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Lurking MFW finally posting: Mortgage free in 2025

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
54 replies 6.5K views
blocpartyfanblocpartyfan Forumite
62 posts
Part of the Furniture 10 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi everyone,

I have found this forum to be such a pillar of sense and strength since I started using it passively (learning from everyone else) in 2005. I grew up in a fairly frugal household, though have seen mortgages testing marriages, relationships, mental health and careers so often around me that I've wanted to be in control of the mortgage before it controls me. And my DH wholeheartedly agrees!

It's also wonderful to see all the old posts here as points of reference for the fact that you make the choices you make at the time with the best intentions and things happen!

My SOA is as follows:
[tt]Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details

Monthly income after tax................ 2500
Partners monthly income after tax....... 2600
Benefits................................ 0
Other income............................ 1250
Total monthly income.................... 6350


Monthly Expense Details

Mortgage................................ 767
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 56
Gas..................................... 0
Oil..................................... 0
Water rates............................. 27.78
Telephone (land line)................... 0
Mobile phone............................ 5
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 48.48
Groceries etc. ......................... 400
Clothing................................ 250
Petrol/diesel........................... 25
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 110
Childcare/nursery....................... 1100
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 17
Other insurance......................... 18
Presents (birthday, christmas etc)...... 50
Haircuts................................ 60
Entertainment........................... 500
Holiday................................. 0
Emergency fund.......................... 0
DH mobile phone......................... 30
Subscriptions - SC...................... 8
Subscriptions - TC...................... 10
Subscriptions - GLL..................... 35
Subscriptions - RSM..................... 20
Subscriptions - ESU..................... 8
Subscriptions - Netflix................. 6
Total monthly expenses.................. 3893.38



Assets

Cash.................................... 11000
House value (Gross)..................... 450000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 200000
Total Assets............................ 661000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 135000...(767)......2.85
Total secured & HP debts...... 135000....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-



Monthly Budget Summary

Total monthly income.................... 6,350
Expenses (including HP & secured debts). 3,893.38
Available for debt repayments........... 2,456.62
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 2,456.62


Personal Balance Sheet Summary
Total assets (things you own)........... 661,000
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -0
Net Assets.............................. 526,000


[/tt]

DH and I realise how lucky we are. We made our financial mistakes in our early 20's - bought a house outside of London at the peak of the market in 2007, with limited job prospects for me and generally unhappiness. I was depressed (though never diagnosed), put on a significant amount of weight, and took admin work through agencies just to keep us tided over. Three years of pain and we decided to move back to London - boomeranged to live in my parents house (!) twice before finally settling in our lovely little house in London in late 2012. One good thing out of this is that we kept that house outside of London and have rented it out since 2010. A wonderful older couple live there and treat it better it better than we ever could. We've never raised the rent because of this but now make about £350 a month, which we can't complain about.

I have been on secondment for coming up to two years, which is where the significant extra income has come from. We started off with a £200,000 mortgage in Nov 2012. I'd saved a £37,000 in three years (largely because of the extra earnings from the promotion and frugality!), and regularly overpayed the mortgage by £250. Our intention was to continue to save to pay for an extension to our house, but having spent a long time thinking about this it's a vanity project which, coupled with the extra debt we'd have, will not serve to make us happier. And with savings rates below 1% (!) I've realised it would serve us better to pay down our mortgage debt rather than keep the money in the bank. And since, I've overpayed by the maximum 10% our building society allows us to. I will also be doing that on the 2nd of Jan 2018, which will bring our mortgage down to the £135,000 I've quoted above. So exhilarating to know this joy is only a few days off!

2018 will be an interesting year as I stand a fair chance of keeping this income level, but not sure it will suit our circumstances. Our DS is two and a half, and therefore our childcare bill will be under £200 come September so it should even out even if I return to my old job.

My aim is to now continue to overpay by the maximum 10% every year, attempt to get a better rate (though am realistic that this might be unlikely by the time we come to renegotiate in July 2019). I have aspirations to work on my terms, to do the things that my parents never allowed for - perhaps drama related. The sense of control this gives is incomparable.

Thank you all, here's to slow and steady progress for all MFW's in 2018 :beer:
Mortgage when started:
Jan 2012: £200,999; 2nd Jan 2018: £137,500; 2nd Jan 2019: £119,000; 2nd Jan 2020: £98,800; 22nd May 2020: £81,000; 27th July 2020: £71,500
Mortgage free day planned for: [STRIKE]25th June 2025 (day before my 40th birthday!)[/STRIKE] 31st December 2021
[/STRIKE] 31st January 2022
«13456

Replies

  • UrbanshyneUrbanshyne Forumite
    104 posts
    Third Anniversary 100 Posts Name Dropper
    Hi, welcome. I know it's a mortgage free forum, but Bloc Party? Whatever happened to them? I thought they'd crumbled like an old lady's hip in 2007. A quick look on Spotify suggests otherwise - FOUR further albums. Who'd've guessed it!

    Look forward to following your progress in 2018. Happy New Year.
    Neither a borrower or lender be; for loan oft loses both itself and friend.
  • Hi Urbanshyne!

    Thanks for the wonderfully supportive message! Haha, I am definitely revealing my age keeping this user name! They are still going - just about - toured the UK a year or so ago and lead singer Kele has just released a solo album. Definitely feeling old saying all this!

    Your signature is excellent, by the way.

    :)
    Mortgage when started:
    Jan 2012: £200,999; 2nd Jan 2018: £137,500; 2nd Jan 2019: £119,000; 2nd Jan 2020: £98,800; 22nd May 2020: £81,000; 27th July 2020: £71,500
    Mortgage free day planned for: [STRIKE]25th June 2025 (day before my 40th birthday!)[/STRIKE] 31st December 2021
    [/STRIKE] 31st January 2022
  • UrbanshyneUrbanshyne Forumite
    104 posts
    Third Anniversary 100 Posts Name Dropper
    Ha! You're in good company. I...ahem...went to see them in 2007 at the Brixton Academy I think. I was in to them, then as suddenly, I wasn't. It was like a musical Haiku - brief, immediate and largely incomprehensible.
    Neither a borrower or lender be; for loan oft loses both itself and friend.
  • Might be a bit of stupid message, but could anyone point me in the direction of a calculator to work out the daily interest?
    Mortgage when started:
    Jan 2012: £200,999; 2nd Jan 2018: £137,500; 2nd Jan 2019: £119,000; 2nd Jan 2020: £98,800; 22nd May 2020: £81,000; 27th July 2020: £71,500
    Mortgage free day planned for: [STRIKE]25th June 2025 (day before my 40th birthday!)[/STRIKE] 31st December 2021
    [/STRIKE] 31st January 2022
  • MissLemonMissLemon Forumite
    90 posts
    Fifth Anniversary 10 Posts Combo Breaker Photogenic
    Welcome to the MFW boards �� A great aim to be MF by 40 too.

    To work out the daily interest you'll need to know how much money you pay in interest each month which should be on your mortgage statement. Then just divide it by how many days in the month.

    There might be a calculator out there but that's how I figure mine out.
    MFW #121. Mortgage at June 2017 £96,491.71. 2 March 2020 £57,670
    OP target 2020 £1248.70/£7000
    OP target 2019 £7593.84/£6,000
    OP target 2018 £9123.35/£10,000
    OP target 2017 £4816.35/£5000
    Original MF Date January 2035. Target MF Date December 2022
  • MissLemon wrote: »
    Welcome to the MFW boards �� A great aim to be MF by 40 too.

    To work out the daily interest you'll need to know how much money you pay in interest each month which should be on your mortgage statement. Then just divide it by how many days in the month.

    There might be a calculator out there but that's how I figure mine out.

    Further proof my maths needs a good old dusting off! Thanks so much missLemon, will sit with a calculator and try and figure this one out :embarasse
    Mortgage when started:
    Jan 2012: £200,999; 2nd Jan 2018: £137,500; 2nd Jan 2019: £119,000; 2nd Jan 2020: £98,800; 22nd May 2020: £81,000; 27th July 2020: £71,500
    Mortgage free day planned for: [STRIKE]25th June 2025 (day before my 40th birthday!)[/STRIKE] 31st December 2021
    [/STRIKE] 31st January 2022
  • blocpartyfanblocpartyfan Forumite
    62 posts
    Part of the Furniture 10 Posts
    Hope everyone is having a good first week of 2018 - TGIF!

    The relief paying off our maximum overpayment of 10% of the mortgage at the start of the year is wonderful. It now means I don't need to make any more overpayments this year, and instead can save towards making sure we comfortably have enough to pay the same proportion of next year.

    Question - how to stay motivated when I know there is no more coming off the balance through overpayments?
    Mortgage when started:
    Jan 2012: £200,999; 2nd Jan 2018: £137,500; 2nd Jan 2019: £119,000; 2nd Jan 2020: £98,800; 22nd May 2020: £81,000; 27th July 2020: £71,500
    Mortgage free day planned for: [STRIKE]25th June 2025 (day before my 40th birthday!)[/STRIKE] 31st December 2021
    [/STRIKE] 31st January 2022
  • Best of luck!

    I'm also looking at being mortgage free by 2025. The sooner the better!
  • TropicallyTropically Forumite
    415 posts
    Fourth Anniversary 100 Posts Name Dropper
    ✭✭
    I saw Bloc Party in 2016 for the third time, so there are more of us!

    I don't understand though - you haven't recorded a mortgage for your old house which is being rented, but you also say you make £350 a month on this, but an income of £1250 is recorded in your SOA? How does that add up?
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
  • newgirlynewgirly Forumite
    7.6K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hi and welcome :)

    To keep up motivation I would just do as you say and save for the next time you can op again, keep it in a separate savings account to everything else and personally I would update my op amounts monthly or whatever to reflect this amount as already overpaid. You could join the mfw 2018 challenge thread too, best of luck :eek:
    MFW 38

    2020 £14,466.48 / £18,000
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