Thirty something dreaming of not paying mortgage

kaycastle

So it's been a busy few nights of selling and packing and organising.
But we are almost up to £1000
I've decided each month I'll wait for eBay to charge us and then I'll put our share in savings.
If there is enough made to get down to even the next LTV when we remortgage later this year I'll use it for that, if not it will go towards loft conversion. If we manage to do loft and kitchen within the next 2 years before the next remortgage that would be well amazing and ahead of schedule!!

kaycastle

Well, its been a very busy past week with this collection.
I've listed over 1500 items in a spreadsheet with all their details and I've done lots of valuation and research.
We've sold £1400 worth of stuff already!!
I'm very pleased. That's 700 each for ourselves and my parents.
I've already got lots of overpayments planned in the coming months to be at under 75% for remortgaging. I think if I want to get to the next under 70% I need to find just over £10,000. I'll work it out exactly in my spread sheet later. It would be quite a challenge but it would get our monthly payments down by a lot.

kaycastle

I forgot one thing in my calculations - I can't get down to the next LTV because I would exceed my overpayment limit!! Darn it.

It shall go on the savings for loft conversion and that

kittykatneedscash

Hi kaycastle maybe some more experienced MFW brains will know better than me but I think you can make an overpayment before starting your next fix. For example if your overpayment allowance gets you to say 73% LTV once you hit that then start saving a lump sum towards the last 3% to be paid before you start your next fix. I remember last time when I got a new deal still with the same lender they asked me if I wanted to make a lump sum payment at that point over the phone but I wasn't in a position to then. Either that or go onto SVR for a couple of days make a payment then start your new fix

kaycastle

kittykatneedscash wrote: »

Hi kaycastle maybe some more experienced MFW brains will know better than me but I think you can make an overpayment before starting your next fix. For example if your overpayment allowance gets you to say 73% LTV once you hit that then start saving a lump sum towards the last 3% to be paid before you start your next fix. I remember last time when I got a new deal still with the same lender they asked me if I wanted to make a lump sum payment at that point over the phone but I wasn't in a position to then. Either that or go onto SVR for a couple of days make a payment then start your new fix

That sounds really interesting - I have no idea what happens in the remortgage process No matter how much information I read I feel like these processes are such a mystery until they happen for the first time.

I'll save and then see what they say at the time with the remortgaging...it will be really awesome if I can go down to the next one as I think it would put us around £750 a month with current lender which would be well nice compared to £940!

kaycastle

I feel like there is a bit of a push on to have these extra savings for a payment at remortgaging.

If we get down to the 700s in monthly payments - that will just be really fantastic. That will mean way more savings capability. I don't know how to find the money as I feel like I've proper squeezed as it is. I need to find out how much OH has anything we can use towards it too.

I've reached out to some friends for freelance work. And I'm cracking on with this collection (my parents have said they have even more stuff after this batch).... I have a short holiday in May where I'm going to try to switch off and when I come back I'm going to make a proper plan around freelancing and getting more business in there, as I mostly just get it from friends and then referrals from old colleagues over the years at the moment, but I've never pushed it.

And now more ebaying before work...

BachSoon

What an excellent bonus towards your mortgage! That's very kind of your parents
I love a good declutter personally

Firegirl

Popping in to say hello!!!! Good look in your mortgage free journey! Looks like your doing great!

kaycastle

Thanks BachSoon and thanks Firegirl I don't know what it is about your posts but it got me all thinking and reviewing things hehe

So here goes my mightiest post in a while:

I got a bit lost in Mr Money Mustache's blog last night - I've often read that blog as I feel like I have similar reasons for doing this. I really want to choose what I do if I want to do it - I think if I do land up retiring mega early I won't sit around. And most of all I want to spend lots of time with my kids when I do have them. We don't have as higher salary to build up such a large fund in my early years but I think I can apply a lot of the principles.

Here is a little % breakdown of my spending right now:
Mortgage: 21%
Council tax: 2%
BT: 2%
Mobile phones: 1%
Gas/Electricity (Ovo): 3%
Train: 8% ( Even with a discount card, I do try to WFH to save, its ridiculous)
Savings 30%
Food 7%
Mortgage: Overpayments 14% :j
Other: 12% (About £250 which covers me for any non monthly bills/unexpecteds throughout the year as I don't spend it all, and if I ever build up a large buffer I just OP or move to savings)

According to MMM 30% savings will leave me 28 years from retirement. But I already sacrifice my salary for 14% pension (company puts in only 6% though) and I've worked it out so I can definitely retire at 55 on my pension no matter what apart from if there is an apocalypse.

However, my savings go on my house currently for renovations and saving for loft conversion. This is mostly so I can make the most from any LTV boosts and so I don't have to do it when I'm older.

I have worked out that if I do all that I plan with mortgage overpayments and savings, then I will be mortgage free at 38 (10 years from now) and I will have amassed £140,000 in savings even with renovation costs..that doesn't take into account interest or pay rises either so should be even more than that! But also doesn't take into account lower income during any maternity leave so I'm hoping the things I can't be bothered to predict/over complicate will sort of balance out.

So mortgage free 38. That is then 17 years away from retirement at 55. I want to get into the 40s for retirement and I'm budgeting for £16k per annum but I really don't think I'd spend that. And I've got to balance any early retirement with still doing pension payments...

So in order to live on £16,000 a year even just from savings I would need £272,000. And my 38 I would have that £140,000. So I just need £132,000 more. But obviously that goes down each year I don't retire.. soooo balancing that out it seems to come to around age 43. This will all need to be recalculated when I do become mortgage free....particularly if my kids are still young I might want to just go down to part-time...that would probably feel like retirement at 38 :P

Discounting mortgage and house renovations, I don't spend anywhere near £16000 a year...One of the reasons I overestimate massively my spending is so that don't have to account for increase in living costs and anything left over is the holiday fund.

I do feel like I need to read some other FIRE blogs though as I do find it fascinating to hear about other people's experiences and motivating too any suggestions?

StrugglingYouth

For FIRE blogs, I personally have listened to The Mad Fientist. Jacob interviews other people who are financially independent and retired early. So you get all that knowledge from the podcast. His own blog is very good as well.

If you are new to investing or there is stuff you dont yet understand about it I found Meaningful Money incredibly helpful as a resource.


Also, I added up your percentages of where your money goes. There is an unaccounted 1%. Your figures only add up to 99%.

You also need to take into account inflation in your sums.

You clearly understand the benefits of starting young with compound interest which is a giant bonus.