when you're looking at such big sum, it can send you cross-eyed just trying to figure out how the hell to make an impact! Seems like you're well organised so far though - good luck!!!
    • Tropically
    • By Tropically 21st Sep 16, 10:37 PM
    • 40 Posts
    • 106 Thanks
    I wonder how much money in the world is stuck, unclaimed.

    I used to live in Canada but basically came home for Christmas and my job, which was reliant on science grants, didn't get renewed. I just called today to close the accounts after being away for over 6 years. I had over £300 in the account which had gone dormant. I have transferred it to the UK now. I also had, quite worrying in fact, an open credit card. Luckily the credit card was not compromised because I would never have noticed. They had a very old UK address. So, £300 of my hard earned money was laying stuck in a far off bank.

    Apparently, over £1 billion is stuck in various unclaimed premium bonds, savings accounts etc. in the UK.

    I also will be getting a refund on a bunch of oyster cards I have lying around. I need to take them to a tube first but hopefully I will get some refunded.

    Apparently there is £223 million on unused Oyster cards.

    Then, last but not least I went through my old currency from holidays. I had to thank my old self, somewhere in the past I had organised it neatly into US money, Euros, Canadian dollars and Others. I will keep the US, EU, and CAD separate but I am going to take my Other money to a machine called FourEx. You can dump in all your foreign money and get cash back in pounds. I am sure the exchange rate is not bank-perfect but they accept change and old coins like francs. I don't plan on going back to Kenya or Bali, so I may as well get some money in exchange. I plan on doing that tomorrow so I will let you know how much money I unlock.

    I am so surprised at how much of my own money has gotten lost, stuck. It must happen to so many people, if not everybody. I bet people have so much money lost in pension accounts at old jobs. I feel like I have made money, but I have really only reclaimed money I lost.
    • Tropically
    • By Tropically 27th Sep 16, 11:30 AM
    • 40 Posts
    • 106 Thanks
    My partner and I had a nice sit down and talked over everything. We have agreed to contribute more to our joint account (£1,150 each) which will cover mortgage, bills, £250 each month for emergencies and £500 overpayment. We need to set up the standing order overpayment. Our bank told me I couldn’t do it, so I filed a complaint. They are investigating the complaint. Their website says that we can make overpayments and cancel any time but the person on the phone says that we need to apply for a new mortgage to do so. We shall see what they say.

    If we could overpay by £500 each month, that would cut down our mortgage term by 8 years!

    We are also trying a no-spend! I have already been paid for the month so I have given my partner £100 cash and kept £100 cash. This needs to last us until the 9th October and then we get another £100 to last us to the 25th October. I have excluded travel and groceries from the supermarket, so not a true no-spend but we need to eat and get around. I will post our September outgoings when it is past the end of the month. I hope that we can do it.
    • Tropically
    • By Tropically 14th Oct 16, 12:44 PM
    • 40 Posts
    • 106 Thanks
    When we bought our house, we knew that we weren't going to get any appliances. The kitchen was there since they built the house. There was an ancient gas oven from the 70s and the people who lived there before didn't use it. They have a convection oven on the counter. We bought a fridge without a freezer when we first moved in, but since then have been living off of barbequed food (our first priority when we bought!). Now that it's cold, we've been microwaving a lot and luckily there are quite a few 'power-less' meals especially a meal plan by Thrifty Lesley which has been so helpful. I was stuck in a debate. I didn't like the kitchen, it had bright yellow walls, brown and yellow tiles on the ground and blue and yellow tiles behind the kitchen. All the appliances were small sized and I knew we couldn't live with a 0.4 m oven. We had the problem: do you buy appliances that don't match your usage but do fit in the cupboards? Or do you go for a whole new kitchen? We decided to go for a whole new kitchen. I hope it will help our budget out because we will be happier in a new kitchen than the old one which didn't match our style and had severe layout issues.

    I thought when we bought the house in June, we'd have the kitchen in July and everything would be fine. It's now October and the builders arrived yesterday! I'm very excited and it is incredible how much work they have done in a short time. They have stripped out everything and done much of the electrics. When we have a kitchen again, I will be so pleased to be able to cook. There is so much frugal meal planning that I have been unable to do because I didn't have a hob or a stove. No soups, no boiled eggs, no beans on toast!! Plus, it has been just too easy to order food when we don't have anything in the house. That will all change when we get our kitchen. I will be able to buy in bulk! We will be less tempted by take aways! We will be able to have guests over and save some of that huge entertainment budget!

    We had the money for a kitchen set aside when we put an offer in on the house, so it hasn't come from our normal savings.

    I have been able to agree with my boyfriend to do £500/month overpayments starting in November. This will come out of our regular budget and then I will still try to add to it. E.g. this month I sold some books online and got £60! That went to our joint saver and will be applied as an overpayment eventually. Unfortunately, our bank will not let us make overpayments under £500 and will not let us reduce the term. They will only reduce the monthly repayment. I have done the math and it makes a negligible difference at this stage.

    Also in November, we will try to take in a lodger!
    • misscousinitt
    • By misscousinitt 18th Oct 16, 3:52 PM
    • 3,297 Posts
    • 18,524 Thanks
    Hi there!

    Good luck with the kitchen - I hope it goes alot smoother than mine!!! I am sure it will.

    Looking back over your posts and that entertainment budget!! If you feel you can't restrict yourselves too much yet - just chop it in half! that way you are not depriving yourself and still saving a good chunk of money.

    You have to live! But £700 is ALOT on entertainment - I know you know that already. Balance is everything when you are in it for the long haul!

    Best of luck with it all.

    Mortgage Free x 1 03.11.2012 - House rented out Feb 2016
    Mortgage No 2: £99,895.82 (11.10.2016)
    OP's to Date £1500

    Renovation Fund:£944.75; Kitchen Fund (including re-wiring): £notalotleft; Roof Fund £5000.00
    Nectar Points Balance: £35.49
    • try harder
    • By try harder 24th Oct 16, 9:56 AM
    • 144 Posts
    • 359 Thanks
    try harder
    Great diary and well done at getting motivated at the start of your mortgage ,i will be following with interest.
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