Tiggers journey to beeeiiing freeeeeeeeeee

tiggerjj

Hey Guys,
I bought my house just over a year ago and am desperate to be mortgage free as soon as possible.

Currently I have a well paid job and an exempt from income tax, so trying to pay off the mortgage as quick as possible as I can't do this job forever..... one day I will want to quit and settle down and have a bit more of a normal life.

So my mortgage is, Woolwich lifetime tracker offset at 2.49% above BBBR.
I have 83,079 to pay (started at 90,000 april 2010)
and offsetting i currently have 51,398.
All my accounts are linked to the offset and when im home i spend on my credit cards but pay off fully at the end of the month so the money stays in my account as long as possible.

What else can I do to make it go away faster???
Ideas people, was thinking about stoozing however I worry that I wouldnt be able to manage it properly as Im away alot and this makes paperwork rather tricky.....

originalmiscellany

HI there Tigerjj. How come you don't pay income tax if you're in a well paid job? Can I enquire?
I'd say the key thing to do would be to post an SOA where it itemises what you can do in order to clear your debts faster - just a few saving here and there will make a big difference over the long term...

tiggerjj

Hey miscellany.
I dont pay income tax as i qualify for seafarers income tax deduction...... which is nice for me!
Should I post the SOA here? and is there a template for it or do I just list stuff that I pay monthly?

Lois_E

Hello and welcome tiggerjj. You sound to be getting your mortgage down really quickly - well done. I'll look forward to following your diary.

kingster2069

Hi Triggerjj, welcome to the forum. I think this link my help you Statement of Affairs (http://www.makesenseofcards.co.uk/soacalc.html)
Seems your well on your way to mortgage freedom :j

originalmiscellany

Thanks for that - I didn't know about being a sea farer and not paying this tax - I suppose it's only fair if you spend a certain amount of time out of the country. I've learnt something new today, and it's not even 10 am!

tiggerjj

yeah the seafarer thing, you had to be out of the country more than 183 days in the right order, not work in the oil industry, be more than 12miles offshore at middnight, a foreign working port call etc.
Im pretty sure it was dreamt up to give an incentive to keep people working in our merchant navy.

Will make an SOA and post up.

I know my mortgage is completely manageable, and im doing ok and LTV is around 70% but somehow it still feels like a chain around my neck!!

Lois_E

tiggerjj wrote: »

I know my mortgage is completely manageable, and im doing ok and LTV is around 70% but somehow it still feels like a chain around my neck!!

You're in good company. I think a lot of us feel like that. The journey to mortgage freedom is better shared.

tiggerjj

Ok,
so have done an SOA but its a guesstimate as my income varies depending on where im working, ive tried to average over the year, some values will look low, but im out of the country 8months per year.
Also I sometimes have a lodger, but havent added their income as I dont always have one, just if someone needs a home for a while....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3300

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 66
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 8.99
Mobile phone............................ 17
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 25
Clothing................................ 20
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1034.49


Assets
Cash.................................... 51400
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 174400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 83000....(550)......2.49
Total secured & HP debts...... 83000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,300
Expenses (including HP & secured debts). 1,034.49
Available for debt repayments........... 2,265.51
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 2,265.51

Personal Balance Sheet Summary
Total assets (things you own)........... 174,400
Total HP & Secured debt................. -83,000
Total Unsecured debt.................... -0
Net Assets.............................. 91,400

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

spidystrider

Wow, you are doing well and your outgoings are really low! Unfortunately I know nothing about tracker mortgages, as I have a repayment one myself. Are you allowed to overpay with a tracker i.e. 10% a year?

tiggerjj

I can overpay as much as I like and if i have a mortgage of 100k and 20k in my offset account then i only pay interest on the remaining 80k, so its all good. my outgoing are low as I spent so long away and when im away my food, accomodation and transport are paid for!