Any single mortgage free wannabes?

ultrarunner

Danni-R wrote: »

Ultrarunner, I see you're in the Berks area. If you're close to Bracknell there is a massive furniture only charity shop in the town that might be able to help you out?

I love the area but when you compare the prices to 'up norff' its eye watering how little you get for your money!

Yeah I agree the prices are quite expensive, fortunately Reading is the cheaper part of the county

I have actually got most of my stuff from Gumtree and the local Christian Furniture shop - they have a retail outlet for stuff they can't donate - but I will bear that place in mind!

Danni-R

Gumtree is good as well. I chose a smaller village a few miles out and lord, for about what I paid for my flat I could have got a house in Bracknell.

I didnt know there was a christian furniture shop. Might have to google that.

downsizer3

Urgh. Singleton downside coming up. Have agreed with partners to fold our business at the end of this year ( 5 lousy years just past) so will be unemployed next year unless something comes up.
Bit scarey when you're on your own isn't it? (and a kid to support in my case) No back up from anyone but still going to do my small OPs and save save save 'till D-Day.........gulp.:eek:

Danni-R

Oh dear. Would you look at starting your own business or look for a job somewhere else?

Sandstone

Danni-R wrote: »

Welcome Sandstone. Thats a heck of a mortgage you've got yourself there!

Thanks Danni-R! I realise it's a lot but I'm quite young and I think property is a good investment.

My MFW diary is here, if you're interested.

Wills aren't always necessary
As for everyone's discussion on wills, I think there may be some misunderstanding. If your intention is for your estate to be distributed in accordance with your wishes, then that's great. If your intention is to avoid inheritance tax ("IHT"), then just make sure that you gift away those assets seven years prior to your death (easier said than done, of course).

The other thing to note is that IHT is only applicable on the portion of your estate that is greater than the IHT threshold - currently 325K. (http://www.hmrc.gov.uk/rates/iht-thresholds.htm).
If the sum of your assets is less than this figure, then your estate won't incur any IHT at all. It's like being within your personal allowance when calculating your income tax.
Remember to include your house, minus your debts, and remember that the threshold is per person, so, if you own jointly with your wife/husband, you can leave £325K each without incurring IHT.

In summary, your will only redirects the assets, and doesn't automatically reduce your IHT bill. It doesn't make a difference to IHT who you are leaving your assets to. If you have no will, there are automatic rules that come into play. Administrators' costs, debts, and the rest will go to your 'next of kin' automatically. It only goes to the state if you have no will, and no relatives whatsoever.

Hope this is helpful to some.

downsizer3

Hi Danni-R - I have my own business just now - and I can't safely say that I will never do it again!! No - I'd like to be an employee and maybe get some sleep at night haha. Having your own business is great in terms of being your own boss but having staff brings extra worries - never again!!

Spot on about the will issue sandstone - I think the costs of dying intestate can be pretty high can't they - worth avoiding.
The other issue I found with wills - no sooner have you written it than something changes and you need to alter it - seems to be about £100 fora fairly simple change. Ouch.

heavenfire

Afternoon all

I hope I'm capturing everyone in my roll call list. If I have missed you out then please say and I'll add you.

I'm glad that I asked the question now as our numbers are growing!

I really need to sort myself out and get with the programme regarding over paying. You lot are putting me to shame Can I borrow somebody's motivation for a bit??

Hooloovoo

Another single mortgage-free-wannabe here.

Not too long to go now. Only £8k left to pay off. Hope to have finished it by March next year.

LauraWxx

single (ish) mfw here!!
Mortgage is about to start in the next few weeks, have boyfriend but mortgage is in my name and he not living with me for the first few months. When he does he will contribute to bills only.

Good luck to all xxx

starflame

Also single no kids. (BF lives in his own house)
I bought my house 18 years ago, 3 bed semi, for...seems peanuts now..£57,000. I then borrowed some extra money on it about 8 years ago to have the chimney and front drive fixed and replace the metal windows with double glazing. It needed doing and I didn't have the savings to do it at the time.
I only got the overpaying bug about 3 years ago and in that time I've managed to pay off about £23,000. I started with small overpayments at first and have made them bigger each year. This year I've stretched it to the maximimum and the mortgagebalance is now about £1,800 so it will be gone in the next 2 months. This will be 7 years early but I wish I'd had the mfw bug sooner as I probably would have been mortgage free years ago.
It does sometimes feel like a strain having to worry about bills and mortgage and house repairs and all the other things life throws at you but I'm expecting that great feeling at the end of 'I did this, all on my own!'
The thing that has suffered is savings although I have been paying into a private pension since I was 30 to add to my state and work pension.
Once the mortgage is gone I intend to build up all the ISA savings I can and start separate savings for house improvements, holidays and a new car.
I paid off the car 3 years ago and have no credit cards so the mortgage is my only debt.
I have still had holidays while overpaying, putting a bit aside every month in a separate account.
BF has offered to pay for my holidays but I don't feel comfortable with that. This year I have let him pay so that I can finish off the mortgage but then I will pay him back over the next few months using the mortgage money I won't need any more. :-)
The things that have helped me most I think have been
- a spreadsheet with all my monthly outgoings recorded.
- looking for new insurance/breakdown cover every year and doing a one-off yearly payment (This saves me 100s every year)
- using quidco for cashback on things I was going to buy anyway (including cash for changing insurance/energy suppliers/breakdown cover)
- keeping a separate savings account to save up for holidays
- budgeting for treats in my spreadsheet so I can still buy clothes and get my hair done.
- doing my shopping online. I spend less, probably because I can't pick up little extras on the way round.
All the best with your mfw journey. You can definitely do it even if it feels like you are starting small - think of the thousands you will save in interest!