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    • ch4rly2002
    • By ch4rly2002 19th Jan 17, 2:37 PM
    • 182Posts
    • 723Thanks
    Dreaming of financial freedom!
    • #1
    • 19th Jan 17, 2:37 PM
    Dreaming of financial freedom! 19th Jan 17 at 2:37 PM
    Hi everyone reading this!

    I hadn't thought about writing my own MFW diary until another user suggested it, so I have no idea if anyone will be interested in what I have to say, but I'll just post it and you can ignore if it's rubbish So here's my story...

    I turn 30 next month and I would like to be mortgage free as soon as possible. My husband and I work in IT and, at least in my company, it seems to be that most jobs are being moved abroad. My dad also worked in IT was made redundant at 53 before my parents had finished their mortgage so I think that is why I am so anxious about having mortgage debt and would like to pay it off ASAP.

    We bought our first house in 2006 and sold it three years later in the middle of the recession for a loss of 6k, which wasn't ideal but it allowed us to purchase a house we couldn't have otherwise afforded as the vendors needed a quick sale so were prepared to drop their price. We moved in to the new house at the back end of 2009 and didn't need to do anything to it, which is a good job as we didn't have any spare money at the time! After a few years I got a job that paid well and we started overpaying on the mortgage, which we decided to do rather than save up as we would get a nice lump sum if we were made redundant. I loved seeing the mortgage go down!

    In 2011 my dad was diagnosed with a progressive neurodegenerative illness, which means his brain is slowly dying and was given a life expectancy of approximately 7 years, although it differs for everyone. My parents decided to make the most of their time together and bought a static caravan by a lake, which they lived in happily for a couple of years before my dad started having too many falls to continue living there and they moved into an independent living unit near Holmfirth, which isn't too far from where my in-laws live so it made visiting them all on our weekends up from Nottingham so much easier! By 2014 my dad had deteriorated quite a bit and my husband and I discussed leaving Nottingham so we could live closer to our parents in Yorkshire. At this point, the house was valued at 170,000 and the mortgage was at 108,000. Had we stayed and continued paying the same amount each month we would be mortgage free by 2021 but if we moved we would either have to rent (which we both saw as dead money) or buy another place that would be more expensive for a comparable house so it was a difficult decision. Around the same time my father-in-law got cancer, so we decided that moving up would be the best option. The only problem was that my dad was deteriorating rapidly and it takes ages for houses in our area to sell so we'd miss the last bit of time with my dad in a reasonable condition and could miss being there for the in-laws when they needed us through the cancer treatment process. At this point, I suggested we rent out our house and buy another house closer to our parents. I first spoke to my mortgage provider and asked if there was a way to release equity from our house and move it onto a buy-to-let mortgage then purchase another property. Unfortunately they wouldn't allow us to do this, but luckily MSE sings the praises of London and Country mortgage brokers and as they don't charge a fee I thought it would be worth giving them a call. I am so glad I did! My advisor Adam found me a new residential mortgage and let-to-buy mortgage (which is apparently very similar to a buy-to-let mortgage but it is when you already owned the property when you decided to rent it out) so we could use equity from our house. A couple of months later we moved into our new house and our old house was rented out shortly after.

    After 2 years, our fixed deals have just come to an end and this is where we now stand...

    Residential mortgage:
    Started at 216,000 on 3.29% with no OPs allowed.
    From January 4th, the property has 80% LTV and is on 1.99% for 3 years with 10% OP allowed. Started at 204,000 but as I had to guess what amount I would need when I first applied 3 months ago, we were refunded 1,404 so the mortgage now stands at 202,596. The standard mortgage payment 916 but I set the DD up at 1,100 as that's what we paid before so there is an overpayment there without any hardship. I can't wait to see this go under 200k, and then I will set 10k goals.

    Buy-to-Let mortgage:
    Started at 136,000 on 4.79%, and we started making overpayments of 250pm.
    From February the property will have a 73% LTV and will be on 2.64% for 2 years. Again, we applied for this mortgage 3 months ago and I guessed 129,000 but when I checked yesterday it stood at 127,895 so we will be due some money back and will pay that off the mortgage straight away.The standard DD is 638 but I am considering whether to leave the payments at 1,000 as they previously were.

    The only fly in the ointment now is that our jobs aren't as secure as they used to be, and there are rumours of redundancy packages being dropped to statutory rates, which I understand isn't very much. This has made me think that we ought to have some savings in case one or both of us gets made redundant. We have 1500 in premium bonds saved up for house repairs but that wasn't much of a safety net. Luckily, we have just received a cheque for 4,900 from my husband's stock that he just sold so for the first time ever we finally have some security. We would have previously put it straight on the mortgage but with the current uncertainty around jobs it is nice to have a bit of a safety net. The timing couldn't be better!

    I'll be honest. I'm rubbish with budgets. I don't know how much we spend and I know I could be a lot more careful with my spending. We do have takeaways and eat out quite a bit, mainly because we both work long hours and very tired on an evening and don't want to then spend a big chunk of our evenings cooking. If I'm even more honest, part of it is laziness However, I want to change that as I'm sure we could save some real money and be healthier if we cook more so I'm thinking maybe meal plans, online shopping so I don't get tempted by add on products and don't have to give up a load of time to go to the supermarket, and maybe the odd ready meal in place of a takeaway when we're feeling tired / lazy. I am also going to have a look into slow cooker recipes that I could put on in a morning so it's ready for us as soon as we finish working.

    My goal is to start logging what we spend and make a proper budget!

    Some (limited) financial info:
    Husband earns around 3,000 net each month.
    I earn around 1,700 net each month.
    Rental income, after expenses, is 678 per month.

    Mortgage 1 1,100
    Mortgage 2 322 (1,000 payment minus 678 rent, assuming we keep the payment the same)
    Car loan 500 (ends in October 2017)
    Loan to In-Laws 250 (not accruing any interest)
    Water bill 26
    Council Tax 128
    Gas & Electric 94.14
    BG Home Care 29.50
    Mobile 1 13
    Mobile 2 20
    Sky TV, internet and phone 70.93 (up for renewal tomorrow so will haggle or switch to Virgin)
    Car insurance 632 in 2016 (paid in a lump sum in April)
    Home insurance 491 in 2016 (paid in a lump sum in December)
    Pet insurance 69.61 in 2016 (paid in a lump sum in November)
    Landlord insurance 219.21 in 2017 (paid in a lump sum in January)
    Rent Guarantee and Legal insurance 125 in 2017 (paid in a lump sum in January)
    Gas Safety Certificate 60 (annual, paid in February)

    Unsure on food and entertainment costs (really need to get a grip on this) but after paying our credit cards we end up with between 500 and 1500 left at the end of the month, which we have recently been spending on home improvements, insurance, Christmas etc. so we haven't saved much of this. We are also thinking about joining a gym so that might also be another expense in future. If I think of any other expenses I will add them but I think that's pretty much it for now.

    I will try and update this as and when I get more information or manage to make savings / OPs. Thanks for reading!
    Last edited by ch4rly2002; 20-01-2017 at 10:44 AM. Reason: Forgot to include the current mortgage values.
Page 9
    • themadvix
    • By themadvix 19th May 17, 11:52 AM
    • 757 Posts
    • 3,059 Thanks
    You're sounding more positive at this end of the week Ch4rly - some good wins there, especially about the roof! Onepoll took most of the 28 days to come through for me last time, but I guess it might depend on when in the month they do the pay run.

    Good luck with the boot sale tomorrow - I found people didn't want to pay much more than 50p/1 for most things, but there were a couple of bits I had a specific price in mind for - for both of them I held firm and it paid off - the right people were willing to pay the right price. Like KK, I didn't find the books/DVDs/CDs sold well at all - in the end I took these to the charity shop.

    Great news about your Grandma's blue badge too - that will make life so much easier!
    OPs 2017 = 2603/10000
    S&S ISA = 200/600
    OPs made 2016 = 6142.12
    Starting balance 2012: 132000; balance June 2017: 99,974
    MFW2017 no. 38
    • Moominmamma89
    • By Moominmamma89 19th May 17, 12:02 PM
    • 135 Posts
    • 203 Thanks
    Good luck for Sunday!!! Boot sales round our way all seem to be outdoors so we have a few weeks to wait yet for the warmer weather.
    Outstanding Mortgage - 143,332.59 (75% LTV)
    Current end date: May 2041 (originally August 2044)
    • ch4rly2002
    • By ch4rly2002 21st May 17, 7:19 PM
    • 182 Posts
    • 723 Thanks
    Thanks for the positive thoughts / it went great, hoorah! Luckily the weather was nice and only got cloudy towards the end. Although it was only 2 hours long and it was just at the local community centre but we sold of things. Managed to make 49.40, which I'm really pleased with. I look forward to our next car boot sale
    • themadvix
    • By themadvix 22nd May 17, 12:22 PM
    • 757 Posts
    • 3,059 Thanks
    That's a great result for 2 hours!
    OPs 2017 = 2603/10000
    S&S ISA = 200/600
    OPs made 2016 = 6142.12
    Starting balance 2012: 132000; balance June 2017: 99,974
    MFW2017 no. 38
    • ch4rly2002
    • By ch4rly2002 22nd May 17, 1:37 PM
    • 182 Posts
    • 723 Thanks
    Thanks Vix The in-laws totted up last night and made almost the same, to the penny - so bizarre, but welcomed! I think we all felt we'd done well enough to make it worthwhile We sold about half of our items, and after seeing what everyone else was selling we think we have plenty that we could gather up for another car boot sale so that's the plan for when we get back from our holidays.
    Savings: Aim 10k. Dec 2016 1,700 / Current 9,075
    Mortgage: Dec 2014 -216,000 / Current -199,400
    BTL Mortgage: Dec 2014 -136,000/ Current -126,600
    Loan to In-Laws: Sep 2010 -48,185.82 / Current -35,655.49
    Student Loan: March 2011 -18,275.04 / Current -14,310.60
    CC 0%: Nov 2016 -4,500 / Current -3,724.38
    • ch4rly2002
    • By ch4rly2002 26th May 17, 5:18 AM
    • 182 Posts
    • 723 Thanks
    Hi All, just a quick update. DH and I are flying to America today, woo! Here's an update of the month so far and I will try and update this thread a bit if I can... I'm sure there will be many MSE fails and wins to come.

    Prolific Surveys 41.62
    Crowdology Surveys 5.12
    OnePoll Surveys 40.00
    Survey Total! 86.74

    Holiday Car Hire 20% Discount 20.00
    Free hospital parking for blood test 2.80
    Saving Total! 22.80

    Taking Grandma shopping / Gift for Holiday 100.00
    Gifts Total! 100.00

    TopCashBack 15.73
    Argos voucher from work 10.00
    Nectar Points used at Argos 55.00
    30 Dishwasher Tablets from trial 5.00
    Free Washing Powder for Bzzagent Review 5.00
    Free Pizza from Pizza Hut 22.45
    Freebie Total 113.18

    eBay Sales 77.22
    May Day Gala Sales 50.00
    Car Boot Sales 49.40
    Sales Total 176.62

    Refund for faulty toaster 48.29
    Washing machine repair - Tenants to pay 70.00
    Credit from Virgin for Internet Issues 14.66
    Nectar points used for Grandma's purchase 15.00
    MFW Wins Total 147.95

    New Door Handle at Rental Property -80.00
    Roof Repair - Interim fix -250.00
    Virgin call costs -5.50
    MFW Fails Total -335.50
    Savings: Aim 10k. Dec 2016 1,700 / Current 9,075
    Mortgage: Dec 2014 -216,000 / Current -199,400
    BTL Mortgage: Dec 2014 -136,000/ Current -126,600
    Loan to In-Laws: Sep 2010 -48,185.82 / Current -35,655.49
    Student Loan: March 2011 -18,275.04 / Current -14,310.60
    CC 0%: Nov 2016 -4,500 / Current -3,724.38
    • Jessy103
    • By Jessy103 26th May 17, 10:57 AM
    • 243 Posts
    • 860 Thanks
    Have a safe journey ch4rly and have a fantastic time in America!! x
    Original Mortgage Amount 2007 - 87,310.50
    Mortgage Amount April 2017 - 64,990.00
    Overpayment Target for 2017 - 5,000 /1,989.01
    Jan - 873.26 Feb - 185.38 March - 269.07 April - 193.66 May - 467.64
    • kirtsypoos
    • By kirtsypoos 26th May 17, 11:14 AM
    • 2,689 Posts
    • 11,273 Thanks
    Have a wonderful time!
    1175/3000 OH BC(60.83% PAID)
    PAID VERY, Barclaycard x2, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID LBM 24/07/15 - Debt: 1175/31010.23 (96.21% paid)
    Mortgage - 164,000.00 (O/P 718.83 so far) PAYDBX 17 #006 - 13842.19/14,539.71Make 10 Apr 194.58 Make 10 May 159.75
    • Kittenkirst
    • By Kittenkirst 26th May 17, 3:27 PM
    • 1,325 Posts
    • 6,296 Thanks
    Have a wonderful time in the US Charley! Will miss your updates whilst you are away!
    Emergency savings- 2660 /4000
    Mortgage Oct '16- 170.995 LTV- 90% end date Nov 2041
    2016 OPs 255.50/150
    2017 MFW #20 - OP 1090.99/ 2150. 50%
    Jan- 68.21, Feb- 306.67, March- 272.01 April-324.05 May 120.05
    • themadvix
    • By themadvix 27th May 17, 9:44 AM
    • 757 Posts
    • 3,059 Thanks
    Have a fantastic time Ch4rly!

    (Amazing totals too!)
    OPs 2017 = 2603/10000
    S&S ISA = 200/600
    OPs made 2016 = 6142.12
    Starting balance 2012: 132000; balance June 2017: 99,974
    MFW2017 no. 38
    • EatingTheElephant
    • By EatingTheElephant 28th May 17, 8:06 AM
    • 895 Posts
    • 4,514 Thanks
    Amazing totals in your roundup there, have a great time in the US.
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