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  • FIRST POST
    • try harder
    • By try harder 27th Mar 16, 4:39 PM
    • 749Posts
    • 2,845Thanks
    try harder
    170000 in 10 years
    • #1
    • 27th Mar 16, 4:39 PM
    170000 in 10 years 27th Mar 16 at 4:39 PM
    hi first post on mortgage free wannabe site -i have a 170000 mortgage on a house valued at around 230000 we have an interest only mortgage on 155000 and repayments on the other 15000 paying 676 a month total mortgage we are paying 3.88%variable rate.We received a small inheritance that we used to pay a lump sum off of the mortgage we have no limit on what we can overpay which is really good.We are both in our 50s and i am afraid i have never ever been any good with money we have spent every penny that we had spare on cars holiday etc but mostly on our children and now its our children and grandchildren i could have bought 3 houses over the last 20 years with the money i have wasted .We have 10 years left to finish paying this mortgage and if i dont do something now i will end up with no home so i must start now to make changes.I have read through as many diaries as i can and bought folders and notebooks written out budgets etc and now want to work really hard to pay off the 170000 in 10 years i am hoping to do this by overpaying 10 a day equaling 3650 pounds in a year and around 1200 pounds a year is coming off of the balance in repayments after all the interest so total around 5000 a year off the mortgage then save the other 12000 in other ways i have opened 2 isas 2 regular savers and numerous bank accounts.I may not get anywhere near to that amount saved i have never ever saved before but i am very determined and i hope that with the help of everyone on here i can stay motivated i am definitely looking forward to trying
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    • ch4rly2002
    • By ch4rly2002 11th Jan 18, 12:27 PM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Aww TH, that's so sweet of you. Thank you for the kind words, and for thinking about me & my dad. I'm sorry that you have lost your dad, he sounds like a great person and that you had a lovely relationship. I'm sure he'd be cheering you on more than laughing xx
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • try harder
    • By try harder 11th Jan 18, 6:14 PM
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    try harder
    I thought after speaking to you ch4rly2002 i would look back over all my posts and see what has changed over the last 22 months .The first thing i noticed was that i forgot to say that at Christmas 2016 my children who were travelling and whom i thought i would not see both came home ,this was the best part of the last 22 months.
    I can also see that i chop and change quite a lot ,i had initially intended to overpay my mortgage but now save with the intention to overpay at the end and hopefully pay in full this also gives me the security if i need a lump sum for something that i have it available.
    Over the 22 months i have bought a new sofa for the kitchen ,a car ,a second hand second woodburner .new fascias and guttering a cheap holiday ,money to spend on various jobs to both cars and lots of money spent above the budget saved on Birthdays and Christmas so quite a lot of things came out of the savings .
    My food budget has changed too , it has been low and high and im sure will yo yo a lot in the future but overall i am very happy with it .
    My savings are going well but my dreams of overpayments is not so good in fact its just that a dream i definitely do not seem to have any more money so i am just going to concentrate on the savings for now with the aim being 1500 a month x 96 months but i will be happy with 1000 a month but will also continue to work on my new clothing business and My Millionaire Challenge so plenty to get on with for now.
    • ch4rly2002
    • By ch4rly2002 12th Jan 18, 9:08 AM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Brilliant summary - it's good to see where you started, what's changed and where you stand now. When you list all the things you've paid out for together in one post it really shows what you have achieved to be able to cover it all comfortably from savings. I'm glad the kids made it home as well, that must have lovely

    I've been thinking about your interest rate and savings etc. I think it might be worth you considering talking to a mortgage broker as I believe they have more success in getting mortgages through (maybe because they can better match people to the most likely to be accepted or maybe because the bank think they will have already checked them out reasonably well). If you don't have an exit fee to leave your current mortgage, I would wholeheartedly recommend London and Country. They're free to use with no obligation (Martin raves about them all the time) and I found them very good at finding the right solution. If you mention that you want a better interest rate but you also want savings they might be able to find a better deal for you. I think an offset mortgage might be good for you as you don't pay mortgage interest on the money you have in your savings but the interest tends to be a little higher - but with your interest as it is it might not be too different to what you're on. I know you said you're wanting to save for the long term but I thought if you have an offset you could keep some in that for security and risk some in the high interest ISA so that you have the best of both worlds - some investment and some security. They can probably also find a way to work with the whole self employed aspect without you being at a disadvantage. Anyway, just a thought, that might not even be what you want but if you're tempted it costs nothing to find out
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • try harder
    • By try harder 13th Jan 18, 10:31 AM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Morning ch4rly2002. That was so very kind of you to think of me and for your great advice .I have tried going down that route but my husbands wage is thousands short of what we would need to borrow ,he is self employed and works between forty and seventy hours a week but only charges a low hourly rate so we would only be able to borrow a much smaller amount .Im afraid we will have to wait for a few years until we can pay quite a lot off before we could get a mortgage and we will probably be too old by then .Thank you though .for thinking of me.
    • ch4rly2002
    • By ch4rly2002 13th Jan 18, 11:44 AM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Ah, I'm sorry. I think it's rubbish that the bank won't let you switch to a cheaper mortgage rate now and are telling you to get to a lower LTV before they'll change it. I guess just keep doing what you're doing then as it's working brilliantly
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • themadvix
    • By themadvix 15th Jan 18, 9:00 AM
    • 1,548 Posts
    • 9,140 Thanks
    themadvix
    If you can't switch mortgage deal TH, is there a reason you're not OPing at least some of your savings? (There might well be, I just can't remember it!)
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • try harder
    • By try harder 15th Jan 18, 9:32 AM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Morning ch4rly2002 and themadvix . I am hanging on to my savings for two reasons one is that they are earning a much higher interest rate than the interest rate on my mortgage and also because of the security of having ready money if its needed rather than borrowing it on my credit card .Even if we got our mortgage level to a required level we still would not pass the affordability requirements sadly but i definitely would like to make some very small overpayments thats for sure especially to my Sub Account 2 which currently stands at around 10,500 and is on a repayment i might start chipping away at that with very small amounts as i can afford to do so.
    • try harder
    • By try harder 15th Jan 18, 12:34 PM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Weekly round up .
    18,643.21 savings.
    258.70 free money
    800 in Millionaire Challenge pot
    19,701.91 total
    It looks like i might make the 20,000 target in January if i include all three pots Busy Mee1.

    I have spent quite a lot of money on food this month but have stocked up for two or three weeks on basics ,i have 128.72 left for the rest of the month and 97 left for diesel for two cars mine is still quite full.

    Ebax sales going well and i am meeting my 10 a day target in fact i have exceeded it so far but hoping for lots more sales so more listing to do this week.
    • daisy 1571
    • By daisy 1571 15th Jan 18, 3:40 PM
    • 266 Posts
    • 3,278 Thanks
    daisy 1571
    Hi TH, I can understand you trying to keep your savings cos it's lovely to see them build up but I wonder if there has been an occasion in the past where you suddenly needed 20,000 in a hurry ? I only ask as I know my mum is on her own now and is awfully worried about money and scared to spend any in case she needs it. That is what I was asking her the other day to try to allay her worries. Even if you paid off your sub account you would very quickly have a nest egg of 10,000 again at the rate you manage to save at, which is a huge amount plus you would have a bit more money each month as you would no longer be paying that bit off.

    Just a thought, we are all different and even though it makes mathematical sense to keep your savings at a higher rate I know I would rather pay off bits of the mortgage to get rid of it.
    Loving your journey, you have changed your mindset so much and are a real inspiration

    Daisy xx
    "Never save something for a special occasion. Every day in your life is a special occasion" Take hold of every moment by anon

    The difference between what you were yesterday and what you will be tomorrow is what you do today
    • try harder
    • By try harder 15th Jan 18, 3:54 PM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Hi Daisy .I completely understand where you are coming from .Maybe once i have reached a slightly higher figure i would feel happier at parting with the money to the Sub Account ,it certainly would make me feel happier to know that instead of a payment of 653 a month it would be around 500 and i could still overpay or save the difference but would be good if more interest rates appear .I will definitely bear it in mind and thank you for your advice ,funnily enough i did make a very tiny payment to the SA this morning i will try to make some even very small payments then see how things are maybe in six months to a year.Thank you Daisy
    • try harder
    • By try harder 15th Jan 18, 4:08 PM
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    • 2,845 Thanks
    try harder
    I have just looked it up and i pay just over 135 a month on that small mortgage so 1626 per year and i could save 1875 in interest paying it off early so does actually look quite enticing .I will wait until i have saved up a bit more as i said maybe i could make a goal of 25,000 then pay it off and still be left with 15,000 i feel comfortable with that .Thanks again.
    • Busy Mee1
    • By Busy Mee1 15th Jan 18, 4:47 PM
    • 572 Posts
    • 2,553 Thanks
    Busy Mee1
    Hi Try Harder - saw my name mentioned and thought I would pop in. Brilliant that you are on track for 20k at the end of Jan...it was just a nice round figure that I plucked out of the air, but great that it is looking like a reality

    I think that it makes perfect sense to pay off your sub account on your mortgage. I know that you pay a relatively high interest rate and although the returns on your S&S ISA currently outstrip that, but that is in no way guaranteed. I think it spreads your risk if you pay off chunks of your mortgage, in addition to having savings. 10k off your mortgage, means that it is gone forever and secures a bit more of your home. I know it will be painful because it is lovely to have the cushion of savings. It does however make sense in the long run, your priority has got to be to pay off your mortgage to secure your home for your long term future.
    • ch4rly2002
    • By ch4rly2002 15th Jan 18, 5:45 PM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Ultimately it is up to you what you decide to do TH, but I have to say I think Busy Mee is on to something. Despite the high interest rate on your savings, the risk of the savings going down would make me slightly nervous so it might be a good idea to pay off the sub mortgage to save the interest and guarantee you don't lost that bit of money. You would still have some savings and could build up your savings with the extra 135 that you wouldn't be paying on the sub mortgage. BUT, like I say, it is up to you what works best for you, I just thought I'd share my thoughts
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • try harder
    • By try harder 15th Jan 18, 9:24 PM
    • 749 Posts
    • 2,845 Thanks
    try harder
    I absolutely love being on this group ,so many lovely helpful people with great advice and who can make you think outside the box .Thank you Daisy ,Busy Mee1 and Ch4rly2002 for all your great advice and help ,what a lovely bunch of people all so helpful .
    I definitely will pay off SA two ,i will wait until i reach 25,000 as i will feel more comfortable then i can completely see what everyone is saying and it does make sense although it did take a while for the penny to drop Daisy but after working out the numbers it definitely looks right.Roll on 25,000.
    • themadvix
    • By themadvix 16th Jan 18, 9:09 AM
    • 1,548 Posts
    • 9,140 Thanks
    themadvix
    Whoops, seems I started something here and then disappeared! I agree with the others, but it seems like you've already come to your own conclusion. I think it makes sense, especially as the returns on your savings are guaranteed.

    You'll reach 25,000 in no time!
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • try harder
    • By try harder 17th Jan 18, 1:20 PM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Another quick round up .Holiday paid for out of savings .After holiday payments savings look as follows 18,915.88 so a bit of a drop but still aiming for 25,000 so 6084.12 to go so i am hoping to save 1000 a month for 6 months now and aiming for mid to late July so 1014 a month or 234 a week
    Food budget 112.95 left for 15 days
    Diesel budget 77 left for 15 days

    Thank you themadvix ,you are another of the lovely helpful people of which there are so many .
    • themadvix
    • By themadvix 18th Jan 18, 9:23 AM
    • 1,548 Posts
    • 9,140 Thanks
    themadvix
    That's very sweet of you TH, but it's definitely a case of reaping what you sow around here - your support has been invaluable to me at times!
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • shangaijimmy
    • By shangaijimmy 18th Jan 18, 12:43 PM
    • 2,582 Posts
    • 12,500 Thanks
    shangaijimmy
    Just catching up with the discussion and definitely feeling your turmoil of savings v mortgage! It seems that us MFW's want everything!!! You have a fantastic 6 month plan there and gives you 6 months to decide on how to celebrate the milestone!!
    MFW: Turning June 2036 into March 2023... 37//120 Payments Challenge, Diary Reduction 39,897.62
    Aug 2009: 163,051 // Current: 96,102.38 // Avg Daily Interest 4.32
    MFiT-T4 #8 - 64.95% of 41,000
    • try harder
    • By try harder 18th Jan 18, 1:38 PM
    • 749 Posts
    • 2,845 Thanks
    try harder
    How strange i had just been thinking about you and reading your diary posted then saw this .Thank you i am getting obsessive thats for sure .Someone will have to tug that money out of my hands when it comes to it ...i do like seeing it there in my savings .
    • try harder
    • By try harder 28th Jan 18, 10:29 AM
    • 749 Posts
    • 2,845 Thanks
    try harder
    Almost the end of another month and i have been putting off posting as i am very disappointed that i dont seem to have progressed much if at all this month and will be lucky if i reach the 31st with 19,000 intact .I feel guilty saying this as that is still a lot of money but i tend to feel i have failed but saying that i have paid for a holiday for us and a few others in our family so that is where most of the money went .

    Millionaire Challenge money went into the savings pot as did free money to help make up the shortfall i seem to have lost my enthusiasm for all challenges at the minute and even ebax has fallen off and had lots of problems.so sadly not feeling very positive i am hoping i will start the next month with a bit more umph i need to push myself and get out of this rut i seem to be in .Anyway on a more positive note i have written out an estimated income for February and outgoings and will be aiming for 1000 in savings to include with a bit of luck some ebax sales and some extra work from my husband plus i have another big birthday so need to find money for that too ,i am hoping to find that from my food shopping budget so i will be looking to spend 240 over 4 weeks instead of 400 lets see how well i can do.
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