Katkatmachine’s Adventures to Mortgage Freedom and Life Updates

katkatmachine

Thank you. Yep, really hoping for the payrise. It would really help us a lot especially with the rising inflation and mortgage rates, and also tax! Thanks again. 

katkatmachine

2022 Year End Review

Original mortgage: £276,250
Mortgage left: £258,240

Remaining full term: 21 years
HTB: 10%

Current savings: £20,000
Credit card debt: £1,000

We didn’t achieve our goal this year to have £30k in our savings account but it’s alright. We’ll just try again next year. We aim to save at least £1500 per month starting this January 2023.

About my salary increase, I asked for a 20% rise but I didn’t get it, they only gave me 12.12% which takes my salary to £40k a year. My plan now is to look around next year for a new job and see what is out there for me. Though I’m not really sure yet if I’m really going to resign. Have to consider so many things first: the WFH set-up, right now in my current job we only need to go to the office 4x every fortnight which is very convenient, also whenever I go to the office I can come in around half 10 in the morning and just leave around 7pm to make up my hours. Because I’m taking the off peak hours rail and I only need to come to the office 8x per month my monthly fare is only £115. And considering that I am getting around 12% rise in my salary every year which is not bad at all (last year I got 12.78% and this year it’s 12.12%) so if I am really going to resign, the new job should have better perks than this. So let’s see. 

Happy Christmas every one. 

silvercar

After 5 years you start to pay interest on the HTB. It starts off in year 6 at only 1.75% so that would probably be lower than your mortgage and is cheap borrowing in todays terms. Though at the back of your mind remember you pay back a percentage of the value when you do so, so something else to consider alongside the rate. 

savingholmes

Job with those kind of payrises sounds great.

Hope you are getting a lovely break 

katkatmachine

Life update:

So I started applying for jobs three weeks ago. I thought now that I have work experience here in the UK it would be easier for me to get a new job. Well, I was wrong! I didn’t realise that it’s actually harder, I’m more picky now when it comes to the role and the salary should be higher, I’m looking at around 55k-60k GBP. From a 40k salary yeah that’s a huge jump but I know I’m good and I know I deserve that. BUT so far two companies already rejected me, I didn’t even get shortlisted for an interview, just flat out rejection based on my CV.  Tbh, I didn’t really feel too bad about it because I am not really keen on them, just tried my luck which didn’t work out, lol. But there are two though that I am really hoping that would consider me, I really like the roles and especially the companies, they’re big so I hope they would at least interview me. 

Anyway, this morning whilst I was wfh doing the usual work things, I received an email from our HR about the pseudo options I received from the company a year ago. I totally forgot about them. Long story short, based on my calculations I’m going to get about 9k GBP net of tax from the sale of these pseudo-options. Then in the next four years, I’ll be getting the same annually, well it still depends on the value of the options by then but hopefully it’s still the same or even more. Apparently, I did a really good job last 2021 that they awarded me the options. Of course I’ll be getting the options for the next years to come if I don’t resign. Basically our CFO told me that it is a scheme to keep good employees. I’m flattered really but now I feel that I’m stuck with the company! The value of the options are just too big for me to forgo if I resign!!!!! I’m actually alright with my work now, it’s just I’ve been planning since last year that I’m going to finally leave this company and move on but now these options are holding me back!

I am trying to calculate it. let’s say I get 55k GBP in my new job (I know I don’t even have any interviews yet but let’s just say this is my salary), so I’m going to get around 3.3k GBP per month. Right now these are the benefits I am getting from my current company:

40k GBP salary gross

9k GBP options net

Annual bonus equivalent to 1 month salary (based on the last two years)

Annual increase of at least 10% (based on the last two years)

3 days WFH 2 days office per week

Doesn’t have a strict time, as long as I complete my working hours per week

Office is near London Bridge so I don’t need take the underground, only national rail (monthly fare is only £115 since I take off peak hours train)

Idk what to do. The perks I am getting from my current company are really good but I just don’t like the feeling of being stuck. Like I can’t even resign because of these options. The company did a really good job in making sure their employees won’t leave them! Urrrrggghhh!

I am still hoping to get shortlisted in the two companies that I am eyeing for, I really hope they will consider me. But yeah, any advice?

TLDR: i don’t know what to do with my life

WuLiao

Hi katkatmachine, just to offer my tuppence worth, but I don't think the money itself is really the problem so much as lingering resentment from having to demand recognition for your work in the first place. If it were just about the money, you've no doubt already worked out that your total remuneration package including bonus and options is roughly equivalent to a pre-tax salary of £58k, which puts it in line with your £55-60k expectations.

Resentment is a tough thing to overcome - you can either come to terms with it, or change jobs. Either way take the lesson, which is to fight your corner early and not wait for the annual review in future.

katkatmachine

Job application update:

So one of the two applications that I was hoping for rejected me. Again I didn’t even managed to get an interview. *sigh*

The other one, I was shortlisted, got interviewed by the HR, but I flunked the exam, more like I wasn’t able to complete it, I just submitted what I could and that’s it. Fuuuuuuuuuuuccccccccccccckkkkkk!!!!!

I’m so gutted right now. I want to cry but I can’t. I’m so disappointed in myself. I’m so embarrassed, I was full of confidemce during the interview, told the HR that I could do the test but nooooooooo!!! Daaaaaaaammmmmmmnnnnn!!!!

I feel like I’m going to be stuck in my current company forever. Stuck with my options. Lol. So pathetic! I don’t think I’ll be able to sleep well tonight.  

savingholmes

We have all been there. It's horrible when things don't go out way.

katkatmachine

2023 Mid Year Review

Original mortgage: £276,250
Mortgage left: £253,910

Remaining full term: 20 years 6 months
HTB: 10%

Current savings: £31,000
Credit card debt: £3,000

We finally reached £30k savings! Yey! We’ve been really saving a lot to reach that amount and finally we got it! Much thanks to the options that I got. I actually miscalculated it, the options this year has a value of £14.4k gross so last April I received 80% which was £11.5k gross (£8.8k net of tax), I still have 20% left from the company so I’m still getting £2800 hopefully at the end of this year. The options really helped us a lot so I’m really happy. Now our new target savings by the end of this year is £37k. 

About the job, so yeah, I didn’t get it. I’ve moved on and decided to just stay with my current company for now. I like what I’m doing in my job really, it’s just the manager, he’s an @$$hol€. It’s true really, no matter how difficult the job is if you have a supportive manager it would still be fine and probably fun too sometimes, but in our team’s case our manager is so hard to work with, I don’t want to go into details and this post is not about him but the point is he’s terrible. But as mentioned, I am staying with the company for now. Good thing I only speak to our manager once a week or if there’s something really urgent so it’s still bearable. And of course the options… hehehehe. 

Holiday plans this year… well we went to Rome two weeks ago, it’s my first time and I loved it! Next we’ll be going to Mew York thos October for my partner’s birthday so gotta save up for that. We were also planning to go to Croatia so we could at least go to the beach this year but we totally scrapped it after the announcement of the increase in the interest rates. We’re remortgaging this year. Based on the calculations I got online, we’ll be paying around £1700-1800 per month once we move to another rate next year, that’s £400 increase from the amount we’re currently paying. It’s really bad but what else can we do. The only good thing is we can still afford it. So yeah, no Croatia this year. I guess I just need to find cheaper things to do with the 16 annual leaves remaining that I have for this year!!!!

That’s it!

Love,
Kat

savingholmes

Great news on the options. 

Sorry about your boss.

The rates are scary for mortgages. I feel for you. Really impressive savings though.