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    • jackieblack
    • By jackieblack 9th Mar 17, 11:24 AM
    • 7,436Posts
    • 10,394Thanks
    jackieblack
    Getting the right balance - aka 'wanting my cake and eating it too'!
    • #1
    • 9th Mar 17, 11:24 AM
    Getting the right balance - aka 'wanting my cake and eating it too'! 9th Mar 17 at 11:24 AM
    Recently divorced (after 24 years of marriage) and mutually agreed financial settlement finally sealed by the judge 6 months ago. Thanks to ex-H's generosity, I have been able to keep the former family home, where I have lived for almost 17 years - yay!

    Unfortunately, in order to meet the affordability criteria for the (luckily for me, relatively small, particularly by today's standards) previously joint mortgage to be transferred into my sole name, I had to extend the term quite significantly. Mortgage would originally have been paid off in about 8 years time, but now (officially) has 16 1/2 years left to run

    One thing I have recently done, although more as a security blanket for myself rather than as a purposeful OP, is to transfer the equivalent of a year's monthly mortgage payments to the mortgage. This is mainly so I have the security of knowing that if something happened, if I was seriously ill or in an accident, that I would have a year's breathing space on having to worry about how I'm going to pay the mortgage. Hopefully (fingers crossed) I will never need to use this for this reason and will get the benefit of finishing the mortgage a year earlier at the end of the term.

    In the meantime, I really want to chip away at the mortgage as much as possible and get it paid off sooner, however I also want to build a new life for myself and travelling is a very very important part of that, for me. I travel exclusively to the USA (for the last 11 years) having 'done' most other places I wanted to go to before I was married.

    I don't earn a huge amount, so I need to find a way to still be able to travel (albeit maybe not as frequently as before) but also chip away at the mortgage and bring the term down as much as I can - hence 'wanting my cake and eat it too!'

    I work in a school, in a support role, so there are two months of the year I don't get paid for (although pay is averaged out over 12 monthly pay days). This also means I am restricted to travelling during school holidays, when prices are at their highest!

    Extending the term has reduced the monthly mortgage payments by about £130 a month. I could just about afford this, but it would mean only being able to afford to travel about once every third year. I know this wouldn't be the end of the world but have, unfortunately, known enough friends/family my age or younger who have suddenly developed serious health problems, or suddenly passed away, to have developed a strong need to live life now while I have the opportunity to do so and not put things off until some vague point in the future that may or may not ever come.

    I live fairly frugally. I keep to a strict budget that allows me, despite a fairly modest income, to do most of the things that are most important to me. However there is not a lot of wiggle room to accommodate mortgage overpayments, so I have decided that the only realistic way I can erode the mortgage term is by using any extra money that comes my way to chip away, little by little. eg I have recently changed my current account to one that pays interest and have transferred the interest into the mortgage each month. I also do survey and anything earned from these will go as OP to the mortgage. Sometimes rewards come in form of gift vouchers so I will transfer an equivalent amount to the mortgage when I spend these.
    Hopefully there should be a (small) handful of these payments each month (but nowhere remotely approaching the £130 needed to bring it back to the original remaining term).
    I shall be utilising the 'every little helps' theory

    Apologies if this has turned into a bit of a ramble..... one drawback of living alone is no-one to talk to!
    Last edited by jackieblack; 10-03-2017 at 6:41 AM. Reason: typo :o
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
Page 2
    • jackieblack
    • By jackieblack 4th Nov 17, 7:01 AM
    • 7,436 Posts
    • 10,394 Thanks
    jackieblack
    OP for October = £59.15! Much better than I expected, mainly due to a couple of survey rewards paying out
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
    • Silence101
    • By Silence101 4th Nov 17, 7:45 AM
    • 313 Posts
    • 483 Thanks
    Silence101
    Well done! Every little does help. I calculated that with our mortgage, if we only overpayed £5 a month we'd manage to cut off nearly a year off our mortgage (We're on a much longer term than yours but it does show how even small amounts can make a huge difference)
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £471.44/£100 12/17 £114/£100
    • louloubelle79
    • By louloubelle79 4th Nov 17, 7:58 AM
    • 257 Posts
    • 127 Thanks
    louloubelle79
    Well done, it all adds up! I am trying to get more balance between OPs and actually living and house repairs etc we are currently overpaying a lot but house falling apart around us lol so we just OP small amounts from next month. Good to see the positive impact still of these small payments
    Hoping to be mortgage free by 2026 age 47
    Current rate 2.79% fixed for 10 years
    Current mortgage end date: 03/10/2043
    MFW Starting Mortgage Jan 17 - £114,703
    2017 OPs £6000
    Jan 2018 balance- £105,923
    • jackieblack
    • By jackieblack 3rd Dec 17, 12:07 PM
    • 7,436 Posts
    • 10,394 Thanks
    jackieblack
    OP for November = £47.59
    Not quite the £50 I was aiming for, but not too far short (and that is an average target)
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
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