The Call of Cornwall

Hurdler

If you can afford to not touch the money for a while you might find slightly more favourable ISAs - also do check if they are going to be able to adopt the new ISA in July - not every offering will let you add to your £5940 pot for this year.

Danny5

Ok, so the diary has been pulled out of the drawer and dusted off!
6 months has flown by and quite a bits happened, but I now feel I'm in a really good position to get rid of this mortgage!


SO, since I last posted:

• I was made redundant, then taken back on 3 weeks later!
• My divorce has been finalised (no more solicitors fees to pay)
• Decided against upsizing and instead agreed to stay where we are for a few years
• Went on holiday to France for a couple of weeks and had a long overdue chill out!
• Started with a new company last month.

The redundancy saga made me realise that you can't take anything for granted as it came out of the blue (management had a bad couple of months, panicked, and decided to get rid of 10 people on a last in first out basis). It also made me feel so thankful that I am the way I am with money. I could have been without work for the best part of a year and still been ok in theory, so I didn't stress too much about it all.


I've now started with a new company and the work situation is looking quite good, start on a new site next week and the earning potential is good. That, and sorting out a new mortgage with a better rate, is why I've come back to this diary. I feel that I'm now in the best position I've possibly ever been in to make a massive effort at the mortgage... so here goes. :T

Danny5

During September I had a look through all of my Direct Debits, bills and savings and have saved around £100 a month!!:A


NEW SOA/ OLD SOA

• Energy: OVO £81 pm/ EDF £89 pm (Tariff saves me est. £180 per year)
• Home Ins: Direct Line £28 pm / Due for renewal Jan
• Digital TV: Freeview £0 / Sky £25 pm
• Internet inc phone line: EE £13.50 pm/ Sky £25 pm
• Personal Injury Ins: Cancelled £0/ £15.26 pm
• Council Tax: £82 pm
• Credit Card: £7 pm
• Life Ins: £8.75 pm / £11.26 pm
• ASU Ins: £29.51
• TV License: £12.12
• Mobile Phone: Tesco £12.50 pm/ EE £43 pm
• Contact Lenses: £30 pm
• Water: £26.16
• Child Maintenance: £150 pm
• Swimming Lessons For The Boy: Cancelled £0/ £18.75 pm (looking for somewhere new)
• RNLI: £3 pm
• Mortgage: CO OP £702.38/ Woolwich £491.73

TOTAL OUTGOINGS £1186


TOTAL SOA SAVINGS £99.32 (Ignoring The Mortgage)


SAVINGS

• ZOPA: £50 pm
• Holiday/Christmas: £50 per week

(Hit one savings target which has freed me up another £20 per week)


TOTAL SAVINGS £250 per month


OUTGOINGS + SAVINGS = £1436




INCOME

• My Basic: £400 per week (£1600 pm)
• OH's Contribution : £250 pm

TOTAL INCOME £1850 pm


INCOME - (OUTGOINGS + SAVINGS) = £414 pm surplus :T

Marcello

Welcome back Danny, found your posts very interesting and well thought through. Glad the work situation is sorted, in this day and age its a common problem.

Well done getting the diary out and I am sure you will get to your goals.

Welcome Back

Worry_Wart

nice work and welcome back! looking forward to following your new progress...

Danny5

Thanks for the welcome back Worry_Wart and Marcello!


Now for the important bit... The Mortgage! :eek:


My old fix has ended and was a 2 year fix @ 3.89% (14 year Term)


In the 2 years 3 months since I started that mortgage I've gone from a little over £67,000 to now being around £53,750. £13,250 is a pretty decent amount to have paid off considering everything else that's gone off, and I'm really pleased with it. But I know that I can do so much better over the next 2 years!


So, my new mortgage is a 2 year fix @ 2.54% (hopefully finalised by the end of October) (7 year Term)


My payments are going up by about £200 but I feel I can cope with this increase, and some. The best part about this mortgage is it allows my to overpay by up to £1000 a month. The chances of me getting up to £1000 regularly are very slim, but its there if needed!


I've had a play with the overpayment calculator (as you do!), and here's a few scenarios and the balance at the end of the 2 year fix.

1. Standard Payment of £702 only: £39,350 (Term 7 Year)
2. SP + £250 OP per month: £33,200 (Term 5 Year)
3. SP + £500 OP per month: £27,000 (Term Just Over 3 Year).

Now £500 overpayment EVERY month is probably pushing it, but its what I'm going to try and aim for.


No harm in dreaming! :beer:

Danny5

Finally started on my new site today! I can see at least the next 2 - 3 weeks on there being good earners!


On the negative side, spent over £60 on Sunday dinner at a restaurant yesterday. It's started becoming quite a regular habit over the last couple of months and I'm going to have to put a stop to it. After my dads birthday next weekend, that is...


Surveyor coming on Friday to value the house, which should be fine because if anything I undervalued it for the mortgage.
Once that's complete the mortgage should go through, but with my existing payment due on the 16th, I'd imagine I'll miss the boat for October.


I'll be glad when its all changed over as I've got over £1000 ready to overpay, plus I'm going to get back some money from the existing mortgage company as I'm already a couple of hundred quid below the £54k I'm borrowing from the new lender, and that's before the October payment goes out!

amycool

Hi Danny!

A really interesting read to see how well you have been doing. How amazing to think that you could have it all paid off in 3-5 years!!

It's so easy to get into the habit of eating out but I find that if you stop yourself once, the next time you don't even consider it. It's nice once in a while as a treat but if it's regular it isn't as fun, in my opinion.

Good luck for the next few years!

Secret_Saving_Squirrel

Well done for getting back on the wagon!

Danny5

Thanks SSS, Well done on paying off your mortgage! I remember reading your diary years ago!!


Hi Amy! I agree, I'm not finding it much fun paying the weekly food budget again on one meal!
The thought of being mortgage free in a few years is unreal! Lots of hard work to come though. Good luck with your MFW quest too!!:beer: