The Mortgage Free (to be) Pixie

BeeblePixie

I’ve been aware of MSE, and it’s forums for a VERY long time (since my early twenties) - but this is my very first post!

I’m going to be 30 in a few short weeks, so we’ve been having discussions more about our future. We only bought our first house in August 2019, but already we want rid of the mortgage! The thought that if we only pay what we are meant to each month, then we will pay it off in 2053(!!) is pretty awful. 

Budgeting is tricky though, as we keep separate accounts, with a joint account for the household expenses. We each contribute a fixed amount into the joint account, and the rest of our pennies are our own. I’d ideally like to do this without having to increase our contribution (but know realistically that we will have to at some point - just don’t think he’s ready for me to start that!). 

As of today, our current mortgage balance is £108,507.10 
We have overpayed by just under £50 every month since we took out the mortgage, and this can easily continue. I’d just like to start putting a bit more in there too!

caeler

Welcome and good luck! @BeeblePixie
There are some lovely folk here and so supportive. I’ve found keeping a diary really motivating.  Check out the MSE Overpayment calculator, it’s so amazing to see how much impact it has! https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ 

BeeblePixie

I put the idea to OH yesterday, about really starting to OP more each month (gave him the rough figure of £50 more OP per month, and let home know that with what we already do, plus the further £50, we’d be looking at more like 25 years, than 34 years of mortgage!) 

I’ve said for him to have a think about it himself, as he’s terrible at making decisions under pressure. Hopefully our little chat will bear fruit!

caeler

I hope so too.  Being joined up with your partner is so important but like you say there benefits of doing it are very very real! 

South_coast

An additional 9 years of MF life in exchange for £50/month seems a pretty good deal to me! Hopefully he'll go for it 😀

SpendingPennies

Good luck on your journey @BeeblePixie hope your OH agrees with your plans. 

BeeblePixie

Tried to bring it up again tonight, and he basically told me to talk to him about it another time when he “isn’t trying to chill” 🙈. 

Maybe trying after we’d both had a rubbish shift at work wasn’t the best idea 😂
Think I’ll try again at the weekend when neither of us has had to deal with customers shouting at us 🙈

As long as I get an answer before the end of the month, so that I can change the DD for the mortgage payment, I’ll be happy ☺️

caeler

It sounds like you need to play "the long game".  I know what I'm like when I'm excited about something I'm now, now, now but others around me don't always share the same enthusiasm.  I have to warm them up and bring them with me! 

BeeblePixie

This is exactly it @caeler - He’s the sort of person who wants to think everything through a dozen times before committing to it (it took me over 4years to get him on board with getting a mortgage rather than renting!) I’m more the type to say, well this seems like a good idea, and jump in straight away 😂

BeeblePixie

Decision made! 

Over a Sunday Roast (on a Saturday 😂) we had a good chat about the overpaying idea, and OH has agreed that we should increase our overpayment by £50/month. Meaning our total overpayment each month is now £96.97 (it rounds our total payment up to £500). 

We haven’t yet decided if that means we’re both going to put an extra £25/month into the joint account, or if we’re going to try and be more careful with what we already put in there. 

But we’re going in the right direction - the monthly payments have already been changed on the old online banking 🎉 

BeeblePixie

Statement of Affairs and Personal Balance Sheet

Household Information

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

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

Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 600

Partners monthly income after tax....... 600

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

Other income............................ 0

Total monthly income.................... 1200

Monthly Expense Details

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

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

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

Management charge (leasehold property).. 0

Council tax............................. 114.5

Electricity............................. 67 (We originally set up our DD to low - currently paying more than we use a month)

Gas..................................... 29

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

Water rates............................. 0 (we live in Scotland)

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

Mobile phone............................ 0

TV Licence.............................. 13.37

Satellite/Cable TV...................... 27 (Virgin tv internet and landline)

Internet Services....................... 8.99 (Netflix)

Groceries etc. ......................... 250 

Clothing................................ 0 (doesn’t come from joint account)

Petrol/diesel........................... 10

Road tax................................ 0 (doesn’t come from joint account)

Car Insurance........................... 0 (doesn’t come from joint account)

Car maintenance (including MOT)......... 0 (doesn’t come from joint account)

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

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

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

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

Medical (prescriptions, dentist etc).... 0 (doesn’t come from joint account)

Pet insurance/vet bills................. 4.2

Buildings insurance..................... 21.49 (buildings and contents)

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

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

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

Presents (birthday, christmas etc)...... 0 (doesn’t come from joint account)

Haircuts................................ 0 (yes, really! I cut his, my dad does mine (about once a year😂))

Entertainment........................... 50

Holiday................................. 0 (doesn’t come from joint account - we each save separately)

Emergency fund.......................... 100

Total monthly expenses.................. 1098.55

Assets

Cash.................................... 0

House value (Gross)..................... 125000

Shares and bonds........................ 0

Car(s).................................. 0 (haven’t listed the car, as that’s mine, not shared)

Other assets............................ 0

Total Assets............................ 125000

Secured & HP Debts

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

Mortgage...................... 108528...(403)......2.39

Total secured & HP debts...... 108528....-.........-   

Unsecured Debts

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

Total unsecured debts..........0.........0.........-  

Monthly Budget Summary

Total monthly income.................... 1,200

Expenses (including HP & secured debts). 1,098.55

Available for debt repayments........... 101.45

Monthly UNsecured debt repayments....... 0

Amount left after debt repayments....... 101.45

Personal Balance Sheet Summary

Total assets (things you own)........... 12,500

Total HP & Secured debt................. -108,528

Total Unsecured debt.................... -0[b]

Net Assets.............................. 16,472

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