Mortgage freedom/FIRE diary

greent

Welcome back, Poppycat! Am very impressed with your DSs food spends - very sensible lads - hope DS18 enjoys uni - it will be a strange start for them compared to normal this year x

Poppycat1

Thanks FtbDreaming - My total rewards statement states that I have an annual pension of £841.22, that's if I don't take the lump sum. I have been there just over three years so a similar time to you. I have done so many extra hours since March.  Have you got a diary?

As far as investing goes I would start looking in to investing now.  Vanguard have a very simple Stocks and Shares ISA,  You simply pay in a lump sum or a regular amount.  You don't choose the companies, just the fund.  There is even ones which are based on your retirement age.  The longer you have the money in there the longer it has time to grow.  I made the mistake of investing before having an emergency fund.  So I took most of it out last year when I needed a new car.  I was lucky I still made money but it's designed really to keep money in longer term.

I got the admin job and up until February had been working 27 hours admin and topping up to full-time hours with the nurse bank.  Since Covid by admin job had given me as many extra hours as I wanted so haven't worked on the bank.  Keeping my mandatory training up though so can still book some shifts when necessary.  

Thanks KP74 and Greent - I feel really motivated at the moment.

One thing I am struggling with is that I have lots of things that I want to do to my home.  I have a 1950s bungalow that is completely liveable but needs some updating.  Most the time I am strong and tuck the savings away but sometimes I think I want everything to look nice.  My top priority is a new bathroom.  I have been quoted £18,000!  That would include treating/replacing the flooring, moving two walls and a new boiler.  All that mainly because I want a bath and not just a shower.  I have some family coming over with a chain saw to help in the garden in a few weeks which will be lovely.  The lilac trees are beautiful when out but they seems to be taking over the garden.

Now off to do our £15 shop at Lidl.  No DS13 as he is with family.

Poppycat1

£2,000/£114.02 - Invested, £443.62 held as cash = £557.64
£2,000/£3909.52 - Saved for work on the house next year
£95,000/£97,900 - Mortgage reduction
£6,000/£6,000 - Emergency fund - achieved

Normal mortgage payment of £750 came out today.  £587.46 came off the mortgage which left an odd £13.56 so paid that off.  The interest is now £5.24 per day.  

Poppycat1

At the weekend I realised that my income is going to drastically reduce in 4 and a half years soon after my son turn 18.  My income will be about £1,300 a month.  My mortgage is £650 a month.  My mortgage has 14 years and 4 months left to run.  Should be 16 years and 11 months so done well so far

So instead of investing my money I have decided to go all out and pay off as much as I can from my mortgage, within the 10% limit.  At the start of January 2021 my over payment allowance was £9,400.  Paid a little off and I can pay £9,190 more this year.

I have emptied my ISA and plan on paying around £3,000 extra off tomorrow when it gets paid in to my account.  Normal payment comes out tomorrow as well.  After both these payments come off it will leave £6,120 approximately left for the year and take it down to 13 years 8 months.  I still have an emergency and sinking fund, premium bonds and other bits of money.

My fixed rate ends at the end of next year and if I can pay the whole 10% this and next year, with normal payments aswelI, I should get it down to £65,000 ish and 9 years and 6 months.  That will then leave me just under 3 years to pay off as much as possible.

I don't have many places I can cut down because I have been following frugal ways for a while.  Today though I reduced my broadband/home phone bill from £35 a month to £22.95 a month and expect to receive a £75 Amazon voucher in the next few months for signing up.  I also recently had a water leak fixed so have reduced my water bill by £8 a month.  I expect that to come down even more once I prove that we don't use much water.

Wish me luck.  Now off to get motivation from other diaries.  Back tomorrow after overpayments have gone over.

Poppycat1

My normal monthly payment went in today.  I round it up to the nearest £100 so a £70 overpayment,.  That left 14 years and 3 months left to pay.

I received the money from my ISA today so another £3,116.54 paid off the mortgage which reduces the term by 7 months.  So 13 years and 8 months left to go.  I have exactly £6,000 overpayment allowance to find by the end of the year.

I have no one to tell because it feels boastful but know I'm safe here.

I have been putting off putting in my gas and electric meter readings.  We have been at home at lot more and the heating has been on more.  I did have a thermostat put in at the end of last year.  I thought every home had one until I moved here 3 years ago.  Well it looks like I didn't have to worry, my monthly DD went up a whole £1 and I'm around £150 in credit.  

I claimed £10.05 from Prolific Academy today, I'm waiting until I get £25 together and I will buy some premium bonds.  I aiming for £100 extra this year.

Viking_mfw

Well done, great progress!

greent

Fantastic stuff - and, yes - us like minded peeps don't consider anything like this boasting- we'll cheer you instead x

Porridgecat

Just read your diary Pollycat. It seems as if you've had some of the same discussions with yourself about mortgage overpayments versus investments and savings. Its difficult to decide sometimes what to do for best.  You've made great progress on reducing your mortgage term now.

Poppycat1

£89,659.23 left to pay
13 years and 8 months left to pay it off
16 years and 10 months - if no overpayment had been made
£5.00 daily interest

Thank you all.  Porridgecat and Viking I read yours yesterday.  I have yet to catch up on yours Greent.  I have also read my own diary.  Interesting reading and a few things have changed.  

Porridgecat I know investing is the right thing to do but it just doesn't motivate me enough to pay as much as I can.  Having this firm target of the August after my youngest reaches 18, therefore benefits stop, is really motivating.  It will be really difficult to be honest but I will try my best and I'm sure that will mean I get further than if I hadn't tried.

I haven't done much today, it has poured of rain all day.  Forecast snow for the next few days so  probably wont get out.  Only two PA surveys today £1.17 earned.  Homemade ready meal from the freezer, Indian curry and rice.

My home is very old fashioned, some of the furniture was left by the elderly previous resident, but it is really well made and clean.  I have decided instead of dreaming about having all done up and looking new that I will just look after the stuff I have. 4 and a half years is not that long away and it will fly by.  I can buy new stuff when the mortgage is paid off.  Please remind me I said this when I start talking about buying something new.

I will treat myself to a few plants and seeds for the garden soon though.

I think I have decided to buy a new bread maker when the Amazon voucher arrives.  My old one broke a few weeks ago.  I use it a lot, especially for pizza dough and fruit bread.  I don't really buy from Amazon, does anyone have any idea of other ways I could spend it on things that a normal household would normally buy?

Edited to add: Just filled the slow cooker with red lentils, carrots, stock cube and a couple of onions.  All ready to put on tomorrow morning and have soup for lunch when DS1 comes over for the day, weather permitting.  Probably do a simple Chinese curry for tea.

caeler

I love to know what the mortgage term would have been without overpayments, its so powerful the difference they make! What plants/seeds are you going for? @Poppycat1 I'm addicted to the different kinds of nasturtiums at the moment!