Mortgage Free By 30

skaps

Its July 28th.

laurasavon

Just realised I haven't posted for nearly 3 months, ooops! :eek: I have been reading some of your diaries - so thanks to the regular posters for all the inspiration you have given me.

I started off overpaying £200 a month and have increased this to £250 for the past 2 months as well as reducing the term to 24 years

However, the debts I had on credit cards and the loan and overdraft have now been paid off :j:j:j so I'm thinking about reducing the term to 14 years which will bring my standard monthly payments to about £950 from £650 and now we don't have the monthly debt repayments we should still be able to keep up the overpayment of £250

However, hubby is off sick at the moment and we've got the forms filled in for the PPI - does anyone know if there are any restrictions to redcing the term if hubbys half of the mortgage is being paid by the Payment Protection Insurance (I assume they will pay half of £650 so the insurance will contribute £375 towards the mortgage)?

laurasavon

I've decided to hold off reducing the term whilst hubby is off work and on SSP as his job isn't that secure at the moment so even when he goes back there is still the possibility of redundancy

Hubby also wants to book a holiday for when he's better so he's got something to look forward to when he's better, not very MSE :money: but I think it will be a well needed break! And I think Expedia have some good prices at the moment so can go through Quidco to book

laurasavon

I've listed 3 things on ebay today , not quite as good as some of you but a good start. One item being a matress which is in the spare bedroom and in the way so really hope that sells

Hubby is back in hospital for a few days tomorrow so will be busy visiting him and not spending any money (hopefully)

Just off to the Grabit boards for some inspiration on what to get a friends 1 year old for his birthday :money:

Queen-Bee_2

Hi Laura,

Haven't noticed your diary before (though I've been much laxer with my own postings recently!) but hope that your DH gets better soon.

I had to claim on my mortgage insurance policy after being made redundant last year, but it didn't interfere with my ability to reduce the term of the mortgage - the amount they paid out would have been the same anyway. Worth reading the small print though!

One thing which I think is really positive that you've twigged this pay off your mortgage asap lark very early on. Although I've always wanted to get rid of my mortgage asap, I was over 40 when I quantified the 'true' cost of my house and the penny finally dropped. If this realisation had happened 10 years earlier, I'd already be enjoying a mortgage free lifestyle!!

Anyway, good luck with your journey and good health for your husband.
QB

laurasavon

Thanks Queen-Bee, I think it's because my parents managed to pay off their mortgage when they were in their 40's which allowed us to have much more as kids than we would have had they still had the mortgage. Unfortunately, my parents split up a few years ago so now my dad has a mortgage in his late fifties but had their house not been mortgage free the choice of house after the split would have been very limited.

laurasavon

I've decided to post an updated SOA, and hopefully some of you may be able to suggest where we could cut back

Hubby's pay is lay off pay (he would be off sick anyway so this is slightly more that sick pay would be).

We had the forms for the PPI claim but our doctors (after having the form for about a month) have lost it :mad:. Have another form coming in the post but I doubt it will be sorted for our payment on the 1st :mad:.

I normally overpay by £250 a month, hopefully the PPI claim will be backdated as that should cover the overpayment.

We do have some savings (from critical illness claim for hubby) but have both ordered new cars so this will be at 0 on the 1st September :eek:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 460 (lay off pay)
Benefits................................ 0
Other income............................ 150 (Avon - so variable but lowest is usually £150 every 3 weeks)
Total monthly income.................... 1710
Monthly Expense Details
Mortgage................................ 719
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 80 (we both have iphones on contract, i use mine alot for my avon business)
TV Licence.............................. 12
Satellite/Cable TV...................... 56 (includes landline and internet)
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 5
Car Insurance........................... 60 (both cars - estimate for new cars)
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 10
Other insurance......................... 52 (PPI)
Presents (birthday, christmas etc)...... 50
Haircuts................................ 5 (I haven't actually had my hair cut since November, i'm scared of the hairdressers!)
Entertainment........................... 40
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 1710

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 500
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 125000...(719)......3.5
Total secured & HP debts...... 125000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,710
Expenses (including HP & secured debts). 1,710
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 0
Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -125,000
Total Unsecured debt.................... -0
Net Assets.............................. -122,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Laura_W_2

This is a great challenge Laura, I'll keep stopping by for updates... will rack my brain for any good ideas to help. Good luck!

laurasavon

Laura_W wrote: »

This is a great challenge Laura, I'll keep stopping by for updates... will rack my brain for any good ideas to help. Good luck!

Thank You :beer:

laurasavon

Had a busy weekend last weekend - went to Blackpool for a girly weekend whilst hubby went to a festival (not sure he's well enough but he wouldn't listen!).

Our doctors have said the PPI form will be completed tomorrow - finally :j

Hubby didn't get paid the lay off pay as expected and the person who deals with their payroll isn't back until Monday :mad:

Hopefully both will be sorted soon and back paid as my wages won't cover all the bills!