Hurdler's Race to be Mortgage-Free

Hurdler

I still have the majority of the lump sum (although it is dwindling) and what really concerns me is the timeframe (and ability) to transfer it before the annual recalculation. My manager is on hols today, but he was saying that they might have to give me an advance to cover the bills.
I work for a company based in India - and they are somewhat removed from the situation - the "HR Executive" pinged me on instant messaging today and suggested I just may the mortgage and ignore all the other bills! Ummm..... no no I don't think that's how it works! I could cover it, eating into my lump sum, but it's the principle, you know?? Why should I fund a month of work because of their incompetence.

Oh the irony. I got a notification from my previous company's share brokers - I transferred what I thought was an insignificant amount of shares to what was left of the shares I had sold to by my company wagon.
Turns out.... 225 shares at $171 is just under $38.5K .... !!! So I went back and read the note... and the piddly amount I THOUGHT the share price was... was in fact the price offered for the fractions of shares left over! Which they sent me a cheque for.

What ISN'T so helpful is that I sent a transfer form over, which the US seem to have totally ignored, setting up a NEW account, in the wrong name, so I can't get at them, and I can't sell them!

I rang the UK and they got the correct transfer form and it looks like the US cocked up.
BUT - that's a nice sum ticking over (and to think... I was quite happy with the $3K or so left in there from Dividend reinvestements....)

SO Computershare in the UK are going to try and sort it out for me, and I will leave it there for the time being and can sell those off for closer mortgage-free strides.
I had felt quite sad in a way that I'd sold all those shares, but it was the only way to get the car without blowing all my savings/being without one and having to settle for something less. But that also paid for my Diploma fees too... so... they've been quite generous - despite my having to take a Voluntary Redundancy!

Hurdler

Update - I have been totally missed off the payroll cut. I have a friend who used to work in HR who reckons that the only silver lining is I won't have to be on an emergency tax code.

I heard from my manager this evening - he escalated to his two managers and told that it was completely unacceptable and a bad image for the company to suggest to new staff that they pay the mortgage only and forget everything else. He pointed out that it also completely unacceptable to only offer to cover my mortgage.

So - someone from payroll is going to get with the UK tax office to work out roughly what my salary is likely to be (I laid it on thick about needing to know for various planning reasons) ... So I should be able to do an initial SOA based on the advance.

I can always update it later.

Heavy sigh.

Lois_E

Hurdler - what an absolute nightmare. Hope they get a decent amount of money to you soon. At least your manager is on your side - and he's absolutely right that HR's "just pay the mortgage" suggestion is both unacceptable and totally unprofessional.

Hurdler

Ah the cultural differences between companies. I thought working for a US based company could at times be a challenge with their scorn for European holidays and workaholism.

Funnily enough the recruiter who lined me up this job made a courtesy call to see how things were going... so I told him.
He was a little shocked as he was trying to line up his company to get more Europeans in.

I have my "rainy day" money - but it galls me to have to use it on principle.

I am going to do my SOA based on my previous salary (as that's what they have agreed to forward as an advance - they decided not to liaise with the tax office otherwise I definitely WOULD be on an emergency tax code. So in the interests of getting SOMETHING this month - I agreed to that.

Heading to a client for the rest of this week, and I need to haul my grumpy tail to the gym to work off some of this frustration.

It's a shame the admin is just so chaotic because the work isn't that bad.

Anyway - I suppose there's no harm in adjusting SOAs - in fact I'll have to anyway when the mortgage is recalculated!

Hurdler

In the words of Phelpsie after the HR !!!! up - best laid plans and all that!

So in sporty-spice stylie - here we go with my warm up and drills before the race...

SOA is based on the minimum I should hope to receive. I accepted this job with a £14K uplift so I would expect an increase to income.

Looking back over my budget spreadsheets - this is about right - I pay off my credit cards in full so I haven't included them in here and the surplus would normally accomodate those (along with any due expenses that were generally held in a savings account until due)

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................ 2700 - Based on previous salary - anticipate an increase if they get it sorted!
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2700

Monthly Expense Details
Mortgage................................ 705 - Recalc in Sep '11; still anticipate overpayment of £30K before then
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 42
Gas..................................... 49
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 40
Mobile phone............................ 80 - Personal and Stuck with 2 yr fixed business tarriff for shortlived Ltd Co.
TV Licence.............................. 13
Satellite/Cable TV...................... 73
Internet Services....................... 21
Groceries etc. ......................... 75
Clothing................................ 25
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 67
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 34
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 75
Entertainment........................... 150
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1921


Assets
Cash.................................... 71225
House value (Gross)..................... 330000
Shares and bonds........................ 0
Car(s).................................. 16000
Other assets............................ 0
Total Assets............................ 417225


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(705)......0.97
Total secured & HP debts...... 165000....-.........-

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


Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 1,921
Available for debt repayments........... 779
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 779

Personal Balance Sheet Summary
Total assets (things you own)........... 417,225
Total HP & Secured debt................. -165,000
Total Unsecured debt.................... -0
Net Assets.............................. 252,225

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

I have included current savings (which includes my rainy day money AND the hopeful overpayment of £30K from my Voluntary Redundancy. I want to believe that everything is sorted out now... and might just take a flyer and put it in and use other savings if I absolutely have to.

Next up will be Blocks/Gun/Ready for the off with the Mortgage Recalculation and revised payment, and actual starting point for my MFW race, for 11/12!

Hurdler

Oh Barclaycard are priceless... I sent them a note voicing my dissatisfaction at how they (didn't) deal with a dispute... and got this bizarre note back explaining how to claim for my (now resolved by me) dispute!

Meanwhile - I am using my Amex Platinum Cash-back credit card and alternative MBNA Play.com Visa like a good 'un (and paying them off in full every month).

Wonder how long it will take Barlcaycard to figure it out. Actually sadly, they will care not one jot...

Phelpsie001

First glance of your SOA Hurdler and my eyes were drawn to:

Assets
Cash.................................... 71225
House value (Gross)..................... 330000
Shares and bonds........................ 0
Car(s).................................. 16000
Other assets............................ 0
Total Assets............................ 417225


My first reaction...I won't lie.... I hate you =P

Hope all is well and that you get paid ASAP!!

Hurdler

heh - but don't forget that a huge chunk of that cash will end up in the Mortgage (pay willing) before the September recalc... and lest we forget... I went through the wringer for that VR money. I don't think I have ever been so low in the run up to that decision, since losing my dad 5 years ago... gives some idea of how hard it was to make that decision to turn my back on security (but with added topping of misery!)...

Also - that will come in handy if I get a job as a journo! I was going to say "hack"... then though perhaps NOT the best word!!! :rotfl:

Phelpsie001

That is true!! Can you overpay that much at once, or is it limited to 10%? Paying that off will be the best feeling and will save you so much money in the long run!! Do you know how much it will reduce your term by?

Hurdler

I think there is no limit to my overpayments and my plan is to throw £30K at the mortgage because I have some very sickly looking double glazing to take care of. I think it was of the time of the ark, even signed by Noah...