I STILL want to be mortgage free - 2011!

twinklie

Ok so this morning I've uploaded the MS details so that's done. I've absolutely nothing else though for the rest of the month which is disappointing. There is just nothing in my area at all!!

So I've just signed up for another MS company for more online work...I'm hoping that doesn't matter what area you are in and so I'll be able to do more. Fingers crossed.

I've also done a wash and cleaned the yard of Belles "presents". Still need to bleach it though and give it a scrub...but I cleaned the kitchen floor without thinking and then couldn't get to the yard! Doh!! Still, going to sort another wash shortly and then clean the pots as well. I'm going to wait 10 minutes or so though and wake up the undead upstairs!!

I'm getting a little stressed and freaked out now. Our fixed rate deal ends in October and everyone is looking at remortgaging on their threads. I'm clueless about this bit. DH did it all last time because it's his house etc and I didn't live here then or have anything to do with his finances. However, I want to get us the best deal this time AND with us only having a little mortgage I'm hoping if we are clever we'll be better off than we are currently if we get it right.

I'm confuzzled though! Any help and guidance would be gratefully received. At the minute our fixed rate is 5.35% and our min payment is £328...we pay $450 every month just to OP. Ooooh I can feel a headache coming on already. Time to go and research I guess.

determined1_2

Replied to your post on my thread

The following link is very useful for comparing mortgage available in the market http://www.moneymadeclear.org.uk/tables/

Some may have low rates but have high fees - need to evaluate these and take the best option.

I always use spreadsheets for comparing my options. If you don't like using excel there must be some calculators out there.

Alternatively, if you're unsure which would be best. I.e. lower rate but with a higher fee, let me know and I'll chuck a spreadsheet together for you

twinklie

As I said you your thread. I love you!! I think I'm going to close my eyes to it all until at least Feb half term...then I'm going to start looking into it in more detail. I just did a quick comparison on money supermarket and it got me thinking about how long we need to be fixing for. My role at the minute is a maternity one so I drop back to being a "normal" teacher in September and lose my extra pay.

DH is a PhD student and am not sure what that classes as. He gets a stipend though and so is paid to do it. He also DJ's one night a week as well on a self employed basis. I don't know then if we'd be able to get a joint mortgage or not...can't see him wanting to put is solely in my name though given it's his house!

Plus with the uncertainty of what DH will do when he finishes his PhD in 2 years it might be worth taking a longer term fixed mortage 5 years perhaps...if we can get one with a lower rate than what we are currently on that might even take us to not very far off finishing the mortgage. That would be AMAZING!

Plus we'll get at least one of the credit cards etc paid off by then and so will have less monthly out goings...which will surely look better. I don't think we can risk not fixing though. Hmmm...

determined1_2

Come 1 July 2011 my current fix that I'm planning on leaving would have 2 years left to run but I'm think of fixing for 3 years rather than the comparable two (more details in my thread) as I think its almost certain rates are going to be higher come July 2013.

With little knowledge of your situation, I have the following thoughts:
- you say fixing for 5 years at a lower rate may take you close to finishing the mortgage. I would take out say over 10/15 year term so COMMITTED monthly payment is lower. Have a mortgage that allows unlimited overpayments and you can top up the payment to what you make anyway. If you get close to clearing before the fix rate ends leaving a small balance would be best to avoid any ERc. When the fix rate ends, clear the mortgage if you wish.
- fixing for 5 years will mean you pay a premium in terms of the APR. However, rates are likely to be higher in a few years so you may be happy to sacrifice a lower rate now for a guaranteed moderate rate in say 3 years time.
- given your variable income levels, have you considered an offset. First Directs is interest only so any payament above that can be put in the offset account and be accessible should you need them. Note there will be a small premium in terms of APR for an offset but they are great for flexibility if income is variable I guess.
- you say you cannot risk not fixing. This will all come down to your appetite for risk after making your assessment of possible outcomes. E.g. Could you afford the payments if interest rates went up to 10%
- re the credit cards, yes not having these debts will make you a more favourable customer I guess. Having some small amounts shouldn't hinder your application I don't think. We will have ~£2k 0% debt come our application and I'm really hoping this does not hinder my plans. Guess it depends on the level compared to income etc.

Hope this is of some use

twinklie

Defo some food for though...I will reply later after I have fully digested what you said. Expect further questions. :rotfl:

gratefulforhelp_2

ellesbellesxxx wrote: »

Have you got the one to one tuition at your school? I do it at mine after school in my classroom :English and Maths. 25.56 an hour! I am lucky as I have already taught the children so know them really well - you get 2 hours prep time on top of 10 hour block.

I did this last year, its mostly ks3 at our place, I did maths and you don't need to create resources since God invented bbc bitesize:rotfl:

Good money. Rewarding too.

This year they wanted English, but I didn't think even bitesize could help me there:eek:

twinklie

I might ask the guy organising it and see if it's something I could do. KS3 I could probably do Maths...defo not English though.

twinklie

Right, have emailed the man at school about tutoring, emailed AQA about exam marking as requested last year (they were full), washed all the pots and shredded two full black bin liners full of cack!! I reckon there is still many more bags worth...patience is going to be needed here. Belle HATES the shredder though so it's worth doing in her presence in short bursts to try and desensitise her to it.

Right, main jobs for the next 24 hours are tax return, MA assignment, lesson planning and bloomin marking the books I brought home.

EDIT: Thanks determined...don't know where my brain was earlier but I honestly didn't think about taking mortgage out over a longer term in a bit to be able to OP but not get over stretched if the rates shoot up. I fear I was being a bit blonde.

I can't help but have some fear about offset mortgages and I can't explain why. I must not understand them properly or something, they just make me uneasy.

determined1_2

I think people get fixated on the term too much. Interest is only charge on the outstanding balance, so if you make the same payment as on a shorter term mortgage there is no difference. There is a really good explanation video about offsets on first directs website. OH didn't understand them but now does because of that. She didn't understand me lol

twinklie

Phew I feel so much less stressed now the tax return is done and dusted!! Now if only I could get DH to do his. Hmmm.... I owed 75p. How rude!! Still I paid it so hopefully that's it now until next year. Unless I get a wriggle on, my tax return next year we'll be looking at all figures being under £100...I've just not done any shops. OOphs!

Right must try harder between now and April. Oh just a though, if you do exam marking do they sort all the tax for you or is it something you have to do?? I just find the whole thing bloody confusing if I'm honest. It's done now though...phew.

Also applied for the £5.04 that Npower owe us from 2007! Seems strange but they contacted us and every little helps.

List still to complete for this week:

1. Update cash flow chart
2. [STRIKE]Get organised for next week at work Just Friday to go.[/STRIKE]
3. File bills etc appropriately
4. [STRIKE]Try and complete work on MA assignment Just got to double check references are correct.[/STRIKE]
5. Update MS spreadsheet for this year
6. [STRIKE]Put bin out on Thursday[/STRIKE]
7. Hoover stairs and living room
8. [STRIKE]Mark books Half done...nearly there.[/STRIKE]
9. Take Belle out for 2 walks a day (mum or DH will do the 3rd). Done everyday so far...as per! :T