Mortgage and Debt Busting

I am a thirty something living with my hubby, three rescue dogs, two rescue guineas's and one rescue chicken (only chuck left from BHWT rescue), We have lived in our current home for over 8years. When we first moved in, our mortgage was over £900 a month and over £700 was interest alone. The money we got from our previous home was only a 5% deposit for the new home, hence a high payment and high percent charge. We spent two years smashing the mortgage as much as possible to get to 10% for the next remortgage and ended up with a much better deal. We eased off over this time, having holidays, changes in jobs, fluctuating wages and general life events, but still managed to get a great 5year fix which is up in 2024, reassuring at the moment with so much increased costs everywhere. 

In August 2021 hubby changed jobs, the result was a reduced income, we counteracted this by reducing our mortgage payments to £50 a month OP from £250, paid off our car and generally behaving well with our money, we did have a 5k loan, which fixed some serious damage to our lounge floor and paid for a covered pergola which means we now have covered outdoor space- love it! Come 2021 and some cancelled hols, rearranged weddings abroad later, I got overexcited. I paid for hotel and flight for rearranged New York wedding, holiday to Kiev and Florida, putting it all on a credit card- still MSE in a way as all 0% for 20months and we are good at tarting our cards keeping costs very low. But this was over 5k to be spent on going away, didn't include spends or costs for doing things when over there. Hubby has gone to start his own business this means income is very unpredictable now, and there is more anxiety.

My previous plan was to save to pay for the holiday stuff outright, then pay down the credit card, but Kiev was understandably cancelled and I have now cancelled Florida as it is just going to be so expensive to go at this time. We got our refunds and on Friday, we chucked the refunds back onto the credit card. Hubby needed a 4x4 (genuine need, cannot go on sites without one) for his new job, we found a brilliant, old but well looked after and low mileage car, putting 2.5k onto the credit card. Ouch. 

So, as it stands:

M&S loan: £2882.40 (interest added on as a set charge at the start so already paid, was a low rate loan)
Credit Card: £4099 (0% for a further 18 months)
Total: £6981.40 

Mortgage: £137,215.61 (end of June 2022)



  • The plan:

    • Continue with the £50 a month OP on mortgage, feels good to keep it going and moving in the right direction, no matter how small!
    • Re-work budgets based on variable income from hubby
    • Decide whether to pay down M&S first- high monthly payment- £120.20, could minimum pay credit card, chuck the rest at M&S as well as an extra £80 as I have paid off my 0% loan for my dentist!
    • Pay down the credit card- £165 could be the basic overpayment, which would still take forever (sorry for exaggerating!) and continue basic payment for M&S
    • Continue with saving £150 a month to pay for gas bottles over the winter- this makes me feel sick
    • Save as much as possible, even if it is only a tenner! To increase emergency fund- decreased due to vet bills
    • Carry on with surveys to send to a debt
    • Ensure I have money saved to cover New York- I paid for the attraction tickets in 2019 before covid got it cancelled, we have $1400 from a Florida holiday in 2019 and everything bar the hotel and flights is paid for in full and Budapest- currently both holidays are covered money wise including costly dog care
    • Remind myself to stop holiday shopping and getting overexcited at this time!! 
    Ok, so this all feels ok!

  • Have sent over my first OP to M&S! I got the details and am hoping have filled it all in correctly, will be checking quite obsessively today to see when it goes in I think!

    Rounded down an account giving me £53.45, rounded down my savings giving me £6.29 and rounded my account giving me £4.38 meaning an OP of £64.12! Hooray! 

    I may look at a payment a day- PAD- but rounding the accounts will only go so far and not sure how much spare I will actually have so need to not get overexcited!
  • It all went through!

    So pleased, have moved over two Tilly Tidies (TT) today which equal £6.99, will keep these and collect for the rest of the month and send through the extras as one. Hubby is going to do this on his main account too. We are waiting to find out the new minimum payment of the credit card, will chuck the extra onto M&S and hopefully get rid of this in a year if not sooner, moving it all over to the credit card once it is done. I know I can increase the OP by at least £80 and then would need at least £40 more to get it gone in twelve months. I can do this!!
  • Another TT today of £5, and it has been a NSD, I don't think I have even considered these for such a long time! Unofficially that is my PAD, but I am collecting x amount of days worth before I send it over.

    Left my card at home so I wouldn't be tempted- I totally would have popped to the shop either on the way to work or on the way home! Leaving it at home again tomorrow. Shouldn't need to buy anything, can just take stuff with me for the long day and if I run out there is always something at work for a snack. I do love food, haha. 

    Random shop spending is probs one of my worst habits and it comes from lack of organisation in food prep, especially when I do three twelve hour shifts in a row, and also the fact I eat all my feelings, good or bad! This is something I am working on :smiley:
  • Oh, forgot to add I have put in a claim for 1poll payout! Yay, £25 in 28days, will go straight to the loan!
  • Following your journey 👋👋but can you tell me what a TT is?

    Raspberrybush x
  • @Raspberrybush there was a lady called Tilly on these forums who used to Tilly Tidy her account, its basically rounding down but the name has stuck with me for years!haha. You can round down to the nearest pound, 50p, fiver etc, whatever works! 

    I will have a look for you as well :smiley:
  • Managed two TT's, rounded down £5 on Thurs and Fri, yesterday I stopped for some snacks on the way home from work and sent £6.35 over after my spends! I did plan this stop and had allowed myself to get something nice after three difficult 12hour shifts.

    I am going to send over £46.63 to the loan today! Based on a few TT and hubby's rounding down as well. This is probably not realistic to expect over the rest of the month, but even a few pennies a day will end up helping!

    I have managed to send over £230.85 this month including today's payment and the base payment of £120.10 I need it to be £240 to ensure that we can pay it off in a year, so only a tenner to find over the next few days!
  • Yearly Mortgage Statement

    It has arrived!! We got moved from Tesco over to Halifax when they stopped doing mortgages and it appears that £243.89 is sat in a 0% sub account, this is unpaid interest and can be dealt with whenever. Bit annoying as I didn't realise that! Ah well not much I can do!

    1st July 2021: £142631.86
    30th June 2022: £136971.72

    We have paid £5660.14 off the capital and £2940.50 on interest, a total of £8600.64

    This includes £600 OP from £50 extra a month.

    This works out as an average monthly interest of £245.04, which is about £8.06 a day.

    At this moment in time I am not going to include the interest amount, but will look at making a plan to get rid of it asap!!
  • Fab work on the overpayments. 

    I love the idea of looking at your daily mortgage interest. That really spurs on the impact of small payments doesn’t it?
    I haven’t had my mortgage for a week yet so getting rather ahead of myself but off to shuffle through my paperwork and have a look at my daily rate too!
    Halifax CC April 21 £3176.24 Now £0 PAID OFF
    PO loan May 21 £6804.36 Now £0 PAID OFF
    H loan May 21 £8961.84 Now £0 PAID OFF
    Creation May 21 £1548.33 Now £0 PAID OFF 

    Total Debt May 21 £20,490.44  DEBT FREE DATE 29/7/22 

    Mortgage balance May 21 £177,096.19. Now £151,258.92
    Mortgage free date. At start of sole mortgage = July 2042

    SAVINGS FOCUS - get rid of the car finance. Savings balance/outstanding balance = £6885.90/£15,631.25
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