Drip drip drip feeding the mortgage
tjp70
Forumite 454 Posts
Yes, it’s another MFW diary.!!
I have been a sporadic lurker over the last few months and have periods of being inspired and then periods of hopelessness, wondering how I will ever make a dent into our mortgage. So, here’s our story and hoping I don’t bore anyone to tears.
A little about me and Mr tjp70. We are living in our second house and have a DS aged 14 and a DD aged 10, plus a geriatric cat (aged 17). DH has an ok job in the Financial Sector, not very well paid, and I work part-time (more on that later). Our mortgage is a mixture – part endowment £20,000 and part repayment £43,582 as at today’s date. DH took out the mortgage on house number 1 before I met him at a time when endowments were the best thing since sliced bread (how wrong they were!!) and over the years we have reduced the endowment part of the mortgage so that we know the endowments will pay off the £20,000. It is staggering to think that when they were taken out, they were supposed to pay off £53,000 and now will only repay £20,000. On the plus side, we did get a very small pay out a few years ago for the mis-selling of the endowments, an amount that was put straight to the mortgage account.
The mortgage is with Nationwide on their SVR rate of 2.5%. We were previously on a fixed mortgage and when the fix ended, we kept the mortgage payment the same, so that we currently overpay £175.00 per month. However I am finding it hard to over pay much more. The mortgage end date is 31.05.2023.
So onto my work situation; I work school time hours as much as possible. I have been a part time self-employed bookkeeper for about seven years but in recent times, have found it to be very lonely – after all it’s just me and the cat at home for 30 hours a week. She isn’t a very good conversationalist. So last year (with my 40th looming and possible mid-life crisis threatening) I decided to look around for something else to do. I have always been an animal lover and have set up a dog walking/pet minding business at home. I invested a lot of money and bought a van, had it fitted out, sign written etc. and have been waiting for the business to take off, which it is doing very very slowly. In the meantime, I now do about 5 – 10 hours of bookkeeping a week to keep me going. Moneywise we are ticking over, but there is no spare cash for luxuries or to throw at the mortgage. We do have a healthy emergency fund in place. We also have £2000 on 0% credit cards, but have that amount sat in a savings account for when we need to pay it off.
Mortgage wise, DH is very happy to sit and wait until 2023 for the mortgage to run its course. I however see the £4.35 daily interest that we pay and feel the need to pay off as much as possible, as soon as possible. DH is happy for me to do this as long as it does not affect our family life too much or involve him too much! So long as he gets to play golf once a month and we get to eat out occasionally, then he’s a happy man. However, should I happen to mention that we do a car boot sale, then his eyes glaze over……..!
So, today is the day to make a proper start and when I do get demoralised, I am hoping that you guys will be there to spur me on…..
tjp70
I have been a sporadic lurker over the last few months and have periods of being inspired and then periods of hopelessness, wondering how I will ever make a dent into our mortgage. So, here’s our story and hoping I don’t bore anyone to tears.
A little about me and Mr tjp70. We are living in our second house and have a DS aged 14 and a DD aged 10, plus a geriatric cat (aged 17). DH has an ok job in the Financial Sector, not very well paid, and I work part-time (more on that later). Our mortgage is a mixture – part endowment £20,000 and part repayment £43,582 as at today’s date. DH took out the mortgage on house number 1 before I met him at a time when endowments were the best thing since sliced bread (how wrong they were!!) and over the years we have reduced the endowment part of the mortgage so that we know the endowments will pay off the £20,000. It is staggering to think that when they were taken out, they were supposed to pay off £53,000 and now will only repay £20,000. On the plus side, we did get a very small pay out a few years ago for the mis-selling of the endowments, an amount that was put straight to the mortgage account.
The mortgage is with Nationwide on their SVR rate of 2.5%. We were previously on a fixed mortgage and when the fix ended, we kept the mortgage payment the same, so that we currently overpay £175.00 per month. However I am finding it hard to over pay much more. The mortgage end date is 31.05.2023.
So onto my work situation; I work school time hours as much as possible. I have been a part time self-employed bookkeeper for about seven years but in recent times, have found it to be very lonely – after all it’s just me and the cat at home for 30 hours a week. She isn’t a very good conversationalist. So last year (with my 40th looming and possible mid-life crisis threatening) I decided to look around for something else to do. I have always been an animal lover and have set up a dog walking/pet minding business at home. I invested a lot of money and bought a van, had it fitted out, sign written etc. and have been waiting for the business to take off, which it is doing very very slowly. In the meantime, I now do about 5 – 10 hours of bookkeeping a week to keep me going. Moneywise we are ticking over, but there is no spare cash for luxuries or to throw at the mortgage. We do have a healthy emergency fund in place. We also have £2000 on 0% credit cards, but have that amount sat in a savings account for when we need to pay it off.
Mortgage wise, DH is very happy to sit and wait until 2023 for the mortgage to run its course. I however see the £4.35 daily interest that we pay and feel the need to pay off as much as possible, as soon as possible. DH is happy for me to do this as long as it does not affect our family life too much or involve him too much! So long as he gets to play golf once a month and we get to eat out occasionally, then he’s a happy man. However, should I happen to mention that we do a car boot sale, then his eyes glaze over……..!
So, today is the day to make a proper start and when I do get demoralised, I am hoping that you guys will be there to spur me on…..
tjp70
If Plan A fails, remember there are 25 more letters
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You've found the right place, now just make yourself at home, and see what ideas take your fancy for earning a bit more or cutting the bills. If you have any ideas of where you want to start, i'm sure you can be pointed to a place for some help.
Be warned though, it is really addictive.:D
Same here
Phase 1 - Emergency Fund - Complete :j
Phase 2 - £20,000 Mortgage Fund - Underway
Its surprising how much even a small op will make over time so keep up the good work and hope the new buisness takes off
If you sit down with your OH and explain to him or show him how overpaying the £175 will speed up the mortgage by x years and save interest by y, then surely he will see the benefit? Plus with some other scenarios too, of overpaying by say £300 a month will mean mortgage free by t years and save interest of w, then that will surely help him get turned on to money saving?
I know when I've explained to MOM the financial benefits of overpaying, she's grateful and gets a much clearer understanding of why overpaying is such a key factor in us becoming financially stable.
Also point your OH to:
http://www.moneysavingexpert.com/protect/demotivator/
could show how simple cut backs will make a great difference. Hope it helps.
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 2037
I have not been idle this afternoon and have taken your advice Annie and now have three items listed on ebay. Time will tell if they sell. I also collect 5ps, 2ps & 1ps from my purse and DH's pockets so have paid in a whopping £1 into the bank. I actually feel a bit embarrassed about paying that into the mortgage account, so will have to wait until I have something to add to it.
Whilst cooking tea, I used the Remoska instead of the oven to save on electricity - am I going too far already?? :rotfl:
(and I stuffin' hate golf and car boots)
You have only just started :j
You still need
To have loads of spreadsheets
Get excited about Feb/March free council tax months if you pay over 10
Look forward to getting your mortgage statement
But stick around, you will get so much info,help,support
And if you can pay that £1 off without any penalties, get it paid off tomorrow :T
OP's in 2019 £21000
ISA challenge start 2019 £3000/£1500 (50%)
I know how lucky I am, he's really good about it all, he doesn't go out boozing or anything either. Just not much support, so that's where you guys come in handy.