I dream of a mortgage free existence

saver03

We have only been on the property ladder for 14 months but I am already planning on paying off the mortgage a lot sooner :A

We have just started making overpayments, only £89 a month, but using the overpayment calculator this would save us £14,727 :eek:

I plan to do an up to date SOA and see how much we can actually afford as I do hope to be able to overpay more so we can be MF before our old age!!

I have a question though as it has me and my OH baffled! We are currently on a fixed rate until December 2012 and when we got our last statement it said that when our fixed term is up our interest would be 1.4% lower but our actual payments would be £50 a month higher. I assumed the payments would have been lower as the interest is lower and the balance of the mortgage would be lower too? Am I missing something, which is usually the case!! :rotfl:

Lois_E

How strange. Is there anything in the small print of your mortgage arrangement to explain it? Perhaps you have an introductory "pay less off the capital each month for the first two years and then go back to normal" kind of thing going on? Otherwise I'm baffled.

The only way to get a definitive answer, though, is to ask your mortgage provider, because mortgages vary a lot, and what's true for one product isn't necessarily true for others.

saver03

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 210.77
Partners monthly income after tax....... 1450
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1660.77

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 18.96
Telephone (land line)................... 15
Mobile phone............................ 33
TV Licence.............................. 12.12
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 10.83
Car Insurance........................... 175
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 10
Buildings insurance..................... 10.51
Contents insurance...................... 10.51
Life assurance ......................... 11.07
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 20
Holiday................................. 200
Emergency fund.......................... 75
OH football............................. 45
Lottery................................. 26
Total monthly expenses.................. 1668


Assets
Cash.................................... 5500
House value (Gross)..................... 89000
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 3000
Total Assets............................ 98200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76000....(500)......4.3
Total secured & HP debts...... 76000.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 1,660.77
Expenses (including HP & secured debts). 1,668
Available for debt repayments........... -7.23
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -7.23

Personal Balance Sheet Summary
Total assets (things you own)........... 98,200
Total HP & Secured debt................. -76,000
Total Unsecured debt.................... -0
Net Assets.............................. 22,200

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

Luckily I have put down my pay as only the hours that I am contracted for but I usually do more each work, so it's normally twice as much and that is how I have never noticed a shortfall :mad: I really need to see where we can cut back so we can overpay more each months

Sepa74

Hi, welcome to the forum! I think you are very wise to start paying OPing immediately... as you say, it will save you lots of money in the long run!

Here are my thoughts on your SOA.

Your phone, internet and TV packages seem to add up to a fair bit... there are MUCH cheaper landlines and internet out there (although it depends on how much you love your tv!) or alternatively if you are with an all in one provider, maybe threaten to leave and haggle with them.

Your mobile phone costs aren't too bad for 2 people, but it might be worth trying to get that down even more when you are out of contract.

£160 groceries a month for two people is pretty good, but I suspect that your £10pcm for clothes won't be enough.

Is the medical / prescriptions for you or your partner? If for you, have you checked whether you could get some sort of help with them as you are a low earner?

Do you really spend that much a month on the lottery? I know a lot of people like a flutter, but I suspect the odds of you winning wouldn't be that greatly reduced if you cut back!

Good luck!

saver03

Sepa74 wrote: »

Your phone, internet and TV packages seem to add up to a fair bit... there are MUCH cheaper landlines and internet out there (although it depends on how much you love your tv!) or alternatively if you are with an all in one provider, maybe threaten to leave and haggle with them. I know that this is very high and I tried ringing Virgin the other week to see if I could get any kind of discount as I told them we could get Sky cheaper but no luck :mad: Then I got an email the other day saying my Virgin is going up by!! I think I will do some proper research into packages at other companies and then call them again fully armed with all the facts and prices. As we have XL tv with Virgin we get ESPN and my OH loves sport and I would hate to take that away from him.

Your mobile phone costs aren't too bad for 2 people, but it might be worth trying to get that down even more when you are out of contract. I must confess the mobile phone is just me as I have just got an iphone 4s on a 2 year contract BUT have sold my old phone for £220.08

£160 groceries a month for two people is pretty good, but I suspect that your £10pcm for clothes won't be enough. We are not buying new clothes at the moment as we are about to eat healthier so with any luck we will lose weight but maybe we should save more so when are size 0 we can get new clothes!!!!

Is the medical / prescriptions for you or your partner? If for you, have you checked whether you could get some sort of help with them as you are a low earner? This was a high estimate including opticians and dentist as I don't pay for my prescriptions and OH is in good health, knock on wood!

Do you really spend that much a month on the lottery? I know a lot of people like a flutter, but I suspect the odds of you winning wouldn't be that greatly reduced if you cut back! Yes this is a lot to spend on the lottery especially when the return is definitely in the negative!! I think we could half this and my OH would still have hope of us winning and retiring to warmer climates!!

I think I must set myself targets as I love to tick things off my lists as it gives me a sense of achievement, sad I know!

I think I will look for challenges on the forums and join up as I _pale_ just thinking about how much interest we pay on the mortgage!!

elantan

just make sure you dont join that many that you suffer burnout ... its a long haul that sometimes feels even longer ... you will get there though

Spiggle

saver03 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 210.77
Partners monthly income after tax....... 1450
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1660.77

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110 Is this over 10 months or 12? You can ask the council to do 12 monthly payments instead of the usual 10 which means lower monthly outgoings.
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 18.96
Telephone (land line)................... 15
Mobile phone............................ 33
TV Licence.............................. 12.12
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 10.83
Car Insurance........................... 175 Not really per month is it? :eek: if it is!
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 10
Buildings insurance..................... 10.51
Contents insurance...................... 10.51
Life assurance ......................... 11.07
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 20
Holiday................................. 200 This seems quite high if you don't mind me saying.
Emergency fund.......................... 75
OH football............................. 45
Lottery................................. 26 That is a lot for very low chance of winning.
Total monthly expenses.................. 1668


Assets
Cash.................................... 5500
House value (Gross)..................... 89000
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 3000
Total Assets............................ 98200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76000....(500)......4.3
Total secured & HP debts...... 76000.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 1,660.77
Expenses (including HP & secured debts). 1,668
Available for debt repayments........... -7.23
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -7.23

Personal Balance Sheet Summary
Total assets (things you own)........... 98,200
Total HP & Secured debt................. -76,000
Total Unsecured debt.................... -0
Net Assets.............................. 22,200

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

Hi saver03 and good luck with your journey.

I've put a couple of questions into the SOA and the only other thought that struck me is that £10 per month for car maintenance may be a little low.

Sorry I'm the same as the others and am completely baffled by the mortgage payment going up. I think you need to clarify with the company direct as it does seem bizarre.

Good luck with it all,
Spigs

Weronika

saver03 wrote: »

Luckily I have put down my pay as only the hours that I am contracted for but I usually do more each work, so it's normally twice as much and that is how I have never noticed a shortfall :mad: I really need to see where we can cut back so we can overpay more each months

Hi, funnily enough I got nearly the same figures - £76000 mortgage and £1600 income:beer:
I also had similar reason for not noticing that we actually spend £2000 each month on average!!!:eek:

saver03

Yes my car insurance is :eek: but that is because I have only been driving 3 months but I am glad I am 32 and not 17 as it would have been much worse! And I didn't realise when I bought my 1.9 Peugeot that the engine size would make a difference I paid it all upfront as the monthly payments would have been a lot higher with the 33.33% apr that would have been added! Thank you for the advice on car maintenance I will put more aside each month just in case! I don't think I spend £50 a month on fuel as I have only filled up twice and have never been empty, just a guestimate of £50 but could be lower, well I am hoping

I know we spend quite a bit on holidays per year but I do shop around and get good deals. I am torn between my desire to see the world and to pay less interest on my mortgage! I know logically that putting the money to overpaying on the mortgage is the most sensible thing to do, it's just a shame I am neither logical or sensible :rotfl:

I am currently looking for a full time job as I feel extra income would be a definite advantage. However, this task is bringing me down I have applied for every job I am qualified for but not even a rejection let alone an interview!! Being ignored is quite harsh I think I need a thicker skin and a polish up on my CV!!

Sepa74

Hi, if you are job hunting, the book Perfect CV and its companion Perfect Interview will be the best investments you will ever make.

http://www.amazon.co.uk/Perfect-CV-series-ebook/dp/B004EYSY7O/ref=sr_1_2?ie=UTF8&qid=1329561653&sr=8-2

After you've redone your cv, you can send it to me for review if you like - although bear with me if it takes some time to get back to you as I tend to be really busy. Just send me a PM and I'll give you my email address.

saver03

Sepa74 wrote: »

After you've redone your cv, you can send it to me for review if you like - although bear with me if it takes some time to get back to you as I tend to be really busy. Just send me a PM and I'll give you my email address.

Ooh thank you that would be great

Well I was hoping for a NSD but we had no bread :mad: but I suppose if £1.35 is all we spend then that isn't too bad! Must have a NSD tomorrow though so we stay on the straight and narrow! However, I didn't realise that the bread we get is quite so expensive I think it will be Aldi's finest from now on!!

I need to get my ebay treasures sorted too as I have piles of stuff on the rug in the living room that I need to take pictures of and get listed. As much as a lovely feature they have become they are not making us any money!

On a very exciting note, sad I know, but our sealed £2 coin jar is nearly full and I cannot wait to open it and see how much is in there :j There are also some notes in there from when we have changed our 1ps, 2ps and 5ps and when we have won anything on the lottery.