Pay off mortgage and start having fun!

newgirly

Lots going on at the moment, the builder should be starting in the next week or two so we have lots to clear out , Dd is moving into mums (too noisy to study at boyfriends with his younger sisters ).
Dh is away next weekend which is badly timed, visiting older brother with younger brother in Lincoln, with one of our boys as the twins are off to Sheffield to visit uni friends and ds2 will get the train to Lincoln for a night.

Anyway, I’m going to to see if it’s too late to join the mfi3 thread, HOWEVER, ive spend the last three days or so looking into other options for our mortgage instead of oping madly.

This will be a long a waffley post so be warned!

When we bought the factory about three years ago (for £200k which was very cheap) the business - of which dh is the sole shareholder,took a £82K mortgage out over ten years. Since then the operating side of the business has been taken over and we are employed by another company but we retained the building (now valued at £400k) and rent it to them with a five year lease starting last October for £2k plus vat pcm.

The mortgage term had to be reduced to a five year term to match the lease term as the bank wouldnt oblige otherwise, payments are £1482 pm. On an £80k mortgage (with the new mortgage fees added.)

To get to this point we had to clear the £20k business overdraft and clear the remains of a business loan (so the old company is basically a shell to collect rent eventually) so our personal mortgage offset pot paid for this, now we have a £79k mortgage when we would have been mf this April. Our income has dropped by just over a third not including the rent which of course goes on the mortgage.

Well done if you’re still reading :rotfl::rotfl:

So our personal £79k mortgage has an official end date of April 2022, we have known since last October when this all happened that we can’t clear it in that time - but I felt we should get it down as low as possible and then take out a new loan or mortgage in April 2022 for the balance. It was also suggested last year that we just add the personal mortgage to the business one in two or three years.

I discounted this as it seemed more attractive to clear both in the five year ish timeframe and have a bigger income from the rent - a big surplus for us with extra income and no personal mortgage.

I’m now questioning whether this is the best decision for us, it’s not like we are strangers to living on not a lot, ive been here for nearly nine years. But I’m worried what a struggle it’s will be to get to the end of this mortgage and have a small balance left, coupled with a much lower income.

ALso in this timeframe our dd will be moving out - probably next year , they have saved a deposit and are just waiting for Dd to go full time after uni and her next course are finished. Plus there will likely be a wedding a year or two afterwards :eek:

I’m seriously considering whether we should be effectively not oping like mad and evening out the payments for both mortgages effectively over ten years instead of five. (Probably less than 10 years if I’m honest) we also have the benefit of withdrawing a lump sum tax free when remortgaging factory to pay for the house as we have loaned the company money (to clear the overdraft and loan last year).

It’s kind of the opposite of our lives for the last nine years though and feels strange to choose to do that even though we can. Don’t get me wrong I fully appreciate how lucky we are that this is a new option for us I guess I’m starting to feel like as our term has extended we are putting our lives on hold for longer when we had so many plans

Any thoughts would be welcome, I’m going to spend some time with a spreadsheet and see what the options could be.

newgirly

Still lightly torn between what I could do and what i feel I should do mortgage wise

Gereral thoughts so far are continue paying factory mortgage from rent, by the time our home mortgage is up (April 2022) factory mortgage will be down to 23k or hopefully less if there’s is a surplus accruing we can op.

In the meantime get our home mortgage balance down to £57k by April 2022, then add the 57k balance to the factory mortgage, upping back to 80K where it started in Oct 2018.

Effectively adding 3&1/2 years to the factory mortgage, so in April 2022 having to get a new five year mortgage again.

newgirly

Taking a lunch break today, need a rest from the “mansplaining” I’ve been getting a lot of today from my colleague! Not too much of a problem as I will happily thank him for his mansplaining when required :rotfl::rotfl:

Not much to report, money shuffle done but mortgage not paid for January as I’m still a bit uncertain over what to do. Food shopping went over budget this month and I didnt even manage to keep track of it properly yet, this is altogether a bit of a failure for the first month of the year for me.

Must do way better for Feb, I fact I might make February the new January - all the xmas sweets have gone now, and the sales are over, it could be an easier month to get fit and op again

The only thing I have succeeded at is I’m still teetotal , 90 days now :T

themadvix

Well done on 90 days teetotal!!

I often think it would be easier to start NY resolutions in Feb, once the chocolate has been finished.

newgirly

Thanks vix, all the nice treats are long gone here now

Nice day today, shopping and lunch day with best friend, followed by Aladdin at the theatre tonight (my £30 new year sale bargain tickets) not my usual cup of tea but I have to say it was visually really amazing, Disney have thrown an awful lot of money at it.

Cheap night as well as the only spending being travel and a cup of tea we took in with us, plus when we came out it was snowing

Ds is out tonight and about to have a very long string of bus journeys home as his phone is flat so I can’t get him. I’ve run through the various catastrophes and decided that he probably won’t freeze to death as he couldn’t get an Uber idea needs be, so I’m in bed

Tomorrow’s plan-

Stay warm

Do finances

themadvix

We were really impressed by the staging for Aladdin too.

Hope DS got home okay! (and you slept)

newgirly

Hi vix, not much sleep but thanks

Ds2 home by 1am, Dd up at 4am loudly showering to get to work early, ds1 up at 5 to get the coach from Victoria to Sheffield, various lifts to the station given in pj’s, I guess this is the downside to being alcohol free - you are always available for lifts :rotfl:

Empty house today :dance:

newgirly

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JANUARY update!

Start figures 1st JAN 2019 :

Mortgage £79,000

Savings pot £0




Total at Jan 31st


Mortgage £78,465

Savings pot £300



Net figure £78,165




Total JAN reduction : £835

First op of the year made :j I’ve reduced this year’s target from £16,000 to £10,000 which will consist of £3,000 savings and the rest mortgage ops.

This will free up the extra cash we have decided we would like to make life a bit more comfortable.

The end date will be April 2022 with no surplus still owing if we can add our personal mortgage balance remaining to the factory mortgage which by then will be very low. It’s a slightly more risky way to do things , but worst case scenario and we run into any problems we would have to take out a new personal mortgage for around £57K which would still be affordable.

newgirly

I’m home alone this weekend - well not quite as Dd came home unexpectedly last night and is having her boyfriend and his dd over today so I’m cooking a roast. Still it’s been peacful

Dh back later from Lincoln visiting older brother with younger brother, except older brother made excuses and would not come out or meet up as he was “too busy” probably to do with the fact that he’s persuaded my in-laws to put their house up for sale and move from London to Lincoln and buy a bigger house right near him :mad: they are late seventies and he’s house hunting for them, huge houses with gardens so large its ridiculous, aside from the fact I really don’t think mil wants to move and is being persuaded.

It’s worrying as he is very much the favourite and they trust his opinion. At his own wedding he charged all the guests for the evening meal, each table got a seperate bill (in a function type room not a restaurant), our bill way more expensive than it should have been so we queried it - he had switched our bill with his as it was much cheaper - at his own wedding :eek::eek::eek: this sort of behaviour is why I’m a bit concerned ......

Anyway, I’ve few hours until they all start reappearing again - although it seems dh and ds2 have been out clubbing last night so probably won’t come home too early back later with ideas for making it a fabulous February :T

Moneyfordreams

I think I would be concerned too... WoW to the wedding story..

Charging to invite you ( then the switch!! )