Ramjet's Mortgage Free Diary

roger_ramjet

Hello all...

I'd like to sign up and be a Mortgage Free Wannabe!

My circumstances are...

Current Mortgage was taken out in 2008 with the West Brom. A 10 year fixed rate mortgage at 5.59% (I was convinced interest rates were going to go up at the time! - D'oh!) Mortgage term was 14 years, 6 months, paying £809 pm (repayment). In the last 3 years, I have made overpayments of approx £2500, so the current balance on the mortgage is £79235. My current income is £54k, with a net monthly income of approx £3300. My current outgoings are approx £1800 per month, broad breakdown as follows:

£809 mortgage
£200 housekeeping
£60 Investment ISA (return currently at around 10-15% pa)
£120 monthly savings accounts (paying 4%)
£100 mortgage overpayments
£140 utilities
£130 comms and TV (sky, BB, mobiles)
£100 insurance policies (2 cars, 2 dogs, house)
The remainder is odds and sods, including mess bill, association memberships, and furniture payments

There are a number of questions:

1. Should I stay in my fixed deal? Current rate is high in comparison to variables on the market. Redemption penalty on current deal is around £4k, but I would probably make that back if rates stay low, and would I be better suited to trying to cut loose and going for broke in clearing the mortgage.
2. I have savings going in many directions - would putting in all in the mortgage repayment be better.
3. There are some long term 0% credit cards at the moment. If I were to use these for my purchases, pay off the min each month and then use part of what I would normally to save/pay off mortgage - would this be a sensible strategy. Obviously I would need to ensure I had sufficient savings to pay off the card when the 0% rate expired.
4. Any other suggestions, gratefully received.

roger_ramjet

Okay, here we go.

First plan to save some cash...

On Monday, Mrs Ramjet and the ankle-biting jetlets are off to stay with the in-laws for the reminder of the month. I have some important exams coming up, and so Mrs R has kindly agreed to disappear for a bit so I can have some peace and tranquility!

Anyho, our last shop at the Supermarket was last Saturday - once again filling up the freezer and then wondering what to eat!! Madness.

Therefore, the aim will be that whilst I am study in solitude, I shall not rush to the shops for any food or drink. When the coffee runs dry, I shall revert to tea, when the milk runs out, I shall do without. I will exist purely on what is currently in the fridge, freezer, cupboards. And believe you me, there is plenty! I won't go without!

Checking the accounts, we must have spent over £300 on groceries in the last month - and we could quite easily have gone without. Mind you, I did stockpile two months of dog food for the two woofers, plus buying up some cheap xmas stock - but still...

Also aim to run with no heating - except for hot water. Mrs R likes it like the tropics and we do have a 8 week old baby in the house - so fair do's. If all goes to plan - I will put the £300 saved in the overpayment box...

Smoked_Haddock

Do you expect your income to increase in the future? This is key. I have a hunch that you do, as you mention mess bills and exams and write in a rather pleasant carefree style. If so, don't sweat it, would be my advice. If you have peaked in your earning capacity, then that's different. No offence intended here, this is a well-meant observation. Good luck

roger_ramjet

Not expecting a rise in the near future, sadly!! But glad of a fairly secure job!!

To be honest, I am not unduly concerned about my finances, would be nice to clear the mortgage. I would like to effectively retire before 50 - so have 12 years to go. Have big plans for when I stop paying mess bills!!

roger_ramjet

Had a bit of a financial re-org.

Have adjusted mortgage overpayment standing order to £500pm - this should pay off the mortgage in 5-6 years.
Have adjusted savings to £250pm regular saver (with Norwich and Peterborough) and £120 to invesco ISA. These should grow from its current £7k to a pot of approx £11k by the end of the year. Adding these to the current monthly outgoings, leaves a net £953 per month.

someday_soon

Hi Roger

Just nipping in to say hello and good luck with your journey!
Your decision as to whether you spread your cash through investments, or cut loose and try to clear the mortgage quickly is a very personal one. I consider it essential to the way I want to live my life in the future. The focus I have is pretty easy to sustain, and quite easy to 'sell' to my family when you see the massive dent you can make into your biggest debt in a relatively short space of time. For me, sleep comes much easier these days.

Welcome Aboard

Someday Soon

dimbo61

well done on the £500 A MONTH WHICH GIVES YOU 5.59% RETURN TAX FREE

getmore4less

£130 comms and TV (sky, BB, mobiles)


Should be able to make a dent in this if you break it down.

Cashhback mobiles and basic packages would be under £50
add on some extras that you actualy watch.

*Jellie*

Welcome to MFW! You sound like you are already doing well

adwat

Yo Flyboy, stick to the fixed rate and the £500 p/m - before you know it you won't be worrying when Mrs. R. turns the wick up on the old boiler! In the meantime, pip-pip old boy and take care of those afterburners :beer:

roger_ramjet

adwat wrote: »

Yo Flyboy, stick to the fixed rate and the £500 p/m - before you know it you won't be worrying when Mrs. R. turns the wick up on the old boiler! In the meantime, pip-pip old boy and take care of those afterburners :beer:

Ta!

But I do worry! We're practically heating the village. I have to wear shorts she likes it soooo hot! Her bathwater is so hot it would take the skin of most mortals!!! :eek::p