Rachel’s Run towards mortgage freedom

Rachib
Rachib Posts: 36
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edited 27 January 2019 at 8:42AM in Mortgage-free wannabe
Hello Everyone,

Ive been a long time lurker, taking lots of inspiration and motivation from others but I thought a diary to add my story, and help me keep on track with my goals. So I'm glad to join you fellow MFWs! :j

2018 was, financially, a bit of a transformative year, especially in relation to my house.
I remortgaged, as my fixed deal had come to an end, but with this transaction bought out my 25% help to buy loan equivalent from my house builder at the same time. Thats simplified things nicely as now there is only the 1 mortgage on the property. :T

Also at the end of the year I bought the freehold for my house (I knew what I was walking into at the time, but its good now to be a freeholder! :T)

The mortgage I took out is a £156,000 mortgage over 24 years with Accord, @ 2.28% fixed for 5 years. Thats a lot of money in my book, and a lot of interest to incur, so the challenge I have set myself is to get rid of this as soon as possible! This might mean a few years of frugality but I think it will be worth it in the long run.

A little about me, I'm in my early 30s, single and the only member of the household. I'm generally quite risk adverse financially and like my emergency funds. I like to run, watching a good movie, and am into my photography.
I have about £10k in cash savings spread across the high interest current accounts (TSB/Tesco), around £6k in a S&S Isa, around £4k in other shares.

I am also contributing to my companies sharesave schemes, of which plans will mature in 3/4/5 years. These I'm thinking will be for the future big purchases e.g. updated car, mortgage overpayments, holidays!!!

Debt wise I only have the student loans, Plan 1, and don't plan to add to this anytime soon!!

My plan is to try to get the mortgage to less than 60% LTV by the end of the fixed term deal or better. This involves me overpaying the mortgage which is fine as I can pay 10% fee free.

I will then hopefully, with a few salary increases, be in a position to purchase my forever home!

Heres my Brief SOA:

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................

Monthly Income Details

Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300


Monthly Expense Details

Mortgage................................ 703.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 11.5
Council tax............................. 103
Electricity............................. 17
Gas..................................... 17
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 20.99
Mobile phone............................ 20
TV Licence.............................. 12.5
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 11
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.5
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 300
Total monthly expenses.................. 1976.29



Assets

Cash.................................... 10000
House value (Gross)..................... 188000
Shares and bonds........................ 10000
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 210500



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 152000...(703.3)....2.28
Total secured & HP debts...... 152000....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-



Monthly Budget Summary

Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,976.29
Available for debt repayments........... 323.71
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 323.71


Personal Balance Sheet Summary
Total assets (things you own)........... 210,500
Total HP & Secured debt................. -152,000
Total Unsecured debt.................... -0
Net Assets.............................. 58,500
MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
«13

Comments

  • BachSoon
    BachSoon Posts: 172 Forumite
    Sounds like you have yourself a plan :)

    Good for buying the freehold, it's definitely the way to go.

    Do you plan to add the spare bits from each budget to your MFW pot? Just interested in how you're planning to do it :cool:
    £300 seems a lot for groceries. £200 does me, DH and DS. And is us going over budget :o

    Good luck :beer: i shall follow with intereet and cheer you on!
  • Rachib
    Rachib Posts: 36
    First Anniversary First Post
    Forumite
    Thanks BachSoon.

    Thanks, yes when I bought the house I had always envisaged on buying the freehold, and it was good to get it done, especially with the stories of freeholda being sold on and costs substantially increasing.

    Having checked £300 is a bit too much. I use Monzo for my everyday spending and this was the amount for last month, but I forgot about the additional Christmas food spending! :)
    MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
    MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
  • Sounds like you have a solid plan. Best wishes on your MFW journey.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance  - $4600.00
    Business Savings $43,310/100k
    Hope to be mortgage-free by end of 2023 
  • BachSoon
    BachSoon Posts: 172 Forumite
    But then when you come in under budget every month except Christmas, it just means extra pounds for the mortgage pot ;):D
  • Welcome and best wishes :D
    Mortgage restart June 2018 £119950Re mortgage August 19 £110470, … Mortgage November 22 £85600 final 0% CC 3300Home renovations - £65000, mid 2018 - mid 2022
  • Rachib
    Rachib Posts: 36
    First Anniversary First Post
    Forumite
    edited 24 January 2019 at 10:10PM
    So so far in January I have managed to carry out overpayments of £281.68. This is one of my better months.:T
    I don't think I will be able to do anymore for a couple of weeks due to having to pay a housing development service charge and have the service and MOT for my car booked for early February.

    Still within budget for January! :j, and have the money budgeted and assigned for the Service & MOT and Service Charge future expenses.
    MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
    MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
  • Rachib
    Rachib Posts: 36
    First Anniversary First Post
    Forumite
    Its also been a pretty frugal week so far. I've had 3 no spend days so far, and am expecting another one tomorrow all being well.
    The other day I only bought some train tickets for journeys i'm taking in February and March. I'm sure it has been worth booking these earlier rather than later!
    MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
    MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
  • Rachib
    Rachib Posts: 36
    First Anniversary First Post
    Forumite
    So I was planning on today being a NSD, however ended up spending today .......................the grand sum of £5.55, so I'm calling it a low spend day.

    This was £4.15 for a drink and a sandwich for lunch (as all the rolls had gone stale this morning) and £1.40 postage for a birthday present.

    I'm ahead of budget this month, so if there is anything left at the end of the month I've decided to split this 50/50 between savings and mortgage overpayments. :j
    MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
    MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
  • Well done for getting yourself into such a good position. I'm looking forward to reading about your progress.
    Mortgage overpayments 2018: £4602, 2019: £7870
    Mortgage overpayments 2020: £4620
    Mortgage 2017 £145K, June 2020 £112.6k:o
  • Rachib
    Rachib Posts: 36
    First Anniversary First Post
    Forumite
    edited 29 January 2019 at 5:43PM
    Thanks for the best wishes everyone.

    It's been two more no spend days the last two days, with the exception of my mobile direct debit which came out today.

    Luckily cakes and biscuits have been brought into work the last two days so my yearning for chocolate has been met by free cake and chocolate!!!
    :rotfl:

    Having caught something from the someone in the family over Christmas, I'm still not feeling 100%, and with the sleet falling, I think an evening of sofa and TV is on the cards!! :T
    MFW 1% Challenge 2019 - £2,383.44/£1,530 1.56%
    MFW 1% Challenge 2020 - £5,650.46/£1,455 4.00%
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