Pay off mortgage and start having fun!

newgirly

I've been trying to make plans today.

Loan has been paid off in full from the offset (we will have to shoulder the cost of this as part of the new deal) we can't afford the £619 payments so I've cleared it.

We will need to pay off the business overdraft of around £20k

Long story short but dh took out a ridiculously expensive business line phone contact when he first took over years ago, then took another one out which was cheaper and they agreed to buy him out of the first one as part of the deal, they never did (although we have some past emails confirming this ) costs have Now risen to £18k odd from around £3k, solicitors will have a look but we may end up liable for it- im budgeting £10k just incase.

Legal fees for paperwork £2k

Float - as we will be invoicing on some asset rental costs monthly, so £3k to cover the period monthly when we wait for it to come in.

Rent is £24k per year , mortgage £840 pm so I'm estimating an amount after corp tax, dividend tax (I'll have a percentage going forward to help with this) and accounts fee of £700 pm to draw out.

So.......


A new (for the moment anyway!) mortgage start balance of

£82,715 :eek:

To clear in the remaining official term of 3 years and 8 months from sept 2018 this will cost £1958.09.

After direct debits and the mortgage payment we will have £393.98 left per month to live on plus £700 draw down from the rent.

direct debits include :

All usual bills and mobiles , plus internet etc. and gym as I can't cancel, £100 pm for dh - I've raised this slightly as it's going to be much longer term until we have more spare cash.




So £1093 pm

Budget plans :

Food : £400

Petrol : £80

Clothes/ home bits like bedding etc. : £80

Entertainment : £100

Misc., bus/tube occasionally , hair dos (this won't cover it!) prescriptions £100

Xmas £100

Birthdays £100

Car savings for disasters £30

DIY / gradual update of shabby house! : £100

Er £3 left :rotfl:

The most important thing has sadly not been added to this list , which is of course holidays it seems like we can't really have the luxury realistically of budgeting for this. Dd is currently paying keep of £150 pm although she is going to go part time soon as it's too much during her third year in uni , so I'll reduce that anyway. I'm going to start to try and save some of that and fingers crossed the boys will being paying keep soon. (Fingers toes and legs crossed for that one!)

I'm also hoping to trim the fat from some of those categories to add to the pot too.

Phew, that's it for now as I'm off to watch mamma Mia with some of the kids, dh and my great aunt, plan is to not feel embarrassed and pay for the extra hangers on without Cineworld cards, I struggle with this sometimes , new tough me needed now though

newgirly

Well dh had the meeting with the bank, they were unhappy at the lease having a six month get out clause and that the new company will be brand new basically. It's going off to be looked at by the credit team, so it's fingers crossed at what can be achieved within the parameters she's allowed to go to I guess. It helps that she was introduced to us by dad and his business partner who have very large portfolios of properties that she would like to get involved with, whether that will be enough who knows!

Either way we can't afford the mortgage on the factory and our own home. The bank have said if it is a yes it will be for a five year mortgage - meaning we can pay it through the rental income but can't afford our own mortgage (now much higher!).

It may well be the case that we have to massively reduce our mortgage payments/extend the term/ stop paying until the factory is paid off in five years / remortgage the home loan against the factory , or a combination of a few of these. Lots to think about

themadvix

Oh NG, that doesn't sound so great. I hope the bank manager comes back with good news and things become clearer. x

newgirly

Hi vix, still waiting on a decision! The new company agreed to a five year lease with no get out clause, but as they are "new" it's not of much value anyway, hopefully we find out more today.

Did a big shop at mr t yesterday on the way home from work, £145 spent and I'm ashamed to say a few not so mse types of food like the little foil trays with hunters chicken etc. went in the trolley , I could make that myself cheaper . That did include a bottle of Wild turkey whiskey for little brother's birthday and also I've switched my club card to Xmas savers club (even though I have no vouchers left) and put £10 onto it for xmas.

I couldn't decide whether to bother as Aldi is cheaper, but our branch is shut until September and I quite like the idea of saving in vouchers for Xmas food as I can't dip into it.:D

newgirly

Still no news from the bank, hopefully dh will ring today as we are running out of time.

I had a lovely day out with best friend at a spa yesterday (booked in January) , fairly mse as we had a discount and Bogof so only £44 each for lunch, a facial and a massage. We spent exactly ten hours talking non stop :rotfl:

I'm back using a basic spending app, so far this month, food petrol and clothes £400/£80/£80 will go on the cc and the rest from the current account to so any leftover can be swept into savings.

This afternoon I have a mortgage appointment booked to talk about extending the term, I really don't want a 2 hour application but more a basic chat about the process which Chelsea couldn't do.

We are currently IO with a term of 3 years 8 mths left, but if we get the factory mortgage we won't be able to clear our own mortgage in the timeframe. I would like to extend the term but I'm not sure I want to switch to repayment if they force us at the monent. We may have the option to add the home mortgage to the factory one in a couple of years too. Too much to think about

Moneyfordreams

Hunters chicken :eek:

hope things get settled for you soon x

newgirly

Thanks mfd's

We still have no definite official answer from the bank, however she spoke to dh Friday and said that it's looking like it will be a yes to the mortgage but only on a four year term not the five year (which was already too short!) she says we can cover the mortgage payments with the rent still, which is actually not true as we need to pay corp tax. It will mean we have to put a bit in ourselves to cover it, probably only around £100 pm which is achievable.

The mortgage appointment with our bs was cut a bit short as I didn't want to go through a two hour interview and cut to the chase with - can we extend the term while on IO ? The answer was no, but we may say yes in six months when we see you make ops, strange as I would have thought they can see a fair few big regular ops in the account

So I'm keeping it IO for now, at least until the tie in deal ends in two years and we will reassess then. I'm going to cut our ops as we have quite a drop in wages and also I don't want to be on frugal measures for the next few years again.

Currently I'm thinking of paying around £750 pm ish, off the top of my head as I've forgotten the exact figure it works out to clear in about 10 years, it allows us more to live on , I can still op on top of that and when the factory is paid off in four years we can use the rent to clear our own mortgage quicker.

Phew, all that aside th new spending tracker app is good for me, I like having little pots to spend from although I've not been out this weekend I have got a couple of bargains -

Diesel aftershave gift set for dh 50ml and two shower products in a case (£50ml was £45 in the shops the other day) for £28.95 plus 15% off plus 8% topcashback

So I bought one for dads birthday and four other perfumes for Xmas gifts £104 spent total from the pots

This morning I have bought something most will see as a waste on hduk they had a set of four wine glasses with gold pattern around the rim for £3 a set instead of £10 so I bought five sets for the Xmas table and the only 2 sets of champagne glasses to match left. £21 the lot plus I think 3% tcb. I do love a well dressed Xmas table and they will go well with the red charger plates I bought in £1land last year :beer: they have to be cheap prices when there are so many of us though :rotfl:

Plans for today -

Update spending app and check accounts

Pack for Majorca next week :dance:

Clean downstairs and bathrooms

Do lunch for all including dds boyfriend and his Dd who had her first day at secondary school this week , I was doing a roast but may switch to roast chicken, lasagne, salad and garlic bread as it's quite warm still. Hopefully after that we will crack open the dr who and Harry Potter trivial pursuits, followed by watching the bodyguard on tv later :T

Happy Sunday

themadvix

Hope you had a good afternoon yesterday - sounds lovely!

Do you think it might be wise to wait on Christmas spending until you know how things stand?

Is Majorca a girly trip? Should be a nice chance to soak up some sun as it's definitely getting cooler here!

EagerLearner

Hi newgirly, glad the bank came through, hopefully you can renegotiate as you say in time when they see your ocerpayments on it.
Ah I love holiday packing! We went on a very cheap break to Europe this Easter but apart from that was a staycation in the new forest. I love planning hols and dreaming of hols ha.

newgirly

Hi vix and eagerlearner

It is a girly break but just best friend and I this time, the first time ever we have had a holiday together just the two of us and we have known each other 41 years

Vix you are probably right about the spending but I'm fed up ting everything on hold to be honest and want to feel it's business as usual I'm 95% sure all will be fine now and if it's not we will have a mortgage for a lot longer - well actually we will either way!

My weight loss or lack of it is a problem, since leaving WW a few months ago I have put on more again, mfp does not seem to work as well for me, probably due to the lack of a weigh in in front of somebody, I'm not sure what to do yet but either way I need to re focus when I get back from the weekend away.