Halving our income and still aiming for mortgage free!

smetf

Hi everyone,

A long time lurker of DFW forum, and then here. Finally starting my own diary as I feel it will help keep me on track!
As the title suggests we are halving our income as I have resigned my job in order to keep sane and support DD with home educating for the next year. The last two years we have managed to overpay the maximum 10% our current mortgage allows and up till the resigning decision that was all going well...

We have got our mortgage down to £97, 120, dipping under 100k this year felt like a really big milestone. Our current mortgage deal finishes Dec 2023 and our repayments are £517 a month. We've been lucky that my income had seen a big increase from when we bought the house so we have a decent emergency fund of 10k and some savings that are set aside for a bathroom refurb and downstairs flooring which will be the last of the 'big' house jobs. Our plan was to aim to be MF by the time I am 50 (6 years to go).

I have got an interview next week for a job in September working 8 hours a week. Hopefully, this or something similar will help boost our income but given the uncertainty I am going to have to rethink my technique of working out the 10% and sharing it between the 12 months of the year. I have 2 paychecks left so will be fine for this year. 

I am considering keeping overpaying by about £100 a month (plus extras from surveys, ebay sales etc) and then anything above that can be set aside for a lump sum overpayment. Need to take back control of the grocery spends as they have got very relaxed recently.

This week:
I have volunteered to marshal a race this Sunday which will give me free entry to another race in return.
Started a CV so I can apply for some other jobs.
Started adapting the budget spreadsheet so spends can be more easily tracked.
Started writing (both journalling and a book idea).
Started prep for Wednesday's interview.

Am hoping to update a couple of times a week!

smetf

I've done a bit more research to add details as I have been enjoying reading this on others diaries!
Our mortgage at its highest was £150,000 in September 2012, this was as we added £35k to the mortgage to pay for a kitchen extension which started shortly afterwards. Our house was a standard 3 bed semi, we added a loft conversion in 2012, funded by savings and some support from parents using money they had been putting aside for their grandchildren (having their own space as they approached teenage years seemed a good cause).

We remortgaged in 2018 and given the improvements to the house and house prices steadily rising in our area got a 60 LTV % deal for a fixed 5 year contract on £135, 126. Three years in we are as described above with an LTV of 30 %.

Had a lovely day marshalling in the shade today - need to decide on my free race in return!
Back to catching up with others diaries after tea (with our first courgette from the garden).

LadyGnome

Welcome and best of luck.

FtbDreaming

Good luck! We only have a low income in this house and I’m still aiming for mortgage free! Things can cost what you want them to really and if you’re determined then you’ll do it 😊 

I am the main earner and only work 23 hours as I prioritise time with the kids over working loads! It’s about getting the right balance. You’ll probably find you want to do a few hours work just for a bit of ‘you’ time x

smetf

Thanks LadyGnome and FtbDreaming, it's been a bit of a bonkers week. My father-in-law is not at all well so been visiting him which is a four hour round trip, we've been combining a visit with some walking to balance out time in the car.

I got the job I interviewed for on Wednesday 🎉such a relief and gives us a bit more financial flexibility, I estimate it'll be just under a third of my full time take home wage.

One of the conversations about switching to home educating was the impact on finances, as an upshot my daughter offered to cook once a week to replace a weekly takeaway. Japanese tonight 😋

Not a very moneysaving week with fuel costs and ingredients but the new job balances that out a bit!

happymum37

Following with interest . Are you going to home educate for good now? I wish I had it in me but I'm no teacher!!!

Xx

smetf

Hi Happymum,

Thanks for stopping by. My youngest was due to go into Year 11 in September so I am hoping that getting her through this year and negotiating GCSEs will set her up for college in 2022 but after the past 18 months who knows!

smetf

Been a tough start to the week, my father-in-law died Monday evening.
So pleased we've managed to go up and see him over the past few weeks. Been with dh and his mam and now come home to be wit the kids but feel completely wiped.

On a money saving note, we have both said that having the back up of savings so we can just fill up the car umpteen times, buy food when takeaway is the only option, buy train tickets and just not worry about spending is so important at times like this ❤

happymum37

I'm so sorry for your loss. Wonderful that you could spend time with him x

smetf

Have made the final overpayment of the year today bringing us up to the full 10% of 10,939 this year! it's the second year of doing so and has already made such a big difference to the interest and repayment dates.

It resets in mid October so am hoping to be able to build up a small chunk of savings to help us get a head start next year given the large reduction in income.
Popping to town to pay cheques and cash into bank, not using cash very much at all at the moment!
Won't be spend free as youngest is heading to stock up on tapioca pearls whilst we're there but shouldn't spend anything else, and am hoping to persuade her and eldest to walk in and out rather than get the bus!

smetf

It's been a bit of a spendy week, with fuel costs and buying food whilst visiting m-i-l and catering for after the funeral. All important to be able to do and I've increased the fuel budget significantly for the future as we will be heading to visit more often.
Have offered to have my youngest niece for a few days during the summer hols and will do some touristy bits so need to budget for that.
The job looks like it will be fewer hours than I thought so need to decide whether to apply for something else alongside or do some tutoring to boost income...
Today I need to:
Buy a present for my s-i-l
Home ed work on a maths paper 
Clean lounge and our bedroom
Play tennis (free with a friend)
Research cinema visit with DS (his request- yay)
Research activities with niece