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The Case of the Overwhelming Mortgage

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  • AgathaSquirrel
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    Now at £85500. By beginning of July should be less than £85000 and I think we can remortgage. Have missed all the lower interest offers earlier in the year so we’ll just have to pay more than I hoped. Due to all the overpayments it’s still likely to be £100 less than it currently is. I’m planning to keep the term the same. My job isn’t particularly stable so I would rather be in a position where we can just about pay the mortgage on one wage if the other couldn’t work for some reason.

    Checked the university fund this morning. We have around £7000 in there at the moment. I toyed with sticking it in the mortgage but it doesn’t make enough difference for it to be worth it. Should have around £12000 by the time eldest is ready to go and fingers crossed mortgage has gone by the time youngest goes and we can use a mix of savings and wages to support.

    I do wonder if I’m prioritising future us instead of present us. Not sure if I have the balance right but don’t know what I’d change either. We’re still not saving enough for pensions at the moment either.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • savingholmes
    savingholmes Posts: 27,908 Forumite
    Name Dropper First Anniversary Photogenic First Post
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    I wish I'd had savings instead of debt when my DS went to uni. I think it is always a juggling act between current and future you when it comes to spending. My pension is well sorted but my mortgage isn't...
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 234 payments to go - now £181,773 Equity 27.3%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £8K on 0% spends card but offset by £34.3K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.3K/£127.5K AVC target 8.97% value at 15/7//24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.3K at 12/7/24
  • AgathaSquirrel
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    It’s a juggling act and I guess only time will tell if we made the right decisions. I see lots of people at work upping their work hours or missing out on holidays to support uni age children. I guess I’m may be doing that but now, rather than in the future. It might give us more flexibility in the future but are we sacrificing nice holidays, upgrading the house when they are at an age to enjoy it?

    Thanks @savingholmes. It’s good to hear opinions from those who have been there and done that.

    We have booked a UK holiday this year I’ve been wanting to take them on. So that’s something ticked off the bucket list.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • AgathaSquirrel
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    Having a bit of a think this morning. Car loan should be paid this year (we’ve overpaid this too). I should also have the money together for studying, which will allow me to build up my personal savings again. I think later this year, we should have an extra £100/150 for general savings, £100 for pension and £50 for my personal savings. Will have to re-evaluate when temporary job ends but should give us a bit of a cushion.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • savingholmes
    savingholmes Posts: 27,908 Forumite
    Name Dropper First Anniversary Photogenic First Post
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    I don't think it is necessary for holidays to be abroad to count. I always think people in other countries are desperate to come here and see our country's sites so maybe we should take those opportunities too. What matters is 'making memories.' That can be simple things at home like fire pits and toasting marshmallows and day trips out. My kids fave holiday abroad wasn't the hotel holidays which cost just as much or more but the mini-Europe tour we did - which was via the tunnel - a couple of nights stay in cheap hotels in Paris / just outside - a trip to E D1sn3y and some time visiting 2 or 3 sites in Paris - then on to Belgium, a day trip to Germany, a day trip to Holland from a cottage we had there and then visiting some friends in Belgium on the way back. We travelled overnight on the way there and back to save on the cost of hotels. They also liked our Scotland, Lakes and Cornwall holidays. They also found day / short trips to London or similar cities by train and staying overnight with relatives memorable.

    With the house - unless you are planning to create a room just for them to have their friends over - again it's doubtful that what you are considering will have that much impact.

    What sort of emergency fund do you have? How long would you last if one or more of you lost your jobs?

    How much pension do you both have accrued and how does that compare with what you need in the future?

    Those are very worthwhile questions to ask sooner rather than later.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 234 payments to go - now £181,773 Equity 27.3%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £8K on 0% spends card but offset by £34.3K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.3K/£127.5K AVC target 8.97% value at 15/7//24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.3K at 12/7/24
  • AgathaSquirrel
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    My concern is that I don’t do enough of the making memories because always working/housework/life admin. 

    Spoken to mortgage broker this week. Going to stay with same company and combine mortgages into one. Aiming to start beginning of September. Keeping same term and will reduce by £100 per month. We will use this for overpayments.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • savingholmes
    savingholmes Posts: 27,908 Forumite
    Name Dropper First Anniversary Photogenic First Post
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    Could you write a list as a family of low cost memory making things to do and put them in a jar and draw them out at least once a month?

    Good news on the mortgage.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 234 payments to go - now £181,773 Equity 27.3%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £8K on 0% spends card but offset by £34.3K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £11.3K/£127.5K AVC target 8.97% value at 15/7//24
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.3K at 12/7/24
  • AgathaSquirrel
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    That’s a nice idea 💡 
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • AgathaSquirrel
    Options
    Good chat today with insurance person. As I thought over insured for life insurance but sickness pay needs to be looked at for husband.

    broker last week described our mortgage as small - doesn’t feel it!
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
  • AgathaSquirrel
    AgathaSquirrel Posts: 172 Forumite
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    edited 5 July 2022 at 7:13AM
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    Down to £84000ish so first goal of below £85000 achieved. Now to focus on getting below our original mortgage of £77000.
    Income protection for husband almost in place. Once this is finalised we’ll cancel some of our life insurance to fund it.

    New mortgage agreed. Like everyone having to increase interest but due to overpayments monthly payments are down. In reality it doesn’t matter as we will continue to overpay but it makes it more manageable should we be down to one income for any reason. 2 year fix this time. 5 years was too long last time.

    Life has become very busy. Considering a cleaner when I start studying again in the autumn. Should have paid off or almost paid off the car loan by then.
    2017 - mortgage of £140,000 and interest rate of £10 a day
    Feb 2021 mortgage of £103000
    May 2021 mortgage of £100000
    July 2021 mortgage of £97000
    November 2021 mortgage of £93000
    July 2022 mortgage of £84000
    December 2022 mortgage of £79000
    December 2023 mortgage of £73000
    March 2024 mortgage of £70000
    May 2024 mortgagee of £68000
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