Lulabelle's MFW Diary

lulabelle1

CathT wrote: »

Well Lula, there I was having a catch up and reading how you're so close to saying 'be mortgage free next year' when I spotted your sig. I was totally confused until I read on!

Good luck with this exciting chapter!

Thanks Cath - I can't believe we had the balance down to 50k... but not anymore!

lulabelle1

nattypants wrote: »

So, not much going on I see....

OMG, so I need to buy two houses for you to grace us with your presence! Good to "see" you!! x

lulabelle1

Right, I figured now is as good a time as any to lay out some financial plans.... they seem more real once in writing.

Up until a couple of days ago, the o/s M balance was just over 50K - everything being equal, it could have been paid off in May 2016.

Planning for the far future (although it seems to come round much quicker than one expects) has preoccupied my mind for a while, so it was inevitable at some point that we took the B2L plunge, as to me, it seems like a great option for the future (thanks to some encouragement from GG, hehe).

So, B2L's 1 & 2 will kick things off. We've taken back £71k from Mortgage OP's to fund the 30% deposit on each property.

Impact on our Mortgage
Increased to 122k. We plan to pay this off in 10 years and have therefore adjusted the mortgage payment to £1,400 a month. (It will be a mix of mandatory and OP, but assuming we don't draw back - the balance will clear in 10 years).

B2L's 1 & 2 have been taken on a 25 year term (for the time being).

We "plan" to try and save enough to fund another B2L deposit in 3 years time, another 3 years later and a final one 3 years after that. It's all pie in the sky I guess as a lot can change over that time, but as GG mentioned ages ago - it's best to have an idea of what you want to achieve and then work backwards as to how to achieve it.

So - assuming that the mortgage on our house is paid in 10 years and the 5 B2L's are up and running in 9 years, we would then start to use the money that we had been spending on paying our mortgage and the money used for funding B2L deposits to start OP's the B2L properties, the idea being that they are all paid off in 20 years from now ish.

In addition, we'll save a small amount in to a Cash ISA and a S&S ISA. My pension payments are minimal, so it will be the rental from B2L's that will provide the bulk of our retirement income.

It seems slightly crazy/mental to have a financial plan spanning the next 20 years and taking us to retirement. With my history of changing my mind and being lured in to nice shops, I really have no idea whether the plan will be stuck to, but at least it's a starting point. Also, of course - this heavily (completely) depends on me continuing to have the same income that I have currently and who really knows what's around the corner.......

Wow, that was a ramble, off to update my sig....

CathT

gallygirl wrote: »

Ppppsssssstttttt Cath - wanna buy a house

Haha, I am merely a rightm0ve browser GG! I'm not brave enough to step out of my comfort zone!

CathT

lulabelle1 wrote: »

Right, I figured now is as good a time as any to lay out some financial plans.... they seem more real once in writing.

Up until a couple of days ago, the o/s M balance was just over 50K - everything being equal, it could have been paid off in May 2016.

Planning for the far future (although it seems to come round much quicker than one expects) has preoccupied my mind for a while, so it was inevitable at some point that we took the B2L plunge, as to me, it seems like a great option for the future (thanks to some encouragement from GG, hehe).

So, B2L's 1 & 2 will kick things off. We've taken back £71k from Mortgage OP's to fund the 30% deposit on each property.

Impact on our Mortgage
Increased to 122k. We plan to pay this off in 10 years and have therefore adjusted the mortgage payment to £1,400 a month. (It will be a mix of mandatory and OP, but assuming we don't draw back - the balance will clear in 10 years).

B2L's 1 & 2 have been taken on a 25 year term (for the time being).

We "plan" to try and save enough to fund another B2L deposit in 3 years time, another 3 years later and a final one 3 years after that. It's all pie in the sky I guess as a lot can change over that time, but as GG mentioned ages ago - it's best to have an idea of what you want to achieve and then work backwards as to how to achieve it.

So - assuming that the mortgage on our house is paid in 10 years and the 5 B2L's are up and running in 9 years, we would then start to use the money that we had been spending on paying our mortgage and the money used for funding B2L deposits to start OP's the B2L properties, the idea being that they are all paid off in 20 years from now ish.

In addition, we'll save a small amount in to a Cash ISA and a S&S ISA. My pension payments are minimal, so it will be the rental from B2L's that will provide the bulk of our retirement income.

It seems slightly crazy/mental to have a financial plan spanning the next 20 years and taking us to retirement. With my history of changing my mind and being lured in to nice shops, I really have no idea whether the plan will be stuck to, but at least it's a starting point. Also, of course - this heavily (completely) depends on me continuing to have the same income that I have currently and who really knows what's around the corner.......

Wow, that was a ramble, off to update my sig....

However, this sounds very 'doable'. Good for you Lula.
Hmmm, you have actually got me thinking! :think:

Tilly_MFW_in_6_YRS

nattypants wrote: »

So, not much going on I see....

gallygirl wrote: »

NATTY :j:j:j:j:j

How lovely to see you, I was only thinking of you last night :T:T:T

abouttimetoo

lulabelle1 wrote: »

Yes, he did - he nabbed one when they first came out..... He loves it. I have the 5S and I'm not tempted to swap - I usually wait until the S model comes out as by then you'll have the new version but more refined/improved. Plus, it gives you longer to justify!

Hi Lula, confession time... New phone now bought - eek


I had been thinking about it for a while so the only thing I can say is I've tried to do in in the most MSE way


Grr, why can't I use the smilies, they seem to be working for everyone else????


Great news on the BTL Lula, exciting times indeed!


Regards
ATT

lulabelle1

abouttimetoo wrote: »

the only thing I can say is I've tried to do in in the most MSE way

Well, that's a much as we can ask for, hope you enjoy it! :T

lulabelle1

CathT wrote: »

Hmmm, you have actually got me thinking! :think:

Oh dear, that could be dangerous!!

lulabelle1

Half price ice skating tonight after school... could be fun (and festive)?