Mortgage Free By 30

laurasavon

Thanks Button, that would be most helpful.

I believe have option to continue paying whether or not i remain employed by them (but if i'm not employed the affordability would mean i would need to freeze at the 12 months so far as my mortgage would go up after 12 months when i'd have to come off my staff rate).

I took the shares over 3 years (I also have a prevous plan which i own as shares, had planned to cash them in for my wedding in 2008 expecting between £8-£10 per share hence the big overdraft and loan as i didn't want to make a loss having already coverted the 'savings' into actual shares).

My thinking behind cashing in early was that the option price to buy at is set at £2.20ish which given the current share price (50p ish) I wouldn't buy i'd just have my money back so why not have my money back now? I believe interest is payable after 12 months payments made so would get a little.

Also, if i do get the internal job i went for they may offer a new sharesave scheme in the next 2 years which i could participate in and if not i'd have £250 to overpay my debts.

laurasavon

i haven't done a SoA yeat as i want to know what money i've got coming in when i get a new job, but my main outgoings are -

Mortgage - £600 (on a 0.5% rate for my income but had to take a rate around 7% for hubby's contribution)
Gas & Electric - £60 (checked cheapest supllier when we moved in a year ago)
Water - £20 (on a meter already)
TV / Phone / Broadband - £60
Mobiles - £70 (both tied in so little movement as negotiated prices down at renewal)
TV Liscence - £12
Mortgage PPI - £45
House Insurance - £20
Car Insurances - £80 (pay yearly but put into a seperate account)
Saving for Xmas / Birthdays - £60
Council Tax - £130
Petrol & Diesel - £80
Hubbys car loan - £155
Personal Loan - £200
Food - £350 (i think this is one of the main thigs to cut out)
Credit card payments - £90 (don't pay alot as they are still on 0%)

Is there anything obvious i've missed?

Anyone with any genious ideas of anything i can get cheaper?

rictus123

Hey Laura, looks to be a good thread, how much deposit did you put down on your house and what was it valued at? Id love to be mortgage free by the time im 30 but thats a long term plan, got to get the funds together now for a deposit and fees and furnishing etc then find the perfect home then worry about being mortgage free lol. When im older i want to be a MFW though! All i can suggest is do everything in your power to spend as little as you can and earn as much as you can, you will reap the rewards later on. Good luck!

laurasavon

We bought the house December 2008 (mid credit crunch) as our first house was bought to get on the ladder and turned out to be in a horrible area (should have done more research but our friends lived in the same street and ahd done for a year, they now live next door but thats another story!)

The current house was on the market for £180,500 and we had an offer of £145,000 accepted (with carpets, fitted wardrobes and removal vans paid for by the builder) and put down a deposit (well equity from old house) of £14,500

As for current value, i'm not too sure we've only been here 12 months so probably a similar value for what we paid. I know the flats opposite (2 bed two bathroom) are selling for £100,000 but there aren't any houses left

abouttimetoo

Hi LauraSavon

Just to add another factor to your thinking about your sharesave - although I'm afraid it might cause you further thought rather than making the decision clearer

I think I can guess the company your are talking about - I don't think there would be a problem naming it but lets just say it starts with a 'L' :rolleyes:

If I am right then the bank is currently in talks with the inland revenue (nearly sure it's the IR but it's some government body) as to whether the shares in the share scheme - in your case the 4090 - should be adjusted to reflect the takeover as technically they are still 'old money' eg 1 share = 1 share of the old company etc

This is not secret information but in public domain and you should also be able to see it on your intenal intranet system.

Please don't take this as advice as I'm far from an expert but I did just want to mention it as if it does go through then you could end up with more than 4090 shares. Also, I've heard that the decision as to whether this is allowed or not is not the banks to make but whichever authoritative body it is dealing with

laurasavon

thanks abouttimetoo, i hadn't read about that - i no longer have access to the intranet as i've finished working there and if i dont get the job i applied for i won't be going back

thats definately something to consider, although the sharesave i'm talking about started Jan 09 so after the new combined group (although i think it was announced before we were taken over)

i'm going to find out some more about this - thanks for pointing it out

Button21

H Laura,

I looked at work today, and each years SAYE has different bonus options. Our 3 year one which started last December gives a tax free bonus of 2.4 times your monthly repayment, ie £600 after the 3 years is up.

Hope that helps you decide if you should keep it or not?? I am swithering but am thinking about paying off the staff part of my mortgage at the moment as I don't think it is tax efficient for me to have it.

Button

zag2me

Just wishing you good luck Laura, I'm 31 and half way to clearing my mortgage.

Hoping to get it done by the time I'm 33. Its not as hard as you think if you put your mind to it.

laurasavon

thanks for the good luck messages, i really hope i can do it!

I've just had a phonecall offering me the internal job for the company i worked for which is a 3 month secondment - good news i'll have some money coming in, bad news i can't use the redundancy money i have to pay off my overdraft

laurasavon

I've looked at our finances and hopefully with me back at work I can use hubby's money to pay off the overdraft (most expensive debt) each week when he gets paid, i've set up a standing order so the money goes straight out - fingers crossed this will be paid off by about July / August time.