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  • FIRST POST
    • skye blue
    • By skye blue 17th Mar 17, 8:12 PM
    • 81Posts
    • 386Thanks
    skye blue
    Planning for the next chapter
    • #1
    • 17th Mar 17, 8:12 PM
    Planning for the next chapter 17th Mar 17 at 8:12 PM
    Hi

    Newby here, please be kind

    Read loads of threads and have decided to step up to the mark and set myself some targets

    With all the talk around retirement, pensions etc going around its made me think!

    I have 6-7 years to my retirement, small pension but my mortgage is interest only changed after being off work for a year due to illness a while back and could never afford to change back to repayment. Have asked if i could part part repayment but was told no. Cant change providers as i wouldn't pass all the new criteria now.

    Im on a dmp for another two and a half years and i keep putting it up every few months so its hopefully coming down quicker

    Have about a months salary in savings which i add £10 to each week but as its earning little interest im starting to overpay the mortgage. So ive managed £300 this month

    Do you reckon im on the right track? I know i probably can't pay it all back but it saves interest and probably gives me more choices if i need to sell later. I do not have a partner so just my wage to do this

    House value £115,000 owe £75,000

    Thanks for reading
Page 2
    • rasputin_thorpedo
    • By rasputin_thorpedo 30th Apr 17, 7:28 PM
    • 388 Posts
    • 2,557 Thanks
    rasputin_thorpedo
    I need to find something more in between the month as i feel like im wishing my life away waiting for paydays to come around. does everyone feel like this?
    Originally posted by skye blue
    I used to a lot, and still do at times when I don't have much on. Of course, you have a responsibility to yourself pay the mortgage, but you also have the ability to enjoy life and have good mental health. My MFW journey has had me say "no" to a lot of things. Mainly going out and boozing. I save my pocket money for things that i really want to do.

    Skye, do you think you could use a pen and paper or a spreadsheet to work out a longer term plan?

    I would suggest either working out if you kept paying £300 a month when your mortgage would be gone by, or choosing a target date for a zero mortgage balance and seeing how much cash you would need to meet that date each month.

    How does that look? How does it make you feel? Does it relax you a little or does it trigger some alarm bells? If the latter, can you work out howe much extra you need per month to hit your desired zero balance date?

    I believe that once you know this, you can set yourself up with a credible strategy, and then work towards it - and here is the important part - and then the little voice on your shoulder has no right to boss you around any more - you are in control for the long term.

    I really hope this helps, and I really hope this relieves some of the weight on your shoulders.

    PS - good work on the car boots and idea of job 2 - I had a second job doing bar work for six months, it was great and I achieved some personal/social/cash goals!

    Good luck!

    MvM x
    May15 Mortgage - £185k | Dec16 - £157k | Dec17 - £135k | Dec18 - £113k | Dec19 - £90k | Dec20 - £66k | Dec21 - £40k | Dec22 - 12k | May23 - £0 Mortgage Free at 40 in May23!
    • skye blue
    • By skye blue 30th Apr 17, 7:57 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    Hi

    Thanks for the lovely reply

    I try and pay £300 a month overpayment this is 25% of my take home pay as well as the normal monthly payment and all other commitments

    Im going to take you advice and do some calculations, thanks

    enjoy your bank holiday
    • Jessy103
    • By Jessy103 30th Apr 17, 9:42 PM
    • 273 Posts
    • 967 Thanks
    Jessy103
    Good luck skye! Well done with the car boots, it might not be as much money as you'd hoped for but every little helps as they say! Take care!
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount April 2017 - £64,990.00
    Overpayment Target for 2017 - £5,000 /£2,396.80
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79
    • skye blue
    • By skye blue 15th May 17, 9:43 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    Hi

    Didn't manage anything this month as i paid car insurance in full but still have a £100 that i kept back just in case so that can go with the next payment

    Good news today tho as the tax refund i applied for has been confirmed, saw brown hmrc envelope and thought great a cheque but no it tells you to go online and claim it! didn't need telling twice he he

    so refund should be in my bank in around 5 days - so i think i should have around £1,500 to pay off next month fingers crossed

    Thats a huge amount for me
    • skye blue
    • By skye blue 23rd May 17, 7:44 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    hi

    Didn't pay anything last month as i cannot overpay if there are less than 10 days before your next payment date - do they put these rules in place just to make things harder

    Anyhow not having a great time at work at the moment so popped extra in my emergency fund to give me a back up plan.

    Have decided to put 1/3rd into emergency fund and 2/3rd;s into mortgage together with anything extra i can make.

    Well i got my ebay back up and running and put 2 things on this weekend and they both have bids, so thats a start

    Back to waiting for mortgage to be paid and then send tax refund payment over
    • rasputin_thorpedo
    • By rasputin_thorpedo 24th May 17, 4:58 PM
    • 388 Posts
    • 2,557 Thanks
    rasputin_thorpedo
    who on earth is your mortgage with? seems very outdated in terms of rules and regs!
    May15 Mortgage - £185k | Dec16 - £157k | Dec17 - £135k | Dec18 - £113k | Dec19 - £90k | Dec20 - £66k | Dec21 - £40k | Dec22 - 12k | May23 - £0 Mortgage Free at 40 in May23!
    • skye blue
    • By skye blue 24th May 17, 6:01 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    the spanish one unfortunately!!
    • skye blue
    • By skye blue 5th Jun 17, 3:41 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    Hi guys

    Ive managed to pay £598 off my mortgage today which rounds down the figure outstanding

    I was hoping to pay off more as i had a tax refund last month but ive got a little muddle with my bank balance

    Ive had a couple of weeks off work on holiday (it was much needed) and ive paid my home insurance in full, bought some bits and bobs that i kept putting off for the house, done a big freezer shop, had a couple of meals and days out and with the bank holiday thrown in im struggling to balanced my bank

    So hopefully by the end of the week all card payments should have gone though and i might have a bit extra to make an additional payment

    fingers crossed,
    • themadvix
    • By themadvix 6th Jun 17, 11:18 AM
    • 826 Posts
    • 3,476 Thanks
    themadvix
    Hi Skye, I'm with the Spanish bank too and they're incredibly unhelpful when it comes to OPing aren't they? I feel your pain. (And then there's the two letters they feel the need to send every time and the time it takes to update your online balance....).

    It sounds like you're really getting into the swing of things now with OPing - it's amazing how all the little bits add up. It sounds like you're working on it now, but I definitely think you should have a bit more than one month's salary in your EF. Could you not open an account with a better interest rate to stash it in too (it might not beat the 4.29% on the mortgage, but it could be better than 0.5%). I don't know - this might not be possible while you're on a DMP?
    OPs 2017 = £2603/£10000
    S&S ISA = £300/£600
    OPs made 2016 = £6142.12
    Starting balance 2012: £132000; balance June 2017: £99,974
    MFW2017 no. 38
    • skye blue
    • By skye blue 6th Jun 17, 6:15 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    hi

    it sometimes feels everything is so complicated don't you think

    i tried to up my dmp by £25 last month and they said as i has already changed it i would have to phone and do a review, last thing i want to do after a working day the times don't work and its not something i want to do at work

    i put £10 a wk in my emergency fund and have managed an extra £100 a couple of times, i agree i;d feel better if that reaches 6 months - work in progress

    re opening a better rate account i don't know how it would work, you're right i need to look into it. thanks for the nudge themadvix
    • skye blue
    • By skye blue 12th Jun 17, 7:22 PM
    • 81 Posts
    • 386 Thanks
    skye blue
    hi

    i finally balanced my bank account and made a 2nd payment for the month (1st time ever ive paid 2 in one month)!

    Paid £300 made up of remainder of my tax refund and some cash back from surveys and an ebay sale

    i listed 2 items on ebay to see how i got on, both sold only one person didn't pay, 2 weeks later they still haven't!!!

    have a good week everyone
    • Jessy103
    • By Jessy103 13th Jun 17, 10:15 AM
    • 273 Posts
    • 967 Thanks
    Jessy103
    Well done on the second overpayment!! Regarding the non-payment on ebay, can you not raise a dispute with ebay? Disgusting really, if they weren't going to pay why did they bid on it or atleast tell you so you can put it back up for sale! x
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount April 2017 - £64,990.00
    Overpayment Target for 2017 - £5,000 /£2,396.80
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79
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