Mortgage free - What next

Up_the_Creek_4

So how do you go about buying shares?

Up_the_Creek_4

OK, Decision made so far after reading many hours of threads:

Mortgage 2 year term is up on May 17th (balance will be 39k) - Happens to be hubby's 40th birthday. We are going to throw the entire content of the savings account 27k), plus an extra 3k we are going to scrape together form here to then by being really good - no Easter eggs then -

Pull 5k from the tax saving account (this will have to be paid back ASAP, or before Jan!)

Looking at Sainsbury's 0% credit card for 1 year for the remaining balance (thanks for MSE chum for suggesting this).

We really feel like getting to the end sooner rather than later, and the thought of coming from a fixed 4.2% to a 7% makes my blood boil, no I am not going to fund the fat cats Friday cream cakes!!! Yes, we will have money to pay back on the card - but it will be free, and yes we will miss out on a little interest on the tax account (this is in Barclays and is miniscule, I really need to get a move on and set up a better account).

For us getting to the end of the tunnel outweighs the small calculations.

Oh and by the way I have been a little bit naughty and booked our first holiday (except for camping in a muddy field, which is not all the glam believe me) in 8 years, to Disney Paris, will be a complete surprise for the kids, and before anyone says anything, the old frugal ways still remain as the kids go free - yipp saved £500!!!!!

Will keep you updated, still no wiser on what to do next, no one has commented on the suggestion of looking out for reposessions.

corris3

We became mortgage free about 18 months ago and since then have contiued to save what we would have paid on our mortgage in ISAs, high interest accounts and bonds, we intend to have something behind us when we retire. We still have nice weekend breaks ( save £2 coins for these) and use our french home as much as possible for holidays ... I guess what I'm trying to say is just becaise your mortgage is paid your whole approach to money shouldn't change... it is too hard earned to waste it.

Up_the_Creek_4

Update, moved tax savings to ING at 6% where they will sit for 1 year, and I get the bog standard rate, and then look around. Will apply for the HSBC credit card with 0% on purchases for 1 year to put the ramaining mortgage balance on. Slight hicup, our old and faithful dog passed away and the other is so sad so we will need to scrape together an extra £700 for a puppy, but well worth it - just not sure where this is coming from at the moment.

On the pension front after reading the pension threads I am coming round, but I am still not comfortable. What are people's views on the long term property market?

Comments and views gratefully accepted.

Dithering_Dad

Dithering_Dad wrote: »

HBOS are very very safe and very undervalued. There is no chance of a Northern Rock situation, plus someone started a rumour about them to lower their shreas (FSA investigating) and it worked. We might as well all take advantage.

Did anyone make a killing with these shares - now up almost 20% since my prediction? (and still set to go higher)

Up_the_Creek_4

Still don't know how to buy them, missed the boat now, but interested as things will keep changing

Dithering_Dad

go onto the halifax website and have a look at the share dealing there. easy to register and get started trading.

Mutton_Geoff

UTC - your post was encouragement to me that not all "youngsters" are of the "want it now" type. Methodical planning, determination and a will to get where you want to be without expecting it to fall into your lap has paid off. Well done, let yours be inspiration to others. It's the most cheering post I have read on this forum whilst others bleat on about being mis-sold this that or the other, you have taken full responsibility for your path. :beer:

Up_the_Creek_4

Mutton Geoff - Wow thanks, very humbling, it's not often you get a pat on the back these days.

As my progress on the mortgage front is muted until 17th May, I thought I would have a little fun....:T

Well, following the share dealing idea I have decided to play a shadow game and buy the FT for 1 week, do some daily research, watch the NASDAQ prices online and see how I go as at the moment we will have no spare cash to play with, and I think I have some learning to do. I have worked in the background of futures before but seeing the losses made even with the complictaed systems I think my ability to gain in the markets will be limited to a bit of fun. Have you also seen the cost of using a broker to execute the trades? (about £12.50) I was actually quite shocked once you take this and capital gains into account, you actually have to put a lot of money into it to gain significantly - not like my memory of city slickers - a great show which I was allowed to stay up and watch occasionally!

For example would I be right in thinking £1000 in the HBOS scenario mentioned by DD - gain at 20% = £200, lose capital gains (18% = £36) and pay for the trades (£12.50) - not sure if there are extra costs for paperwork etc would net £150? Not bad over a couple of weeks, but I feel there are maybe more hidden costs.

For now still doing the ING paperwork and pining over the loss of Easter Eggs!!! I will let you know how much I make / lose next week.

Mutton_Geoff

UTC, you're welcome. This forum is packed with armchair wannabees and I'm pleased to read from someone who has set goals and gone about achieving them. Big pat on the back!

The costs of dealing in shares means you can't really "play" with £1,000 and seriously make any money, you need to up the investment and tell yourself it's not worth it unless you'll make a decent daily profit. Don't forget you have an annual capital gains allowance before tax is payable. Also, make sure you use your annual S&S ISA allowance, so you've got £4,000 to play with before the end of next week and a further £7,200 after that.