MFW_by_50's diary - here I come, 2029!

Hello!  I’ve been a long time reader of MFW, and have meant to start my own diary for ages.  I turned 40 a couple of weeks ago and am determined to be mortgage-free before I am 50, so this diary will help me keep on track, hopefully!  

I have 83K left to pay, and, all being well, I have a plan to pay it off in 9 years, knocking 21 years off (currently 3 years into a 30 yr term).

My plan hinges on maintaining a £200 monthly overpayment (I’ve overpaid since the beginning of the mortgage) alongside saving up to make lump overpayments.  

So, this is my plan for the next 9 yrs:

Remortgage in Oct 2022 for around 74K on a 5 year fix - reducing the interest rate hopefully.  I used a broker to take out this mortgage and I think he got me a duff deal, 3.09% is pretty high I think (90% mortgage).  I wasn’t very clued up at the time.

Carry on paying £600 pm (so a £200+ monthly OP), but also start to save so that when I remortgage again in 2027 (now owing 43K) I will have saved circa 20K to pay down what I owe as a lump sum payment. I will then only have to remortgage for 23K (2 year fix).   I will then carry on saving, so then when that 2 yr fix ends, I can pay one final lump sum and be mortgage freeee!!!

The 200pm OPs will look after themselves, I’m well used to paying them now.  I need to focus on having 20K to hand in 2027. This means saving an additional £238 per month.  It will take a lot of sacrifices but the prospect of being mortgage-free in 9 years is just delicious!  The things we will do, the places we will see!  

Things that can get in the way:

Job insecurity - my job is pretty secure, but you just never know…

Expensive (but much loved) dog - he’s had bronchitis recently and that has cost me 1.5k (no insurance, he’s 12).  Is likely to be expensive as he ages.

Car is 11 years old and will need replacing, but I’m hoping to hold on to it for at least another 3(?) years - it only has 54K on the clock and I do very few miles these days, even before lockdown etc.

I’ve committed to having the kitchen replaced July 2021, cost will be 8.5K, I need to save up for it before really saving for OPs, currently saving £500 a month towards it. No other big house jobs planned apart from a new patio, but that can/will wait.

Oh, and I’ve got a CC with a balance of 1944 on it. I am paying this off at 100 per month, this has got to be gone in the next year as I hate it!  Another small hurdle.


Things in our favour:

We really don't have a frivolous lifestyle, me and my partner are home-bodies, don't drink or smoke, no expensive hobbies or children! 

Holidays are unlikely for the next year, we always holiday in the UK anyway because of dog. I get to travel for work (in normal times) which scratches my itch for travel, for example last year I went to Ireland and Florida on business but also had fun, saw the sights etc.  However, I have budgeted for our usual week in Devon in July 2021, we share the cost of this with in-laws, so it’s cheap.

Our house is really sound (fingers crossed), we actually moved in 12 years ago as it was my partner’s aunt’s house and we rented off her until we bought it, so it is well-maintained and we know its quirks.  Might need a new boiler in the next few years though, come to think of it…another thing to budget for.


So, savings of 20K by 2027 is the main target.  All windfalls (not that I am ever that lucky) will be allocated towards it.  It’ll be tough, but I think having this target can only be good, even if I don’t hit it, I will have saved something fairly considerable!


Will post my SAO in the next post, for the record...


Comments

  • Just had confirmation that my (small promotion) has been agreed, and the slight lift in pay will be backdated to September.  This means an extra 242.64 in next month's pay.  This will have to go towards Xmas pressies, but as I have bought most presents already, I will have some left over, to put into the savings pot.

    Here is my SAO, comments welcome!  My savings will need to come out of the 686.90 left over each month, as will entertainment and clothes.

    Household Information[/b]

    Number of adults in household........... 2

    Number of children in household......... 0

    Number of cars owned.................... 1[b]


    Monthly Income Details[/b]

    Monthly income after tax................ 2575.97

    Partners monthly income after tax....... 0

    Benefits................................ 0

    Other income............................ 0[b]

    Total monthly income.................... 2575.97[/b][b]


    Monthly Expense Details[/b]

    Mortgage................................ 403

    Secured/HP loan repayments.............. 0

    Rent.................................... 0

    Management charge (leasehold property).. 0

    Council tax............................. 124

    Electricity............................. 40

    Gas..................................... 40

    Oil..................................... 0

    Water rates............................. 25

    Telephone (land line)................... 0

    Mobile phone............................ 12.28 

    TV Licence.............................. 26.4 

    Satellite/Cable TV...................... 64 (Sky plus internet)

    Internet Services....................... 0

    Groceries etc. ......................... 300 - this covers all household items, groceries, takeaways, coffees out, etc. Anything left over goes towards holiday spending money

    Clothing................................ 0 - I have SO many clothes, haven’t bought any for ages, get bought clothes and make up/toiletries for Xmas, birthday...

    Petrol/diesel........................... 30

    Road tax................................ 17

    Car Insurance........................... 37.5 

    Car maintenance (including MOT)......... 50

    Car parking............................. 0

    Other travel............................ 0

    Childcare/nursery....................... 0

    Other child related expenses............ 0

    Medical (prescriptions, dentist etc).... 10.4

    Pet insurance/vet bills................. 70

    Buildings insurance..................... 12

    Contents insurance...................... 0

    Life assurance ......................... 0

    Other insurance......................... 0

    Presents (birthday, christmas etc)...... 40 

    Haircuts................................ 0

    Entertainment........................... 0

    Holiday................................. 46

    Emergency fund.......................... 95.5

    Credit card ............................ 75

    Mortgage overpayment.................... 200

    Slimming World.......................... 4.13

    Readly/Netflix/ICloud/Ink .............. 21.26

    Dog food................................ 50

    Professional Subscription............... 21.26 - not a typo, exactly the same cost as Readly etc.!

    S&S ISA..................................... 25

    Charity................................. 4.34

    Lottery................................. 20[b]

    Total monthly expenses.................. 1864.07[/b]

    [b]


    Assets[/b]

    Cash.................................... 5700

    House value (Gross)..................... 120000

    Shares and bonds........................ 500

    Car(s).................................. 2000

    Other assets............................ 0[b]

    Total Assets............................ 128200[/b]

    [b]


    Secured & HP Debts[/b]

    Description....................Debt......Monthly...APR

    Mortgage...................... 83643....(403)......3.09[b]

    Total secured & HP debts...... 83643.....-.........-   [/b]


    [b]Unsecured Debts[/b]

    Description....................Debt......Monthly...APR

    credit card....................1944.86...25........0[b]

    Total unsecured debts..........1944.86...25........-  [/b]


    [b]

    Monthly Budget Summary[/b]

    Total monthly income.................... 2,575.97

    Expenses (including HP & secured debts). 1,864.07

    Available for debt repayments........... 711.9

    Monthly UNsecured debt repayments....... 25[b]

    Amount left after debt repayments....... 686.9[/b]


    [b]Personal Balance Sheet Summary[/b]

    Total assets (things you own)........... 128,200

    Total HP & Secured debt................. -83,643

    Total Unsecured debt.................... -1,944.86[b]

    Net Assets.............................. 42,612.14[/b]


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