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greent's mfw journey

edited 25 May 2010 at 11:41AM in Mortgage-Free Wannabe
2.4K replies 233.4K views
greentgreent Forumite
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edited 25 May 2010 at 11:41AM in Mortgage-Free Wannabe
Afternoon all!

I have been inspired after reading lots of the diaries on here to join in.

Background: OH and I are both 40. Have 4 children (12, almost 10, 4 and 10 months) OH was made redundant twice last year and recently started working as a contractor on a daily rate (4 month contract, may be extended a little) - so we now have a limited co of which we are both directors. I no longer work. We have a BTL property on which we have an interest only mtge and will clear that by selling the property (only bought for capital gain, not income, purposes) BTL property has long term tenant in. Rent covers mtge and buildings insce and repairs/ renewals with a small excess - but not much.However, it's on a fixed rate and takes care of itself.

MFW relates to our home. Bought in Oct 2005 for 277k, 130k mtge over just under 16 years (kept previous end date) Since then we have added a further 30k to the mtge for a loft conversion (needed due to the no of children!!) that cost approx 35k. We have also spent 20k+ on a bespoke fitted kitchen and building work - but financed that from savings/ income. And decorated and new carpets (previous owners ran out of money and had to sell, so place was full of stuff to do, even though it's still only 11 years old!) Some overpayments have been made, as can be seen from the overall balance.


OUr mtge is with C&G. I have a statement for balances as at 31/12/09:
(Balance as at 31/01/2009 was £124 616, so we reduced the balance by just under 20k last year)
Sub Account 01
Term remaining 12 years and 7 months.
Fixed rate 4.79% - until 30/09/10
Balance £79512.27

Sub Account 02
Term remaining 13 years 1 month
Fixed rate 3.99% until 30/04/11
Balance £25423.78

Sub Account 03
Term remaining 12 years and 7 months
Fixed rate 4.79% until 30/09/10
Balance £33.32


TOTAL BALANCE: £104969.37

We can repay by 10% a year without incurring penalty fees. We pay £1074.94/ month - this includes an element of overpayment, but I'm not sure how much (we didn't reduce our monthly payments when we paid off £12500 after DH was made redundant the first time)

My first step is going to be repaying Sub Account 03 :D We are with C&G, so I will phone them up about this. I can also afford to repay £4k to £5k from sub account 01, I think - but will leave that until after a meeting with our accountant (we are not sure yet exactly how much OH will be paid from the linited co)


I'm kind of looking for advice/ ideas, I guess... Would posting an income/ expenditure budget be an idea?

greent


ETA: We don't have any other debts. CCs are used (Tesco ones for Clubcard points for rewards) but are paid off in full.
I am the master of my fate; I am the captain of my soul
Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
Net sales 2020 £573.28/£500 Decluttering: 1565/2020
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Replies

  • dimbo61dimbo61 Forumite
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    With your OH recent work history I would keep a good emergency fund of up to £16K in cash ISA,s if possible.
    How long has the fixed rate deal on the BTL got left ? a lot of BTL lenders now want you to have 25/30% equity.
    Dont pay ERC,s on sub account 3 just wait until end of fix ! better to OP 10% on other parts
  • greentgreent Forumite
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    Thanks for your comments.

    We currently have about 8.5k in cash ISAa and will put some more in in the new tax year. We have 20k in an online savings acct and another few k in an instant access low int acct linked to the c/ac (I need to review our banking arrangments - is one of the things on my 'to do' list)

    ERP on Sub acct 03 is less than the int I'll be charged between now and the end of the fix (it's really tiny - about 30p), so I'm still planning on doing that

    The fix on the BTL runs out v shortly (May, maybe) and reverts to SVR -payments on it drop by about £45/mth. Equity is fine - mtge is 65k, properties in that street usually sell 100-110k. I wouldn't expect ours to sell for more than usual, but would hope that because it has new windows/ doors, new heating system, new carpets and a new bathroom could mean an easier sale than a neighbouring property without these. However, I'm not looking to sell it for about a year - so I'm also not looking to get a new fixed rate on that basis, either.
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
  • dimbo61dimbo61 Forumite
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    Long term after you fix on account 2 ends have a look at offset mortgages if the rates are good.
    Keep up the good work
  • greentgreent Forumite
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    Have set up financialbliss's spreadsheets for sub accounts 1 & 2 - brilliant! Great to play with the figures and see the difference it makes. We are on target to totally repay 24 months early at the moment, which is great.

    Will update as and when I make OPs. My first target is to get the balance sub 100k :)

    greent
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
  • edited 7 April 2010 at 4:15PM
    greentgreent Forumite
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    edited 7 April 2010 at 4:15PM
    Right, after dithering about this I finally got my act together today.

    I phoned C&G and have repaid sub acct 03 in full - all £32.68 of it, including a 32p ERP - this is less than 3 months' interest, and fix expires in Dept, so am happy with that.

    I have also increased our monthly pymts from £1074.94 to £1150 - this extra will be coming off sub acct 01, the largest one with the highest int rate.

    Having put the figs into my spreadsheets we are now due to repay the mortgage in May 2019 - yeay!

    Next target is to get balance sub 100k - hopefully in may or june. Ultimate target is to repay mtge by Aug 2016 - eek!!!
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
  • greentgreent Forumite
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    We're off to Cornwall for a week tomorrow - cheapy deal - 6 of us in a mobile home, but should be good

    Anyway, Sunday night (so day before Bank Hol) DH asks if I'll phone up the local garage on Tues to book car in for a service for Thurs (yesterday) - 'it's been sounding a bit funny' (this is from the man who took my (old) car to Birmingham and back with no oil and terminally damaged it last year :mad:) OK - I duly did and they had space (thankfully)

    Car service was £114 ish - that's ok. However, the gearbox is going - that'll be £2800 + something - eek!!! It's DH's ex company car - we bought it when he was made redundant. It's a 56 plate Ford S-Max with 66k on the clock - all the miles done by us and regularly serviced when company car and twice serviced since we bought it 11 months ago. Not ramped. It would still be his co car if he still worked there - they have a 4year replacemenmt policy.

    Bang goes me making a large reduction in one go in May/ June :( The garage have even said that we shouldn't be taking it to Cornwall, just in case. However, as my car is a Golf and there are 6 of us, we don't fit in my car as a family!

    Am all up in the air what to do now. Plans out the window. Need to be packing (and sorting stuff for DS1's bday which is next week whilst we're away) but am down in a hole:(:( Also, my Clubcard Deals vouchers (ordered on 26th March) for Eden Project and Flambards haven't arrived:(

    argh!!!!

    greent
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
  • SmlSaveSmlSave Forumite
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    Big (HUG) greent
    Currently studying for a Diploma - wish me luck :)

    Phase 1 - Emergency Fund - Complete :j
    Phase 2 - £20,000 Mortgage Fund - Underway
  • greentgreent Forumite
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    Quick update on the car: it lasted fine for Cornwall (we took AA (with quidco, of course!) and used them on the last day - the car wouldn't start as teh battery was a bit flat (probably because the sat nav, ipod and 3 x ds were all plugged in whilst we were packing it with doors open :)) Anyway, went to local main dealers yesterday and they would charge £2900 to do the work. They have also offered us £9.5k part ex for it for a new/ almost new s-max or galaxy (and they'll obviously pick up the charge of the work) They have a customer desperate for the spec that we haved on our s-max. We paid £9k for it a year ago almost to the day. It's tempting to look at a 1 year old galaxy - more room for the ever growing 4 children. They're looking at what they can come up with today.... May end up spending more money - eek!

    Have opened 2010/11 cash ISA for me. Need to find DH's online login to open his :D

    And on the good news front, DH received notice that he's entitled to a 2009 bonus of about £2300 from his old employer (left a year ago) - yeay! Unexpected :D
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
  • pammyj74pammyj74 Forumite
    3.3K posts
    Wow I am always in envy of people who have so much savings and money here there and everywhere.
    You also have an amazing LTV ratio.

    I am in awe of your achievements so far
    x
    MPs left feb '08 276- Dec 13 36 :T MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 :eek: NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!! :j
  • greentgreent Forumite
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    Thanks, pammyj74 :D. I was worried that our LTV had been hit hard by the recession and fall in house prices, but saw the same house as ours (but without the loft conv and with the original kitchen and 1 less reception room) for £320k, so I'm figuring that ours should be ok at min 300k, giving us a good LTV :-)

    We bought our first house in 1991 for 42k with a 40k mortgage and sold in 1996 with negative equity :( We had savings tio cover the neg eq, but it meant that we took a 100% mortgage on our second house of £68750. We sold that in Oct 2005 for £182.5k and had a mortgage of about 36k at the time - so had good equity to buy our current property, thankfully!

    Our savings are mainly at their current level due to OH's redundancy payment a year ago..... We also have too much money tied up in some Bank shares.... They are worth less than we paid for them, so I'm thinking that if we want to sell, selling them in the same tax year as the BTL property could be good, as they would have a negative capital gain to offset against the capital gain on the BTL for tax purposes :)
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/19 £48986 2020 OPs (#18) £4980/6K
    Net sales 2020 £573.28/£500 Decluttering: 1565/2020
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