Lumiona's MFW Diary

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  • savingholmes
    savingholmes Posts: 27,355 Forumite
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    Glad things are going your way.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £12.3K
    3) CC £4.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value at 15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    OK so it's been a little over a year since I last posted. I'm still working on the end goal of repaying this mortgage and given future interest rates we now have a goal date of Jan 27 when our fix ends. However, we are still in the midst of the renovation. We've done the living areas and 2 of the bedrooms. Still have the expensive bathroom and kitchen to do but I've been playing around with my forecast and think we can still meet this goal.

    I have a real dilemma about overpaying our low rate mortgage when I have every penny earning me 4%+ at the moment. So I will keep saving for the end date lump sum. 
  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Latest update is that as of this month, we are now on an absolute mission to be mortgage free by December 2026. The goal is to pay off £112k in 3 years. It is doable despite our average income but we will need to delay the bathroom and kitchen upgrades until after the mortgage is repaid. If we don't clear the mortgage it will cost us an extra £590pm in interest and I'd rather that go towards the house repairs we need to do. The overpayments will sit in an ISA and savings earning 5% until needed. I've run the numbers and this should earn us £7.5k in interest vs the £3.1k that will be paid on the mortgage in that time, (dependant on the savings accounts holding the current rates).

    Month 1: Mortgage Bal £112k less OP Savings £2.6k = £109.4k left.


  • What a brilliant goal to focus on for 3 years especially with your 0.99 rate :) 
    I am sure you will make it
    There will always be a (beautiful stilettoed) foot in fabulous in LaPlan's life.
    I am choosing to be fabulously frugal to support some wonderful life changing and affirming financial goals including buying a London home I love.

    DON'T BUY STUFF (from Frugalwoods)
    No seriously, just don’t buy things. 99% of our success with our savings rate is attributed to the fact that we don’t buy things. You can’t really hack your way to frugal. You can and should take advantage of discounts, coupons, rewards points, and the like. But at the end of the day, the only way to truly save money is to not buy stuff.    Money doesn’t walk out of your wallet on its own accord.

    My March  streaks to track
    Track Minimalist game  items (Nov 310)   (Dec  95)  (Jan 90)   Feb 50
    Exercise streak  
    YNAB days:: Target 50 days -Age of money 29
    Track my NSD's - Target 13 days/ 0/13

    https://forums.moneysavingexpert.com/discussion/6289577/future-proofing-my-life-deposit-saving-then-mfw-journey-in-under-13-years#latest
  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Some huge strides made these last couple of months, cleared up a couple of accounts and reduced our reno savings in favour of overpayments. The payments will not continue at this amount going forward, likely to avg £2.4k pm

    Month       
    Overpayments Total O/paid Mortgage Bal
    Month 1 £2,649 £2,649 £109,819
    Month 2 £6,029 £8,678 £103,393
    Month 3 £3,731 £12,409 £99,265

    Happy to see it under £100k though :)
  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    We've decided to reduce our savings even further to fill up the Cash ISA before the financial YE. I should be able to send some more over at the end of the month after payday. It's so nice to see a huge drop at the start but it won't continue at this rate.

    Current balances:
    Month             Overpayments Total Opaid Mortgage Bal
    Month 1 £2,649 £2,649 £109,819
    Month 2 £6,029 £8,678 £103,393
    Month 3 £3,982 £12,660 £99,014
    Month 4 £4,090 £16,749 £94,527

  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Cash ISA is now full. I have a couple of other savings accounts to use until April. 

    Mortgage balance £110879
    Mortgage Savings £22258
    Net owed £88621

    Really happy with that so far, we are completely on track for the Dec 26 goal.
  • Archerychick
    Archerychick Posts: 255 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Well done! We are doing the same thing, with our fix ending next year. I’m running a spreadsheet to keep track which is very satisfying:) 
    Some of the saved overpayments are within a cash isa (because I was able to get more interest than putting it elsewhere), allocated in my spreadsheet as a mortgage pot, I will ‘reallocate’ this money next year closer to when I need it. The other good thing is that the ISA is flexible so I can pull that money out next year and replace it in the same tax year with other money outside of my £20k.

    if you haven’t you might want to look at a year fix on savings account so lock some of that money away to guarantee the interest 

  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Cash ISAs are quite new to me so trying to get my head around the rules.

    My plan is to transfer my current ISA that is earning 5% to a 1yr fix asap after 6 Apr 24, opening a new Virgin ISA 5.25%. I hope to add to this as and when we can until it is withdrawn/ closed, which could be at any time. It looks like the rules are changing next year and I will be able to pay into more than 1 Cash ISA in a year so will open an ISA with Chip or Moneybox at 5.1% for the remaining funds of the 20k next financial year. 

    It's 2026-2027 that I will need a flexible ISA as that will be when I'll be paying off the mortgage.

    It's unusual that we are lucky to be able to take advantage of the high savings rates and low mortgage rate, we're usually at the wrong side of these things having bought 2 of our homes at the peak markets prior to crashes/ downturns.
  • Lumiona
    Lumiona Posts: 236 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Sorted all the ISA's out., I have until 7th May to put in as much as I can to the Virgin 5.25% ISA and then use the remainder of my allowance in the Chip ISA for the rest of the year.

    Mortgage Balance £110,481
    Mortgage Savings £25,232
    Net Owed £85,249



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