FinancialBliss: My mortgage free journey…

financialbliss

Hi,

While I’ve currently no idea what I may end up doing after my mortgage fix expires (March 2011), I keep an eye on Nationwide to see what they’re up to, partly because I may end up slipping onto their SVR - I’ve never had problems with them / I’ve always found them helpful with any mortgage queries I have.

In the wake of last week’s 0.5% rate reduction, today Nationwide are upping their tracker rates by up to 0.3%. As if that wasn’t enough, they will start refusing loans to anyone unless they have a 15% deposit. 200k house – that’s a 30k deposit.

Hardly going to kick start the mortgage / housing market is it?

Not just Nationwide mind you – see this is money:
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=455395&in_page_id=8&ct=5

FB.

gallygirl

FB I'll have a go at this tonight . I have my own which is a daily one but this is much more maneagable, I'll run my data through & see how it compares. I do like however seeing how much I'd have to pay to knock off 1p in daily interest and whether it makes a difference if you do it a day later.

But hey, I never tried to pretend I had a life .

financialbliss

financialbliss wrote: »

Now copy cells B4 thru M4 again, and paste into B5, B6, B7 etc. Change the days in the month to suit until you get to cell B15, where you need to reset this to 1, plus put a 2009 in cell A15.

Oops - originally had "A1" there, and if you're following my cell references to the letter, it should be "A15". Original post edited.

Anyone tried the sheet out?

FB.

gallygirl

OK, I've had a go. My figure comes out at £29,459.25 at end of 2009 on my spreadsheet, compared to £28,856.33, so you make me £604.31 less in debt at the end of the year .

However, I suspect my figure is more accurate (although not sure, and wish it wasn't ). I calculate and add interest daily, whereas you calculate per day and add monthly. My total goes up every day, so I am charging interest on daily interest, whereas yours is only adjusted monthly.

By your reckoning my pay off date is June 2013, whereas by mine it is July 2014 (both are wrong, as it will be Aug 2011 at the latest ).

Although technically I think mine is accurate yours is easier to use - I had to scroll down 68 lines to get to pay off date as opposed to over 2,000 on mine :eek:. However, I do have hourly interested on mine so that's a bonus . Happy to post mine if anyone is interested.

financialbliss

gallygirl wrote: »

However, I do have hourly interested on mine so that's a bonus .

Gallygirl - Girl - you need to get out more :rotfl:

Pleased you've found it of use. As ever with numbers, there's a hundred ways to slice 'n dice the numbers, so I'm not surprised we're not on the same page.

I've a mortgage spreadsheet with a number of tabs, summary, daily balance actual, summary target plan, interest charged, months remaining and percentage information.

Now that I've mocked you, I may as well say that in the past, I'd considered e-mailing Nationwide to get their exact mortgage calculation information, so I could model the mortgage more closely but eventually rejected the idea.

I quite like my summary sheet, which is very similar to what I've posted here, but with a few extra columns for projected v actual goal. Why? Depending on the zoom / screen resolution, I can get 3 and a bit years on one screen, and as you say, it doesn't take much to scroll through.

Thanks,
FB.

gallygirl

financialbliss wrote: »

Now that I've mocked you, I may as well say that in the past, I'd considered e-mailing Nationwide to get their exact mortgage calculation information, so I could model the mortgage more closely but eventually rejected the idea.

And you have the cheek to say I need to get out more .

None of us will come up with something 100% accurate (including, I suspect, the banks ). The importance of these sheets though is to give an indicator of progress against target and also a good approximation of interest charged to focus us - they all work great for that :T .

PS my hourly rate is looking like staying at 26p to Feb, then it drops to 25p.

I'll get me coat :rotfl:

rca779

Cheers for the spreadsheet FB (I have to chuckle each time I see this as I've always taken FB to stand for Fat B*****d - I am sure you're nothing of the kind!)

I have put all my figures into it and tested all sorts of various over-payments to see how soon I could be mortgage free and how much I could save.

What a great way to motivate oneself to over pay the mortgage!

financialbliss

rca779 wrote: »

Cheers for the spreadsheet FB (I have to chuckle each time I see this as I've always taken FB to stand for Fat B*****d - I am sure you're nothing of the kind!)

Hi rca779 - nice to see you're still popping in here occasionally, even if you have a go at me...;) Pleased you found the spreadsheet interesting.

Financial Bliss.

CountingPenniesClaire

Thanks Financial Bliss. This is great. I have a question which I wondered if you help me with. We are getting an offset mortgage and have will savings to offset against the balance, which will mean we don't pay interest on a portion of the mortgage. What would be the best way of including this in the calculations?

Thanks
Claire

StuartGMC

Claire
I have this calc in my own spreadsheet; you need to account for a few things:

1) The lost "opportunity" to earn interest (less tax) for the monies offsetting
2) The full capital which would generate interest due on the mortgage

then
3) The interest incurred for the capital after offsetting.

You will then be able to see the "effective" interest your mortgage is incurring.

Off to eat now, but will try to extract the formulae to post (or failing that I'll PM you so I can send the household budgeting spreadsheet I use to monitor this can you can then cut & paste it)