Forever home... not a forever mortgage

Hello all, I’ve posted here on an old diary before, but with a completely fresh start comes a completely fresh diary!  Plus I fell foul of the new forum changes having not logged in for many years ;)  We’ve recently (late Jan) moved into our wonderful forever home!  I love it so much already.  Can’t wait for the weather to cheer up to get out into the garden.

My footer should (fingers crossed!) now show my total mortgages - 1 & 2 in my name alone, and 3 jointly with my OH.  It feels A LOT in total, (370k!!!) but 1 & 2 are covered by rental income.  All are low rate for the next 3-5 years,  21, 23, and 20 year terms respectively, and we’d love to reduce that significantly.

The highest rate is mortgage 2, so my target for OPs is split between that and building up a lump sum to pay off the main mortgage (3).  I’m about to work for myself for a couple of years, and am not sure what my income minus pension contributions will be, so can’t really set definite targets at the moment.  My optimistic targets over a year though are c.£5,000 (total - bringing it down to £22k) off mortgage 2, and a £10,000 pot towards mortgage 3.   

I have decent emergency savings of >£10k, which I’d like to maintain, so any spare cash at present can be focussed on the mortgages.  

More detail over over the next couple of months as we work through what bills are going to be, what spare income will be.  I’ll do a SOA ASAP (does anyone know the link?).  For now, enjoying settling into our forever home!

I hope everyone has a good weekend and that storm Ciara doesn’t blow too many tiles off roofs!
Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
MFW21 #92 £5072/£5000
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Replies

  • MoneymindedMoneyminded Forumite
    239 Posts
    100 Posts First Anniversary
    ✭✭
    Lemonfool is the SOA calculator used most often https://www.lemonfool.co.uk/financecalculators/soa.php 
    Good luck with your mortgage OP goals
    • Original mortgage end date: March 2041
    • Current mortgage end date: August 2035
    • Aiming to be mortgage free by 31 October 2025
    • MFW 2021 #15 £8,530.07/ £8500
  • willowparrettwillowparrett Forumite
    40 Posts
    10 Posts First Anniversary Name Dropper
    Pffffff what a different world it was when I wrote that last post!  I don't know about others, but I'm finding pandemic life a bit of a lonely slog.  It isn't 'unpleasant' particularly; I'm very lucky in many many ways and not on my own at all.  But it feels... heavy.  There's such a lot to think about all the time. 

    Still, onward.  I actually logged in because I made a big OP on my smallest (highest rate) mortgage this morning. The remaining 10% allowance of £2050 (minus £9.90 because I'm a fool - I'll do another one once the total updates tomorrow).   That brings my total down to £24,940.45.  I'm glad to see it below the £25k mark (I'd like this mortgage gone, or as good as with the pot to pay it off in full, by the time the deal comes to an end in 4 years).  The new allowance isn't available until Feb 2021, so I'll now build up the pot to hopefully OP in full then.  

    The other mortgages are standing at £98,172 and c.£239,500.  All in all a fairly good reduction of around £9k since the beginning of the year, with approx. £4k of that in OPs. 

    A few other updates to make - I'm now into month three of being full-time self-employed and it's going well.  Though I think that is certainly contributing to my pandemic 'issues'; the change in employment (whilst planned for many months) coincided perfectly (to the week!) with lockdown being introduced, and as a newly self-employed I fell in the gaps between all the support packages.  It wasn't the end of the world as I'd budgeted for being a total failure and not earning anything for at least a year, so financially it was okay, but mentally it was a bit of a struggle - it wasn't the first few months of self-employment that I'd planned!  As it turns out, I haven't had to touch my emergency fund, and work is now picking up to the extent that I can't quite fit it all in (hence the big OP today).  

    I've also got a tenant in my little cottage, which will cover the two smaller mortgages for a couple of years under consent to let.  This is a weight lifted (I've got everything crossed that they're a dream tenant), as that massively reduces the pressure on my self-employed income.   I'm conscious that I'll need to show sufficient self-employed income for the three years prior to remortgaging, but by then the mortgage should be in the region of £60-70k, which should be achievable. 

    I'd better wrap up and start dinner.  Hoping to post more regularly now that I've remembered this exists!!

      
    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
  • willowparrettwillowparrett Forumite
    40 Posts
    10 Posts First Anniversary Name Dropper
    Looking forward to my first 'full' month this month - normal rent, normal PAYE, normal mortgage payments and bills.  It should give a better idea of budgets for the next year or so, and I'll finally be able to do a SOA and generate some proper savings/OP targets for each month.    

    Just briefly popping on to catch up on other's diaries and keep finances in the forefront of my mind!  I think I'll update my footer too. 
    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
  • Oh, I've lost my signature/footer - my profile says I don't have permission... is that because I'm new?  Or at least, don't post very regularly perhaps.  

    Anyway, just did a nice rounding OP to my main mortgage, bringing that down to £96,500.  Now I've made the max. OPs on my smaller mortgage, that goes down annoyingly slowly!!   Disappointing to see that it was £24,940.45 in July, and is now £24,569.95!  Oh well, there'll be another opportunity to OP c.£2.4k in February 2021.  Our main mortgage is now at c.£237000... dropping slowly, though we aren't currently OPing on this as its on a good c. 1% interest rate.  

    Self employment is going okay.  Financially fine I think.  I'm not saving loads, but have a good emergency savings pot of £10k+, am doing regular OPs of £100-250, and just payed a chunk into my pension (need to do more of this, but it's hard to remember now it isn't automatic!).   Mentally it is tougher - I'm so lonesome!  And it's a real struggle sometimes to feel enthusiastic about work.  I've signed up to a few online courses on time management, project management etc.  But really I just need to sit down and make myself do it... MSE forum perusal can't be helping! 

    I've just updated my 'net worth tracker' spreadsheet for the end of the year (tracks assets (property, savings) against debts (mortgage)) which has increased from £97,765 to £105,380 over 2020.  £7,615 in the right direction over a year.  Not including my main pension pot I think this is good... not really sure??  But nice to feel like if everything goes horribly horribly wrong, I could buy a tiny flat somewhere and live mortgage free!  

    The rental is going well - tenant so far is lovely, and I'm not finding it as difficult as I'd thought I might having someone else living in my 'home'.  I had to spend a day there back in the summer, and they've made it lovely and homely, and look to be taking pride in the property - ideal.  In fact, I'm so pleased I'm thinking about transferring back some of their Dec rent as an early Christmas present, maybe 20/25%?  I'm not sure if that's a done thing.    

    Right, I have an hour of work left to do tonight - enough thinking about money efficiencies... time to earn some.

    WPx
    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
  • Hurrah, signature back.  Not sure what happened there.  I'll go and update it after this.  I hope everyone is enjoying a good Christmas break, even if it is a weird covid one.  I've just logged on briefly to check emails and make sure nothing is imploding whilst I take some time off!

    I've signed up to the 2021 Mortgage-free Wannabes (#92) with a target of £5k, which along with normal payments should see the rental mortgage finish around £88k at the end of the year.  Generally hoping for more, but this is realistic for reducing the mortgage on this property if we have a year of uncertainty similar to 2020!  The OP year for the rental mortgage starts on the 2nd Jan, so I'm going to be aiming for approx. £415 a month.  The OP year for the smaller mortgage starts on the 2nd Feb, and will be limited to around £2,450 for 10%.  I've got this sat in savings ready, so I'll put that straight across on the 2nd (not counting this towards the MFW 2021 target!), leaving that at c. £21k by the end of the year.

    Overall that would bring my personal mortgage total below £110k, which feels a good target to aim for. 

    One of the benefits of 2020 was time to create the veg garden of my dreams - we've cut a full-sized allotment across the middle of the garden (it's quite 'The Good Life'!).  We were a little late, so didn't quite get everything in when it needed to be this year, still cutting the final beds out of the turf in June.  But, it is set up now, and still producing a lot of veg, both stored and fresh - we only needed the turkey for our Christmas dinner!  This is the big non-financial target for 2021 - to be self-sufficient, or as near as can be, in veg from the garden.  I expect we'll always buy bananas, but I'm hoping to be near self-sufficient in fruit too, even if that means eating seasonally and things being a bit lean (or pre-frozen!) in the winter.  To be honest, I'm not expecting this to save a huge amount of money, especially when taking my labour into account, but it will feel good.  I've done my big veg seed shop already, with gift vouchers received for my birthday, and we got the strawberries and raspberries in the ground earlier this year, so the total outlay for the allotment for 2021 should be minimal.  

    Not much else to report really - self-employment is going well.  It's still a bit lonely at times, but I've joined a few online networking groups which provides some connection to the outside world!  Post-covid I'd definitely like to go and work in some other locations - a local café with Wi-Fi, or maybe a business hub if I can find one fairly local.  I've got big new project starting in the new year which I've been looking forward to getting going on, so the 4th Jan isn't completely filled with dread.    

    Right, I should wrap up - nice to be looking forwards, and hoping that if there's another big lockdown, the weather allows for some decent time spent in the garden. 

    WPx
    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
  • twinklietwinklie Forumite
    4.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Ahh I got my "allotment" in the garden going this year too. This year was very much an experiment and I just grew what I had in the main. This year however, I've planned a bit more and aim to grow more of the things we'll use a lot of. So more potatoes, onions, garlic etc. And less courgettes (I may have planted 5 plants and been a tad overrun) and tomatoes (8 plants). :lol: I managed to use stuff but I was lamenting that it was taking more effort to sort the surplus when I could have been growing something else, if that makes sense. 
    Either way, it was a very productive season and I was really proud of myself. :smiley:
    Daily mortgage interest Oct 21 - £14.35 Reduction interest - £2.11
    % of house owned/% of mortgage paid off.
    Oct 21 - 21.87%/12.73%
    MFiT-T5 #13 £25,541/ £30,000 at last update July 21
    MFW 2021 #6 - £1,385.74/ £600 Oct 21
  • Aah that sounds fab, and very familiar!!  We were overrun by courgettes too  :D This year I'm limiting it to one plant only!  We were also teeming with tomatoes, but I made a couple of batches of tomato relish with the surplus which has gone out for Christmas presents this year, along with a few jars left in the cupboard.  My main lesson for this year is successional sowing.  I mainly just grew one row of all the little fast-growing things; salad, beetroot, carrots, spring onions - this year I'm aiming to sow a small number every couple of weeks so that we stagger our supply, and don't end up picking through old chewed veg at the end of the year!   
    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
  • twinklietwinklie Forumite
    4.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Totally agree with you there. I did the same. Was too eager to get going and then everything was ready at the same time. It was a bit of a struggle not wasting things at some points. 
    I still have some bits growing in the raised bed at the minute which is infuriating me because I want to dig it over, chuck some manure on it and get it covered over, but I can't. :lol: I'm not sure I've got my priorities right on that one. 
    Daily mortgage interest Oct 21 - £14.35 Reduction interest - £2.11
    % of house owned/% of mortgage paid off.
    Oct 21 - 21.87%/12.73%
    MFiT-T5 #13 £25,541/ £30,000 at last update July 21
    MFW 2021 #6 - £1,385.74/ £600 Oct 21
  • HettyhoundHettyhound Forumite
    746 Posts
    500 Posts Second Anniversary Name Dropper
    ✭✭
    I’m jealous of your allotment gardens!  My garden is small but I’ve just planned for 2 small 4x4ft raised veg beds to be squeezed in.  My name has been on a waiting list for an allotment for nearly 3 years now but given this years shenanigans I doubt anyone will be giving up their plots which is the only way one becomes a available.  I learnt my lesson with courgettes a few years ago; I plant 3 seeds and if they all germinate I gift one away and put 2 in the garden (there’s one adult and one child), more than enough for loads of courgette recipes 😁
    Grocery challenge November £149.43/£180; December £76.64/£200
    SPC #023 SPC 12: £125.86[/COLOUR]:SPC 13: £214.98: SPC 14: £297.41
    MFW #90 Mortgage start Dec 2015 £79,950; November 2021 £41,146.77 2021 OP £3469.86/£4800
  • willowparrettwillowparrett Forumite
    40 Posts
    10 Posts First Anniversary Name Dropper
    Well here we are back in lockdown, but it's raining!  So no garden for me.  I've just made my Jan OP for the main mortgage - £417/£5000.  Starting to eat away at it, hopefully in a more structured way than last year.  We've got a particularly grim few weeks coming up.  Sadly we lost my dad shortly after my last post, so the beginning of 2021 has been filled with all the inevitable admin and arrangements that that brings; made all the more complicated by covid.  It wasn't unexpected, and I'm so very grateful that he didn't pick up covid and end up in hospital - that must be unbearable.  So now just really focussing on checking in on my mum (we're sort of a 'bubble', but as my partner is a key worker and at risk of exposure, I don't want to put her at risk by 'bubbling' with us beyond meeting outside for walks), and slowly easing back into work as and when it feels possible.  I wish the weather would cheer up though.   

    From the household we've found the last two weekly shops to be very budget-friendly.  Mostly eating our way through Christmas left-overs and portioned freezer meals to avoid having to cook from scratch.  I did have a bit of an online spending spree on perennial plug plants for the front garden yesterday.  It's a bit of a blank canvas at the moment, and I'm determined to have it cheerful and full of flowers this coming summer.  I'm growing a lot from seed (mainly annuals), but it'll be great to get some more robust perennials in the mix too.  The veg garden (lovely to see some other keen growers on here too!) is all a bit dormant at the moment.  Frozen ground and lack of time have stopped me doing much of the ground prep that I'd have liked to.  Still, it just needs a reasonably dry weekend to make good headway, and hopefully that will be along before things start to get moving in a month or so.  Before it gets too dark I need to get out there to pick our first lot of purple sprouting broccoli and some more kale for dinner this evening, and get some potatoes out of the store.  Seeing the supermarket shelves empty of fresh fruit and veg makes me feel very relieved to have the veg garden up and running now - what a poor state we are in as a country. 

    I'm resisting (so far) the lure of starting seeds off too early.  Seeing everyone getting going on social media is so tempting, but I've been there before, and don't want to be carting heavy plants in and out of the greenhouse every time the temperature drops over the next few months!  I normally get going mid-late Feb for tomatoes, chillis and aubergines.  We'll see. 

    A couple of prolific surveys done at lunchtime today - when they pay I'll be back over the £5 payout threshold so I'll add that to the savings pot.  Enough rambling for now.  Stay safe all. 

    WPx

    Mortgage 1 (rented) Oct '16 £120,000, Jan '20 £99,600, Jan '21 £95,853, Nov '21 £88,800
    Mortgage 2 (equity release for joint property) Feb '19 £30,000, Jan '20 £27,800, Jan '21 £24,500, Nov '21 £21,233
    Mortgage 3 (joint forever home) Jan '20 £244,500, Jan '21 £235,000
    MFW21 #92 £5072/£5000
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