Another wannabee...

The_Haggis

Hi

currently have a 90k mortgage with around 28 years left to run, im looking to reduce the amount outstanding considerably within the next 5-10 years.

Recently had a 5k payrise and im looking for the best way to use the money to reduce my overall debt.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2477
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2477

Monthly Expense Details
Mortgage................................ 390
Secured/HP loan repayments.............. 300
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 10
Mobile phone............................ 5
TV Licence.............................. 12
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 30
Car Insurance........................... 70
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 300
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2071


Assets
Cash.................................... 0
House value (Gross)..................... 115000
Shares and bonds........................ 3000
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 128000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 89000....(390)......2.5
Secured Debt.................. 3600.....(300)......8
Total secured & HP debts...... 92600.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
cc.............................660.......50....... .0
Total unsecured debts..........660.......50........-


Monthly Budget Summary
Total monthly income.................... 2,477
Expenses (including HP & secured debts). 2,071
Available for debt repayments........... 406
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 356

Personal Balance Sheet Summary
Total assets (things you own)........... 128,000
Total HP & Secured debt................. -92,600
Total Unsecured debt.................... -660
Net Assets.............................. 34,740


I also recieve around £1200 per year in shares from work, which i usually cash in to pay for home & car insurance for the year.

The £300 monthly loan payment has about 1 year left to run, is it worth paying this off first so that i can concentrate fully on reducing the mortgage (i have to pay interest on any overpayments for the loan, but none for the mortgage)

thanks for any help you can give me!

goobergirl

Welcome The_Haggis!

Good luck on your MF journey:j

originalmiscellany

Hi there the_haggis

I would say clear your secure debt of £3600 first, as it's a much higher rate than the mortgage. - Already answered
Are you on a tracker +1.99 I imagine?
And what's your mortgage, a standard one? Does it let you overpay as much as you want? Already answered

originalmiscellany

But all the best for you cutting your mortgage - we're currently speeding up our mortgage by about 10 fold, going for 18 years to aim for 18 months; and to see light at the end of the tunnel (hopefully less than a year to go) is a great thought.

The_Haggis

thanks for the encouragement. my biggest dilemma is whether to OP the mortgage or put the money into a savings account as my mortgage interest rate is so low..

really looking forward to getting home and getting cracking on this (we're visiting the wifes grandparents in spain atm)

The_Haggis

forgot to answer your question!

im on a BMR of +2%