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    • turtlemoose
    • By turtlemoose 13th Mar 14, 12:36 PM
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    turtlemoose
    MF x 2 by 42
    • #1
    • 13th Mar 14, 12:36 PM
    MF x 2 by 42 13th Mar 14 at 12:36 PM
    Hello

    I've been overpaying but with no real consistency or effort put in to it, for a while now.

    After getting locoblade's spreadsheet I realised how much I could be saving, so I want to give this my attention.

    Ideally, I'd like to be MF twice by 42. I'm 29 this year (OH is 38 this year). I did once upon a time dream of this being by 40 but times change and I think 42 is more realistic. I am currently NOT on target for this! So there's some hard slog ahead. Sharing the goal will hopefully mean I have to keep trying, as now I know I have to come and update here....

    I have 2 mortgages, both residential, one with consent to let.

    M1: Initially a 50% shared ownership on a refurbished ex-LA house (not a newbuild), bought for 47500 on a 100% mortgage in Nov 2007, fixed rate at 6.49% - at the time that was a good deal on a shared ownership! Then pretty much soon as I signed on the dotted line, rates plummeted and I was kicking myself!!!! But I was still paying less with paying mortgage+rent than I had been with just renting.

    The house was never really worth 95k full price, that was over-inflated by the HA selling it. I was young (21) and stupid, and didn't think to question it. Fast forward to 2010, the price had plummeted so I decided to look at buying the other 50%. The HA sent an "independent" surveyor out who valued it at 85k.....massively over what similar properties were selling for locally. After a very lengthy complaints process with the HA being awkward at every turn, I eventually got them to agree to using a GENUINELY independent valuation. I used a local firm (office around 2 miles from the house) who provided a very detailed comparison in their report and valued it at 65k - that's more like it!! The HA accepted this, and despite having set the ball rolling in May 2010, eventually it completed in Nov 2011. I bought the second half and the freehold for 32500. As interest rates were now much lower, this new mortgage for the 100% of the house was lower than the previous mortgage on 50% plus monthly rent.

    This house is in a really rough area - hence the low price for a 3 bed end terrace. After 4 years living there, I'd sort of got used to it, but I wasn't happy and I didn't feel safe.

    In the midst of this, along came a little surprise... 2 blue lines on a pregnancy test, whoops!

    There was no way I was going to bring up my child in that area, I didn't feel safe as it was, I couldn't have my child living there. My OH lived in a very small rented flat so there was no space for baby and I, plus he has an older son who he has 3/4 nights a week. So we rented a 3 bed house together.

    I explored my options on the mortgaged house - basically in order to sell it I'd need to find 5k - simply didn't have it, nor the means to get it. So after researching renting it out, I approached my lender, got consent to let, and then advertised the house via the LA for people going down the 'homeless' route. The LA offer a bond scheme where they stump up the deposit if the tenant does something they shouldn't. The rental income is very low as I set the rent at the housing benefit levels - no point being higher than that. So it ticked over, mostly, with me subbing it around 50 a month, sometimes higher if there were repairs etc.

    Our rental house developed a quite serious roof leak, our landlord and agent refused to do anything about it, it eventually rendered 2 of the 3 bedroom completely unusable so at the end of our fixed term (luckily only a year), we scarpered out of there.

    With me having been on maternity leave for a year (I'm the main wage earner), my savings were now non existent and I had some CC debt. We moved to another rental. We decided we wanted to buy, but thought it wouldn't be for a good few years yet, probably not until the baby was in school. We viewed a few properties in the summer of 2013 - not to buy, but to get an idea of what we wanted, what price range we were looking at....when we accidentally found THE ONE.

    It was a s**thole!!!! We later found out the house had been empty for at least 12 years, possibly more. However as we walked around this filthy, dated, dark and dingy house, I could practically hear it singing to me about how good it could be. We got in the car after the viewing, looked at each other, and both blurted out that we loved it. After some frantic rejigging of finances and exploring all the options with my mortgage advisor, we realised we could *just* get it. We offered low, they haggled, we ended up at 114500 with a 10% deposit. We completed November 2013 and moved in to the dump!! This is M2.

    Thankfully, most of the work is just cosmetic and also compensating for it being neglected for so long. Despite it being empty for so long, the previous owners had a gas boiler and central heating in stalled in 2003 - as it has been unused it is in great condition, and double glazing installed in 2010. However the kitchen was totally unusable - the actual carcasses were rotting - but luckily my Dad is a carpenter so we got a new kitchen from Wickes for fairly cheap, and zero labour costs apart from a few dinners, thanks Dad!! Unfortunately he lives abroad so we can't set him to work on the rest of the jobs that need doing

    So, we are chipping away bit by bit at the work that needs doing. The top 3 big jobs that need doing are - bathroom full replacement, downstairs loo replacement, and the flat roof on the brick store needs replacing. All of those are on hold as we had to use a CC to pay for the kitchen - so we are just having to put up with those for now.




    My what an essay! I don't blame you if you didn't read it all, but thought I'd explain it just in case anyone wants to know!
Page 3
    • turtlemoose
    • By turtlemoose 16th Jan 15, 3:46 PM
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    turtlemoose
    91.66 on its way to me from Quidco, going straight on to the loan soon as it clears.

    Although we don't need it any more, I've been offered some overtime at work so going to try to do whatever I can and use it all as loan OPs. Every hour I work over is a step closer to MF by 42 right?!

    OH has found out he can get childcare vouchers in his new job, he's missed processing for this month but should hopefully get them by February paydate, meaning that saves us about 70 a month from March onwards.

    I've increased our food budget to 275 for the month (include 2 adults, 1 toddler in nappies, half a 10yr old and a cat). Currently at 226 spent for January so Must Be Good to come in within budget for Jan.

    My tenant has been paid some Housing Benefit - they are still 2 weeks in arrears at 10 weeks in to the tenancy. It's frustrating waiting for them to get it sorted, but I'm trying to be patient.
    • turtlemoose
    • By turtlemoose 22nd Jan 15, 12:40 PM
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    turtlemoose
    I've decided to think of my debt in 1% chunks for the moment (pinched from a DFW post) - so 85.60. I've already got my approximate monthly budgets planned for the rest of the year including OPs from the joint account. But I'm going to try to generate (whether that is overtime, selling things, surveys, cashback, whatever really!) an extra 2% every month.

    So, January:
    91.72 paid out of Quidco
    25.00 sold a DVD unit

    54.48 to make this month then.
    • turtlemoose
    • By turtlemoose 27th Jan 15, 10:22 PM
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    turtlemoose
    Ugh, just realised we've spent 15k on childcare so far, and will spend another 13k before he goes to school. Wish I'd not done the sums
    • turtlemoose
    • By turtlemoose 28th Jan 15, 4:19 PM
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    turtlemoose
    5.37 in Halifax casback, 49.11 to go
    • turtlemoose
    • By turtlemoose 30th Jan 15, 11:23 AM
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    turtlemoose
    Due to being MSE this month there was a surplus of 82.13 in the joint account. As I deal with all money related matters, I'm taking that as an "extra money earned" and added it to the loan OP, meaning I made an extra 204.22 - above target wahoo!


    On to the real target though, that mortgage free by 42 goal. I've been messing with some numbers for the residential mortgage as the fixed rate is up in November. We'll be 2 years in to a 25 year term by that point, with only approx 200 OPs made in that time, due to throwing it all at debt instead.

    We should be at *just* under 80% LTV when we remortgage, meaning much better deals are available. I've realised I could remortgage at a lower interest rate, reduce the term to the point where the monthly payments stay the same as they are now - but I've chopped a chunk off the mortgage.

    EG using today's deals (I know they'll change of course) assuming 79.99% LTV, I could get Santander's Current Account only 2yr fix at 2.14% BUT reduce the term to 16 years. The repayments would be 600 a month, same as now, but I'll have shaved 7 years off the original term.

    Have I calculated that right? That'd make me 46 (instead of the current 53) at the time it was paid off (assuming no OPs etc), simply by remortgaging.
    • turtlemoose
    • By turtlemoose 30th Jan 15, 3:44 PM
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    turtlemoose
    Daily interest:
    LOAN: 0.67
    BTL: 4.34
    HOME: 13.38

    18.39 a DAY in interest.
    • lavinia21
    • By lavinia21 6th Feb 15, 5:11 PM
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    lavinia21
    turtlemoose i found you on supersecretsquirrels thread so i thought i would come and see what your up to good luck with your journey. I am going to have a read of your thread I can't promise words of wisdom but i will chip in where i can.
    Positivity is the key there is a reason why life happens. Find your rainbow and ride it.
    • turtlemoose
    • By turtlemoose 18th Feb 15, 12:06 AM
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    turtlemoose
    So does anyone have any top tips.on what I should be doing to my current account to make sure I get the best remortgage possible? Only 8.5 months to go and bit scared of the new rules. I'm thinking:

    1) hide nursery payments in a separate account - Have OH pay it in lieu of paying in to the house pot (he won't be on mortgage) so I can pretend that 2x childcare vouchers covers the cost.

    2) throw every penny at op'ing my personal loan - would be awesome.if I could clear it before November (potentially possible, if overtime comes back on the cards)

    3) cancel unused credit card x1, make slightly-over-min-payment payments on 0% Card


    What else do I need to do? The only non "bill" DD is for lottery (18). No gym or other such things.
    • turtlemoose
    • By turtlemoose 26th Feb 15, 2:17 PM
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    turtlemoose
    Little update:

    So far this year we have paid 10.62% of our debt as of 1st Jan. Now stands at 7650.83. This is 0.22% behind target (gasp shock horror!) but come September when we get the nursery 15 free hours we will make up the difference easily, I hope.

    Hit my "make 2% extra" target again this month with an end total of 174.42 (target 171.20), from eBay sales of stuff I cleared out at home.

    Been told no overtime at work so not sure how I'm going to manage my 2%s from now on. I've run out of stuff at home to sell, I don't have time for a second job. Hmm. I already do surveys, cashback etc but that won't generate 170 a month. Need to get thinking!

    We have also started our emergency fund too, balance 100 (got to start somewhere!).

    Oh, honeymoon booked, 360, needs to be paid off in March so unless I manage to make any extra money there will be no OP in March at all. Yikes.

    Have spent the required minimum on my Nectar credit card in order to get the bonus 20000 points. Sainsbos have a double up coming in March, so I'll be swapping 4000 points for 40 in a few categories - 1) homewares, to get some much needed new saucepans (currently own one plus a tiny milkpan!). 2) Clothes - get as much as I can in next size up for DS. 3) toys, buy a few bits to put away for Christmas. Last one, 4) baby - I'll get a few packs of nappies but not too many as don't think we'll be using them for too much longer. That'll be a nice bit of shopping for zero cost, and I will still have some points leftover - I'll save them either for the next double up or maybe for Christmas food shop.
    • turtlemoose
    • By turtlemoose 10th Mar 15, 4:44 PM
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    turtlemoose
    It's a 5 week nursery month and also had to pay off the honeymoon. No OPs this month

    I've been reading mfw on and off (several years) and always found it motivating. But today I'm struggling to feel buoyed up by what I read. I guess I'm feeling down that I seem to be constantly fighting a partner who just wants to spend spend spend, and I'm the one who always needs to have a sensible head and juggle things to cope with the spending. It's exhausting sometimes.
    • LadyGnome
    • By LadyGnome 10th Mar 15, 5:34 PM
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    LadyGnome
    I think we all have days like that. Have a look back to where you were 12 months ago and you will see what all your effort has achieved. Would a small token OP help pyschologically even if its just 1?

    Its hard when your partner isn't onside, perhaps ask him if what he wants to buy is worth the extra x amount of interest you will have to pay to the bank? Is he happy that his splurging is boosting the profits of the banks?
    Mortgage
    Start Nov 2012 310,000
    Feb 2018 237,821.60 Reduction 72,178.40
    MFW 2018 #42 788.90/3100
    End Oct Sept 2034 but I have a cunning plan...
    • turtlemoose
    • By turtlemoose 11th Mar 15, 1:07 PM
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    turtlemoose
    Unfortunately (or fortunately?!) we are just polar opposites when it comes to money. He feels that he earns it so he should be able to spend it. He seems to begrudge every penny that goes on bills as he'd love to spend the lot.

    I earn more than him (22 v 37). And I have rental income too (generates 115 a month profit at the moment). I take 200 personal spends a month. He takes 350 a month personal spends and it was a hell of a battle to get it that low. He often runs out of money before the end of the month.

    Some of the time I feel ok about this, just accept that we are different and have different opinions on this. Other times I really begrudge it and feel he is being selfish and irresponsible. At times he gets in a tizzy that he is not named on the mortgage - well that isn't even possible as his credit is so poor and he has 8k of (frozen interest) debt that he is paying off at a rate of 16 a month.

    *sigh*
    • turtlemoose
    • By turtlemoose 11th Mar 15, 1:14 PM
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    turtlemoose
    Ref 12 months ago:

    Start debt 13783
    Current debt 7400

    6383 paid off in 11 months. 580 per month. That's 317 a month overpayment. In a year where my OH was signed off work for 5 weeks and unemployed for 4 months, I suppose that isn't bad
    • LadyGnome
    • By LadyGnome 11th Mar 15, 2:45 PM
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    LadyGnome
    Excellent result

    It must be hard when your other half has a more "relaxed" view of debt and spending. How does he think he is going to manage in retirement or does he not think beyond the next payday.

    I'm a bit of a fan of the Your Money or Your Life book it really changed my thinking about spending.
    Mortgage
    Start Nov 2012 310,000
    Feb 2018 237,821.60 Reduction 72,178.40
    MFW 2018 #42 788.90/3100
    End Oct Sept 2034 but I have a cunning plan...
    • turtlemoose
    • By turtlemoose 11th Mar 15, 4:03 PM
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    turtlemoose
    He'll get a state pension during retirement, and if he doesn't own a house outright by then he will live in social housing and have that paid for by the government. That's his attitude.

    He started a new job recently and I kicked up a big fuss about pension. He is annoyed about the auto-enrol thing and them "taking" 1%. I pointed out that if he ups his pension contribution to 5% then his employer also adds 4% to it AND his CSA payment reduces proportionately. So....same amount of money in his pocket at the end of the month, but 9% going in to his pension vs 2%. He *still* didn't want to do this. Total apathy. I kicked up a big stink in the end and just went on and on until he did it.

    Perhaps he expects that I am responsible for feeding and housing him in his old age.

    Perhaps he thinks he will die before he gets there (his dad died in his mid 50s, but his mum is still going at 75+ despite 3 heart attacks).

    Thanks for the recommendation but he won't read a book.
    • turtlemoose
    • By turtlemoose 13th Mar 15, 3:19 PM
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    turtlemoose
    Wow a year since I started this diary.

    Time for a round up then!

    On to the numbers then:

    M1 Rental house:

    IN: Rent 516.75
    OUT: Mortgage 270 (incl v small op to round up the number)
    Set aside for tax/repairs/insurance etc: 131.75
    Profit: 115

    M2 Home:

    Joint account:

    IN: OH 815 + ME 1600 + CC voucher 486 + rental profit 115 + CB 82 + Halifax reward 5 = 3103

    OUT:

    Mortgage: 600 (incl. v small OP to round up the number)
    Council tax: 97
    Water: 20.83
    Gas&Elec: 75
    Virgin Media: 83.49
    Netflix : 5.99
    TV Licence: 12.12
    Mobile x 2: 34.99
    Groceries: 275
    Lottery d/d: 18
    OH fuel: 80
    Date night: 50
    Life assurance: 10.84
    Nursery: 862.50 (or 690 if it is a 4 week month)
    Personal Loan: 187.76
    Tax credits: 50
    0% CC: 26.24

    TOTAL 2489.76 (2317.26 4 wk nursery)

    Then for other things that we pay annually, I divide by 12 and put that much aside in a separate account to try to avoid a nasty surprise we can't pay:

    B&C Insurance: 22.00
    Cat (non food): 5.00
    Breakdown cover: 10.00
    Car maintenance: 100.00
    Car tax: 17.50
    Car insurance: 90.00
    DS1 expenses: 40.00
    Christmas: 30.00
    OH debt: 50.00
    Emergency fund: 50.00
    Savings: 50.00

    TOTAL 464.50


    TOTAL IN TO JOINT ACCOUNT: 3103
    TOTAL OUT OF JOINT ACCOUNT: 2954.26 (2781.76 4wk nursery)
    DIFFERENCE: 148.74 (or 321.24 4 wk month)
    • turtlemoose
    • By turtlemoose 13th Mar 15, 3:24 PM
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    turtlemoose
    BTL balance: 49,275.89 Daily interest 4.31
    Home balance: 99,775.17 Daily interest 13.37
    Total debt 0%: 2940.29
    Total debt 4.9%: 4628.84 Daily interest 0.62
    • turtlemoose
    • By turtlemoose 13th Mar 15, 3:44 PM
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    turtlemoose
    As you can see our outgoings have increased as we now have 2 cars, but OH can't access his new job on public transport (well he could but it'd take over an hour and a half to travel 14 miles). But OH's income has increased a little so he's adding more to the pot now 1058 vs 940 before so that helps.

    Both mortgages hit a milestone - Sub 50k and sub 100k


    I suppose next target is that daily interest - currently 18.30 total - want to get to the next bracket

    Job wise mine is a bit wibbly on the ol' prospects, the IT system I support is being phased out at some point from July onwards (could be July, could be 18 months away). It's been strongly suggested to me that I will not be offered an alternative role within the company. Sooooo .... trying not to panic too much about that and wait until I hear something concrete.

    Upcoming this year: Getting married!! Trying for baby #2!! exciting times
    Last edited by turtlemoose; 13-03-2015 at 3:46 PM.
    • turtlemoose
    • By turtlemoose 18th Mar 15, 11:30 AM
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    turtlemoose
    I currently overpay by 6.77 a month at the mo just to round the figures up. I've never bothered putting this in to an OP calc before, but my Natwest online account just told me this will cut 6 months off my mortgage. That has put me in a really good mood! Such a small amount can make such a difference. Can't wait until the bigger payments start hitting it
    • turtlemoose
    • By turtlemoose 18th Mar 15, 12:32 PM
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    turtlemoose
    Little "one year on" summary for my own reference, calculated properly, from Feb 14 to Feb 15:

    Mortgage 1: 50,859 ---> 49,276 (75.81 LTV)
    Mortgage 2: 102,419 ---> 99,776 (87.52 LTV)
    Debt: 14,064 ---> 7,570
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