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  • FIRST POST
    • PusscatT
    • By PusscatT 16th Oct 16, 2:15 PM
    • 34Posts
    • 130Thanks
    PusscatT
    It's a sprint not a marathon!
    • #1
    • 16th Oct 16, 2:15 PM
    It's a sprint not a marathon! 16th Oct 16 at 2:15 PM
    So, this is my journey to paying off one of my mortgages (!) in 4 years. For me it is a sprint, as this mortgage is a buy-to-let and, as a higher rate taxpayer, I will be hit hard by the tax changes coming next April. Here is a bit about me / us and the grand plan...

    I work full-time and have a home I live in with the family and a cottage that is rented out. Mortgage info is as follows:

    Main Home
    Value: Approx £375,000
    Mortgage: £202,000
    Mortgage rate: Offset lifetime tracker 0.6% above BoE base rate so currently 0.85%.
    Payment type: Repayment (until 2032)
    Monthly payment: £996
    Overpayments: Unlimited, no penalties

    BTL Cottage
    Value: Approx £215,000
    Mortgage: £134,400
    Mortgage rate: 3.09% fixed for 5 years until 2021.
    Payment type: Interest only on 32 year term.
    Monthly payment: £346
    Rental income: £800 pcm
    Overpayments: Unlimited, no penalties

    With the interest rates on savings now pitiful and such a cheap mortgage deal on our main home, we have decided to throw as much money as possible at the BTL in order to have it paid off completely by the end of 2020.
    As I'm the money person in our house, this will be my story I guess, although I won't be able to do this on my own! I look forward to sharing my journey with anyone interested enough to read it.

    Pusscat.
    Save
    Save
    Save
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
Page 1
    • Moneyfordreams
    • By Moneyfordreams 16th Oct 16, 3:03 PM
    • 826 Posts
    • 3,942 Thanks
    Moneyfordreams
    • #2
    • 16th Oct 16, 3:03 PM
    • #2
    • 16th Oct 16, 3:03 PM
    Welcome
    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 £161400
    h@lifax CC £4700 0% until May 2018.. will pay minimum for now, slow stooze
    xmas, chairs, hoover, computer and holiday [STRIKE}clothes[STRIKE] DD1 cc
    • PusscatT
    • By PusscatT 16th Oct 16, 4:02 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    • #3
    • 16th Oct 16, 4:02 PM
    • #3
    • 16th Oct 16, 4:02 PM
    Thanks Moneyfordreams! I've been a lurker for a long time and thought I'd better bite the bullet and commit it to the ether so I can't make excuses for not getting on with getting mortgage free...
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • Katzen
    • By Katzen 16th Oct 16, 6:01 PM
    • 530 Posts
    • 1,687 Thanks
    Katzen
    • #4
    • 16th Oct 16, 6:01 PM
    • #4
    • 16th Oct 16, 6:01 PM
    Hello!
    Do love a new diary so I shall be settling in to see how you get on. Interested to hear what your plan is...
    • try harder
    • By try harder 17th Oct 16, 5:04 AM
    • 430 Posts
    • 1,316 Thanks
    try harder
    • #5
    • 17th Oct 16, 5:04 AM
    • #5
    • 17th Oct 16, 5:04 AM
    Hi ,looking forward to following your journey;and welcome on board.
    • Tropically
    • By Tropically 17th Oct 16, 10:35 AM
    • 105 Posts
    • 291 Thanks
    Tropically
    • #6
    • 17th Oct 16, 10:35 AM
    • #6
    • 17th Oct 16, 10:35 AM
    Welcome and good luck!
    • PusscatT
    • By PusscatT 22nd Oct 16, 2:16 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    • #7
    • 22nd Oct 16, 2:16 PM
    This week's progress....
    • #7
    • 22nd Oct 16, 2:16 PM
    Thanks for the welcome all!
    Well, this week I have paid another £2k off the BTL mortgage and got a letter from the lender saying the balance is now at £130,899.18.
    However, I forgot to tell them to keep the repayments the same so the monthly mortgage payment has dropped. I don't know about anyone else but ringing the lender and getting through a million security questions isn't high on my 'enjoy doing' list. It's positively painful but not something I can do online unfortunately.

    I'm really annoyed with myself at having to spend out £60 repairing a wheel after I misjudged where the kerb was (oops), that's nearly a week's food shopping!

    It's only just over a week until payday (hurray!) and I can see what's spare to add into the mortgage next month. However, the builders are in at home and we're away for the Halloween weekend so too much spending going on and not enough saving. I am trying though. I've done packed lunches for work all week, reduced travel to a minimum and switched both the broadband and utilities at home to save some cash. Haven't been anywhere other than work and home though, so no social life to speak of.

    How are you all doing?
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 22nd Oct 16, 2:48 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    • #8
    • 22nd Oct 16, 2:48 PM
    • #8
    • 22nd Oct 16, 2:48 PM
    Good old moneysavingexpert! I switched the broadband and gas/electric a couple of weeks back but had forgotten the broadband had a cashback deal until I read the weekly email today. Claim submitted - £100 prepaid card and £50 cheque coming which will really help with the overpayments.
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • Jessy103
    • By Jessy103 22nd Oct 16, 4:10 PM
    • 273 Posts
    • 968 Thanks
    Jessy103
    • #9
    • 22nd Oct 16, 4:10 PM
    • #9
    • 22nd Oct 16, 4:10 PM
    Well done on your progress so far and the best of luck with your MF journey! I have subscribed so will be willing you on!
    Jess x
    • giblet1979
    • By giblet1979 23rd Oct 16, 7:00 AM
    • 861 Posts
    • 3,449 Thanks
    giblet1979
    Welcome puss. Sounds like you've got a great plan and I'll look forward to seeing your progress
    Gib x
    Debt remaining:
    Mortgage - £117,759 (£134,600, Nov 2013)

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


    • Katzen
    • By Katzen 23rd Oct 16, 9:22 AM
    • 530 Posts
    • 1,687 Thanks
    Katzen
    Morning Puss, does it make much difference if the monthly payment comes down? Does it not mean that you just have to manually transfer the difference with other OPs? Or are you wanting them to reduce the term instead?
    • PusscatT
    • By PusscatT 27th Oct 16, 12:53 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    It doesn't really make a difference, other than it means the lender takes a small overpayment automatically so it nibbles away at the total without me having to remember to do it!

    It's been quite a good week, other than paying the builders (ouch) and I scored a small victory at Boots! Went in to buy a tube of Burts Bees lip care which is £3.99 (but lasts forever, well until I lose it) but then found a gift pack of 4 different flavours on sale for £8.66. So, half price! And this stuff goes on and on so I won't have to buy any more for another year. It's a small thing but it made me happy.

    Hoping to get my self assessment for 2015/16 done next weekend as I know I'm due some money back from HMRC. Need a holiday before tackling that!

    Pusscat
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 13th Nov 16, 1:19 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    So, another week another dollar! Had a quiet work week, staying local which meant no filling up the car (hurrah!) and a £60 saving. Paid another £1500 off the mortgage and switched a holiday booked for next year to one much cheaper, saving around £1200.
    However, November and December are always mega expensive months with birthdays, Christmas and entertaining. We always buy tonnes of food and drink to see us through so the challenge this year will be to do it on a shoestring and keep pumping money into the mortgage. I've not made as much progress on that as I'd have liked. The plan was to try to get £2k a month as overpayments but with one thing and another I've only managed £1.5k which although good, won't hit the target in time. Any suggestions gratefully received!

    Pusscat
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • Katzen
    • By Katzen 13th Nov 16, 2:27 PM
    • 530 Posts
    • 1,687 Thanks
    Katzen
    Hard to suggest much without seeing a SOA really. I see you've switched bills already. Is your food budget as low as you can go? Is there and chance of a pay rise or other ways to increase income? If it was debt in the 'scary bailiffs' sense then pushing yourself to the limit for a few years would be the prescription but as it's a mortgage you can well afford them you probably don't want to live on beans without holidays for years. In which case it's going to be hard to make up £500...
    • PusscatT
    • By PusscatT 20th Nov 16, 2:20 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    Disaster!
    Oh crikey disaster has struck this week! Got a text from the tenant with the words that all landlords dread...'the roof is leaking'. Of course there's never a good time for the roof to leak, but the run up to Christmas and the depths of winter is about the worst!

    Hubby and I went round to have a look from inside the attic and there must have been some water ingress for a while as one of the beams is saturated and looking distinctly dodgy. We knew the roof could do with replacement at some point but were hoping to avoid for at least a couple of years. The cottage is Grade 2 listed, so we have to get permission to re-roof and it faces straight onto the road with no front garden so scaffolding and skips are difficult (and expensive).

    Somewhat regretting the £5k overpayment on the mortgage at the moment but hindsight is a wonderful thing. Hopefully the roofer can get the place watertight with a temporary repair and we will re-roof in spring. Otherwise it's going to be a very expensive and disruptive time for us and the mortgage overpayments will have to stop until this is sorted. Best laid plans and all that....

    Pusscat
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • Katzen
    • By Katzen 20th Nov 16, 2:47 PM
    • 530 Posts
    • 1,687 Thanks
    Katzen
    What a nightmare. At least on the plus side you know you can come up with a good chunk of cash in just a few months if needed so you won't have to struggle too much to pay for it.
    • PusscatT
    • By PusscatT 2nd Jan 17, 3:14 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    Back on it!
    Happy 2017 to all of you!
    Well, the roof turned out to be just under £2k to get it totally sorted which was painful but the roofer thinks we won't need to replace it, so a bit of a silver lining!
    Didn't make any overpayment in December due to the roof problem but am planning on a £2k overpay today. It means we're behind where we wanted to be but at least the roof repairs are tax deductible so that's bought us a bit of extra time with the taxman when everything starts to change from April.
    In other news I've been avoiding the sales and have only bought a winter coat rather than the usual splurge on handbags, shoes etc. Together with a much reduced spend on Christmas the bank account is in better shape than usual for the time of year.

    So, it's resolution time and these are my goals for 2017:

    1. Keep overpaying the mortgage by at least £1k a month.
    2. Clear out the loft and sell everything in it!
    3. Walk more. The day job chains me to the computer most of the time and my fitness is appalling so I need to get out and about a lot more.
    4. Go back to meal planning & shopping sensibly. This has disappeared over Christmas and we have wasted more food than I would have liked, whilst having too many takeaways and too many chocolates, crisps etc.

    What are you up to?

    Pusscat.
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 4th Feb 17, 12:54 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    Blimey January has been a long month! Got paid on Tuesday but the promised back pay (since July 16) has not yet materialised which is incredibly disappointing as that was extra to pay off the mortgage.

    Anyhow, DH has started to add to the pot at long last and so £2k got paid off the cottage this month. The tenant has renewed for another 6 months which is great news and the darling taxman has sent me a good sized rebate so all is well right now and we're on track!
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 11th Feb 17, 8:12 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    Got the letter from our lender this week confirming the lower mortgage payment due after this month's overpay. Overall since completing on the mortgage at the end of July 16, we have paid off an extra £9k (nearly) but this has only resulted in a drop of around £24 per month! Hardly seems worth it on the face of it, but that's £9k we're no longer paying interest on at just over 3% for the next 32 years so it's a no brainer.
    The next step is to really make a start on making extra money by clearing out the loft and selling other bits and bobs. I usually just give stuff away but we need to throw everything at the mortgage so looks like I'll be advertising on the local friendly sales pages. Here we go!
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 22nd Feb 17, 8:11 PM
    • 34 Posts
    • 130 Thanks
    PusscatT
    So, haven't got around to selling anything yet but had a good result on the car insurance premium. The renewal quote was £565(!) but shopped around and got the same cover down to £368 elsewhere so a very nice saving.

    Today I have bitten the bullet and opened a SIPP. I have a couple of old pensions knocking around from years ago but I'm not in the work scheme due to an inherent distrust of company pensions after growing up in the 1980s / 1990s and seeing the Robert Maxwell and recent BHS scandals. However, I need to get my tax bill down for when Section 24 (buy to let mortgage interest taxation) comes in April and not having a current pension seems madness when they're so tax efficient. Although I will still be paying HMRC more than I'd like, the pension rebate will offset some of it and I will hopefully have a nice little nest egg to look forward to in later years.

    Pusscat.
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
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