My mortgage free mission!!!!!!

frugalfrog

Hi everyone, I'm new to writing but been reading this forum for years, getting some brilliant tips from you all :beer:
Had a baby in June 2011, and have been on maternity leave since. Starting back part-time in March, so money will not be as easy, but still have a dream of paying off my mortgage.

Currently have two mortgages :eek: one on the house we rent out (as we couldnt sell) and one on my home. So double the mission. The rent we get just covers the mortgage/expenses with £15 per month spare.

Also, partner is self employed trying to build up his business so his income is a bit erratic.

Here is my current SOA

Statement of Affairs and Personal Balance Sheet

Household InformationNumber of adults in household ..2
Number of children in household..................................1
Number of cars owned................................................2
Monthly Income Details
Monthly income after tax (estimate)......................1,000.00
Partners monthly income after tax (estimate).........1,000.00
Benefits...................................................................41.80
Other incomeTotal monthly income.........................2,041.80
Monthly Expense DetailsMortgage (inc 21.51 overpayment)........................................................................775.00
Secured/HP loan repayments....................................32.85
Rent
Management charge (leasehold property)
Council tax..............................................................119.45
Electricity.................................................................40.00
Gas..........................................................................50.00
Oil
Water rates..............................................................44.00
Telephone (land line) inc in sky bill
Mobile phone............................................................10.00
TV LicenceSatellite/Cable TV......................................82.00
Internet Services inc in sky bill
Groceries etc...........................................................300.00
Clothing
Petrol/diesel...........................................................150.00
Road tax...................................................................12.92
Car Insurance............................................................41.67
Car maintenance (including MOT)................................10.00
Car parking
Other travel
Childcare/nursery
Other child related expenses
Medical (prescriptions, dentist etc)
Pet insurance/vet bills
Buildings insurance...................................................41.00
Contents insuranceLife assurance...............................50.57
Other insurancePresents (birthday, christmas etc)
Haircuts
Entertainment
Holiday
Emergency fund
Total monthly expenses.............................................1,759.46
Assets
Cash...............................................................0.00
House value (Gross).................................150,000.00
Shares and bonds........................................1,200.00
Car(s)........................................................7,500.00
Other assets (rental property)...................105,000.00
Total Assets.............................................263,700.00
Secured & HP DebtsDescription...debt...........monthly...apr
Mortgage..............................126,728.63......753.49.....4.95
Mortgage 2 (rental).................81,353.04......409.........1.6
Hire Purchase (HP) debt........... 1,044.80........32.65......0
Total secured & HP debts........209,126.47.....1195.14
Unsecured debtLoan (parents)..13,750.00.........?...........0
Monthly Budget Summary
Total monthly income................................2,041.80
Expenses (including HP & secured debts)....1,759.46
Available for debt repayments......................282.34
Monthly UNsecured debt repayments
Amount left after debt repayments
Personal Balance Sheet Summary
Total assets (things you own)....................263,700.00
Total HP & Secured debt............................-209,126.47
Total Unsecured debt.................................-13,750.00
Net Assets ................................................40,823.53


Currently I am paying £21.51 onto the mortgage, so have started and will raise that once I have returned to work.

Wish me luck

Updated SOA as of 20/02/12

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1000
Benefits................................ 81.2
Other income............................ 435.6
Total monthly income.................... 2516.8
Monthly Expense Details
Mortgage................................ 753.4
Secured/HP loan repayments.............. 409.0000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119.45
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 12.12
Satellite/Cable TV...................... 74
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 12.92
Car Insurance........................... 0
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 41
Contents insurance...................... 0
Life assurance ......................... 50.57
Other insurance......................... 11.07
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2117.53

Assets
Cash.................................... 2175
House value (Gross)..................... 150000
Shares and bonds........................ 1600
Car(s).................................. 7500
Other assets............................ 105000
Total Assets............................ 266275

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 126385...(753.4)....4.93
Secured Debt.................. 80955....(409)......1.6
Total secured & HP debts...... 207340....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Parents loan...................13750.....0.........0
sofa...........................1044.8....32.65.....0
credit card....................4000......100.......0
Total unsecured debts..........18794.8...132.65....-

Monthly Budget Summary
Total monthly income.................... 2,516.8
Expenses (including HP & secured debts). 2,117.53
Available for debt repayments........... 399.27
Monthly UNsecured debt repayments....... 132.65
Amount left after debt repayments....... 266.62
Personal Balance Sheet Summary
Total assets (things you own)........... 266,275
Total HP & Secured debt................. -207,340
Total Unsecured debt.................... -18,794.8
Net Assets.............................. 40,140.2
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.


The incomes are still estimates as I am still to see exactly how much I will be taking home

lulabelle1

Welcome to the forum and good luck..... Keep up with the diary, it will be a great motivator for you.

Best, L

frugalfrog

Just looked at the Barclays share price for first time in ages and its gone up

Share value now = £1373 - I just made £173 without even trying (I dont think it makes up for the amount I've lost tho :mad:)

However, ignoring the fact I own these shares until after the country is back in order!

frugalfrog

Ok first task - reduce expenditure ...

My first decision was to cancel Sky Movies sad day but I dont think we get enough use out of the £16 per month fee. Going to watch Black Swan (on my sky+) tonight, then bye bye movies.

Food bill - that is out biggest bill (other than mortgage), but our average expenditure for 2010 was a whopping £700 per month (I used to buy lunch at work and lots of takeaways!), so have already cut back a lot! But would like to cut back to £200. I have started costing meals to see what we can do for healthy cheap food - any suggestions welcome, just bear in mind we are also feeding a 7month old so our meals need to accomodate her too.

Also thinking about doing some "grow your own" but a complete novice at that. We have a large garden which as I moved in just before my little girl was born, hasnt really been touched other than a few big weeding days last autumn. We have a large area which would be quite easy to convert into veggy/herb bed but it is quite shaded in the afternoon, any suggestions what to plant? Quite keen to get out there and start next month before going back to work, but have extremely little spare cash.

runninglea

Hi and good luck

Just on your rental income - is the mortgage a repayment and how much do you get per month rent?

frugalfrog

Hi

Rental income is £435 after fees, mortgage is £409, then I pay about £10 for house insurance so it just covers the costs, so no cash left at end of year, but it does pay off about £4000 equity per year.

Funkygibbon

Hello and good luck!

As you said we are both in very similar positions! Will watch your progress!!

runninglea

frugalfrog wrote: »

Hi

Rental income is £435 after fees, mortgage is £409, then I pay about £10 for house insurance so it just covers the costs, so no cash left at end of year, but it does pay off about £4000 equity per year.

Just be careful because you need to be paying tax on the profit on the rental income.

This is rent less mortgage interest (not capital & interest) less insurance etc

frugalfrog

runninglea wrote: »

Just be careful because you need to be paying tax on the profit on the rental income.

This is rent less mortgage interest (not capital & interest) less insurance etc

Yeah I know, tax is a pain! :mad:

frugalfrog

Ok going to set a target - MF by 40!

That gives me 13.5 years, I have done some sums with the overpayment calculator and I have to overpay by about £6000 per year or £500 per month. Well that is not going to happen this year, I have to be realistic, partners business is still very young (however, has a very promising customer he is doing work for today & hopefully will have lots more work for him). So target for 2012 = £3000, I will put it on my signature

frugalfrog

Ok cancelled Sky movies, only saving me £8 per month and not £16 as I thought as it was under a package with Sky Sports. Hmmm I wonder if my other half would kill me if I cancelled sports?!? That would cut the bill by another £20..... Maybe a frank discussion tonight....

Why is always the other half that has these expensive "needs"... my luxury is a packet of 35p ginger nuts for the month, OH smokes (not a massive habit about £50 per month), has a few drinks (I cant really as I am still BF), Sky sports, his band (cant have a gig without a few beers/whiskys)... grrrr ... Last time I bought some clothes & had my hair cut was last August!!!

Food budget is looking good for the month - nearly at the £200 mark and dont think we need anything this weekend. In that £200 I even got my little girl some sleepsuits & socks etc from Tescos, so doing pretty well. Going to go through the cupboards today and sort out meals for the next week. Made Chilli on Wed and it has lasted us until today - cost to make £2.30 for 4 main meals and 2 lunches less than 40p per serving and has 3 of the 5 a day