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  • FIRST POST
    • Freddykrueger69
    • By Freddykrueger69 17th Mar 17, 10:34 AM
    • 17Posts
    • 35Thanks
    Freddykrueger69
    97 months and counting.....hopefully
    • #1
    • 17th Mar 17, 10:34 AM
    97 months and counting.....hopefully 17th Mar 17 at 10:34 AM
    Hey folks,


    New to these boards and immediately found this forum - exactly what I am looking for!!


    A bit of background - we have just recently moved to a new house and have no plans moving from this one in future other than to down size. House valued at 270K and mortgage was for 214.5K (I think). Fortunately we had some savings tucked away and have put these into an offset account that we have setup with Scottish Widows.


    I will provide exact amounts later but we took a 20 year mortgage (mainly due to our age) and payments are roughly £1177 per month - its a repayment mortgage.


    The plan is a stretch - I reckon if we overpay £600 per month that we will be mortgage neutral in around 8 years and even though it wouldn't be paid off it would be a huge relief knowing that the savings could cover the balance. Perhaps someone can sense check this when I provide the exact numbers later.


    Anyway just wanted to say hello and will do exact figures later along with an SOA.
Page 1
    • lippy1923
    • By lippy1923 17th Mar 17, 12:14 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    • #2
    • 17th Mar 17, 12:14 PM
    • #2
    • 17th Mar 17, 12:14 PM
    Hello and Welcome

    Looking forward to reading your progress.

    Lippy
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,000

    • Freddykrueger69
    • By Freddykrueger69 17th Mar 17, 5:36 PM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    • #3
    • 17th Mar 17, 5:36 PM
    • #3
    • 17th Mar 17, 5:36 PM
    Hope this turns out OK - might have to tweak some figures and happy to clarify on anything:


    [font=courier new]Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1
    Monthly Income Details

    Monthly income after tax................ 3050
    Partners monthly income after tax....... 1300
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 4350

    Monthly Expense Details

    Mortgage................................ 1177
    Secured/HP loan repayments.............. 187
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 250
    Electricity............................. 35
    Gas..................................... 85
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 20
    Mobile phone............................ 33
    TV Licence.............................. 12
    Satellite/Cable TV...................... 20
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 80
    Road tax................................ 2.5
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 15
    Car parking............................. 0
    Other travel............................ 450
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 0
    Contents insurance...................... 18
    Life assurance ......................... 150
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 25
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2854.5


    Assets

    Cash.................................... 54000
    House value (Gross)..................... 270000
    Shares and bonds........................ 0
    Car(s).................................. 9000
    Other assets............................ 0
    Total Assets............................ 333000


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 214500...(1177).....2.79
    Hire Purchase (HP) debt ...... 9400.....(187)......1.99
    Total secured & HP debts...... 223900....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-


    Monthly Budget Summary

    Total monthly income.................... 4,350
    Expenses (including HP & secured debts). 2,854.5
    Available for debt repayments........... 1,495.5
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 1,495.5

    Personal Balance Sheet Summary
    Total assets (things you own)........... 333,000
    Total HP & Secured debt................. -223,900
    Total Unsecured debt.................... -0
    Net Assets.............................. 109,100
    • Freddykrueger69
    • By Freddykrueger69 18th Mar 17, 11:22 AM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    • #4
    • 18th Mar 17, 11:22 AM
    • #4
    • 18th Mar 17, 11:22 AM
    I'm such an idiot. Will need to revise SOA as I haven't included factor fees for our property.....which includes buildings insurance hence why I haven't included it.

    Had car for service this morning. I already had a service plan but had to get 2 new tires. It's better to be safe!
    • lippy1923
    • By lippy1923 18th Mar 17, 11:38 AM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    • #5
    • 18th Mar 17, 11:38 AM
    • #5
    • 18th Mar 17, 11:38 AM
    1 thing that did stand out for me is the cost of life insurance. £150pm is a lot. Does this include a high amount of critical illness cover? I take it this is for you and your partner?


    The £450 on other travel looks high as well, but not sure what that includes so cant really comment any suggestions.


    Nice cash amount of £54k as well
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,000

    • Freddykrueger69
    • By Freddykrueger69 18th Mar 17, 11:43 AM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    • #6
    • 18th Mar 17, 11:43 AM
    • #6
    • 18th Mar 17, 11:43 AM
    Thanks for the reply lippy.....really appreciated. Yes the £150 is for both of us and I am never convinced that I have the best deal here.....perhaps I should look to arrange through my work for a lot less?

    £450 on travel is for monthly rail season tickets for us both. Have actually been looking to see if a yearly through our work season travel loan may be more cost efficient but not sure if that is deducted before or after tax. Still undecided.

    The cash amount is our offset savings balance. Hope this all helps a bit to explain.
    • Freddykrueger69
    • By Freddykrueger69 29th Mar 17, 10:09 PM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    • #7
    • 29th Mar 17, 10:09 PM
    • #7
    • 29th Mar 17, 10:09 PM
    Well the good news is I made my first £600 overpayment but the bad news is it came out too early.....I set it up wrongly so I'm literally on beans and toast for the past week.

    Schoolboy error.
    • Number75
    • By Number75 29th Mar 17, 10:32 PM
    • 147 Posts
    • 160 Thanks
    Number75
    • #8
    • 29th Mar 17, 10:32 PM
    • #8
    • 29th Mar 17, 10:32 PM
    An error you'll feel good for in retrospect!
    The trauma of beans on toast will pass and the nice feeling of the overpayment will long outlast it!
    • Freddykrueger69
    • By Freddykrueger69 1st Apr 17, 10:30 AM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    • #9
    • 1st Apr 17, 10:30 AM
    • #9
    • 1st Apr 17, 10:30 AM
    Well have updated my signature with all the facts and figures around our mortgage. As it's an offset I have broken it down so that I have some focus towards the initial mortgage neutral goal.
    Outstanding mortgage Dec 2016 £214,500
    Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
    Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
    • lippy1923
    • By lippy1923 1st Apr 17, 5:26 PM
    • 1,204 Posts
    • 3,351 Thanks
    lippy1923
    Impressive figures. I always find a signature a great way to track progress and a good motivator.
    Total Mortgage OP £17,500
    House Value £240,000 Mortgage £95,156
    Emergency Fund £23,000

    • Thistlewhistle
    • By Thistlewhistle 1st Apr 17, 7:20 PM
    • 1,006 Posts
    • 7,151 Thanks
    Thistlewhistle
    Good luck going forward FreddyK

    Thistle
    Mortgage at end 05/2007: £90,202
    Mortgage at end 03/2017: £75,900 paid £14,302 (15.86%)
    MFD: Original:05/2042 Projected:08/2031 saving 10yr 9 mth

    CC Debt (0% until 06/2020): £4,000 : £2,369 to go (40% cleared)To clear by 12/2017 or sooner!
    Dave Ramsey Baby Step #1: £0,322/£1,000 (32.2%)

    Age of Money at 31/03/2017 = 40 days

    YNAB is changing the way I live my life....and spend my money!!
    • Freddykrueger69
    • By Freddykrueger69 1st Apr 17, 8:00 PM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    Thanks Lippy and thistle - the goal seems such a long way off but I just need to persevere. Hoping to join to MFW 2017 for a bit of extra focus. I don't have any ISA I just put everything into offset savings.
    Outstanding mortgage Dec 2016 £214,500
    Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
    Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
    • Jonbvn
    • By Jonbvn 2nd Apr 17, 6:59 AM
    • 5,296 Posts
    • 5,560 Thanks
    Jonbvn
    I notice you have a HP debt. Is it possible to overpay this, rather than the mortgage assuming it is at a higher interest rate?
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
    • Freddykrueger69
    • By Freddykrueger69 2nd Apr 17, 7:56 AM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    I notice you have a HP debt. Is it possible to overpay this, rather than the mortgage assuming it is at a higher interest rate?
    Originally posted by Jonbvn
    I was not sure how to list the car debt. It's basically a 3 year PCP deal at 1.99%
    Outstanding mortgage Dec 2016 £214,500
    Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
    Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
    • Freddykrueger69
    • By Freddykrueger69 3rd Apr 17, 7:44 AM
    • 17 Posts
    • 35 Thanks
    Freddykrueger69
    Happy Monday folks!! One thing that did occur to me was that making payments into our offset account is not optimal. As scottish widows does not have its own clearing system, it can sometimes take a number of days for the payment to reflect in the account.

    I'm not sure if that means that it doesn't have an impact on interest until it actually arrives in the account?
    Outstanding mortgage Dec 2016 £214,500
    Current mortgage outstanding May 2017 £211,244 June 2017 £210,446
    Offset savings June 2017 £57,354 Balance outstanding May 2017 £154,490 June 2017 £153,091
    • freida20
    • By freida20 3rd Apr 17, 8:34 AM
    • 10 Posts
    • 25 Thanks
    freida20
    sounds like you are making a great start to your mortgage free goal! I considered an offset mortgage - it will be interesting to see how you get on - I'm just setting up starting to overpay my mortgage this month too. Good Luck with it all.
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