Long Term Mortgage Free Wannabe 9 July 2018 at 2:35PM edited 30 November -1 at 12:00AM in Mortgage-Free Wannabe 95 replies 9.5K views

katsoocam

Hello
I am a long time reader and finally have some time on my hands to write this so here goes!
I am 34 and just started maternity leave (baby due today in fact!). First baby.
My husband and I bought our first home last year and have 24 years to go on our mortgage, which is s 2.18% five year fix - we knew we wanted kids in the next couple of years and didn't want to be looking for a new deal while I was on maternity pay. The balance is £310,402.72. We bought a decent sized family home and plan to be here at least 5-6 years, after which we may need to move for hub's work. We scraped together a 20% deposit with significant frugality and overtime, but haven't made any overpayments. We have been restoring our emergency fund and saving up a maternity leave fund over the last year, plus we have a retirement ISA. We both have work pensions too and it is a good scheme.

Debts other than mortgage....we have a car and some furniture both on 0% finance. We actually have the money to pay for these stashed in the highest interest easy access account we could get, and take the money from the account each month to pay the DD. We have no CC, though we have toyed with getting a cashback one, but have never done it.

We earn a good salary each and our monthly expenses inc mortgage etc are covered by one of our wages. We planned this for maternity leave purposes. We could have three children in nursery full time and it would still be worth my while to work, just focusing on this one at the moment though!

However, I would love to retire at 55 which means we need to pare down our debt and increase our savings substantially. Hence my post.

Would be really grateful for areas to focus on to reduce our expenditure. Thinking about this a tiny chunk at a time, not even even 1% but 0.1 of a % at a time!

Things we do already: shop at Aldi (and Asda for a couple of bits). Our monthly budget is probably about £150-180 for two adults, this includes all cleaning products and toiletries. Pre move we were spending about £100 so I know we could cut this back a bit, but we have been stocking up the freezer with batch cooks etc for when the baby arrives, so our spend should reduce a bit when we start using that (and we have about four months worth stashed away in the freezer!), shop around for our insurances and for our utilities. We do have the basic sky package but I hustle every time they try and put the bill up, and we do utilise it.

Suggestions, tools, areas to focus on...all gratefully received!

julicorn

Happy shiny new diary!

greent

Hello and welcome - and wishing you a hassle free birth of your baby (exciting times!) x

katsoocam

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 6,773.56
Monthly expenses (incl. HP & secured loans) 2,259.03
Available for debt repayments 4,514.53
UNsecured debt repayments 0
Amount left after debt repayments 4,514.53
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 273,176
Total Secured & HP Debt -310,402
Total Unsecured Debt -0
Net Assets -37,226
Household Information

Number of adults in household 2
Number of children in household 0
Number of cars owned
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 3713.56
Partners monthly income 3060
Benefits 0
Other income 0
Total monthly income 6773.56
Expenses Amount(£)
Mortgage 1386
Secured/HP loan payments 367
Rent 0
Management charge (leasehold property) 0
Council tax 201
Electricity 18
Gas 18
Oil 0
Water Rates 18.66
Telephone (land line) 15.75
Mobile phone 0
TV Licence 12.37
Satellite/Cable TV 33.5
Internet services 15.75
Groceries etc. 0
Clothing 0
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 3.17
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 169.83
Other Insurance 0
Presents (birthday, christmas etc.) 0
Haircuts 0
Entertainment 0
Holiday 0
Emergency Fund 0
Total monthly expenses 2259.03
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 310402 (1386) 2.18
Secured Debt 0 (108) 0
Hire Purchase (HP) Debt 0 (259) 0
Secured & HP Debt totals 310402 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Unsecured Debt totals 0 0 -
Asset Description Value (£)
Cash 183583
House Value (Gross) 89593
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 273176

Terry_Towelling

Best of luck with the new baby.

I think you shouldn't do anything rash or in a hurry until you've had the baby at home for a while and know how you feel about things. Babies have a habit of changing things. You may never want to work again.

Seems like you've got things planned OK and your combined monthly income would be the stuff of dreams for many people. As things stand it looks like you could easily increase your pension provisions to retire early but you really need to see the lie of the land after having your first child before planning too much further ahead.

After child No1 you'll have a better handle on the costs involved (which never end no matter how old they get) and you'll know better how you feel about the potential for having more/going back to work.

chelseablue

Might be a typo but it says your house is worth £89k but your o/s mortgage is £310k?

katsoocam

Hi chelseablue I just included the bit of our current house value that we actually own. Is that no right? Should I have put the whole value?
I need to update it with petrol and food prices too.

katsoocam

Hi Terry Towelling
I completely appreciate what you are saying but I do love my job - it's a vocation for me. I appreciate hubby and I am very lucky but we worked hard for it and continue to do so! Not to mention the student loans !!!128584;. I can't imagine giving it up entirely but can conceive I would do less hours.

Terry_Towelling

katsoocam wrote: »

Hi Terry Towelling
I completely appreciate what you are saying but I do love my job - it's a vocation for me. I appreciate hubby and I am very lucky but we worked hard for it and continue to do so! Not to mention the student loans !!!128584;. I can't imagine giving it up entirely but can conceive I would do less hours.

You are probably right - you know your own mind and life best but still...

One question, will you be using terry towelling or disposables?:) You might just be too young to remember terry towelling nappies!

chelseablue

katsoocam wrote: »

Hi chelseablue I just included the bit of our current house value that we actually own. Is that no right? Should I have put the whole value?
I need to update it with petrol and food prices too.

Is it shared ownership?

If not then no you just put the value of the whole house

katsoocam

At the moment Terry Towelling I have zero acceptance factor from the husband! However a friend has leant me a few reuseable nappies to try. I certainly was a terry towelling baby!