Pinky's Mortgage Free Mission!

Pinky15

I know in the past we didn't budget for stuff like that which didn't help on the debt front! Anyways now we do:D
Have checked the mortgage balance but it's not updated itself yet - but I have used the snowball calculator and if I continue the 20% overpayments then the term will reduce to 8 years. However I would like to move at some point or extend - so this will hopefully give us a head start. Have seen a few houses I like but must admit at the moment our mortgage is low here and I like that lol.
Well noticed last night we were getting a bit sloppy on the budgetting front as I have been doing lots of overtime so have redone the SOA and sorted out what money we need etc - will go through this with DH tonight and get us back on track again.
Right have got loads of washing/ ironing to sort and have a sinking feeling that the upstairs has been taken apart whilst I am on here!:D

downs523

hi great thread! well done. I have a question on mortgage over payments and interest rates. I currently pay 620 per month for my mortgage which is a fixed rate of 5.69. If i decide to over pay by 400 (this is the max they let) will 5.69% interest come off that amount? or will the whole £400 go through deducting the total mortgage balance by £400?

norabatty_2

Downs523, the total mortgage balance will be reduced by £400. Next month, they will calculate your monthly interest by multiplying the new balance by .0569 (your annual interest rate) multiplied by 31/366 (approximately - depending on how many days in the month). Typically, your normal payment will cover all of the monthly interest charged and a small amount of a capital repayment. Anything extra that is paid is put towards the outstanding balance, i.e. capital only.

Pinky, I have started a spreadsheet this year that covers ALL expenditure, I mean everything. I think I'm obsessed! Everything is split up into categories, like car maintenance, house insurance, normal presents, Christmas presents, household repairs, large household purchases. The plan at the end of the year is to calculate the total annual spend for each category and then divide by 12 to get typical monthly spend. I will then know how much to budget for it for the following year. It's amusing watching my monthly grocery spend get smaller and smaller just by doing this. So far - January £325.56, February £282.99, March £242.13, April - £177.92, May currently looking like approx £160 as I base them on credit card statements which finish around the 17th of each month.

Pinky15

Downs - so sorry I don't know I am rubbish at maths. Thanks for popping by!!
Nora - I like the idea of the spreadsheet - I might look into that - have done this with oil etc but may look at adding other things in also. I think I am going to start a spending diary also to keep track of all the little things which are draining the account:eek:

Pinky15

Morning all - well found a few leakages on the money front - 2 takeaways per week and one of the kids has party at least twice per month - but I then have to pay to get the other 2 in - it's costing me loads:mad: I am also paying childcare ( not much) while I work but don't think we will be entitled to anything due to our earnings - still waiting for my renewal and a large bill in the post - wish they would hurry up grrrrr!
Have also been thinking about doing what others suggested and reducing my mortgage term this would then allow me to make additional over payments when I can - will ring and have a chat with them anyway.
Have had a relook through budget and am going to try not to set such high targets for savings as we are being left skint every month - I need to remember we still need to live and enjoy ourselves. But having the savings pot would def help me feel more financially secure. For years we had nothing can't believe we managed tho! and I never worried much - just goes to show how much this site can change your thinking and attitude eh?
Well am going to crack on with some ironing and housework which the chicken is cooking. The children I think have emptied most of the toy boxes so off to chase them to help put it all back again!:D

Pinky15

Morning all - only 1 takeaway this week - much better:D Now trying to eek out the leftovers in fridge and freezers till payday.
Kids were desperate for some clothes this week so I now owe N*xt £200 eek - I feel soooo guilty - I suppose that's becoming a money saver for you eh?
Phoned up mortgage company as when I checked my statements they have charged me for going over the 20% limit - I pointed out to them that they worked it out and set it up for me -and they can check the phone conversation and notes if they like:D She took my word for it and has refunded the charge and changed they payment - which was 10p over. So that's sorted also she said if I want to reduce my term, to ring and they would go through it for me - I am seriously considering this now:) Especially when I see the savings to be made. Once I have sorted this I am going to give myself a target of when to get it paid off.
Anyway I have a small mountain of washing and ironing to do - several rooms which look like bomb sites, dinner to think about and DD1 to collect from Grannies - and I fancied a quiet lazy day - booo!!!;)
Hope all you MFW's are well!

savingmummy

Pinky15 wrote: »

Hi all after spending a long time on the debt free wannabe forum I have finally cleared our credit card, loan and car loan woo hoo!
I am mummy to 3 little ones and have a DH who works full time.
We would like to move in the next few years so felt the extra money we saved on paying debt could help towards getting the mortgage down and saving for moving costs - stamp duty etc.
At the moment we are fixed 5 yrs on a 4.1% our mortgage stands at £53500 ish. We have just upped our payments to the full 20% allowed without penalty. If we move we can also port our mortgage with no ERC.
So that's all so far next step is to look for a savings account to start putting any extra bits of cash in and of course try and stay debt free:D

Hello you

:THUGE well done!!!:j

Your flying now Pinky debtfree AND heading to MF - I wish you all the very best xxx

Pinky15

Thanks savingmummy!:)
Well quick update after ploughing on with the savings - we ended up with a car bill for £1000 eek and am still waiting for another one - one word - GUTTED! Anyway I put it on the credit card and will chip away at that. Can't believe after finally getting rid of them we are back on one again grrr! Anyway it is interest only at least. I am also ebaying so money will go towards that. Savings up to £3500 just can't bear to use them to pay credit card. Am aiming to get the savings to £5000 and pay of credit card by christmas.
Also mortgage will be increasing as we have decide to extend rather than move. So current overpayment will pay for the extra needed. Having said that by spending money extending we will save around £100,000, plus interest as we would need that much for something bigger:eek:
So including the new mortgage part I am still aiming to have everything paid off in under 8 years. Am I mad? No but very determined:):):)

Pinky15

Well the extension borrowing has been knocked on the head. They say we don't earn enough hmmm! I think really it's because they won't make enough money out of us. So have told them to stuff it and we are going to try and save most of it ourselves. For now my overpayments will go in my ISA tomwards this and once its all paid for I will pick them up again. Am so cross though after years of clearning everything and never a missed payment:mad: