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  • FIRST POST
    • bubblycrazy
    • By bubblycrazy 25th May 17, 1:54 PM
    • 133Posts
    • 397Thanks
    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 3
    • bubblycrazy
    • By bubblycrazy 17th Jul 17, 12:45 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Thanks Wish, yes it is 4 weekly so good idea about the extra payment.
    Nothing to report this weekend, I was working Sat and Sun. Just impatiently waiting for the tax credits letter to arrive.
    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 28th Jul 17, 10:26 AM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Wow, didn't think it was that long since I'd posted!
    Had a lovely weekend away at a wedding and only overspent by £6.41. I had a broadband refund of £23.96 so this covered the overspend, plus another £17.55 to go into holiday savings.

    I needed 2 new tyres which cost £75 but I had the money in my car maintenance savings to pay for these.
    I'm at a charity night tomorrow for my friends little boy, so will probably go over budget this week.

    Tax credit letter came through and I am £188.21 better off every month! This really needs to go into the holiday fund until there's enough to cover March's trip away.
    My home insurance is due and the renewal quote was about £180. Shopped around and got it for £119. I don't have enough saved for that yet (only £39 in the pot), so will have to use this months tax credits for the other £80.

    I've been looking into my pension and I don't think it's going to be very good, and I can't pay more into it because it's a DB pension. Been thinking about putting some money into an S&S ISA but I'm pretty clueless about it and I'm fairly risk averse. Not sure what to do.

    Will report back on Monday with final months round up.
    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 28th Jul 17, 6:24 PM
    • 585 Posts
    • 2,234 Thanks
    wishingthemortgaheaway
    Have a look at the lifetime isa too. See if you qualify for that.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • bubblycrazy
    • By bubblycrazy 28th Jul 17, 7:34 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    I think I'm put off by the LISA because you cant access it until 60. I'm after something which I can use for early retirement as in 55+
    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
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 28th Jul 17, 10:07 PM
    • 590 Posts
    • 2,606 Thanks
    SuperSecretSquirrel
    Seems to me that LISAs have some of the worst aspects of pensions and ISAs (drawdown at 60+, no tax/ni relief or employer contributions, not ignored in benefit calculations, etc) without any of the good stuff! Great for potential first time buyers, but I'm not sure about the rest of us. The whole concept seems really odd to me, and I don't know who they're really for. The cynic in me thinks they were simply dreamt up as a political exercise in smoke and mirrors - give the people the illusion that they are being given something, when what's really being offered is worse than that which is already available!
    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k] £15,667.31
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k]
    48,973.75 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k] £264,504.07 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%] 17.3%
    • bubblycrazy
    • By bubblycrazy 30th Jul 17, 7:27 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Exactly my thoughts SSS! I'm thinking S&S ISA is the way to go, but then I panic about the risks and think maybe I should just continue saving in the best interest accounts available.
    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
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 30th Jul 17, 8:32 PM
    • 590 Posts
    • 2,606 Thanks
    SuperSecretSquirrel
    If you decide to dip a toe in the water, have a read of this - http://monevator.com/how-to-invest-on-a-budget/

    It's a fairly old article, some of the specific funds may no longer be available, but worth a read regardless. Doesn't have to be all or nothing, you can start with quite low monthly amounts and ramp up later if you feel like it.

    I started with £50pm invested in the pound stretcher 60/40 portfolio. Now things are even simpler, I just put everything in vanguard life strategy 80 and forget about it
    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k] £15,667.31
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k]
    48,973.75 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k] £264,504.07 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%] 17.3%
    • bubblycrazy
    • By bubblycrazy 31st Jul 17, 12:01 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Thanks SSS, I'll have a read when my phone will let me open the page
    I would probably start with £50pm. I've read your diary and you increased from £50 fairly quickly, and kept on going!
    What do you think of the view in post 12 of this thread? http://forums.moneysavingexpert.com/showthread.php?t=5593339
    Last edited by bubblycrazy; 31-07-2017 at 12:04 PM.
    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
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 1st Aug 17, 1:59 PM
    • 590 Posts
    • 2,606 Thanks
    SuperSecretSquirrel
    I'd agree that an overwhelming consensus is often something to be wary of - for example, a contrarian tends to be elsewhere when bubbles burst.

    I guess you could end up in a weird market distorting feedback loop situation if pretty much everyone piled into the same fund, but that's not the current reality, so I won't worry about it. Not that I'm sure it would be something to worry about at a personal level anyway.

    I ended up reading the whole thread, and a comment that stood out was - "I don't have a huge proportion of my retirement fund in cash, and neither do I invest next week's grocery money into early stage unlisted companies" - I guess that's why I'm so comfortable with my current level of risk. I only invest what I know wouldn't cause us a short to medium term problem if it were to disappear for a while. By minimising the mortgage balance, keeping tabs on outgoings, and having a fair sized emergency cash cushion, the value of my investments could halve overnight and it would do no lasting harm (assuming they eventually recovered and I had the nerve to remain invested). I suppose it's quite similar to how I feel about our house value, until we come to sell it doesn't really matter, it's totally immaterial in day to day life. What I'm getting at is you need to be able to sleep at night and only you can know what you're comfortable with

    Another choice comment (I think it was made by the same clearly knowledgeable user) was that clueless posters on MSE tend to keep steering people towards Monevator and VLS, both of which I mentioned in my last post I wasn't steering you towards VLS, but I'm ok with wearing the clueless badge

    Finally, thanks for linking that thread! I just found out that Vanguard now allow UK investors to invest with them directly. Must have been big news a couple of months ago, and it totally passed me by
    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k] £15,667.31
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k]
    48,973.75 (MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k] £264,504.07 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%] 17.3%
    • bubblycrazy
    • By bubblycrazy 5th Aug 17, 3:05 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Lol SSS, you're definitely less clueless than me!
    I guess my main concern isn't the short to medium term loss, which i'm ok with. It's the long term loss which would seriously affect my plans for age 55+ if it all went to pieces.
    Unfortunately investing direct with Vanguard has a minimum monthly amount of £100. Or could I put in less than this but it would have to be done manually each month?

    I've been away to the lakes this week with the family and had no internet access. Had been hoping to update this before I went, but ran out of time.
    12 NSD's in July.
    OP'd £65.24 (on top of the £100 standard OP)

    I received last years final tax credit award and I only owed them £580 instead of the £1200 I had originally been told!
    I already had £960 put aside to pay this, which means I've paid the debt in full and still have £380 spare
    I have added:
    £50 to the car tax fund as it is due before I will have 12 months of savings.
    £50 to MOT fund.
    £50 to presents fund.
    £230 to the holiday fund.

    Feeling really good now that that debt has gone. Now I can focus on increasing the holiday fund and OP'ing the mortgage.

    Holiday fund is currently at £538.38 (need at least £150 for November and £750 for March)
    Mortgage balance is currently £47811.31 (need it to be £46875 by 31st October)
    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 Aug 17, 8:14 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Not much extra saving going on this month.
    Spendy week last week as I was out for a birthday on Saturday night and dinner on Sunday.
    Also overspent on the food shop due to needing batteries and a sandwich.
    Total overspend for the week was £24.71
    I'll have to take it out of the tax credits excess and have slightly less to OP next week.

    Entertainment is what I usually overspend on so I'm thinking of taking money from the mobile phone excess and adding it to the entertainment. My water bill is due to increase by £2.17 from September. I think I've had a pay rise at work this month but won't find out until payday on the 31st. I think it will be about £13pm, I'll probably do a new SOA in September.

    DS starts school in 3 weeks I feel like I need to be constructive with the free time I'll have.
    The house really needs some TLC so I'm hoping to make that a priority. I'm such a procrastinator though!

    I was going to open a Nationwide flexdirect account to get 5% on my savings, but decided to wait and do it through refer a friend and switch an account for £100, so I've opened a Natwest current account to switch.
    If anyone has a Nationwide account and has a referral link let me know.
    I've set up 2 new DD's to my Tesco accounts so won't be able to switch until they've came out in September.
    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 26th Aug 17, 12:00 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Tax credits are in so I've just made a £65.75 OP and added £101.62 to my holiday fund.
    I have £56.19 to last until the end of the month. Will just about be enough, unless any unexpected spends come up.
    I would have been well over budget this month but had a lovely email from EDF refunding me £28.82.
    Out for a meal after work tonight with the boyfriend and I have a code for 33% off.
    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 28th Aug 17, 8:33 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    I've had the keys to my house 3 years today
    Current mortgage balance stands at £47579.82
    Without any OP's the current balance would be £50969
    Not bad, will hopefully have OP'd more than that in the next 3 years.

    I now have £28.19 left until the end of the month, and still need £25 of petrol (might get away with £24)
    There's nothing else I NEED to buy, any other spends will be for keeping DS entertained.
    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 Sep 17, 4:38 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    I managed to have £3.84 left at the end of the month so have OP'd this.
    14 NSD's in August.
    £69.59 OP'd (on top of the £100 standard OP)
    Holiday fund is currently at £660.

    I think I need to set up another savings pot for my extra income.
    At the moment when it's a month when my pay is higher, I leave in £798.34 and transfer the rest to savings.
    Going on last years income this should then be enough to cover the shortfall for the lower paid months.
    However out of 3 months wages I've only saved £330.30, I need to save £1217.32 from 6 months wages
    I know I haven't had as many extra hours this summer as last, but I've also had a pay rise so I thought it would have evened out. Not sure why there's such a shortfall.
    The next 2 months pay should be decent so I will wait until the end of October and see how short I am of the target, tax credits will have to make up the rest.
    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 Sep 17, 4:55 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    I think I've worked out one of the reasons for the shortfall.
    Since last summer there have been changes to my pension. Before the changes I wasn't paying NI and now on the higher paid months I 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
    • squirrelgirl
    • By squirrelgirl 2nd Sep 17, 5:34 PM
    • 130 Posts
    • 633 Thanks
    squirrelgirl
    That's really annoying about the NI

    You're doing really well though....very focused so I'm sure you'll hit your targets!!
    MFW £3510.00/£22968.96: October GC £30/£300
    • Betterthanever
    • By Betterthanever 3rd Sep 17, 8:39 AM
    • 371 Posts
    • 1,525 Thanks
    Betterthanever
    Just read your diary and wanted to say I think you're doing brilliantly. I've been where you are, locked in on a rate you can't get out of, with the affordability rule scuppering things when you know the reality is quite different. Typical "computer says no" stuff! But keep plodding along....it does get better and your options will be hugely different next time.

    Will be following with interest!

    Current balance £115,428.65. Offset £1,775.31. £113,653.34 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22
    Money for Nothing pot = £392.99
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • bubblycrazy
    • By bubblycrazy 3rd Sep 17, 11:22 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Thanks squirrelgirl and Betterthanever

    I've realised I was underpaid by 7hrs last month so will get that in this months pay.

    I've had my yearly mortgage statement through and was really confused why it said my ERC was 3% now, as I didn't think it changed until 31/10/2017. When I've looked closer at my original paperwork it says that if i repay before 31/10/2017 I will be charged 3%, which means from 1st November my ERC is 2%

    All my workings out were based on an ERC of 3%, which was still coming up as saving money, now it'll be worth paying the ERC even more! So happy! I'm really hoping there's no sudden increase in interest rates before then.

    DS starts school on Tuesday! I'm excited but also nervous as this is the biggest change to our routine since he was born, and will set the scene for the next 10+ years

    I came under budget by 40p this week, and also received 79p interest, so have made a £1.19 OP
    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
    • squirrelgirl
    • By squirrelgirl 4th Sep 17, 4:17 PM
    • 130 Posts
    • 633 Thanks
    squirrelgirl
    That's a nice surpise on the ERC front!! Hope all goes well with starting school....it's been a long time since I was in that position but I remember how lovely it is to see them in their new uniform all smart and excited!!
    MFW £3510.00/£22968.96: October GC £30/£300
    • bubblycrazy
    • By bubblycrazy 4th Sep 17, 10:35 PM
    • 133 Posts
    • 397 Thanks
    bubblycrazy
    Thanks squirrel. Everything is sorted and ready to go in the morning, can't wait to see him fully dressed in his uniform
    I'm going to try and have an early (for me) night as I'm not naturally a morning person and the alarm is set for a far too early time. Better get used to it!
    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
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