Mortgage free in 10 years

NorthernMonkey1

Hi there,

Its a 3 bed semi, built in the 30s. The cost was broken down roughly as £1500 for ties, £1500 for a full repointing of the house, and £800 for a scaffold for the house.

Virgin offer a 'money transfer' card instead of a 'balance transfer' card. £15000 is the most they offer for money transfer, so I took the maximum. It will save me approximately £800-1000 in interest over the lifetime of the debt.

ch4rly2002

Fabulous! Thank you for the info, it is much appreciated

NorthernMonkey1

It's a long time since I've posted, but I thought its time for a little update.

Things were going so well on the MSE front, and then I accidentally bought myself a brand new motorbike. It's very pretty and very fast but hasn't really helped my finances.

I decided to take out a personal loan for this, rather than taking money out the isa, and got £7000 from HSBC at 3.3%, then paid back £1000 straight away. This was oddly much cheaper than borrowing the £6000 that I needed at 6.9%

Other than that, a few overpayments here and there, bringing the mortgage total to £10119. Which sounds good, as long as you ignore the extra 6 and a bit k in debt from the yellow terror.

Virgin card of doom is down to £14650, and is going to sit there until sharesave maturity in 4 months time. I'll have to work out how I juggle everything at that time.

However, if I include all my liquidish funds, I'm now in the black. By a whole £978!!!! It'll go back into the red when I have to pay for the wall in a few months time, but right now, I'm mortgage neutral!

NorthernMonkey1

Another Month, another mini update

My work payroll found some overtime from January that I should have been paid, but hadn't.

I managed to pay £800 of the personal loan, a £600 op on the mortgage, plus the normal £84 payment. All of the totals are slowly creeping down, and were edging ever closer to my share save maturity date on the 1st of August.

Buying a brand new bike probably wasn't the greatest ideas, but its ace. BRAAAAPPPPPPP!!!

£9519 mortgage + £5209 loan + £14500 credit card = £29226
Wall fund £3800 / £3800 (need to chase builders)
Emergency Fund £15240

NorthernMonkey1

I've been working on a little freelance work recently, which I'm managing by using some flexible working options I have at my main job. I've started up a Ltd company, set up a bank account, and just sent off my first invoice for £2000 . Just need to wait for it to be paid, then work out how to pay tax and get the money out

Of that, £1400 is consultancy fees, and £600 is expenses for driving 1000s of miles to Manchester and back, so I can charge my company the expenses.

Unfortunately, I'm putting millions of miles on the car, and its just popped it's turbo, and I've just paid £500 to get it fixed.

All this means I'm very skint right now. £400 overdrawn and 2 weeks til payday.

NorthernMonkey1

Decisions Decisions...

So I think, but I'm not totally sure, that I want to continue to pay off all of my remaining debt by April 2021, 4 years since the beginning of this financial year, at the same time as a increase my margin over being mortgage neutral.

I could pay it all off now, and end up with zero savings, which is probably a bad idea, and likewise, I could pay it all off at pretty much the minimum amount, and just put all my money into an isa. I think 4 years is a sort of inbetweeny amount.

I'm 38 this month. Mortgage free at 40 sounds nice, but in practice probably isnt best.

Right now, the debt sits at

Mortgage - 9093, personal loan - 5040, CC of doom, 14350. Total 28483

I think that I'm going to put the mortgage and the personal loan into a 2 year fixed rate mortgage with a 16 year term. This gives a payment of just under £100.

Ill then increase the CC payments from £150 (the minimum) to £300. The interest free rate ends in 25 months from now. I haven't decided what I'm going to do with the outstanding balance yet. Options are a) move it to another Credit card, b) remortgage with uplift to include outstanding amount c) personal loan d) pay it off from the isa, probably in that order of likelyhood

Isa is sitting at a fairly healthy £16300. Sharesave is at £13900, but a big chunk will mature in august, pushing its value right up.

So many options, and I don't know which is correct.

MFWBers, what would you do?

SuperSecretSquirrel

Hi NM, I would not increase the credit card repayments while on 0%. Pay the minimum each month from your £300, put the remainder in an interest paying account. At the end of the interest free period, try to find a fee free 0% balance transfer so you can keep earning interest on free borrowed money, but if you can't you could always pay the card off using your savings before any interest is charged.

As for clearing the mortgage or not, depends on the mortgage rate and what you'll be earning on savings.

When the sharesave matures is it automatically converted to cash? If so, I'd be sorely tempted to repay the mortgage in full!

NorthernMonkey1

HI SSS. Minimum card payments are £150. That's what I've been paying since December.

There are a few options for share save, I can either have Shares, or take cash. I'll probably take cash. I've got 2 schemes running, and the one which matures on 1st August is currently forecast to mature at a smidge over £16000.

The mortgage is 2.69, the personal loan is 3.3. If I consolidate them together, and get a 2 year fixed rate, I can get 1.89% (only the zero fee mortgages make since for values less than £50,000). Any savings would be into a S&S isa, so the interest rate is unpredictable, but likely to be >1.69%

NorthernMonkey1

I tripped over my scuba diving gear on Friday. Again. Since I haven't used it for 3 years, as it hurts my ears, I decided to sell it.

I wanted £200, so put it on a diving FB group for £210 on Friday night. Someone came to see it on Saturday, and offered me £240 for the lot.

I'm not sure thats how things are supposed to work, but I'll roll with it. I now have more room, and £200 (after I put £40 of fuel in the car). I've already put it in the bank, now just need to decide if it goes in the ISA or against the debt

NorthernMonkey1

I had an interesting dilemma present itself today.

My one day a week job is still plodding along. It pays quite well. Really well TBH, £350 a day, plus 380 miles expenses at 45p per mile. Thats over £450 a day if I take away the tiny amount of fuel my little panda sips.

If I put the credit card of doom back on the mortgage, and sign up for a 20 year fixed rate, which drops the mortgage right down, then I can probably work one day a week. For ever more.

It's like 80% of retirement. Right now. It's kind of an insane thought, but it's also possible.....