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Mortgage Free Dream

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
18 replies 2K views
daydreamzdaydreamz Forumite
22 posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi all

I was a member a few years ago, but cannot find my account and I think its on an old email, so starting a fresh. It has been a long journey to getting this dream moving, unexpected issues caused me to give up a well paid job to look after my children full time.

We are now home educating, both myself and the man are self employed, I part time bookkeeping & tax returns and studying for a full Accountant qualification, and the man runs a car bodyshop.

2016 should have been a great year for us financially, both businesses picking up more income and paying off the debt we had accumulated when I gave up working. Then at the end of the year my Father in law passed away, it hit my hubby pretty bad, he has lost his motivation for work, and we are trying to readdress our lives. Our dream has always been to live the good life, not working for the bank, simple and easy life. We have inherited some money and a share in a BTL property from our Father in law, which is going to help massively towards our dream.

We are working forward and hoping 2017 will end much better than 2016.

I will try and work out a SOA and some figures shortly to see how where we stand. Our hope is to pay off as much as the current mortgage as we can, as well as doing some much needed building work (we bought a doer upper house just before I had to give up work! So have been making do for so long). Then move to the countryside for our forever home, possibly even a self build (that has always been my dream, but money is a major factor there).

I will sign off for now as I need to sort dinner, have a house full of flu at the minute, so no motivation from anyone.
Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
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Replies

  • LadyGnomeLadyGnome Forumite
    596 posts
    Sixth Anniversary 500 Posts Name Dropper Combo Breaker
    ✭✭
    Welcome to MFW. Sorry to hear about your FIL. Having plans for the future may help your DH refocus.
    Mortgage
    Start Nov 2012 £310,000
    May 2021 £180,773.53
    Reduction £129,226.47

    End Sept 2034 (but I have a cunning plan...)
  • So a quick look at my figures

    Mortgage 2.35% fixed until 31/01/2018: £109,986
    Car Loan 3.8% 27/06/2020: £6661.64
    MNBA 0% CC 26/03/2018: £2547.30

    If we look to mortgage the BTL 75% on our share, we are looking at about £60,000 left after doing the building works (I hope), so 10% off mortgage now and pay off all loans, then the remaining £40,000 after our fixed rate finishes (or more if we can save), will leave us with a remaining debt of £53,000 ish.

    That is unbelievable when I look at it like that! We wont be mortgage free as such, as the BTL property will still have a mortgage, but that is different as that will still earn an us an income. And our home will be that, our home
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 125
    Partners monthly income after tax....... 1000
    Benefits................................ 644.9
    Other income............................ 100
    Total monthly income.................... 1869.9


    Monthly Expense Details

    Mortgage................................ 597.4
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 132
    Electricity............................. 67.83
    Gas..................................... 30.03
    Oil..................................... 0
    Water rates............................. 48
    Telephone (land line)................... 15
    Mobile phone............................ 37.48
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 27.72
    Internet Services....................... 11
    Groceries etc. ......................... 400
    Clothing................................ 20
    Petrol/diesel........................... 50
    Road tax................................ 16.18
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 21.64
    Contents insurance...................... 0
    Life assurance ......................... 50.57
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 125
    Total monthly expenses.................. 1661.97



    Assets

    Cash.................................... 15500
    House value (Gross)..................... 192000
    Shares and bonds........................ 0
    Car(s).................................. 6000
    Other assets............................ 0
    Total Assets............................ 213500



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 109986...(597.4)....2.35
    Total secured & HP debts...... 109986....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Hitachi Car Loan...............6661.64...168.4.....3.8
    MNBA CC 0% 26 MAR 18...........2547.3....25.47.....0
    Total unsecured debts..........9208.94...193.87....-



    Monthly Budget Summary

    Total monthly income.................... 1,869.9
    Expenses (including HP & secured debts). 1,661.97
    Available for debt repayments........... 207.93
    Monthly UNsecured debt repayments....... 193.87
    Amount left after debt repayments....... 14.06


    Personal Balance Sheet Summary
    Total assets (things you own)........... 213,500
    Total HP & Secured debt................. -109,986
    Total Unsecured debt.................... -9,208.94
    Net Assets.............................. 94,305.06


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • This is a very basic SOA, with minimum withdrawals from both our businesses. I know the tax credits will be reduced, I try to keep ontop of with advising TC with our income regularly.

    I also think we have spent WAY more than the £400 on food, need to look at that!

    Tasks for today:

    1 - chase up client re tax return (deadline next week!!!!)
    2 - KonMari - Books, DVD, Computer Games -- DONE
    3 - Sort spreadsheet of income/expenditure from Credit card to see how much we have ACTUALLY been spending on stuff (I used to be soo organised in keeping on top of this!)
    4 - Letter to FIL pension provider
    5 - If still feeling ok once kids are in bed - STUDY!!! been a bit lax recently as I have a stinking cold and been going to bed when the children do
    6 - got to bed and go to sleep! Not been sleeping well though head pressure and thinking way too much
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • Task for today

    1 - DONE client chased, remaining stuff on Thurs
    2- DONE just to drop off at charity
    3 - DONE - surprisingly food has averaged at £510 pm for 2016 I thought that was going to be a lot more! However doesn't include cash for takeaways :( so can probably put that up to £550... No More...
    4 - 6 still to do... but need to sort kitchen out for dinner, chicken fajitas tonight.
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • CathTCathT Forumite
    7K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Hi daydreamz, welcome back with a shiny new diary. Sorry to hear about your fil.

    As I read your first post it popped in my head I think I remember your old diary :)
    June 2021 - part 1 - £53,643 part 2 - £35,501
    Total - £89,144
    77 months to go!

  • Thank you LadyGnome and CathT, yes focusing on the future and the children is helping. His father worked hard all his life and at the time he should be taking it easy his life was cut short. He was ill for a year before his death and he kept telling my DH that his money will make him have the lift that he couldn't. DH didn't want to talk or think about it at the time, but I think now he is realising what he meant x
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • CathT wrote: »
    Hi daydreamz, welcome back with a shiny new diary. Sorry to hear about your fil.

    As I read your first post it popped in my head I think I remember your old diary :)

    CathT I had a quick look at the other diary's last night and did wonder if I knew you, I've got you on FB right? :o
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • Studying done last night, finished 2 chapters and my first assignment (marked at 96%). Nearly caught up with my plan, just need to get a chapter a night for the next 2 nights then I am back on track.

    Letter written for FIL pension, need to get to post office... also have cheque refund from DVLA from his car I need to bank.

    DH just got back from hygienist... £50 down :(

    I keep looking at what mobile phone contract to go for, DH wants the Samsung S7... I'm not too sure on price, he needs one that is dust/water proof as he has ruined his old one with work dust. I was looking for ages, and gave up annoyed at the cost!

    To do now...

    1 - get down to the post office/bank for cheque
    2 - Tescos food shop - need to sort a food plan for next week
    3 - Get studying - 1 chapter tonight
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
  • Just finished studying for the night, about 75% through text book. I've emailed to see availability for exam, luckily its CBT so are pretty flexible when you sit. Currently doing VAT, which I should know, as I do VAT returns already! Got everything right so far...

    Tomorrow carpet fitters are coming for my girls new bedroom, then we can get moving on the rest of the building work. I'm currently searching for quotes. DH doesn't want to spend any money, but then he doesn't realise DIY is difficult on my own, looking after two kids and working, when he is busy at work... I would rather pay someone to sort and it will be done in a couple of days.

    Tescos came today, spent £70, but did have a £9 off voucher or it would have been nearer £80! Just checked this months food spending to £570... That possibly does include some of DH tobacco. We are working on that :(
    Started Jan 2017: Mortgage: £110,958 : Loan £6,679.51 : CC 0%: £3,586.95
    Now: Mortgage: £109,611 : Loan £6,348.65 : CC 0% £2,516.83 MF Date: Apr 2036 :eek:
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