Miss Moneysaver needs help to pay off the mortgage!

Miss_Moneysaver

Hi,


Hello everyone!


I am new on this board, although I have spent a lot of time reading through posts on the MFW board for quite some time. I have been desperate to pay off my mortgage but I have been restricted due to motherhood (since 2004), part time working and childcare fees for 2 adorable (at times) children (boy, hormonal 12 year old and sweet 7 year old girl - almost 8). Last time I worked it out we had lost over £220,000.00 in lost earnings and childcare! That was a few years ago! Eldest is now at secondary school and childcare has dropped for him as he doesn't go to the childminder much nowadays (we manage to get home between us for 4.30pm when his bus gets back). I still pay for the youngest (8 in June) but not everyday. Hubby also works FT but earns less than me. He also works shifts all over the place.


I work for the NHS so a pay rise has been, practically, non-existent but I am top of band 6. I have my Masters and currently studying another post-grad course so, hopefully, will be able to go for the next band 7 post (more for the better hours rather than more money) or find something else if I want a move! I have moved jobs (5 years ago; different hospital that was in my hometown) that turned out to be a BIG mistake as (a) I hated it and (b) we were moved to a distant location after a few months (commute has been hell). Anyway, I happily leave this week and return to my old job next week (whoop whoop). I am, however, jumping from a 3 day week up to a 5 day week (including all the shifts that go with it). I plan on using the extra income to reduce the mortgage ASAP! I am early 40's (hubby is late 40's) so I want well rid in the next 2-3 years if possible.


I will tell you a bit about the current balance and some mortgage details...


- Mortgage is with THE WOOLWICH (BARCLAYS)
- Interest Rate 1.25%
- It's an OFFSET mortgage (although we don't seem to be able to take advantage of this at the moment, until I go full time and earn more)
- Current balance (20.4.16) is £52,019.65
- Monthly payments are £732.97
- Remaining term is 6 years and 2 months
- We also owe £32,000.00 (reserve mortgage) that we borrowed for home improvements/a holiday to France (oopssie)
- House is a 4 bed detached and worth £210K-£220K


We changed our mortgage years ago from an endowment to a repayment mortgage. We have still paid into the endowment (25 years) though. Hubby took out the endowment a few years before we bought our first house in 1997. It matures next March! It hasn't done that well and we will only get £25K at worst.


So, as I am now going full time I plan on using £835 a month to either save (and add to the endowment next year, to make a lump sum) or make overpayments on the mortgage. I also have another £10K in the pot from an inheritance. I plan on pooling it together next spring and paying a LUMP sum off (no penalties) and seeing what balance is left. I am also going to use the 'Tilly Tidy' method to up the current monthly mortgage payment to £835 (from £732.97) so this is another £10K paid off by May 2017. I am, basically, paying £835 off the mortgage each month and saving £835 each month (to add next year).


So, in Spring next year I hope to have paid off:


£10K in normal payments (with the increase from £732.97 to £835)
£25K from the endowment
£10K savings (from the £835 saved each month)
£10K inheritance money (that I didn't expect)


TOTAL: £55,000 paid off by Spring next year.
Balance at the moment (with the reserve) is £84,019.65


Remaining balance (once lump sum paid off) will be £29,019.65 (I want this bit paid of ASAP once we have reached Spring 2017). Can you see where I am coming from? Hope so! If you can think of a better way of doing it, let me know :-)


I am not going to reduce the monthly payments once I have paid the lump sum off and will carry on paying the £835 and then another £835 a month as an overpayment until it is cleared. Aiming for December 2018! Will I do it?


I will post a SOA's but we can comfortably add the £835 a month extra once I am FT. I have also given ourselves plenty of entertainment money as there is nothing so dull as working full time with no fun - especially with kids.

Miss_Moneysaver

SOA (at the present time, before any overpayments):


59.00 Endowment
732.97 Mortgage
5.00 school fund
95.00 Gas/Electric
12.12 TV Licence
15.00 Trust Fund
15.00 Trust Fund
10.00 lottery syndicate at work
27.06 house insurance
44.78 water rates
21.22 life insurance
158.00 council tax
95.00 sky (was 56.00 but hubby added more channels!!)
18.56 RMT union
15.00 (for 2 mobile contracts for myself and the 12 year old,
gets his phone paid for by work)
35.90 British Gas Service Contract


TOTAL: 1359.61


Income (once FT) will be, at worst, 4000.00 (per month, although hubby gets paid 13 times a year but we use that extra pay for the school summer hols - for fun).

Miss_Moneysaver

We also run 2 cars (both paid for) so that can be expensive at times. Both are needed due to our jobs (working at daft-o'clock). One car is a 2004 reg (Skoda Octavia Diesel) and has loads of miles on the clock (well over 100,000) but it is a STRONG solid car so we plan on running it until it dies. We hope to pay the mortgage off before we need to replace it :-)

cat04

Hi Miss Moneysaver

I'm like you in that I lurked for a while reading through diaries before starting my own at the beginning of the month, and I also have two cherubs. A hormonal 11.5 year old girl who starts secondary in September and a very sweet 8.5 year old who is the cuddliest thing ever. I taught until DD1 was born then had a break for motherhood. Then DD2 arrived and I was still on a break! Now I work part time, two days a week domestic cleaning for a lovely independent business (there's only 3 of us including the boss) and it's very flexible around school and holidays - my boss is fab! Bit of a stop gap until (although it's now a year since I started!) I decided what I want to do job wise - def not back to teaching!!

I completely agree with you about getting the balance right between paying off the mortgage and still having enough money to have fun with the kids. We're all for paying it off before it's natural end but not if that means chucking every penny at the mortgage and getting bogged down in the grind.

You certainly sound like you know what you're doing and have got it all planned out ready. Sounds achievable, especially with you going FT and hopefully moving up the pay scale

Miss_Moneysaver

Hi Cat,


Thanks for the reply.


I really hope my target is achievable. I can't wait to be mortgage free. We spent, and wasted, so much money before we had children. I look back and think that we could've been mortgage free now if we hadn't changed the cars every year! We did, however, have some fantastic holidays in the USA and I don't regret those for a second!


What did you teach? Were you primary or secondary?
My eldest did SATs last year so, I guess, your daughter is going through that now. You will be glad when the SATs are over.


Your part tine job sounds very flexible. You really need that with children.


I will search out your diary and have a read :-)

SuperSecretSquirrel

Looks like a good plan MM! Not sure how complete the SOA is though, do you not eat?

cat04

Miss_Moneysaver wrote: »

Hi Cat,

Thanks for the reply.

I really hope my target is achievable. I can't wait to be mortgage free. We spent, and wasted, so much money before we had children. I look back and think that we could've been mortgage free now if we hadn't changed the cars every year! We did, however, have some fantastic holidays in the USA and I don't regret those for a second!

What did you teach? Were you primary or secondary?
My eldest did SATs last year so, I guess, your daughter is going through that now. You will be glad when the SATs are over.

Your part tine job sounds very flexible. You really need that with children.

I will search out your diary and have a read :-)

I don't want to think about money wasted on 'stuff' over the years, but we are older and wiser(ish) now Never regret money spent on family holidays, money well spent for the memories it makes and precious time together

Long story really but in a nutshell but I started in Primary and at the end of a temp contract I just couldn't find a new job. Ex worked in a secondary school as head of maths and persuaded me to apply for a maths position there as they couldn't get anyone. (Little did I know at the time it was mainly so he could keep me under his watchful eye and control me even more! But that's in a past life now and mostly forgotten).

So I taught secondary maths and ICT for a couple of years until I went on maternity leave with DD1 - who is as you suggested about to do her SATs. She loves it!! Which is good but strange lol. I do feel like I'm bragging when I talk about her educational abilities, but she's very bright and top of the class and seems to flourish when it comes to tests so I know she'll cope and get on ok. Will be glad when they're over though, so she can go back to 'normal' school stuff!

I wish we'd started OPing sooner, but we had a couple of lean years and didn't really think about it before that. Oh well, onwards and upwards. I like to think it's never too late to start

chelseablue

Welcome aboard!


My first thought was I couldn't see a spend in your SOA for food??

Miss_Moneysaver

Food about £300-£400 a month, also both cars get £25 a week diesel (say £100 a 4 week month). We give each other £70 a week pocket money (kids get £5 but, usually end up with more)!

Miss_Moneysaver

Cat,


Sounds like DD1 will sail through her SATs. My eldest (now in year 7) is good at maths. He is in the top set at the secondary school and I am finding homework is getting harder (he sometimes asks for help). They learn stuff earlier these days!


Anyway, last day of my job today. Start my new job (where I worked before though, so not exactly a newbie) on Monday!


May take DD to see 'The Jungle Book' tomorrow :-)

Miss_Moneysaver

Saved a few pennies today at Asda. Bought 3 long sleeved tops, for DS (age 12), in a size 13-14 to put away for next year. All three were reduced from £5.50 to £1.50.


Spent way too much elsewhere though. Cinema to see 'The Jungle Book' (£16.50) and Smyths (£32.00) for DD (who wanted some Shopkins stuff and a Cinderella doll).


I don't think I can start 'my plan' until I receive my first pay from my new job at the end of May.