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Mortgage free by 48

I want to climb aboard the mfw train. I'm nearly 37 and bought in 2007 and have been digging myself out of negative equity since. I have lost 20% so far and with no end in sight, as there are empty houses all around mine right now, as well as those with people still in and just for sale.

I have an offset and had been overpaying but have decided a change of tack. So I am going into 2015 planning to be as frugal as I can to increase my offset savings, pension contribution and paying into a new S&S nisa. This is all so I can retire early as I have disabilties which will only get worse with age, so I won't be able to work full time till 68, I'm not even sure I'll make 50. I need to figure out not only how to pay the mortgage off, but also have enough savings to tide me over till I can get my pension at 58, as well as have enough in the pension to start taking it so early.

I want to change jobs this year too if I can, I am waiting to hear back from an interview I had before christmas right now. If I don't get that though I might look at trying to sell up and relocate this year, so I don't just keep loosing equity all the time. I know with so many other empty houses for sale I'll need to sell at an even bigger loss to compete, but it might be worth it just to have a new start and get out of here. I'm thinking of downsizing a bit as well, as I have a 3 bed house now for just me and the dog, and I fancy a bungalow more, just as I struggle with the stairs right now and it will only get worse as time goes on.

I am due a yearly mortgage statement soon, but the daily interest is around £8.50 right now, and with what I've overpaid this year I think I'm a couple more years down. The balance currently is 108k so hopefully onward and downward from here.
MFW OP's 2017 #101 £829.32/£5000
MFiT-T4 - #46 £0/£45k to reduce mortgage total
04/16 Mortgage start £153,892.45
MFW 2015 #63 £4229.71/£3000 - old Mortgage
«1345

Replies

  • edited 31 December 2014 at 6:53PM
    pathtofreedompathtofreedom Forumite
    827 Posts
    edited 31 December 2014 at 6:53PM
    I've posted this on the dfw board as well but this is my current soa. I have setup a monthly payment of £250 to the S&S nisa, the pension contributions aren't shown below as they come out via salary sacrifice currently.

    Groceries and take away has been my biggest area to work on looking through ynab for the past year. So I am going to really go through the OS boards for better ways to meal plan for that. Even if it means paying the cleaner more to help do batch cooking possibly, it should work out cheaper still overall than what I spent on take away this year, even if it means the soa needs tweaking.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2500 - this varies a bit due to overtime, and how much I'm paying into my pension with salary sacrifice.
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2500


    Monthly Expense Details

    Mortgage................................ 700
    Council tax............................. 90
    Electricity............................. 40 this is in credit so will get dd reduced again after winter, and credit refunded.
    Gas..................................... 40 this is in credit so will get dd reduced again after winter, and credit refunded.
    Water rates............................. 18.76
    Telephone (land line)................... 9.99 - half price with sky till october 2015
    Mobile phone............................ 33 - contract has 18 months left as it included a handset I wanted, it was cheaper to do it this way than buy the handset seperately
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 21.50 - thinking about cancelling and getting a freesat+ box and nowtv for odd series I can't live without.
    Internet Services....................... 0 - free with sky deal till october 2015
    Groceries etc. ......................... 170 going to really try and stick to this if I can, and stop take aways this year.
    Clothing................................ 20
    Petrol/diesel........................... 70
    Road tax................................ 12.09
    Car Insurance........................... 25
    Car maintenance (including MOT)......... 25
    Car parking............................. 5
    Medical (prescriptions, dentist etc).... 140 - have costs associated with disabilities including physio, some of which is covered by cashback health insurance through work
    Pet insurance/vet bills................. 32.60
    Buildings and Contents insurance..................... 28
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 10
    Entertainment........................... 50
    Holiday................................. 50
    Emergency fund.......................... 20
    cleaner................................. 40 - required as I can't do this myself
    window cleaner.......................... 10 required as I can't do this myself
    boiler insurance........................ 11.7
    dog walker / grooming / dog food........... 100 dog walker for when I'm not able to walk her enough myself, this varies month by month
    Total monthly expenses.................. 1794.76


    Assets

    Cash.................................... 17500 - emergency fund kept in offset includes money for car repairs, house repairs etc
    House value (Gross)..................... 130000
    Shares and bonds........................ 2000 s&s nisa
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 151500



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 107500...(700)......3.49 - offset increasing to 4.44% 07/2015
    Total secured & HP debts...... 107500....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    card 1.........................5400......55........0
    card 2.........................2200......90.1......0
    Total unsecured debts..........7600......145.1.....-



    Monthly Budget Summary

    Total monthly income.................... 2,500
    Expenses (including HP & secured debts). 1794.76
    Available for debt repayments........... 705.24
    Monthly UNsecured debt repayments....... 145.1
    Amount left after debt repayments....... 560.14


    Personal Balance Sheet Summary
    Total assets (things you own)........... 151,500
    Total HP & Secured debt................. -107,500
    Total Unsecured debt.................... -7,600
    Net Assets.............................. 36,400
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • Quiet day at work for a change, as all my meetings were cancelled with other people being away.

    The approved food order came already so will have fun finding places to keep some of that but I'm very impressed so far. The delivery was very good as well, you could even track the driver on the website which was cool and creepy / stalkerish at the same time.

    I was going to try and have a week of nsd if I could, but as the snow is starting to melt enough to make driving a bit less scary, I went out for the first time since it snowed to use some vouchers that expire today.

    I was very restrained though and only got what I really needed and avoided all the tat on sale. On the way home I was really tempted to go get take away as a treat, but now I have enough food in for the month or more I managed to talk myself out of it. I'm now having tuna jacket potatoes for tea which I haven't had in ages so is a treat really.

    The fireworks have already started as well which is stressing out the dog, I forgot people might do them today. So she is helping eat some of the tuna in her kong as well.

    I will try and do some more decluttering tomorrow and start some piles for selling, charity or just tip to start the downsizing. I'm not that good at ebay and a lot of the things I have to sell aren't really postable, eg eletric guitar and amp - it was only 50 from ebay to start with - so I might try putting things on the local facebook group. That or I was thinking has anyone tried cash convertors and the like, there are a lot of these sort of pawn shops where I live. I know I might get more for things if I sold on ebay say but if it meant I could just take stuff there and not worry about postage that might make it worth while?
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • Secret_Saving_SquirrelSecret_Saving_Squirrel Forumite
    4.1K Posts
    Mortgage-free Glee!
    Forumite
    Hello,

    I used cash converters once years ago and they were very fair, it was before ebay was really popular and my teenagers wanted to sell outgrown but hardly used rollerblade skates!

    Very good luck with your plans. Decluttering is a really good way to begin as you make the house look better as well as improving the bank balance!

    Happy new year.

    Squirrel x
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • I had thought I wouldn't do big OP's this year but I read SuperSecretSquirrel's
    Mortgage Neutral 2015 diary last night, while the dog was having a heart attack with the fireworks, and his progress was amazing. I don't have that much to chuck at the mortgage, but his planning for retirement and ss nisa matches what I am doing as well.

    So I worked it out and I think it would take "only" 3k or there abouts in OP and I could get below 100k by next year which I think would be a brilliant phsycological step if nothing else.

    I find it hard to work out just how well I'm doing just as I have an offset you can do OP's on as well. I can check the interest every day online, but the statements are yearly, so it will be interesting to see what the next one says as to how much the payments go down. I would rather the payments reduce rather than the term at this stage, but continue paying as if they hadn't reduced, just with my health issues knowing if I had to go part time having a much smaller payment if I needed it is good peace of mind.

    The interest rate rises in july to 4.44 from 3.49 as it was a 2 year variable then 3 year fixed. It seemed a really good deal at the time as I was paying 6.75% before with no offset feature, but hindsight is a wonderful thing, and I think it has made me see more no one can time the markets 100%. So it is a useful lesson anyway for learning passive investing as well, about not trying to time the markets and just working with what's happening at the time. Would have just been better without all the negative equity to contend with as well, but that's where the plan about moving house might help escape that a bit.

    So for today anyway I might try and take dog to the local national trust park, as the snow finally melted last night so I can get out of drive again. I am planning a nsd today as well as depending how tierd I feel later maybe some more decluttering. I must remember tomorrow is a work day tomorrow still - boo.
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • Watty1Watty1 Forumite
    3.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    Just thought I would drop in and encourage you on the journey. My aim was mortgage neutral by the end of 2014 and I was just so happy when I achieved it.
    However by then I had woken up to the need for a bit more financial planning and mortgage neutral was no longer my aim :)
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
  • Well been a good first day of 2015.

    Took the dog to the national trust place but it was rammed so came home as I couldn't park, I guess the snow melting meant everyone was escaping the house at once.

    I have cleared out the pantry, which I have been meaning to do for ages to put some extra shelving in and unpacked the food from approved food. It took me a few hours with a lot of sitting down, but I'm really pleased it is done, and I think I paced myself enough so I shouldn't be too nackered for work tomorrow. I have a bag of stuff to take to the food bank, which I don't think I'll get around to eating in time but they would still make use off. I really have no excuses now for not cutting back on food shopping, as I didn't realise just how much I had in a way.

    I've signed up for mfw 2015 offically for 3k of op this year. I think I might try matched betting again to help towards this, once I know better what is happening with this new job anyway. I tried it a bit last year but then got to busy, as I work at places where they credit check you etc probably not best to have 10 new bookies show up on my file right now just in case.

    I've just posted these on the "what do you want to achieve 2015" thread on the dfw board but I'm going to put it in here to remind me as well.

    1. move to a new job and maybe a new house too.
    2. lose 52lbs
    3. walk 3k steps a day minimum - this one might be a bit too hard but I'm going to give it a try.
    4. complete a course on coursera or edx - keep starting different things but not finished one yet
    5. get a social hobby to make some friends, maybe art classes or ukulele group
    6. stop the takeaways and cook more, or get cleaner to help cook instead.
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • Another nsd today but I might go shopping tomorrow as I need a new mop I've discovered. I might try and think what else I might need for the next week as well so I can have a spend day tomorrow, then hopefully a full no spend week next week then, well apart from direct debits but I'm not counting those.

    I had been thinking about setting up a hobby business for some extra cash at some point. Either some sort of elearning or maybe web design / plugins / apps type stuff which can mostly be a passive business, and I can do updates in my spare time. The problem is I've just found out about the eu vatmoss rule that came in yesterday which sounds a nightmare for a lot of reasons really. I've started another thread on the small biz board to see if anyone else understands it yet, but it doesn't sound like there is enough detail, or exsiting tooling to make it anything but a massive headache. http://forums.moneysavingexpert.com/showthread.php?t=5144640

    I guess unless I try and learn about it and then make some tooling for people to use :beer: The tax side of the work is always what has put me off starting before though if I'm honest, so if it is going to get 10 times more complicated I guess that would put a lot of people off. That or make criminals of so many people just wanting to sell crochet patterns or ebooks or whatever, when this is meant to be a law to help stop amazon etc hiding tax.

    Looks like I might have some more overtime coming up in Jan though I didn't know about which is good I guess. I just hope I hear back from my interview next week, but I think it might not be for a couple more weeks now :( It will be worth it if it all works out though.

    Right off to walk the dog to get up to my 3000 steps for the day.
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • Afternoon,

    Didn't quite make it to 3000 steps but it was over 2000 which is still very good, as half the week currently I don't get over 500 some days. Even if for the first few weeks I only make 2k a day that would still be a lot more than what I've been doing, and I can build up to 3k so I'm pleased with that.

    I was thinking about going into town today, to do a bit of shopping and look at the little market for some veg, but I've woken up with a bit of a cold. So I think I'm going to stay in the warm today, apart from talking the dog out later to do my steps.

    I had been thinking about doing the sun £9.50 holidays as well as that starts today, but I think until I know what is happening with this new job it isn't worth it. So I might wait till they do another one and do that instead it doesn't look like you can take dogs either, so once I know what is happening maybe I could do the next travel lodge sale instead as some of them allow dogs I think.

    I have done my first OP of the year as well of £292.50 which was using some overtime money from last month. I'm going to try and earn all the op money as extra income rather than use any of my normal budget I think. I have another £25.57 coming next week from quidco by the looks of things so I can use that towards Feb's OP I think. Once my brain isn't full of mush then I will look at matched betting again to help with this too.

    I have a subscription to the pro version of remember the milk, which is a posh todo list helper basically. You can use it on your phone and the web and have reminders. I keep trying once in a while to get into the GTD (getting things done) methodoligy as I do like the brain dump etc. So as this subcription is up in feb I'm going to give it once last try and am deleting out all my old tasks and projects and starting up again. I'm going to listen to the audio book for GTD while decluttering I think to help get me back into the swing of it too.

    I made a nice pasta bake last night with some extra mushrooms and sweet peppers that were on the turn. I might have just chucked out before so quite pleased with that. There is enough left it should last for today and tomorrow as well so really I don't NEED to go to the market today as I have more than enough food in still.
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • I found out cashconvertors had an online valuation, so you can see how much they would offer you without dragging it to the shop. So I put some things in yesterday and got the replies. Took the stuff into town today, and they were shut grrr, I'm sure they were open on sundays before christmas. Never mind I'll have to try and go back tomorrow.

    I did some shopping to help with the decluttering, and got a couple of those plastic draws from wilko's for a tenner each, so I can use them for wool which seems to be taking over the house. I was quite pleased as I saw them in b&m for 15 so was lucky I spotted the sign in wilko's window really and saved myself a tenner.

    I managed to get a new mop as well as a special big slotted spoon thing, I've been on the look out for one ages. In the disability aid shops/online they are quite expensive, and the ones I'd seen don't look that safe, this one is a good shape though and very sturdy looking and was only £1.49 so very pleased. Will have to cook some veg or something out the freezer to try it out.

    My aim to be more social I have found the ukulele club on 'tinernet again and it is only 50p, so will try and be brave and go to that tomorrow. It is quite a way a way though, so it will cost more in petrol but I have to give it a try I think.

    I did get some YS stuff in marks I could have lived without to be honest, but I have only spent 9.86 on groceries now this year, where I would have been up over 20 at least just a week ago. I haven't had a takeaway now since the 19th of december which must be a record. :T

    Steps yesterday were only just about 500 as I didn't take the dog out in the end. Today though I'm on track for 5k or more so that helps average it out for the week a bit.
    MFW OP's 2017 #101 £829.32/£5000
    MFiT-T4 - #46 £0/£45k to reduce mortgage total
    04/16 Mortgage start £153,892.45
    MFW 2015 #63 £4229.71/£3000 - old Mortgage
  • edited 4 January 2015 at 2:53PM
    Watty1Watty1 Forumite
    3.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    edited 4 January 2015 at 2:53PM
    Plastic drawers??? Fab idea - could use a few of those in the tack room/garden shed/general yard store all.... sadly no Wilkos anywhere near here but will have a hunt on line.


    Err nooooo - will actually declutter the area instead :)
    Made it to mortgage free but what a muddle that became

    In the event the proverbial hits the fan then co-habitees are better stashing their cash than being mortgage free !!
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