FinancialBliss: My mortgage free journey…

financialbliss

SmlSave wrote: »

That sounds ominous! I do hope she feels better soon.

I think I understood your run-down of events. I'm taking it that next years goals are going to be a bit more 'relaxed' than this years?

Hope you're putting some money aside for a nice holiday :- )

Hi smlsave,

To answer your points:

Sort our Mrs Bliss. Hopefully, people didn't read anything too bizarre into that - simply encourage her to get back to work. Health? We're both bunged up with cold - I'm drinking a lemsip at the moment.

2009 goals. I've already started on an idea or two for 2009 aims, plus I've already taken a stab at my mortgage balance come 31st December 2008 and projected forward to 31st December 2009, so yes, I've already a fair idea where I would like the mortgage landscape to look like in 2009. Sorry - no spoilers. You'll just have to keep reading

Holidays. We've been fortunate in that in 2008 and 2007, we took two holidays each year. Nothing too flash - when your kids are 4 and 2 (2008) or 3 and 1 (2007), they're not very demanding. However, we've been pricing up various holiday options in the 6 weeks holidays in 2009 and boy are the prices a shock compared to what we've been used to paying so far out of holiday time!

#2 will just be turning 3 next summer, but I suspect that's just a little bit too young for a holiday abroad. Another UK holiday I suspect - we don't mind as long as the weather is not too cruel.

FB.
PS Subtle holiday clue in title. We're planning a big holiday post mortgage, ie summer 2013.

financialbliss

gallygirl wrote: »

FB, I think it's looking good, especially when you bear in mind that as time goes on more each month is going an capital repayments (as witnessed by your monthly interest figures). And let's remember, there's no point in having a target that can be reached easily, having a real challenge will make 12/12/12 even sweeter .

Thanks for that gallygirl.

Our only debt is our mortgage. We have made a few "lifestyle" decisions to try to aid us towards a mortgage free state.

Eg, we only have one car. I know others in these MFW forums have two cars, but I can and I'm happy to use public transport to get to work - it leaves us with more disposable income.

It's what works for you. Public transport generally is ok here. However, this week has been a bit of a downer regarding public transport. One morning took 55 minutes to get to work instead of the typical 30. I've stood the whole way home twice and the bus has also been late a few times.

Ok, not big problems, but I can see the bigger mortgage free picture and that's what keeps me going.

Another "issue" is that I'm competitive. What I mean here is that I'm not comparing our situation against anyone else on MSE, but I want to improve our situation year on year - pay x off mortage in 2007, pay x plus a bit more in 2008, etc,

A year or so ago I thought, what the hell - lets try a diary, pluck a figure out of the air and see where it goes. At that time I wasn't really that bothered about achieving the goal.

Over the last 12 months, I've become more determined to achieve the goal. Even if I don't, the mortgage should be a fraction of what it was at the start :T

Financial Bliss.

nursefrantic

Hi all, would like some advice.
I only have one debt 13,000 pounds morgage with abbey.
This is a flexible morgage and I can pay off lump sums which is what I have done to get it down.
Have now agreed monthly payments for a year which will see the end of it.
However this means I will be paying Abbey 132 pounds per month interest.
Had a chat with MBNA and after a bit of haggling negotiated 2% fee and 0% over 9 months. This also mean paying about 1400 per month for the 9 months.
This seems to be a huge saving to me, but I am thinking is there some kind of other catch?
Has anyone info on this. Would be much appreciated.
Thanks
NF

financialbliss

nursefrantic wrote: »

Hi all, would like some advice.
I only have one debt 13,000 pounds morgage with abbey....
Thanks
NF

Hi nursefrantic. Spotted your post and I'll try and reply later today...

I'm currently looking for meal ideas / recipes - we're hosting a meal for 6 in the next few days and haven't quite decided what style of cooking we're doing just yet, ie French, Italian, Mexican etc, never mind actual recipes.

Financial Bliss.

StuartGMC

financialbliss wrote: »

Holidays. We've been fortunate in that in 2008 and 2007, we took two holidays each year. Nothing too flash - when your kids are 4 and 2 (2008) or 3 and 1 (2007), they're not very demanding. However, we've been pricing up various holiday options in the 6 weeks holidays in 2009 and boy are the prices a shock compared to what we've been used to paying so far out of holiday time!

#2 will just be turning 3 next summer, but I suspect that's just a little bit too young for a holiday abroad. Another UK holiday I suspect - we don't mind as long as the weather is not too cruel.

FB, yes the restriction now on not taking children out of school time for holidays does mean much higher prices for holidays (+20-25%?). We never did so once dd started school, but that was because to some degree we simply had extra costs for summer club for her during the summer holiday when we are working, plus the fact that there are already a few weeks per year where we depend on holiday club to account for the shear number of weeks off children get vs. their parents.

At 2yrs old agree it may seem young to go abroad for a long break, we first took our daughter abroad at 18months (hopped over to Brussels via turboprop to be sure air pressure etc weren't an issue and gauge the logistics). We found Turkey (e.g. Bodrum) was a great place to go with a young child because the Turks are very family orientated, and welcome familys to the restaurants etc, even offer play areas for them. When you want a few beers after and the little ones doze off, you'll get offers of fleeces etc to keep them warm. It is also MUCH cheaper in total costs than UK. We only stayed in UK after daughter was born for 3 years and the weather etc was so bad I swore never again.

The advantage of guaranteed sunshine and a nice warm pool is that they can play all day at minimal cost to you, plus they really lap up the cultural experience and have a broadened outlook on different ways of living. Our daughter (almost 11 now) has also been able to piece together the history she
is taught through times in Turkey (twice), Northern Cyprus, Tunisia, Morroco, Rhodes and Crete, the latter plugging in the Minoans and Knossos etc. DD has her 1000m swimming cert these days so is more than capable in 2.5m deep pools! As we only have one child, such holidays also allow her to play with others so we get a little break too.

I'm sure the children will gain a lot, but perhaps 2010 is a better time to do so.

financialbliss

nursefrantic wrote: »

Hi all, would like some advice.

Nursefrantic.

As far as I understand, you have a 13,000 mortgage. You haven’t mentioned your mortgage rate. I’m using 7% just as an example. If you want to pay this off over 12 months, you’ll need to pay about 1,124 per month.

This gives a total of 13,496 paid over 12 months, the 13k capital and 496 in interest. I can’t work out how you would be paying Abbey 132 a month in interest – this seems high?

Transfer the mortgage to a 9 month 0% credit card deal with 2% fee. 2% of 13,000 is 260, so to pay 13,260 off in 9 months you would need to pay back 1,473.33

In theory, if you can balance transfer the amount to the mortgage, then the 9 month deal is better as it’s only costing you 260 (plus capital repayments) to repay the debt, while the mortgage will cost you about 496 in interest.

However, you’re paying credit off with further credit – I’d suspect you’d may not be able to do that.

Also, what happens if you don’t clear the balance in 9 months? You could be hit with big interest charges, or perhaps a further balance transfer fee to another 0% product.

As you’ve asked on my diary – what would I do?

I’d probably continue chipping away at the mortgage, as it’s the safest option. Depends on your attitude to risk.

Hope that helps,

Financial Bliss.

nursefrantic

Hi there, thank you so much for your advice.
My balance is 12952.30 and payments 1211.60 per month until Oct 09.
Rate is 5.75% but next month will be 5.52%.
12x 1211.60 = 14539.19, which is a lot of interest over 1 year. 1586.9.

The 0% deal with 2% fee would be 260 pounds.
Issues are paying over 9 months will be a lot each month. But if I can manange the payments this seems like a good option.

Thanks
NF

financialbliss

nursefrantic wrote: »

Hi there, thank you so much for your advice.
My balance is 12952.30 and payments 1211.60 per month until Oct 09.
Rate is 5.75% but next month will be 5.52%.
12x 1211.60 = 14539.19, which is a lot of interest over 1 year. 1586.9.

The 0% deal with 2% fee would be 260 pounds.
Issues are paying over 9 months will be a lot each month. But if I can manange the payments this seems like a good option.

Thanks
NF

Hi Nursefrantic,

See my diary page 27 - post numbers 534 and 536 regarding describing a mortgage spreadsheet you can play with. Try following the example, or if you're struggling, I can e-mail you on a spreadsheet if you send me a personal message with your e-mail address.

I'm not sure those figures are 100% accurate. Did you get a proper repayment schedule from Abbey? What I've done is used the sheet as described in posts 534 / 536 starting next month, paying 1,211.60 a month. After September 2009, you'll have about 47.22 left, so no need for another full payment of 1,211.60 come October.

I've calculated that total payments needed to clear mortgage is 13,375.04, of that 422.74 being interest.

Looks like you have calculated 12 x 1,211.60, ie 14,539.20 and compared that against your 12,952.30 owed, ie resulting in 1,586.90. In doing that, yes the mortgage option looks expensive, but I think your calculations are incorrect.

Anyone else agree with me? I'm not a mathematician, but I don' think I'll be far out. Have you tried throwing your numbers into an on-line repayment calculator?

Financial Bliss.

Treacle_Toes

financialbliss wrote: »

#2 will just be turning 3 next summer, but I suspect that's just a little bit too young for a holiday abroad. Another UK holiday I suspect - we don't mind as long as the weather is not too cruel.
quote]

Hi,

I have a little one and was concerned about going abroad on holiday last summer (she was 11 months and crawling).

However we went to Northern France (less than an hour from the tunnel) to a resort which was an 'eco-village'. Now I've never been to a center parcs, but I imagine it was similar. It had a lovely indoor/outdoor pool, a mini farm, shop, restaurant, pub, creche/nursery, golf club and the grounds were fabulous. All the houses were in a different style - think New England. All the staff spoke English (even though we did a learn French CD on the way!). The best part was that it was by two fantastic sandy beaches which you could walk/cycle to. Bike hire was on site complete with baby seats/trailers.

We booked through Clubcard points so it didn't cost anything either. We enjoyed it so much we are thinking of going back next year.

So, don't dismiss abroad completely, it may be a possibility.

TT

financialbliss

Treacle_Toes wrote: »

However we went to Northern France (less than an hour from the tunnel) to a resort which was an 'eco-village'. Now I've never been to a center parcs, but I imagine it was similar. It had a lovely indoor/outdoor pool, a mini farm, shop, restaurant, pub, creche/nursery, golf club and the grounds were fabulous. All the houses were in a different style - think New England. All the staff spoke English (even though we did a learn French CD on the way!). The best part was that it was by two fantastic sandy beaches which you could walk/cycle to. Bike hire was on site complete with baby seats/trailers.

We booked through Clubcard points so it didn't cost anything either. We enjoyed it so much we are thinking of going back next year.

So, don't dismiss abroad completely, it may be a possibility.

TT

Hi Treacle Toes,
Sounds interesting. I've not totally dismissed abroad. Any chance you could PM me the location / details, so I can do some research?

Thanks,
Financial Bliss.