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  • FIRST POST
    • Tropically
    • By Tropically 12th Sep 16, 9:56 PM
    • 158Posts
    • 432Thanks
    Tropically
    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
    Hello,

    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.

    Plan:
    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 6
    • michelle09
    • By michelle09 2nd Oct 17, 7:09 PM
    • 451 Posts
    • 1,804 Thanks
    michelle09
    I would put the 2k on, but that's because I have no control when it comes to hitting targets like that.

    Weddings are... eventful. In the end I got very little of what I wanted, but my parents paid for most of it. I figured even if I didn't take their money I wouldn't hear the end of what they wanted so at least we wouldn't be that much out of pocket. Although yours sound a little terrifying - would sitting down and having a conversation with them about it? Explain your concerns and see if they see sense?
    • Jessy103
    • By Jessy103 3rd Oct 17, 10:34 AM
    • 468 Posts
    • 1,981 Thanks
    Jessy103
    Oh tropically, what a dilemma with your parents and the wedding! At the end of the day you can't please everyone and just have to do what makes you and OH happy! Me and my DH had a small wedding which was at the registry office and then a nice meal at a local hotel/restaurant, I think there was 50 people there including us and that was enough for me! Good luck and I hope your parents are happy with whatever decision you make.
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount Oct 2017 - £61,990.00
    Overpayment Target for 2017 - £5,000 /£4,060.70
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79 July - £849.96 August - £255.11 September - £177.22 October - £381.61
    • Tropically
    • By Tropically 4th Oct 17, 8:54 AM
    • 158 Posts
    • 432 Thanks
    Tropically
    It is a dilemma. It is so strange because I have not had a fight or disagreement with my parents since I was a teenager, and I would normally say that they are incredible parents who have always treated me with love and respect. They have been a little bossy, but only as a minor flaw! I am so baffled by the way they are feeling about this wedding.

    I have other exciting news. I have discovered exactly why our bank recalculates our mortgage payments after each overpayment. An overpayment reduces the principal, and interest is charged on the principal. If our monthly payment remains the same, but the amount of interest due goes up, the rate that we pay our principal goes up.

    In math terms:

    MortgageRepayment = Interest + PaymentToPrincipal

    If interest due goes down, then payment to principal goes up, and next month the interest is down further, and the payment to principal goes up, and you get that snowball effect which is so wonderful.

    If they reduce the mortgage repayment, they reduce the snowball effect and keep the principal higher, and so more interest is due over time. This might be obvious to everyone but I have just had a major light bulb moment about how they calculate it.

    They want to make about £440 from me every month. They don't want me to snowball, they want me to pay off my principal slower, so they reduce my monthly payment so that less goes to the principal!

    I managed to update my spreadsheet so that after every overpayment, my monthly payments are recalculated based on my current remaining term, and that means that my calculations match the bank exactly. So much more motivation when I know precisely what is going on.

    Based on Michelle's advice, WE MADE A £2K OP!!! Based on my new mortgage calc spreadsheet our mortgage is now £299,500!!!!!

    NO LONGER in the THREE HUNDRED THOUSANDS!!
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 13th Oct 17, 4:24 PM
    • 158 Posts
    • 432 Thanks
    Tropically
    OMG WHAT. I cannot even believe it.

    I got a letter in the post from the bank.

    Saying balance £300,400.

    I think I must have my calculations a month behind? Devastating news!!! It will definitely be below £300,000 after our next payment but they sure like to confuse me.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • daisy 1571
    • By daisy 1571 13th Oct 17, 9:07 PM
    • 169 Posts
    • 2,073 Thanks
    daisy 1571
    OMG WHAT. I cannot even believe it.

    I got a letter in the post from the bank.

    Saying balance £300,400.

    I think I must have my calculations a month behind? Devastating news!!! It will definitely be below £300,000 after our next payment but they sure like to confuse me.
    Originally posted by Tropically
    That's sooooo annoying to see it back in the 3's. It may well be your calcs are a month behind but if you rationalise the spreadsheet back to the figure in the letter then you should be square going forward ?

    Yeah, they will be keeping the term the same so any overpayment will mean they have to recalculate the monthly amount so you still pay it off at the original end date.

    Re the wedding I have little to add other than: don't fall out with them over this - a wedding is half a day, the important thing is you both do the actual "I do" bit and then you have the rest of your lives for the marriage which is far more important in my view. (If poss, get them to scale it back tho as what a waste of so much money when you are desperately trying to reduce in other areas, it would be sooooo much better if they kept to your small wedding and gave you the rest of the money they were happy to spend so you could use it on something more long lasting than feeding loads of people it sounds like you guys barely know. No offence, just my thoughts on weddings, it's a huge market now but a fancy-shmancy-doves-out-the-wedding-cake-carpets-matching-the-bridesmaids-eyes-day doesn't give any guarantees of future happiness, maybe a couple of conversations will bring them more round to your pov ?)

    Well done on getting this far with your mortgage tropically
    "Never save something for a special occasion. Every day in your life is a special occasion" Take hold of every moment by anon

    The difference between what you were yesterday and what you will be tomorrow is what you do today
    • katiegizmo
    • By katiegizmo 18th Oct 17, 12:41 PM
    • 176 Posts
    • 1,465 Thanks
    katiegizmo
    I'm glad I found this post, we are edge of Greater London and I always feel my mortgage is huuuuuuge!!!
    You sound very much like me 10 years ago, we gave the mortgage a good bashing and got a nice bunch of equity when we moved a few months ago. Now things are very different - children and no longer having two people in full time jobs means our overpayments seem tiny compared to before but I am so glad we overpaid nicely when we could. Although our mortgage feels big we are in a great position compared to how it could be.
    you're doing great
    MFW 2015 so far..... £1808.70
    2014 - £1451 2013 - £1600 2012 - £4145 2011 - £5715 2010 - £3258
    Big new mortgage from 2017

    • Tropically
    • By Tropically 26th Oct 17, 8:34 PM
    • 158 Posts
    • 432 Thanks
    Tropically
    Thanks for checking in Daisy and Katie.

    We made a £1000 OP yesterday! And I have worked it all out with my parents, which is great. My mum and I had a heart to heart, and I made a Whatsapp group with her and my sister (my maid of honour and only bridesmaid). It's helpful to share quick thoughts and silly messages. Our friend made our invitations as well, so we just needed to print them, and they cost £40! Woo!! We are picking my dress just after Christmas, so I might not be able to eat to my hearts content on the 28th. Christmas Day and Boxing Day are uncontested!! My parents really see it as a day of coming together and celebration so they would not be persuaded if I wanted to spend it on something else!

    Participated in some market research yesterday for £50. Or at least, I went to do so. They had overbooked the session so I got the money without doing any work!! Woo.

    We still have our housemate, paying £600 per month to us. He was originally going to move out in October but now he is staying to December. He is the ideal housemate 100% so is more than welcome.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 31st Oct 17, 8:45 AM
    • 158 Posts
    • 432 Thanks
    Tropically
    Our shower hasn't delivered consistent hot water since we moved in. It always fluctuates between hot and cold, and there would be times when I would get caught huddled under the tap out of the stream until it got hot again. Since we have our lodger, and we had this issue, I thought I would call a boiler engineer to look at the heat exchanger and to do the safety certificate. He came last Thursday and then called me over.

    He said there was a hole in the heat exchanger, and he pointed to a droplet of water. He said that he had to isolate the boiler and turn off our heating and hot water. He needed to order the part, but of course it's an unusual part and it would not arrive until today. My boyfriend is home now, hopefully it gets fixed. He warned me that this would happen, and that it's impossible for a boiler bill to be less than £500. This will be £700 all in. Thank goodness for the emergency fund!!

    I have been having cold showers, while crying, each day since. As I am a MSE, not having heating has been fine - we haven't turned it on yet. But those cold showers... ick.... To cheer myself up, I have been getting a posh coffee in the morning. Hopefully tonight when I get home I can have a 3 minute shower with hot water non-stop.

    I had a major mystery shopping win. I was given an allowance of £150 to go review a party!!! How incredible is that! Go to a party - have a brilliant time - have everything paid for!! There was an alcohol limit, so didn't manage to even spend up to the £150.
    I also got a raise! A likkle raise, but still appreciated. It will be about £100 per month.
    Last edited by Tropically; 31-10-2017 at 8:46 AM. Reason: typo
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 31st Oct 17, 6:50 PM
    • 158 Posts
    • 432 Thanks
    Tropically
    I said F-it and OP'd another £772 to meet my MFW 2017 goal!

    Got a letter today dated 26 October which says that we are down to £299434.14!!
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • SWSEGirl
    • By SWSEGirl 1st Nov 17, 9:28 AM
    • 48 Posts
    • 88 Thanks
    SWSEGirl
    Congratulations on being under £300k - what an achievement! We're a way behind you, but can't wait to be in the 200's, it feels so much less scary!

    Also - an extra £100 a month will really help, I always think of those raises as my travel being paid or the Christmas bill being covered - it all adds up!

    Really enjoying your thread.
    Original Mortgage as of September 2016 = £322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = £316,649
    Emergency Savings = £9,661 £10,000 £10,500 £11,200
    Mortgage OP's Total = £1500 £2200 £2900
    • chelseablue
    • By chelseablue 1st Nov 17, 9:30 AM
    • 2,297 Posts
    • 2,823 Thanks
    chelseablue
    Yay well done!


    We're currently at £220,000 so first mini goal is getting under 200k, but cant really overpay until 2019 when wedding, car purchase and holiday to Australia are done.
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • Tropically
    • By Tropically 7th Nov 17, 7:19 PM
    • 158 Posts
    • 432 Thanks
    Tropically
    Thanks for stopping by SWSEGirl and Chelsea! I got a letter today which says £297808!! Woo! So in a little over a year and a half, we have paid £17,192 - pretty good!
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • michelle09
    • By michelle09 8th Nov 17, 7:08 PM
    • 451 Posts
    • 1,804 Thanks
    michelle09
    Wow! But hooray for being under 300k, that is great. Mystery shopping seems to be something to investigate!
    • erin_transport
    • By erin_transport 8th Nov 17, 11:11 PM
    • 345 Posts
    • 1,626 Thanks
    erin_transport
    Well done!! Excellent progress.
    On a mission!
    • McTaggus
    • By McTaggus 10th Nov 17, 4:24 PM
    • 233 Posts
    • 310 Thanks
    McTaggus
    Congrats on getting under the 300K mark!!! Must be an amazing feeling!! Our first shift into the new 000'000 bracket happens next month, and am buying a naughty bottle of fizz to celebrate with the hubby!!! Hope you also celebrated yours - it's a great achievement!
    • Tropically
    • By Tropically 17th Nov 17, 8:36 AM
    • 158 Posts
    • 432 Thanks
    Tropically
    Opened my bank account to find.... £7.65 in it.

    Yikes.

    I have been incredible busy at work, working 12 hour days. It means that I have been buying breakfast and lunch out. It's cost about £15 a day for the last two weeks. Really kills the budget. When you only have two hours at home, it's hard to meal prep and make your breakfast and lunch for the next day. Plus I was distracted on day and left a delicious mac and cheese I made on the train.

    All is not lost - I have some mystery shopping credit of £100 which is due today, and I get paid again on the 25th, really not so far away.

    Does anyone have ideas on how to work around these majorly busy periods at work, when you can't stop to do meal prep?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • FloppyDisk
    • By FloppyDisk 17th Nov 17, 10:03 AM
    • 507 Posts
    • 3,715 Thanks
    FloppyDisk
    What about the fresh filled pasta things? They do for lunches for me when I have a busy week, just a few mins on the boil while I'm making tea in a flask with a dollop of pasta sauce from a jar and then re-heat them at lunch.
    July 2012 £139,642 / Dec 2017 £111,214
    EF - £20,156/£25,000
    • fiona100
    • By fiona100 17th Nov 17, 1:19 PM
    • 22 Posts
    • 46 Thanks
    fiona100
    I try and get round it by making pasties (leftovers in them, not just traditional fillings) at the weekend, and stacking them in the freezer.


    I don't manage it as much as I would wish. Which reminds me
    • mfmaybe
    • By mfmaybe 17th Nov 17, 6:39 PM
    • 1,002 Posts
    • 3,200 Thanks
    mfmaybe
    I'm no expert when it comes to lunch but breakfast I do this:

    I have the sistema breakfast pot. It has two "layers". In the bottom I put granola/muesli type thing, usually whatever I've bought on offer. In the top I put yoghurt. At work, combine and eat. It takes less than half a minute to prepare. You could also do overnight oats which would be cheaper I reckon. I sometimes use the same pot and take uncooked porridge in (ie oats with milk poured over, not using the top layer) and microwave at work. This is cheaper than granola, but for me less easy because in our huge office the microwave is miles away from my desk!
    Create credit card buffer fund £12.93/£1000 1.4%paid. Pay by Christmas 17

    Other debts paid since 1/1/14: £17,005
    • Scrimps
    • By Scrimps 17th Nov 17, 7:33 PM
    • 186 Posts
    • 815 Thanks
    Scrimps
    What's your usual lunch of choice to take in?
    I take in meals that I microwave so batch cooking is the way forward for me, freeze them and then take one out of the freezer each morning.
    If it were sandwiches, you could make them a few days ahead, same with salad also, if you don't want it all combined it's possible to just prepare the components and then throw it all into one tub on the day/night before.
    My DH usually makes things the night before but it means it has to be done daily....do 3 days on worth Sunday and 2 days worth on Friday.
    To be honest, when I did 12 hour desk days I usually grabbed breakfast and lunch from the shop.....I think that is where a lot of my money disappeared though.
    MFW: May 17: £143,000 o/s. Oct 17: £135,090 o/s. End Nov:£133,588
    OP Target £12k by end May 18. As @ end Nov 17: £6,830
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