Getting mortgage free while moving up the ladder - total budget review

Options
Afternoon everyone,
I don't know if you're like me - but I don't discuss money with anyone lol.
I have no idea if I spend FAR too much or just too much. Or I don't save enough. Or what!? I'm 40, my wife is 41 and we have a nearly 9 year old son. 

Current situation:
We bought our house around 7 years ago, and we've invested in that and our rental house over that time. We have one unsecured debt which is a 2 year interest free iPhone bought through Apple financed by Barclays but no car loans.
  • House (4 bed semi) is worth around £310K - mortgage is £160K (15 years)
  • Rental House (3 bed semi) worth around £160K - mortgage is £105K (14 years)
  • Pensions currently £155K for me, £85K for my wife so £240K combined. Currently I'm putting in around £900PM through work and my wife is putting in around £600. We've just started personal pension payments at £160 which drops in £200 with the tax relief + another 20% to claim through self assessment. Retirement is hoped and planned for 60 - I don't anticipate we'll earn this level of income for much past 50 but should still do ok at that point.
  • Savings £11K in Premium Bonds, £2,500 in investments plus sons savings around £12K in Premium Bonds
  • Joint after tax income is £7,200 (roughly even split between wife and I) including rental house income. Tenants rent been the same for 7 years but she's brilliant, works as a midwife and anything we can do for her we do. No plans to increase it.
  • Annual bonuses less likely in the future, but have been £10K net in the past which has been Christmas & a couple of holidays & a UK break.
  • We've literally in the last few months just started to save £2,500 a month now all the home improvement and LTV on the rental house are good, after getting some into NS&I I'm now buying index funds through Hargreaves Lansdown but plan to buy a few specific stocks that interest me.
  • Cars are currently company provided, though opt out is on the cards at some point. The car mentioned below is a little old convertible I keep in the garage that keeps me out of trouble lol.
Onto the mortgage free bit. The next goal is to try and buy a detached house where we live and either improve it or buy a good one :) - don't want to increase our term/payment - currently 15 years left.
That kind of house here is £500K done, or £400K + £100K improvements.
So wanting to try and get to combined cash and equity in rental house of £200K meaning we can buy that house without taking on additional debt comparative to net worth. I'm not sure that even makes sense.
I've no idea if I'm doing the right sort of stuff.
This is our current monthly spending which I'm thinking is probably outrageous;
Bill Amount 
Our mortgage £      946.85
Rental mortgage £      710.55
Entertainment/Eating out//misc/birthdays etc £      700.00 (currently not spending this for obvious reasons)
Food shopping £      473.00
Clothes for all 3 of us £      400.00
Private pension £      160.00
Cleaners £      154.80
Son monthly savings £      150.00
EDF (PHEV charging included) £      130.00
Council Tax £      127.00
Home phone - Virgin media (1GB) £        62.00
Car maintenance (annual) £        61.67
Interest free iPhone payment £        54.08
Home insurance £        41.23
Yorkshire water £        37.00
Sons additional football training (1) £        36.00
Vodafone £        31.65
Car fuel (annual) £        30.00
Apple One £        29.99
Gym £        26.99
Rental House Insurance £        25.96
Sons additional football training (2) £        25.00
Swimming lessons £        24.90
Golf tax £        23.62
Contact lenses £        22.00
Virgin mobile Mine £        15.00
TV license £        13.37
Sons football club lottery £        13.02
Subs Son football club £        12.50
Car insurance (annual) £        12.50
YouTube Premium £        11.99
Netflix £        11.99
Windows cleaning £        11.00
National Trust £        10.50
Sons football club bonus ball draw £        10.00
Sons additional savings £        10.00
British red cross (charity) £          8.00
Audible subscription (currently paused) £          7.99
Kindle Unlimited £          7.99
NOW TV £          6.99
Amazon Prime (annual) £          6.58
Wheelie bin cleaning £          6.00
Office 365 £          5.99
Dr Disrespect (YouTube channel) £          4.99
Costco membership (annual) £          2.80
Amazon freetime subsrciption £          1.99
Google photos subscription £          1.79
 £   4,677.27
 
Any advice/support/insight constructive criticism totally welcome.

Comments

  • caeler
    caeler Posts: 2,605 Forumite
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Options
    I like you don’t talk about money with anybody either! This forum is great to get opinions, advice and perspective. I don’t think there is a right or wrong answer and it depends what’s you are trying to achieve. If you were trying to save money there would be things to cut from your SOA like gym, Netflix, YouTube, trim food budget wheelie bin cleaning etc but you obviously need to decide your lifestyle balance.  If being mortgage free is your goal then you are in the right place with many of us choosing to overpay, you can model options using this tool which is a firm favourite of mine! https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/
    Good Luck on your journey! 
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards