Ztan's Shared Equity Story- MFW from the word GO

ztan

Okay NEWSFLASH:

Ztan is starting a new job in 2 weeks!

I've been on a rolling temp contract for 7 months in my current role, and have also been deeply unhappy working here. I deal with customer complaints, which is not at all rewarding, and was slowly driving me mad.

So last week, I applied for a job at my Dad's factory, and attended my first interview on Monday. I then went back yesterday for a second interview, with the HR director! (All in the interest of fairness, as I don't want to be accused of only getting the job because my Dad is the boss)

And I've been offered the job! It's a 12 month fixed contract- with a 99% chance of going permanent after the 12 months. There's loads of room for progression and its a great, challenging job. Totally new, and unlike anything I've done before. I'm going to be handling purchasing budgets of £1.2million!!!

Apparently, the HR director said that they see big potential in me, and with the right training, I could be plant coordinator in a few years. That is huge for me! I am a career driven person!

So woop! 2nd mortgage payment is due on Tuesday, and I've handed in notice today.

Tides are changing, but at last I have the security I need in a job.

SmlSave

:T Weldone with the new job :beer:

gallygirl

:j:j:j Great news, well done :j:j:j

ztan

HOLY BALONEY....
I have just been informed that my first payment date in my new job will be.....

21st December!!! EEK! So I've been paid today... moved the appropriate funds to the joint account for bills etc... but now have to make £500 last 8 and a half weeks...

I'd better tell the OH to put in a few extra hours overtime! At least I'll be flush come 21st December... that should equate to be about 6 weeks wages, and I'll get paid 2 weeks wages end of November from my current job.

Ouchies though!

tootallulah

Great news about the new job, well done. The six week month will be a wee bit challenging but you will get there. It sounds like a real opportunity.

ztan

Okay bored at work, played with the calculator.

My OH and I are planning to OP by aprox £5000 each year if we can, starting as soon as Christmas is out of the way this year. We're still having to buy things and are settling in, and with me changing jobs now- we just don't have much disposable income.

But anyway, although it won't work out exactly like this, it's interesting to know what is potentially in store for the future.

If we continued just paying the mortgage at a normal rate we'd be looking at the following:

Year 0 £112,500
Year 1 £111,255
Year 2 £109,947
Year 3 £108,574
Year 4 £107,133
Year 5 £105,619
continuing until..
Year 35 £0.

However, it is more likely that this will happen if we stick as much money in an ISA as possible and then pay chunks off each year.
Year 0 £122,500
Year 1 £104,955
Year 2 £97,032
Year 3 £88,713
Year 4 £79,978
Year 5 £70,806
REMORTGAGE to pay off 20% shared equity loan- hoping this will be in the region of £30,000 additional (if the house price is around purchase price of £150,000)
Year 6 £100,806
Year 7 £93,444
all the way through til
Year 15 £8,204
Year 16 £0.00!

Now, obviously this is loosely calcuated because I have not made major adjustments to the term, and the interest we get fixed at will vary each time...

But still rather enlightening from a newbies point of view. I cannot believe I didn't know this was even an option! So glad for this site.. before we were too far down the road!

Sincerely hoping that in 5 years time, the value of the house has not risen dramatically however that is why we're overpaying as much as possible now... so that we should always avoid negative equity. (If we're running at a mortgage of £70,000 on a house valued at £150,000 that's good going) Then, once we've paid off the other 20%... the house price can rocket, pretty please!!

anyway, it's now dark and it's time to go home. We're cooking a few batches of food tonight, then walking to my parents to feed their animals whilst they're on holiday. Saving money on petrol AND getting exercise.

They'll make a MFW and MSE outta me yet!

LilacPixie

woohoo ZTAN - its nice to have a plan We havent even completed and have been playing too. My plan for 2011 is round up MP to the nearest £100 or £50 depending on what it is, I worked out my MP to be £706 a month so we would pay £800 but broker says its 698 so we would probably pay 750 rather than 700 but maybe 800 depending on rest of budget. Then 2012 i will be working again and we can fling hopefully an extra £500 onto it. Sound silly but I have no idea how much another pixel will cost us so playing it by ear. Then come mortgage fixed rate finishing end 2012 OH mega £480 a month loan will be finished so we cna chuck that at mortgage too or maybe into an offset depending on circumstances wth the idea of being MF December 2020

Lots of variables in that though, income staying consistant, LTV at remortgage time beng sufficient for a nice offset rate, interest rates etc.

LilacPixie

Have you considered an offset at remortgage time??

ztan

Have to be honest LP... don't have a clue how offset mortgages work it took me months to get my head around a normal one!

I also don't know if it would be an option for us, with the second interest on the house... I think it may be more plausible to try when we've paid off the builders 20%.

I have become so obsessed with how we can save money- that I've banned my OH from using the hot tap to brush his teeth. He prefers the warm water because it softens the bristles or some rubbish like that, but since I pointed out to him that everytime he turns the hot tap on, he's costing us gas to heat the stuff, he's stopped doing it! Cold water for everything apart from washing up and the occassional bath now!

It's slightly annoying however, because our joint income, whilst good pretty much only just covers all the necessary savings etc. It's good thing, but we don't have any loans, or debt of any description which means we will be working from the same pot for a long time. Listen to me moaning that I don't have any additional cash coming my way because we DON'T have any debts. :rotfl:

LilacPixie

have a play about with the mortgage shrinker on http://www.oneaccount.com/onev3/index.shtml it isn't the best offset apparently but the calculator is cool. Basically every penny you have in savings you get no interest on but you pay no interest on a matched amount of the mortgage so you could have emergency savings in an accessable account but not pay interest on the same portion of your mortgage. If you can get mortgage down to 70k by end of 5 year fix and its still worth 150k then you could possibly remortgage taking out a lump to pay builders charge and still offset. I know a few link it to current account and set D dates for end of month instead of start to minimise interest being paid.

You looked at all the clicks and surveys and stuff for getting extra cash?? I had eager learner send me the clicks guide and that claims to give over £500 extra a year, I also had pammyJ refer me to some survey sites for little extras.

I have a theory, if I can make birthdays/christmas cash neutral then we are quids in.