MFW Diary - Take 1!

Calfuray

Hello! Brand new, squeaky-clean newbie here, although I've been lurking for a while.

A wee bit about myself: from Scotland, live with my partner (hubbie in '14) and had our mortgage since 2009. We are young 'uns(!) and as such don't earn much. My OH works in an industry that's not done well with the recession, he was down to 4-day weeks for a while but managed to get back to a full working week. I am a student and work part-time.

When we first got the mortgage I was a month shy of 20, and we signed up to a 35 year mortgage. Silly, I know. I want to OP as much as possible so we are not in our 50's when it finishes! I worked out that if we OP £100 a month, the mortgage would end 14 years early. :eek:

Mortgage at highest: £58,896
Mortgage currently: £57,282.32
Highest APR: 5.98%
Current APR: 3.99%
OPs since Oct 12: £200

The only other money we owe is a loan for £5,000.
Savings of £1800.

All I can think of just now! Looking forward to updating this diary

edinburgher

Welcome aboard, lots of luck for your MFW quest

gallygirl

Not another Jock :doh: (exiled one here :cool:).

Good luck - you've very switched on for such a child .

Calfuray

Thanks guys

gallygirl, what did you do to be exiled?

I'm racking my brains trying to find what else we can save money on. We have a cashback credit card, high interest savings accounts, have checked for comparisons on gas/electrics etc. I think I just need to spend less money daily, the amount we spend on food is ridiculous.

I forgot to ask in my original post, I'm going to get around 15k next year, and I don't know what to do with it. Before I found out about this my plan was to save up and emergency fund, save for honeymoon and OP.
Does anybody have any suggestions on what a good amount is to have in emergency funds? I've heard it should be 6 months take-home pay?

I am stuck between wanting to put it all as an OP, putting even more aside as savings, putting some in bonds etc or a mixture of all three?

edinburgher

3-6 months of expenditure, or more if you have risky jobs/kids.

I'd err on the side of caution considering that your hubby is in a sector that's doing badly as a result of the recession.

Calfuray

Thanks again!

He works as a AV engineer, installing TVs etc, so yeah, think 6 months might be best

gallygirl

Calfuray wrote: »

gallygirl, what did you do to be exiled?

Parents - was only 10 :rotfl:.

Calfuray wrote: »

I forgot to ask in my original post, I'm going to get around 15k next year, and I don't know what to do with it. Before I found out about this my plan was to save up and emergency fund, save for honeymoon and OP.
Does anybody have any suggestions on what a good amount is to have in emergency funds? I've heard it should be 6 months take-home pay?

I am stuck between wanting to put it all as an OP, putting even more aside as savings, putting some in bonds etc or a mixture of all three?

6 months is a good indicator. However, have a look at your mortgage details - some will allow you to take OP's back, so you can get the best of both worlds :T.

What is your mortgage rate? If you have a low rate you may be better putting the money in savings.

When we talk about MF on here a lot of us really mean mortgage neutral, where our savings are the same as our mortgage, Others just pay it off the mortgage. It's whatever works for you. Personally I like a mixture as then I can have a savings spreadsheet and link it to my mortgage one .

Calfuray

gallygirl wrote: »

Parents - was only 10 :rotfl:.



6 months is a good indicator. However, have a look at your mortgage details - some will allow you to take OP's back, so you can get the best of both worlds :T.

What is your mortgage rate? If you have a low rate you may be better putting the money in savings.

When we talk about MF on here a lot of us really mean mortgage neutral, where our savings are the same as our mortgage, Others just pay it off the mortgage. It's whatever works for you. Personally I like a mixture as then I can have a savings spreadsheet and link it to my mortgage one .

So, not really exiled

And yes, our mortgage allows us to have 'payment holidays' if you have made OPs.

Mortgage rate is currently 3.99, Nationwide's SVR.

I *think* the interest getting added on daily is around £6, so I think OPs may be best. The OPs are on top of saving into a 6% account, ut I can only deposit a maximum of £250 a month into that one...

And everyone on here seems to have a spreadsheet weakness

edinburgher

The OPs are on top of saving into a 6% account, ut I can only deposit a maximum of £250 a month into that one...

Remember that the 'real' rate of return isn't 6%. It's 4.8% after tax and it's only on money in the account (i.e. you'll get a month of the headline rate on the first monthly payment, but future payments will be invested for less time and will earn less interest).

Calfuray

edinburgher wrote: »

Remember that the 'real' rate of return isn't 6%. It's 4.8% after tax and it's only on money in the account (i.e. you'll get a month of the headline rate on the first monthly payment, but future payments will be invested for less time and will earn less interest).

Unfortunately

I don't earn over the threshold for my part-time wage, so I don't think I'll get taxed? I'm not sure.

I like to think I'm pretty knowledgeable but I really need to do some research!

gallygirl

Calfuray wrote: »

Unfortunately

I don't earn over the threshold for my part-time wage, so I don't think I'll get taxed? I'm not sure.

I like to think I'm pretty knowledgeable but I really need to do some research!

You will still get taxed on the interest unless you fill in a special form - dk what it's called.