MFW by 50?

gaffel

So busy weekend with lots of research and here is today's updates:

1. P2P got accepted for a 2nd loan. 100eur at 12.4%. The average rate on this was 10.34% but I bid last minute. This is clearly the way to go, the later you bid, the higher you may get.
In UK P2P I came across th1ncats who appear to allow me to invest as an roi investor. However minimums are £1k per loan. :eek: That said I am MUCH more impressed with the quality of loans on offer and the quality of the information. Rates appear to be from 8-14% which most appear on fixed rate, little bidding. Need to pass some security checks before before I can bid, but I am excited by these!

2. Pension. Done nothing.

3. b2l : *sigh* The news today, the flat for eur55k is sold. Apparently two local businessmen got into a bidding war last Thursday and it ended at 115k :eek: Again benefits of a small village, everyone knows everything. Crazy price, with rental income of 525 a month that price does not make sense. So now I am left in a dilemma, I have the euros in my current account, do I pay off mortgage in full or hold some back in case another property I see comes along. I need to ponder on this one. I don't want too much hassle from b2l, so want to keep them fairly local.

4. Shares/isa. Made some progress on this. Opened an account with ch4rles stanley for an isa and been reading LOADS of blogs on this. Think I might go with a basic vanguard life strategy or something for now until I understand this whole market better. Seen some recommendations for books to read so would be wise to do so before I invest much.

5. Spend the day working on the company hold co, which we use as a management company and reconciling accounts etc. I get paid from this company and I will ensure my salary this month takes the company profits down to next to nothing. Harder to do with the sub co's as you often get bills in post year end etc.

I also opened a savings together account with H$BC which is £250 p/m and 6%. Just clicked 2 buttons online and voila, all done. Got the forms for my new ROI current account from P3rmanenttsb which does not charge fees like my current A1B one.

But the big decision, pay the mortgage off or hold some back to buy a 2nd property for rental income.....

gaffel

Had a busy work day today, its coming up to our UK group end of year so focused on the managment/hold co and reconciled all the accounts etc. I take profit down to £0 via wages from this company (due to double tax on UK dividends in ROI) and looks like my wages this month will be c.£14k, no idea what I will get post tax but it will help boost up the savings pot.

1. P2P update. Accepted on 2 more ROI loans, both €100 at 14.9%. Bidding on another one which ends tonight at 9pm and may end more to it. Bid last week at 12.5% and this is a much better loan so I think it will finish at lower rates. So to date 400 eur so far in loans. These are all 36 month loans. Nothing done on UK ones yet as not had time to sort my ID etc.

2. Pension. Again nothing done.

3. B2L : H$BC have given me a mortgage in principle (online). 2.49% with 35% deposit. Happy with that size deposit as I would not like to go lower. I see some people making crazy b2l decisions. I intend to fully stress test any house purchase. This would be a UK property. ROI property, b2l rates start at 5% (Irish banks know how to make money ), I think I will hold back a proportion of the overpayment to buy one outright. I think eur70k and plenty in local town at this rate.

I know b2l is often seen as a bad move on this page and online, and I can see why. I watched a programme last week (£1m council house..) and it was irresponsible journalism. Showed a nurse buying her fourth b2l, £200k, rental income £1k. To me, that just does not work. Not at all! I doubt she did much stress testing on that! I assume she was relying on capital appreciation but that is a fools game. To me, the rent must pay 1.5-2 x the mortgage payment to allow for voids, maintenance and the inevitable rate rises.

4. Will buy the share books tonight and start my homework on this leg of the journey. I read online and think I understand then come across a load of terminology which just has me scratching my head!

5. Business, actually did a full day today! (well from 11-6 which is full for me). I do actually quite enjoying reconciling, ticking, bashing and ensuring we know exactly where we are. I am going to spend a long time in early August deciding our 2016 strategy. I think we will hit our t/o target set for 2015 (unless something dramatic happens) but I set more important targets like profitability ratio etc, ensuring we become more lean and efficient and we hit most of those. :T I generally have a great team, that said one of the managers let a team member go yesterday. For lots of reasons but she was not right and despite lots and lots and LOTS of extra training, she was not grasping it. I was actually impressed the manager stepped up and took control of the situation. She has been with me for 5 years and became a manager just 5 months ago but has really stepped up to the role.

Other than that very quiet here in gaffeldom. The very mini gaffels (age 9/11) are away at my parents with a ton of cousins. Doubt we will see them this week! My parents live at the other end of the village to us. The older mini gaffel (23) is doing his girlfriends parents garden for them.... wish he would have the same motivation to do ours! Don't think he has ever touched it. I was hoping he might move out... it appears instead we have an extra mini stopping here most nights and eating here every night. :eek: Ah well...

gaffel

Little to update tonight. No more p2p as did not like the loan which ended today (in LFinance loans end every night at 9pm). Think I got 2 last night at 14.8% but waiting for confirmation which has not come through. p2p can get quite addictive! The rush of bids at 8.55pm every night is quite funny, clearly I was not the only one who copped onto that! It appears this site is made up off auto bids, so as soon as a loan goes up you see a ton of autobids kick in, and then everyone else watches until 5 minutes to go to try and get the highest without being kicked out. I like tomorrows loans so will take a punt on them.

gaffel

Got VERY annoyed with mortgage company today. My first large overpayment, sent on 6th July has STILL not been credited. They rejected, then recalled and apparently takes 14 days so call back end of next week and see then. Off course it's racking up interest in the meantime. With bank fees for rejection and interest I am out nearly 150eur! grrrr

So on this basis, I was humming and hahhing over buy to let in ROI or pay off now I have transferred all money into euros. But after this I just decided to be done with them!. So sent a chq for 99,899 euros! I think I will be left with a tiny amount but impossible to work out exactly as depends on when they bother to credit to account.

But I am, now, mortgage free! (WELL 99.9999999%) mortgage free.

gaffel

Well nowt much to report.

The mortgage is more or less gone, just waiting on final letter from mortgage company. Much chase them on this actually.

Been a fun summer despite the dreary weather. The mini gaffels have been in sailing summer camp for 2 weeks and loved it. This last week they went to a lego camp and had a ball.

Sods law once I deplete my emergency savings to clear mortgage, for the first time in 3 years business falls of a cliff. Like dive bombs. Done 30% of our normal turnover. Should still pay all bills and not panicking yet, but it needs to pick up.

The overall relief of not having a mortgage has been immense, much more than I ever thought. It is hard to describe as I never thought of the mortgage payments as an issue, but now they are gone its a huge relief.

Nothing much done in terms of the future. I have 1100 in p2p loans with an average rate of 13.8% (but linked finance take 1.2%). Quite enjoying digging into companies finances and asking pertinent questions, surprised how many people just throw money at clearly weak companies.

I had an idea for buy to lets, but go nowhere other than a mortgage offer from bank. I think, in reality, with running the businesses I am just too busy to go down that route. I love renovating properties though, so might look into that instead.

jodles16

Congratulations on being (pretty much) Mortgage Free!! Amazing work! Hope your business will pick up soon and its a little blip. Have been considering P2P and your experience has made me consider it a little bit more!

Best of luck!

Jodles

gaffel

Thanks for popping in Jodles. Yeah I hope the business picks up as well, got proactive today and went actively seeking new clients, always a joy!

I'm enjoying the P2P. Got my first repayment today and made 0.98c interest. Looking at the schedule I now have 1250eur invested. Looks at this rate I will be getting 13.27 a month interest (net of fees). I intend to keep putting money in, not sure how much yet, will play it by ear. I will also just re-invest all the interest made, no intentions of taking it out.

My latest project is to reduce our heating bills. We have a new (ish) house, its 12 years old. But it was built by cowboys and whilst a solid built block house, the finishings were thrown on. Cheap windows which have such huge drafts, same with door, not sure if walls are insulated. Plan is to work my way around the house doing up the rooms and trying to improve it all. I'm going to price up windows, new doors and insulation!

gaffel

P2P update - 1400 invested. Another loan of 140 accepted at 12.4%. Some really decent companies coming up which are very strongly capitalised and just looking for project money so might do some bigger amounts. They do one loan every working day so about 20 a month. I find I am skipping 2/3rds as not good enough companies so loaning to c.7. Though I did 10 in first month as got a little carried away. I think if I put in 700eur a month, and choose wisely... after 18 years hopefully we will have a better pension pot!

House update... well as suspected our house was built by cowboys and there is no insulation in the walls. For a house <12 years old that's pretty shocking. I am going to get some quotes to get it pumped in. Hoping this helps bring down our very high heating bills.

This is not our forever house, but having looked for the last 3 years for our forever house and failed, I have decided to make it a better house for us. Not throwing silly money at it but doing bit by bit improvements.

Fancynancy77

Wow gaffel you're doing great. The house I'm in is about 14 years old and so drafty. My OH seals up the windows every year with rubber stuff and we insulated the attic. We rent but have been here nearly 6 years.
Sorry to hear about the business. Is it seasonal related?

I bought my first set of BG reusable nappies (second hand [STRIKE]or Bottom[/STRIKE]) upon your recommendation. €50 for 6 of them but they are perfect. One was still in wrapper and the lady gave me a ton of inserts and two rolls of liners as well.:T

gaffel

That was a great deal on those nappies. Did you try the library thing?

Rang mortgage company to see if house *IS* mortgage free. The guy thought so as showing nil balance but could not confirm. All up in air as I put in a complaint with respect to them taking 30 days to lodge a 43k payment and charged me interest on it. My complaint is being looked at and he is asking finance to write a letter to me and will then get deeds couriered to my solicitor.

My mortgage payments were 900 a month so decided to redirect to linked finance. Now have 1550 invested, average rate 14.3%. Interest earned to date: €6.23. Just one more payment in August, then due to ear 17euro a month interest in September. When I think what I got on £50k for 5 years from hsbc... I am fuming I was so stupid!

Business is slightly seasonal but more down to weak euro, as large part is selling into euro land. hey ho. Swings and roundabouts I guess.