Nat's Mortgage Free Odyssey...

nellis10

LOL I am being Green and Recycling an old thread of mine!!!

Well it's now towards the end of 2010 and rereading my first post seems a lifetime away! No new kiddies unfortunately, so my dream of having 4 is drifting away, still hopeful of one more before my body gives up!!

As for our Mortgage Free Odyssey that has take a few dramatic twists in the last 4 years, none of them in the right direction!!:eek:

Our mortage on House 1 now stands at £185K as my husband had to buy out a pain of a partner in his business. So we added £95K to the original amount 2 years ago. It's I/O at 0.75 above base rate, so really low, hence me wanting to start knocking off some of the capital before rates go up.

We are now in a position to do this more so than ever before, and I am hoping that we raise at least £500/month in O/P to kick off our MFO (Mortgage Free Odyssey :rotfl:).

Now our intention is to clear "our" mortgage of £90K within 15yrs (hopefully by 2020) and the remaining £95K of the "Buy out" will come from the profits of the business over the next 12yrs before DH retires.

So in theory base O/P of £500 will clear the £90K in 225 payments and any additional payments we can get will be helpful.
Contraints form mortage company (Abbey) are no more than 10% O/P per year which we wouldn't reach anyway in the short term!

Would love your encouragement once again and we chart our path to freedom!! :A

P.S Hubby thinks I am chronic with saving but has promised to match double what I pay in for O/P so the more I pay the more we get off the capital!! :cool:

nellis10

OK because this is my journey I am only putting in what I pay out, not the full household details. DH will match double what I put into O/P, so it is up to me to find as much money as possible.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1600 (not included shift allowance that is coming as that will go straight to O/P but will hopefully be about £200/month if they sort it out at work!!!)
Partners monthly income after tax....... 0
Benefits................................ 88 (child benefit)
Other income............................ 0
Total monthly income.................... 1688
Monthly Expense Details
Mortgage................................ 200 (50% of mortgage and running costs of a second home split with parents)
Secured/HP loan repayments.............. 209 (Car and a Loan)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 44
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 500 (includes all clothes etc)
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 11
Car Insurance........................... 35
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200 (averaged out, I also pay £243 out of gross salary not included in childcare vouchers)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 28
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1422

Assets
Cash.................................... 0
House value (Gross)..................... 112000 (not the main house and I get only 50% share)
Shares and bonds........................ 0
Car(s).................................. 3000 (only my car)
Other assets............................ 0
Total Assets............................ 115000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(200)......0
Hire Purchase (HP) debt ...... 5000.....(100)......0<
Car Loan.......................5000.....(109)......0
Total secured & HP debts...... 82000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Amazon Card....................700.......25........0
Total unsecured debts..........700.......25........-

Monthly Budget Summary
Total monthly income.................... 1,688
Expenses (including HP & secured debts). 1,422
Available for debt repayments........... 266
Monthly UNsecured debt repayments....... 25
Amount left after debt repayments....... 241
Personal Balance Sheet Summary
Total assets (things you own)........... 115,000
Total HP & Secured debt................. -82,000
Total Unsecured debt.................... -700
Net Assets.............................. 32,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

nellis10

OK today's task is to go into our joint account bank where we have a current account for any big one off items we would pay for...We have an ISA with them and a small savings account....I never use this account at all, but I'm going to get the details today so I can start getting payments going from my account into this and start building it up.

What I would love to do is start my own ISA too so that I can surprise hubby with the amount I am able to start saving....

I know this all sounds rather naive, but if I look at it as a challenge/motivator I might just be able to pull it off!

SmlSave

I think opening your own ISA is a good idea I certainly feel a sense of satisfaction when there's money in it and I see the interest earnt.

nellis10

Spoke to hubby last night and we are both firmly on board with getting rid of the mortgage as soon as possible.

We're aiming for a minimum of £500/month from Janaury 2011 and hopefully as much as £750 if we look to tighten our belts a little (which shouldn't be an issue as I know grocery shopping can be reduced with a little imagination!!!)

The only thing we have been deliberating on is whether or not throw the money directly at the mortgage or keep in in a Savings Pot and throw a lump sum at it.

Either way it will come straight off the capital as we are I/O, but for emergencies sake etc, would it be better to do it quarterly and have the money there, or is that just an excuse to potentially be tempted to spend it (not that it would be on anything frivilous - but still! )

nellis10

Things Done:

• Sorted out the Joint Account and merged my details with existing details (hubby had my DOB wrong so all the accounts weren't showing!)
• Re-Applied for internet banking so I can managed everything online
• Ordered local Fruit/Veg box fortnightly to save on trips to Tesco and overspending
• Personal account spreadsheet updated and tallied with Bank statement

Things to Do:

• Declutter Bedroom and bring clothes to Oxfam Skip
• Put old children's books on ebay
• Put all ribbons on ebay and get rid of all craft items (I was setting up an online riboon business but have decided to stop only 1 month in as it's just a distraction from what I should be doing!!!)
• Find a meat delivery or monthly meat box to stop going to Tescos
• Find mortgage details and set up standing order from Jan 2011
• Create Profit & Loss Spreadsheet and run personal account like a business...MUST MAKE A PROFIT!!! :rotfl:

gratefulforhelp_2

Natalie just popping by to see how it is done!

I really need to pluck up courage to do an SOA.

nellis10

gratefulforhelp wrote: »

Natalie just popping by to see how it is done!

I really need to pluck up courage to do an SOA.

I use excel at home and list all my monthly outgoings, but I need to make it more sophisticated and turn my accounts into Profit and Loss and run it as a business!! :eek:

nellis10

Tomorrow's Jobs:

• Store Cupboard Audit to begin meal planning and empty freezer
• Declutter Main bedroom
• Update spreadsheet with Mortgage details to show it as debt!!!
• List some items on ebay to start November's Make £10/day

nellis10

OK so arranged for e-Mortgage to get set up, have account details now for S/O from January and also confirmed there are no restrictions to the Flexible Mortgage...I can pay a penny a day if necessary...lol