Future proofing

redwhiskygirl

I will start as many others and admit to being a lurker on and off for the past year. I have to admit to spending more time on the grabbit forum since I joined MSE but happened across this forum and had a lightbulb moment :j and my aim now is to avoid the shopping and stick to the saving.:D

A bit about me, married with 3 kids, DD1 is 11, DS is 9 and DD2 is 7. I work almost full time (34hours a week) and manage to fit it round the school day.

We bought our house in 2006 in need of almost complete renovation, we moved in 18 months later. At the height of the mortgage we owed £150,000. I phoned yesterday and at present the balance is £109,971 and we should pay it back in another 14.5 years when DH will be 67!!!!!

After playing with the overpayment calculator and our budget i think we can pay an extra £500 each month and reduce the term by almost 7 years. This would also be the time that DD1 may be looking to go to college or university, so to give DH some hope of ever getting to retire we need to lose this debt.

Plan is to post on here to keep me on track, I am loving everyones stories, they are so inspirational, already wanting time to speed up to next payday though.:(. Everyones lives seem so exciting - probably as i am reading through years of everyones lives in one sitting!

Off to work out our SOA x

Alchemilla

Hello Red and welcome!

My DH is a similar age to yours, and our mortage has a tad less time to run though there's not much in it.

redwhiskygirl

Thanks for the welcome Alchemilla. I have stared reading your diary but may take me a while.

Thankfully we finished most renovations before we moved in, but in need of repainting most rooms. I try not to look too close.

redwhiskygirl

Here goes the scary bit;

Monthly combined income = £4406

Mortgage = £747
Car loan = £440 - we have 1 car and DH likes a new one every 3 years. I know this is not very MSE but we need a reliable car (and the kids trash it so quickly)
Motorhome loan = £280 had this for 1 year, 4 more to go to pay off. ::eek:Our big indulgence last year, DH and kids love camping, I will only go in comfort hence the motorhome purchase. We can't take many holidays all together as need our holidays to cover all school holidays, motorhome means we get lots of weekends away together.:)
Mobile phone = £7.25 only pay for mine as DH work pays for his
Gas and Leccy = £187
Car insurance = £19.14
Council tax = £189
Home and contents = £40
Life insurance = £36.72
Childtrustfunds = £150 (£50 for each)
BT = £50 (phone and internet)
Food =£390
Childcare = £175
School dinners = £60
Sports = £55 kids clubs
Clothes =£75
Diesel = £110
TV licence = £12
NAtional trust membership = £6
Presents =£50
Miscellaneous = £100 (dentist, haircuts, random school costs)
Overpayment = £500
Savings = £200
Christmas =£50

DH should have ~£340 left in his account
I should have ~£130 left in my account

DH pays road tax's for car and motorhome when they are due and buys outside things - mowers, fencing , plants etc so that uses up the extra he has

My extra tends to go on child related things (just finished paying up £340 for DD1's school residential trip)

We both pay in £150 to our works share saving schemes which is removed before tax and so we don't see it
Scary to see it all written down:eek:
X

Alchemilla

Have a look at Mr money Mustache on the carstopic...

redwhiskygirl

Pay day again:j

Made another overpayment of £500. I've worked out that for each monthly extra £500 our mortgage reduces by £1050. This means under 100k by the end of Jan 2016:T

Keeping up the MSE ideal this month as kids have been wanting guinea pigs for ages but instead of giving in and paying for the lot i am getting them to find toys they no longer play with for Ebaying. It will take a few weeks as I have limited patience with uploading items for sale. But after the snow we had here yesterday the guinea pigs in Pets at Home will be delighted if it takes a while as they can stay cosy in the shop for a bit longer.:rotfl:

Been reading watty1's diary over the weekend and getting inspired to start decluttering. So much to do especially as the kids have so much stuff everywhere ( most of which they are reluctant to lose), will have to operate as stealth ninja mum to sneak things out.

Luckyinlife

Great job :] so you should save around 12k a year on your mortgage if you overpay buy 500 thats great :]

redwhiskygirl

Luckyinlife wrote: »

Great job :] so you should save around 12k a year on your mortgage if you overpay buy 500 thats great :]

Thanks - if we can keep this up we should 1/2 our mortgage free date from 14 to just over 7 years. Still seems a long way off though but then again only seems a blink ago we had DD1 and she is almost a teenager, so i'm sure it will fly by.

Luckyinlife

Ya its a marathon isnt it but just think time does go quick when you look back

:]

redwhiskygirl

Another payday been and gone.

Another £500 overpaid.

Starting balance when started this thread on 6/4/15 was £109,920.09
After 2 overpayments and normal payment as of 2/6/15 is £107,817.44

This month may be tight as accidentally signed up to a new sharesave at work, thought I was just renewing the one I was already on. Must learn to pay more attention! Will leave it and wait till next month to see what my annual pay review is, if I can afford it i will keep it going as I shouldnt miss what I haven't had - here's hoping!

Tilly_MFW_in_6_YRS

Morning, well done on your OPs - it does become addictive

Brilliant to read that you can halve the term of your mortgage by OPing.

Good luck on your journey.

Best wishes Tilly x x