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  • FIRST POST
    • bubblycrazy
    • By bubblycrazy 25th May 17, 1:54 PM
    • 120Posts
    • 334Thanks
    bubblycrazy
    Mortgage free ASAP
    • #1
    • 25th May 17, 1:54 PM
    Mortgage free ASAP 25th May 17 at 1:54 PM
    Hi everyone

    I've decided that starting a diary will help keep me on the straight and narrow and give me a place to think out loud and to remind me of my plans.

    I've lived in my home since August 2014 with my DS. My current mortgage balance is approx £48270. I OP £100pm which brings my MFD to 2033 (from 2049 ). Ideally I would like to be MF by the time I'm 40 (2025). My rate is 4.79% fixed for 5 years (wish I hadn't been so cautious!) so just over 2 years left.

    These plans will have to wait for the moment as my income has taken a nosedive and I need to sort out my month to month spending first.
    My main issue at the moment (apart from losing WTC) is that my job is term time only but with guaranteed hours out of term which are classed as overtime. My pay is annualised so the months when I have no overtime my income doesn't cover my outgoings. The months when I work out of term, I have excess income. For example this month's pay will be bigger than normal due to the hours I worked in Easter. I plan to pay off 2 months worth of council tax to cover next month too.
    Fortunately I don't have any debts apart from my mortgage.

    I will post a SOA when I can work out the best way to do it. Should I only put in my minimum wage and everything will show as a negative, or put in the average monthly income based on my pay last year?

    I am going to start using YNAB. I used to keep a spreadsheet but my laptop broke last year and I miss my spreadsheet! I also want to track my exact spending on non essentials.

    I've rambled enough for now, all advice and encouragement welcome!
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
Page 2
    • MatthewAinsworth
    • By MatthewAinsworth 2nd Jun 17, 10:18 AM
    • 2,840 Posts
    • 1,136 Thanks
    MatthewAinsworth
    Supersecretsquirrel - it demands discipline not to splurge or panic in a crash, you're right that peace of mind is valuable, and when my mortgage falls below a certain level I'll overpay because getting my monthly costs down (even the repayment element) would mean quicker and safer retirement
    • bubblycrazy
    • By bubblycrazy 2nd Jun 17, 8:24 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Ha I am an early bird , don't see ten o'clock anymore , I have not worked out the penalty for coming of the fix early but I think it is 1% for each early year so at the moment that would be 3% . I would need to work out the new repayment figure , new overpayment figure and interest charged and saved and that is way above my financial ability .
    Originally posted by andy1886
    Just worked out how to do multi quotes!
    I'm most definitely a night owl.
    It was way above my ability too andy but there's a calculator that works it out for you. If you search for ditch the fix and input your details it will tell you what rate you would need to get to make it worthwhile.

    Investing long term would get most people mortgage free a fair bit quicker than overpayments...
    But you'll be tempted not to sell the investment to pay off the mortgage
    Originally posted by MatthewAinsworth
    Thanks Matthew. I have looked into investing, and if I had a higher income I would definitely do this. I agree with SSS, it's guaranteed money coming off the mortgage. I'm not adverse to risk but only when it's money I can afford to lose. I actually have some shares (the high risk kind, purchased years ago) which are doing well at the moment. I'm not ready to cash them in just yet as waiting for news which will hopefully increase their value. I haven't put them in my SOA as I know there's no guarantees.

    I can see this from both sides. I've seen you pop up on a few MFW threads pushing investment over voluntary overpayments. What you seem to be missing is the certainty an overpayment gives you. Far too easy to sell some shares to splurge, not quite so easy to withdraw from the average mortgage. Also, markets go up, markets go down, sure they tend to go up over the long term, but when starting out with a limited amount of slack in the budget it's good to know that your £100 is definitely working for you not against you. A guaranteed 4.79% risk free win is not to be sniffed at!
    Originally posted by SuperSecretSquirrel
    Precisely.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 2nd Jun 17, 10:56 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Bubblycrazy, just want to add that the fact you are pulling this off on a single part time net income of under 1k per month - well, that's incredible!

    Living smaller certainly has its benefits. Smaller mortgage, smaller bills, smaller financial commitments in general - gives you the flexibility to work part time, choose only work you enjoy, spend time with family, maintain minimal stress levels. Seems like the path to happiness to me
    Originally posted by SuperSecretSquirrel
    Thanks SSS. I fully agree with what you say. I live in the North of England which definitely helps! It's funny I don't really feel like I have a tiny income. The highest income I've ever had was just over £1400pm and I felt well off! I saved £400pm then and rarely dipped into it except for holidays and car insurance, thus the savings.

    I think I just naturally have always been a saver. My mum never had any money when we were growing up, or just spent it on the wrong things, and had to borrow from me once I started working. She always had rent arrears and was constantly on the phone chasing court threats and stopping interest charges. I knew I didnt want to be like that and have always appreciated the value of money.

    Took DS to the park yesterday, he's now at his dad's for the weekend. Been to the pics today with my mum and boyfriend to see A Dogs Purpose. Cried my eyes out at least 8 times, this is why I could never own a dog!
    I got the cinema tickets free using my lloyds club benefit, then we went for lunch afterwards and my mum paid due to me getting the tickets, so a NSD
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 8th Jun 17, 11:46 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Bank balance is looking healthy still, I'm so glad I've worked out a budget that I can stick to.
    Spending diary is going well, it's really making me think before buying extras.

    I have put £1500 of my savings into my new TSB account to get the 3% interest.
    I checked quidco and there's £34.55 ready to cash out. I received 49p interest in my current account this month, so have rounded up and just made a £35 OP.

    Today was almost a NSD but after voting, DS wanted to go to the newsagents. As I rarely take him into shops I didnt mind so asked him to choose what sweets he wanted. He chose a pack of tic tacs I treated myself to a pack of fruit gums, as they're one of my favourites and hard to find (why?!), total spend £1.02.

    In not so MSE news, I've just booked not one, but two holidays
    One is for 4 nights in November, and the other is a week in March next year.
    I've used money from my savings and as I don't have any debt I shouldn't feel too bad about the expense, yet I do
    I will probably not OP as much as I was going to, and any money left at the end of the month will now go back into savings.
    The trip in March will be the most expensive one which I'm going to have to save all birthday and Xmas money for. At least my new budget has money topping up the holiday and EF.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • PrincessLou
    • By PrincessLou 9th Jun 17, 3:31 PM
    • 500 Posts
    • 1,913 Thanks
    PrincessLou
    Bubbly, I spent my morning reading through your diary and got hooked I love your way of thinking in regards to money and I am seriously impressed that you spend so little. I have four year old twins and the lovely thing about this age is that they are happy with the simplest things in life.
    Mortgage - £105,500
    • bubblycrazy
    • By bubblycrazy 10th Jun 17, 10:43 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Bubbly, I spent my morning reading through your diary and got hooked I love your way of thinking in regards to money and I am seriously impressed that you spend so little. I have four year old twins and the lovely thing about this age is that they are happy with the simplest things in life.
    Originally posted by PrincessLou
    Thanks PrincessLou
    Wow, four year old twins, I couldn't imagine having to handle 2 of my DS's
    Although it must be lovely knowing they've always got someone to play with, I bet they have the funniest conversations!
    You're right, we should all follow children's examples of finding joy in the little things. It's sad that adult life tends to dull the joy
    My ex takes DS away nearly every weekend like it's some competition. He's just as happy going to the park 20mins away to walk in the woods and feed the squirrels

    Not much to report in MSE news. Logged into NatWest and my LTV is currently 77%. Daily interest is £6.33
    Just waiting till the end of the month to see how much I've saved out of my budget. Although I could work it out weekly, as it's been a long 10 days since payday and waiting another 20 more feels like forever. I'm not very patient when it comes to money and getting rid of the mortgage
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • EatingTheElephant
    • By EatingTheElephant 11th Jun 17, 8:13 AM
    • 1,105 Posts
    • 5,962 Thanks
    EatingTheElephant
    Hi, I've just found your diary, you're doing an amazing job. Fingers crossed the rates stay low for a switch later on this year.
    • bubblycrazy
    • By bubblycrazy 12th Jun 17, 12:56 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Thanks ETE, fingers crossed, although I don't think the country's in any fit state to cope with higher interest just now
    I think I'll speak to a broker soon to work out figures and options.

    The things in my budget I can work out weekly are food, entertainment and petrol, which in total are £60pw.
    If I work out my weekly spend starting from 1st June, I came under budget by £17.23
    I wasn't sure whether to OP straight away or save it until the end of the month in case I spend more one week, but I've decided that if I go over in a week I'll just have less to spend the following week.
    I think I'll OP £8.23 and put £9 back in the holiday savings.

    So from now I'll work out food, entertainment and petrol weekly. The only monthly spends which fluctuate are mobile and home phone, so I will OP any excess from those monthly. This should stop me from feeling like nothings progressing for a month until the next pay day
    Plus OP as soon as I have the money helps pay off more interest as it is calculated daily.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 16th Jun 17, 12:31 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Well I spent my whole £60 budget last week so no OP. I would have come under budget but my brother won tickets to a gig on Monday night and asked me if I wanted to go with him. When we got there I bought us 2 cokes which came to...£6.90!

    I have a spendy week this week with the fair in town, my brother's birthday and father's day, so will try to stick to the £60 budget.
    My mortgage payment came out today so until the interest is added on the balance is below £48000 I estimate that once the interest is added, if I can find an extra £59 to OP then the balance will stay under £48000.
    I have a few things to put on the local fbook selling page so will get them listed today.

    I'm not sure if a weekly budget will work long term as some weeks I hardly spend anything in the entertainment budget and other times it's more. Doing it monthly will allow for bigger purchases such as concert tickets.

    Does anyone else have trouble taking money back out of savings to spend on its allocated item? For example I'm putting £12 away per month for presents, but still trying to purchase them out of what's left from my weekly budget so that I don't touch the savings
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 22nd Jun 17, 6:53 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    I came under budget by £15.87 this week as I didn't have to put petrol in the car. The £27 I budget actually lasts me 8 days so there'll be some weeks I don't need to fill up. The rest of the money was spent on fathers day and my brothers birthday.

    I switched broadband at the end of last month but they are still taking the full amount this month and I will get a refund in July. I hadn't factored this into the budget so have a shortfall of £9.64 which I will cover using the £15.87 excess. This leaves £6.23 available to OP, and any refunds I get next month can go straight to OP and holiday fund.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 24th Jun 17, 2:16 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    I have an appointment with a broker on Monday to see if it's worth paying the ERC to remortgage and to see what rate I can get

    I have tonsillitis so have a 10 day course of antibiotics to take. This is the 3rd time since February and it feels like having the flu until the antibiotics kick in, not nice.
    My phone died this week too its the processor which has fried so I need a new phone. Annoying as I'd only got a new sim deal this month. I only need a handset but don't want to spend loads. Its my birthday in 2 weeks so I'm wondering if I can hold off until then and borrow a handset from someone. Just thought, I might ask my dad if he minds giving me my birthday money early instead.

    NSD yesterday and today should be too.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • andy1886
    • By andy1886 27th Jun 17, 10:06 AM
    • 222 Posts
    • 302 Thanks
    andy1886
    Good news on the holidays booked and hope you enjoyed the gig , but free gigs are rarely bad ! Hope you have a great mse birthday and your tonsillitis improves before then .
    Like you I allocate money to different pots and try to use other means before spending these pots , even though it is there to be spent .
    • bubblycrazy
    • By bubblycrazy 28th Jun 17, 12:36 AM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Good news on the holidays booked and hope you enjoyed the gig , but free gigs are rarely bad ! Hope you have a great mse birthday and your tonsillitis improves before then .
    Like you I allocate money to different pots and try to use other means before spending these pots , even though it is there to be spent .
    Originally posted by andy1886
    Thanks Andy, yes I enjoyed the gig, I love any live music tbh. The antibiotics are doing their job and I'm back to normal now.
    Glad its not just me who hates spending the pots!

    I made 3 NSD's in a row over the weekend, helped by being at work and the boyfriend away at Glastonbury. Came under budget last week by £3.65 which has been OP'd. The interest has been added on today and I need to OP another £47.68 to get under £48000

    I have borrowed a phone from my friend until I hopefully receive enough birthday money to buy a new one next month. Suggestions for an OK smartphone for under £60 are welcome.

    Spoke to the broker yesterday and, as I suspected, the affordability calculators now say no chance of a mortgage due to a lower income.
    She advised phoning my current provider (Natwest) to see what deal they could offer me. Interestingly she rang one department for me and I've found out that Natwest use the HPI to work out LTV, the house value must have increased as they said my LTV was at 70% instead of 77%

    Depending what they can offer it will be close whether I'll save any money. Is it just a case of working out how much interest the new rate would cost over the fix compared to the old rate, and seeing if that's cheaper than the ERC? Or is there anything else to take in to account?
    The broker also suggested just sticking with the current fix and paying the cost of what the ERC would be as an OP. Does anyone have any advice in regards to this?
    I don't know what the best thing to do is. However if I do switch it will be better off waiting until the 1st November when the ERC goes down to 3%.

    £7.75 food shop today. I had a £1.85 voucher to use in The Works so got a birthday present sorted for my friend's son's birthday this weekend for 15p! I already have a couple of books stored for him that I purchased in the January sales.

    Have a good week!
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 7th Jul 17, 1:36 AM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    I've neglected this site over the past week, mainly because I was a bit down after phoning Natwest.
    When I rang them again to find out the interest rate available, the woman on the phone wasn't sure why I'd been told the LTV was now 70%. She said the HPI they use is the same as zoopla, and when I looked on there the value of the house hasn't really changed.

    I'm also stressing a little about the money I need to find for these holidays. I just don't have enough flexibility in the budget to save enough, I'll have to use the savings I already have.

    So I think I've decided that the £1500 I would have spent on the ERC is being used for holiday money, and I have to accept that my rate will be fixed at 4.79 for another 2 years. My new goal will be to get to 70% LTV ready for July 2019.

    There's a vacancy in my current company for 20 hours over 2 weeks; 8 hours one week, 12 the other. The times work well around DS starting school and work around my existing hours, so I'm going to apply and hope for the best as the extra money would make so much difference.

    I'm still keeping a spending diary, I had 13 NSD's in June and OP'd £53.11 (on top of the £100 standard OP) I'm really happy with this, I didn't think it was that much!

    I found an amazing deal for the hotel for March next year, saving around £130, and it doesn't have to be paid until we check in, so that's a bit of breathing space there.
    Last edited by bubblycrazy; 07-07-2017 at 10:18 AM.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • andy1886
    • By andy1886 7th Jul 17, 10:25 AM
    • 222 Posts
    • 302 Thanks
    andy1886
    Best of luck with the job application . Bad news on the LTV front , but at least you can tick the months off until July 2019 and using that goal of 70% LTV by then . I prefer to target small steps to get to the end goal and with your holiday next year and the fix ending 2 years will soon pass . I am still trying to find goals for myself but all I have is my fix ending Feb 2020 . This just seems so far away and I need a goal to target before that , any ideas ?
    • DeterminedSingleMummy
    • By DeterminedSingleMummy 7th Jul 17, 1:19 PM
    • 194 Posts
    • 883 Thanks
    DeterminedSingleMummy
    Hey. I'm in the same situation where I can't remortgage because my income is now lower even tho I know I can afford to pay more each month. It's so frustrating. However when I rang Santander they offered me a good rate to remortgage 1.99% fixed for two years so wasn't too bad. Good luck with the job vacancy. I'm hoping to find something different too to work with DDs school etc..

    X
    Balance at start of mortgage Dec 2011 £87500
    1 Jan 2015 = £73,735 Overpayments = £3,360 (average £280 p/m)
    1 Jan 2016 = £66,558 Overpayments = £4,770 (average £397.50 p/m)
    1 Jan 2017 = £57,756 Overpayments so far Jan £0 Feb £550 Mar £3022 April £690 May £1513 total £5775
    • Swash
    • By Swash 7th Jul 17, 5:12 PM
    • 111 Posts
    • 263 Thanks
    Swash
    Hey! Just read your diary, you're doing great. Will subscribe xx
    "Nothing is permanent in this wicked world, not even our troubles".

    Mortgage 1/3/2017: £112795 Remaining Balance: £109990.00 Overpayments: £1241.22
    • bubblycrazy
    • By bubblycrazy 8th Jul 17, 7:19 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    Best of luck with the job application . Bad news on the LTV front , but at least you can tick the months off until July 2019 and using that goal of 70% LTV by then . I prefer to target small steps to get to the end goal and with your holiday next year and the fix ending 2 years will soon pass . I am still trying to find goals for myself but all I have is my fix ending Feb 2020 . This just seems so far away and I need a goal to target before that , any ideas ?
    Originally posted by andy1886
    Thanks Andy, you're right it will be here quick enough. What LTV will you have in Feb 2020? Will you be near a cheaper rates bracket which you can aim for? Reaching the next £1000 seems to be a popular goal.

    Hey. I'm in the same situation where I can't remortgage because my income is now lower even tho I know I can afford to pay more each month. It's so frustrating. However when I rang Santander they offered me a good rate to remortgage 1.99% fixed for two years so wasn't too bad. Good luck with the job vacancy. I'm hoping to find something different too to work with DDs school etc..

    X
    Originally posted by DeterminedSingleMummy
    Yes it's frustrating DSM. There should be different criteria when you're clearly already paying a mortgage. You managed to get a good rate though.

    Hey! Just read your diary, you're doing great. Will subscribe xx
    Originally posted by Swash
    Thanks Swash.

    The £130 TSB switch bonus has been paid so I've OP'd £48.68 and my mortgage balance is £47999 The remaining £81.32 has gone into holiday savings for now.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • bubblycrazy
    • By bubblycrazy 15th Jul 17, 11:46 PM
    • 120 Posts
    • 334 Thanks
    bubblycrazy
    I had a lovely birthday weekend last week. Overspent on the budget by £13.16 due to a few meals out, but took it out of the £85 birthday money I received. Put £70 into savings and OP'd the extra £1.84. Also had 80p of interest in my current account so OP'd a total of £2.64.

    I had the best birthday present on Monday though when I checked my bank and had way more money in than there should have been. I'd had a payment of child tax and working tax credits, which means the claim has been awarded to me instead of my ex
    No idea how he'll react when he finds out - it won't be pretty.

    I haven't had the letter through yet so don't know exactly how much it will be each month, but I'm not going to count it in my budget anyway in case it's taken off me again. I'll use it for OP's and adding to savings.
    My ex changed child tax credit over to his name last year without telling me This meant I couldn't claim working tax credit anymore (he doesn't work), I was better off when it was claimed in my name but he wouldn't change it back.
    HMRC have now seen the court order and awarded it back to me. I'll have to give him 50% of the child tax but not the working tax credit. This means I'm now about £200 per month better off So relieved.
    Unfortunately I owe them around £1200 due to overpayment last year so will use the lump sum I got this week to pay half of that.

    I'll now have money to put towards holidays and can hopefully pass affordability checks to remortgage. I'm going to wait until October when my ERC goes down to 3%. Fingers crossed.

    I bought painkillers at the chemist yesterday and got change of £5 instead of £2, so have an extra £1.35 to OP.
    My bills are in this month for mobile and broadband which are £12.57 under budget so will OP that too.
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 16th Jul 17, 6:42 AM
    • 309 Posts
    • 1,256 Thanks
    wishingthemortgaheaway
    Morning. Just had a read through your diary.
    You are officially a superstar. It is amazing how some people can manage their budgets so well, on a modest amount and others with a much bigger income get into all sorts of bother.

    im going to follow your story with interest.

    Great news on the tax credits front. Are they a once every 4 week payment rather than monthly? If you can work out a way to plan them as monthly payments, you'all have the payment when there is 2 in a month as a whole extra month for overpaying or saving.

    Have a great money saving day

    Wish
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