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  • FIRST POST
    • AlexLK
    • By AlexLK 30th Dec 17, 5:01 PM
    • 6,066Posts
    • 32,099Thanks
    AlexLK
    Renovations and Repayments II: New Year, New Start, New Diary.
    • #1
    • 30th Dec 17, 5:01 PM
    Renovations and Repayments II: New Year, New Start, New Diary. 30th Dec 17 at 5:01 PM
    2018 is almost upon us and is set to be the year I get my finances in order.

    So, what's changed since the start, middle, end of my last diary?
    - Regular income is up
    - Gained some knowledge of how to use a spreadsheet to budget
    - In a much better position to make steps towards positive change
    - My wife and I are working as a team
    - Unless anything drastically changes our son is staying at the local school

    What do I want to achieve?
    - Regular and realistic amounts to savings each month
    - Make the mortgage payment up to 1,000 each month
    - Get a better rate on our mortgage
    - Get rid of a lot of things we don't need ... OK that's business as usual
    - Finish the house and consider our options (staying in current house or using the equity to move somewhere new - not to my childhood home and if I mention this, please feel free to point me to this starting post)
    - Monthly targets for both financial and personal goals
    2018 totals:
    Savings 7,600
    Mortgage Overpayments 1,750
Page 1
    • beanielou
    • By beanielou 30th Dec 17, 5:56 PM
    • 54,098 Posts
    • 214,544 Thanks
    beanielou
    • #2
    • 30th Dec 17, 5:56 PM
    • #2
    • 30th Dec 17, 5:56 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • newgirly
    • By newgirly 30th Dec 17, 6:11 PM
    • 6,283 Posts
    • 43,369 Thanks
    newgirly
    • #3
    • 30th Dec 17, 6:11 PM
    • #3
    • 30th Dec 17, 6:11 PM
    Fantastic aims Alex, don't worry we will give you a little reminder of what you just said if needs be, best of of luck
    MFW 21
    Target for 2018 40k/13,632 paid so far

    Mortgage 36,319 4yrs left. Total owed 48,358 plan to clear in 14 months
    • Goldiegirl
    • By Goldiegirl 30th Dec 17, 8:35 PM
    • 8,330 Posts
    • 48,853 Thanks
    Goldiegirl
    • #4
    • 30th Dec 17, 8:35 PM
    • #4
    • 30th Dec 17, 8:35 PM
    Hi Alex.

    You've come a long way since your first diary. I'm intending to spend more time here, so I will be following your new adventures. All the best for 2018.
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
    • AlexLK
    • By AlexLK 30th Dec 17, 8:54 PM
    • 6,066 Posts
    • 32,099 Thanks
    AlexLK
    • #5
    • 30th Dec 17, 8:54 PM
    • #5
    • 30th Dec 17, 8:54 PM
    Thank you Beanie and NG.

    Just sorted the spreadsheet for the coming month. We are finding using a credit card for our day to day spending to be rather helpful as we know what we will be paying each month rather than guessing / withdrawing cash / using our debit cards. However, it has been somewhat abused this month as we've spent a lot of money. As a measure to not find ourselves in debt we set up a direct debit to pay the credit card in full each month, so it is still the case of "can't pay for it, don't buy it".

    January Financial Aims:
    925 to savings from surplus income.
    Total payment of 1,000 to mortgage.
    Get a better rate on mortgage. Shamefully we have never shopped around for this before. Is it worth spreading the mortgage payment over a longer term to reduce the monthly payment due so the overpayment is effectively higher each month or shortening the term so the 1,000 is all repayment?

    On another point, prices are higher here than they have ever been by some considerable margin. We bought this house derelict and paid a very low price. It's very nice to see it starting to come together finally after many years of putting up with things the vast majority of people wouldn't. However, whilst we have some wonderful memories here, we also have some truly awful ones. My wife and I have had a lot of time to talk about our future plans over this Christmas period, the potential of moving to another county and our relationship with my parents. At the moment we need to focus on finishing the house but what happens after that, I think I'm open to something other than waiting to inherit my parents' house.
    2018 totals:
    Savings 7,600
    Mortgage Overpayments 1,750
    • AlexLK
    • By AlexLK 30th Dec 17, 9:08 PM
    • 6,066 Posts
    • 32,099 Thanks
    AlexLK
    • #6
    • 30th Dec 17, 9:08 PM
    • #6
    • 30th Dec 17, 9:08 PM
    Thank you, Goldie.

    Great to hear from you and hope retirement is treating you well. At the moment life is the best it ever has been for me and I'm hoping things will continue to follow the current positive trajectory.
    2018 totals:
    Savings 7,600
    Mortgage Overpayments 1,750
    • Watty1
    • By Watty1 30th Dec 17, 10:46 PM
    • 2,990 Posts
    • 21,290 Thanks
    Watty1
    • #7
    • 30th Dec 17, 10:46 PM
    • #7
    • 30th Dec 17, 10:46 PM
    Great posts today .....promising tone to start new diary off with. Look forward to reading 2018 plans
    Mortgage at start of diary Sept 2013: 132,995 Aug 2015 0
    Overpaid next mortgage. 79,491 down to 27152
    Changing focus for now
    • Debsnewbudget
    • By Debsnewbudget 30th Dec 17, 11:07 PM
    • 259 Posts
    • 2,440 Thanks
    Debsnewbudget
    • #8
    • 30th Dec 17, 11:07 PM
    • #8
    • 30th Dec 17, 11:07 PM
    Loving how positive you sound Alex
    Every good wish to you, your wife and son for the coming year x
    • kelpie35
    • By kelpie35 30th Dec 17, 11:07 PM
    • 1,551 Posts
    • 5,019 Thanks
    kelpie35
    • #9
    • 30th Dec 17, 11:07 PM
    • #9
    • 30th Dec 17, 11:07 PM
    A Wonderful New Diary, Alex.

    All very positive.

    All the best for the New Year.

    Have subscribed to this.
    • Suffolk lass
    • By Suffolk lass 31st Dec 17, 9:14 AM
    • 1,983 Posts
    • 20,683 Thanks
    Suffolk lass
    Ohh, lovely, shiny new diary Alex! Very tempted to update mine with a new one too. I wish you well, season's greetings and good fortune with those aims for 2018
    MFiT T4 #2 update 88.72% after Q9 tiny bit ahead of where I should be
    Save 12k in 2018 #53 - after March 19.96% 1,996.19/10,000 5.04% behind
    OS Grocery Challenge 2018 spent 721.33/3,000 including stores so far 24.04% of my annual budget at the end of April
    My DFD is here
    • maddiemay
    • By maddiemay 31st Dec 17, 9:22 AM
    • 3,467 Posts
    • 31,793 Thanks
    maddiemay
    Great start to a new diary and a New Year Alex. You and your family have come a long way and the future sounds bright for you. Not much hope for changes in the way your parents see life I guess, very sad, the loss will be theirs.
    • hiddenshadow
    • By hiddenshadow 31st Dec 17, 1:07 PM
    • 2,479 Posts
    • 11,347 Thanks
    hiddenshadow
    Love the sound of your goals for the future, Alex.

    Get a better rate on mortgage. Shamefully we have never shopped around for this before. Is it worth spreading the mortgage payment over a longer term to reduce the monthly payment due so the overpayment is effectively higher each month or shortening the term so the 1,000 is all repayment?
    Originally posted by AlexLK
    Effectively it doesn't matter, as the interest amount paid to principal would be the same. e.g. if you normally pay 750/mo and 150/mo of it is interest, it's the same if you make a 250 OP to get it to 1,000 or if you change your term so that you pay 1,000 as a regular payment. (750 - 150 interest = 600 payment + 250 OP: 850 to principal...vs. 1,0000 - 150 interest: 850 to principal)

    Having said that, a few things to consider:
    - there may be limits on how much you can OP, so you may not be able to always OP the full 250...this would not apply if your standard payment was 1,000 and you made no regular OPs
    - with planning OPs, plans can always go awry. This can be both a pro (you're not locked in to the 250 OP so if you had a spendy month you could skip it) and a con (you're not locked in so can overspend even if you don't wish to)
    - picking a longer term will mean you pay more over time, unless you do always OP the extra to make up the difference (see point #2)
    - just a note from our circumstances, we picked a 5yr fix last time with the plan to pay it all off in 5 years..that plan went to pieces 1 year in when we decided to move abroad. So now we're faced with an early repayment charge next year when we sell the house. What seems like a sure-thing plan one day/year might not be at all true in following years, so it may be worthwhile choosing the more flexible option when you hunt for a new mortgage deal.
    MFW: 197,100 (2013) to 100,646 (May '18)
    2018 MFW #56: 4,000/105,000 3% / MFiT-T4 #15: 58,854/90,000 65%
    • AlexLK
    • By AlexLK 31st Dec 17, 8:24 PM
    • 6,066 Posts
    • 32,099 Thanks
    AlexLK
    Well, my younger self would have never imagined it to be new year's eve, completely sober and posting on here.

    Thank you, Watty, Debs, Kelpie, SL, Maddie and Hidden Shadow.

    SL - Can you post a link to your diary, please?

    Maddie - For the first time in a very long time I can say I'm looking forward to seeing what the future brings. I've come to realise my parents do what suits them and will always agree with each other. Father was quite distressed when I saw him earlier today, he tells me he thinks I'm doing well with my life, have done a lot to help him and this coming year should be a positive one for my wife, son and I. However, when mother joins in the conversation he agrees with her that I've been a disappointment to them. I will never please them and believe whatever had come of my life I would be a disappointment to them.

    Hidden shadow: Thank you for the advice. It makes sense. I'm not really sure what will be the best option for us at the moment. I missed that you are moving, where are you going?
    2018 totals:
    Savings 7,600
    Mortgage Overpayments 1,750
    • A Frayed Knot
    • By A Frayed Knot 31st Dec 17, 8:58 PM
    • 2,372 Posts
    • 10,575 Thanks
    A Frayed Knot
    Hi AlexThought I would pop on and say what a pleasure it is to read your shiny new diary

    No coaxing needed from me this time to make new challenges and goals. You are well ahead of the game

    About re-mortgaging and a new deal, I would only mention what HS has already stated - watch out for your overpayment restrictions.
    Happy and Healthy New Year to you and your Family, wishing you all the best.
    Always have 00.00 at the end of your mortgage balance and one day it will all be 0's
    Target 19 months 5/24
    MFMarch 30 Re/M Oct 23 Target -Dec 19
    O/P's 2014/4000, 2015/6294.69, 2016/3186.80, 2017 4068.97

    • AlexLK
    • By AlexLK 31st Dec 17, 9:09 PM
    • 6,066 Posts
    • 32,099 Thanks
    AlexLK
    Thank you, AFK.

    I find the monthly challenges / goals help me to focus. I need to make a complete January target set.

    Most mortgages have an overpayment limit of 10% of the mortgage value, IIRC?

    Wishing you a happy and healthy new year, also.
    2018 totals:
    Savings 7,600
    Mortgage Overpayments 1,750
    • beanielou
    • By beanielou 31st Dec 17, 9:15 PM
    • 54,098 Posts
    • 214,544 Thanks
    beanielou
    Mine is 10%.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • gallygirl
    • By gallygirl 31st Dec 17, 9:27 PM
    • 16,589 Posts
    • 109,553 Thanks
    gallygirl


    - Finish the house and consider our options (staying in current house or using the equity to move somewhere new - not to my childhood home and if I mention this, please feel free to point me to this starting post)
    Originally posted by AlexLK
    Quoting this just in case you accidentally delete it in the future .

    I will never please them and believe whatever had come of my life I would be a disappointment to them.
    Originally posted by AlexLK
    Alex if you're damned if you do and damned if you don't you might as well just do as you damn well please .

    Here's to 2018 .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • hiddenshadow
    • By hiddenshadow 31st Dec 17, 10:52 PM
    • 2,479 Posts
    • 11,347 Thanks
    hiddenshadow
    Hidden shadow: Thank you for the advice. It makes sense. I'm not really sure what will be the best option for us at the moment. I missed that you are moving, where are you going?
    Originally posted by AlexLK
    Probably worth seeing what the options are and how big a difference they make when you run the numbers.

    We moved to Ireland last August.

    Most mortgages have an overpayment limit of 10% of the mortgage value, IIRC?
    I think that's standard with most lenders, I believe it's 10% based on the balance at the start of each year (not 10% of the original balance).
    MFW: 197,100 (2013) to 100,646 (May '18)
    2018 MFW #56: 4,000/105,000 3% / MFiT-T4 #15: 58,854/90,000 65%
    • gallygirl
    • By gallygirl 1st Jan 18, 8:14 AM
    • 16,589 Posts
    • 109,553 Thanks
    gallygirl
    We moved to Ireland last August.
    Originally posted by hiddenshadow
    Whereabouts are you HS? (roughly!). We're in Kerry presently and off to see Fungie later, hopefully .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • newgirly
    • By newgirly 1st Jan 18, 9:36 AM
    • 6,283 Posts
    • 43,369 Thanks
    newgirly
    Happy new year Alex
    MFW 21
    Target for 2018 40k/13,632 paid so far

    Mortgage 36,319 4yrs left. Total owed 48,358 plan to clear in 14 months
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