I really really want to be........mortgage free!

ourcornercottage
ourcornercottage Posts: 1,526 Forumite
edited 2 September 2016 at 3:46AM in Mortgage-free wannabe
Just starting an official diary of the countdown to getting mortgage free.

It will, I warn be a very long countdown! Currently standing at 140k and hoping to be mortgage free by 31.12.2020. That might be a little optimistic I know but that's what I'm hoping for.

You might say, that's okay, pull your belt in but I've got a house too in need of lots of repair (I brought it like this, on purpose, it was the only way I could afford a house in the village I wanted!) doing it up ourselves as much as possible a bit at a time.

Okay then, ideas and advise please......!

Updated goals and Running totals added so I can keep a track on the long term plan.

Updated and Realistic MF goal Christmas 2024, aim Christmas 2022.
Kw annual estimate 3309
OP annual goal £5000 rising to £6600
Capital reduction annual goal. £10000 rising to £12000/£13000/£14000
MFiT-T4 reduce mortgage to £87000 by 1-1-19

(Realistic) Targets set 2015 - possible but harder to achievetargets in green and revised hard targets in red!
1-1-16 128000 126000
1-1-17 116000 113000 111000
1-1-18 104000. 100000 96000
1-1-19 91000. 87000 81000
1-1-20 78000. 74000 66000
1-1-21 65000 60000 51000
1-1-22 52000 46000 36000
1-1-23 39000. 31000 21000
1-1-24 26000. 15000 6000
1-1-25 13000 GONE GONE
Christmas 2025 GONE.

2015 targets
Savings 2015 - 2567.56/5000 (51%)
MFW15 £5462.58/£5000 (109%)
Capital reduction 2015 12011/10000 (120%)

2016 targets
Save 12k in 2016 target £0000/£3000
Capital reduction 2016 target £00000/£12000
MFW16 ????/6000

actual figures

Mortgage 1-1-15 - £138775.

OP during 2015 - Jan-£448.06 Feb-£111.33 Mar-£167.10 Apr-£159.81 May-£175.26 Jun-£435.94 July-£402.99 Aug-£457.74 Sep-£716.20 Oct-£446.73 Nov-£1199.63 Dec-£741.79

KW generated 2105- mar-312.2 April-472 may- 463 jun- 463 July - 438 August - 413 Sep-321 Oct-199 Nov-100 Dec-94

Mortgage 1-1-16 - £126764.00

OP during 2016 - Jan-£536.60 Feb-610.39 Mar-£1006.22 Apr-£549.92 May-£739.57 Jun- £504.79 Jul- £504.79 Aug- £506.81

KW generated 2016 - Jan-132 Feb-236 Mar-224 Apr-419 May-438 Jun-377 Jul-487 Aug-474

Mortgage 1-1-17 - £??????.??
«134567151

Comments

  • JimLad
    JimLad Posts: 949
    First Post First Anniversary Combo Breaker Mortgage-free Glee!
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    Welcome along! I guess the first thing to do is a SOA so we can see where you can possibly tighten your belt and have extra money for repairs / overpayments?
    Mortgage Free 22/03/17
    MissWillow is my OH!
  • Thanks, I am really new to this. What is a SOA?

    Sorry!
  • edinburgher
    edinburgher Posts: 13,450
    Name Dropper First Anniversary First Post
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    Statement Of Affairs - basically a copy of your budget so that people can make helpful suggestions for budgetary changes (as JimLad says) :)
  • cool I will try to get that done, to be honest I dont have a budget. The first thing I should do is create a budget then!
  • JimLad
    JimLad Posts: 949
    First Post First Anniversary Combo Breaker Mortgage-free Glee!
    Forumite
    cool I will try to get that done, to be honest I dont have a budget. The first thing I should do is create a budget then!

    Oh yes that sounds like a plan!

    Once you have a budget you can plug it in here http://www.stoozing.com/calculator/soa.php

    It will make you a nicely formatted SOA that you can post here.
    Mortgage Free 22/03/17
    MissWillow is my OH!
  • Muser1
    Muser1 Posts: 795 Forumite
    A good budget is essential! Good luck.
    Mortgage Jan 13 99260.00 87253 April 2017
    Emergency fund 700.00
  • Good luck, a plan of attack will help you to achieve your plan and a budget is the cornerstone of that.

    All the best!
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • Okay this isn't totally accurate now but here the initial stab at it. Will update tomorrow once I dig out some paperwork.....

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 3000
    Partners monthly income after tax....... 600
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3600


    Monthly Expense Details

    Mortgage................................ 850
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 154
    Electricity............................. 46
    Gas..................................... 0
    Oil..................................... 90
    Water rates............................. 15
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 81.81
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 100
    Petrol/diesel........................... 60
    Road tax................................ 2.5
    Car Insurance........................... 27.98
    Car maintenance (including MOT)......... 20
    Car parking............................. 20
    Other travel............................ 25
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 0
    Contents insurance...................... 39.79
    Life assurance ......................... 28.63
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 80
    Haircuts................................ 20
    Entertainment........................... 160
    Holiday................................. 0
    Emergency fund.......................... 0
    Additional life ins..................... 23.06
    Dog food................................ 10
    Total monthly expenses.................. 2000.89



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 350000
    Shares and bonds........................ 5000
    Car(s).................................. 7000
    Other assets............................ 0
    Total Assets............................ 363000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 140000...(850)......0
    Total secured & HP debts...... 140000....-.........-


    Assets[/b]
    Cash.................................... 1000
    House value (Gross)..................... 350000
    Shares and bonds........................ 5000
    Car(s).................................. 7000
    Other assets............................ 0
    Total Assets............................ 363000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 140000...(850)......0
    Total secured & HP debts...... 140000....-.........-

    Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Cc ............................7000......100.......19
    Total unsecured debts..........7000......100.......-



    Monthly Budget Summary

    Total monthly income.................... 3,600
    Expenses (including HP & secured debts). 2,000.89
    Available for debt repayments........... 1,599.11
    Monthly UNsecured debt repayments....... 100
    Amount left after debt repayments....... 1,499.11


    Personal Balance Sheet Summary
    Total assets (things you own)........... 363,000
    Total HP & Secured debt................. -140,000
    Total Unsecured debt.................... -7,000
    Net Assets.............................. 216,000
  • JimLad
    JimLad Posts: 949
    First Post First Anniversary Combo Breaker Mortgage-free Glee!
    Forumite
    Nice and detailed, thats what we like to see!

    Just a quick skim and i can see a few figures that i think might be a little high. This of course is completely my opinion and feel free to ignore / justify anything i pick out!

    £90 on oil - Seems a lot. Is this for hot water and heating? You could optimise your timings on the hot water to make sure you only just have enough hot water for your daily routine.

    £81 TV - Im guessing this is virgin cable and also includes internet as you have nothing in that column? Do you need all the channels / speed you get? I bet you can get this cheaper.

    £100 on clothing a month? Seems like a lot even for 3 people. Is there someone with a clothes addiction?

    £39 a month for contents insurance - Does this include buildings? Thats 468 a year and seems VERY high. Our contents and buildings combined is about 150 a year.

    £80 a month on presents? Thats a lot of birthdays! £960 a year

    £160 a month entertainment...Whats this include?...seems like a lot to me but then im suger scrooge!
    Mortgage Free 22/03/17
    MissWillow is my OH!
  • JimLad wrote: »
    Nice and detailed, thats what we like to see!

    Just a quick skim and i can see a few figures that i think might be a little high. This of course is completely my opinion and feel free to ignore / justify anything i pick out!

    £90 on oil - Seems a lot. Is this for hot water and heating? You could optimise your timings on the hot water to make sure you only just have enough hot water for your daily routine.

    Agreed I'm new to having oil heating having moved 18 months ago. I have a big, ok house with inefficient heating which is being updated January.

    £81 TV - Im guessing this is virgin cable and also includes internet as you have nothing in that column? Do you need all the channels / speed you get? I bet you can get this cheaper.

    I'm limited as I live in the sticks so have to have sky. This is for phone, broadband and to inc sky sports which is our little luxury. I'm adding renegotiating with sky to my to do list.

    £100 on clothing a month? Seems like a lot even for 3 people. Is there someone with a clothes addiction?

    Yep there is but they are on a buying embargo! I do have a 6 year old growing like a weed which is very expensive.

    £39 a month for contents insurance - Does this include buildings? Thats 468 a year and seems VERY high. Our contents and buildings combined is about 150 a year.

    It's buildings, contents and accidental damage cover. I'll add changing this to my to do list.

    £80 a month on presents? Thats a lot of birthdays! £960 a year

    This is birthdays and Christmas and I'm cutting back. I just can't cut back in the kids though and there are 7 minimum to buy for.ill aim to half this by savvy shopping.

    £160 a month entertainment...Whats this include?...seems like a lot to me but then im suger scrooge!

    It's eating out about once a week, going out once a month, the odd bottle of wine. Son does squash, swimming and guitar lessons which add up too which I've included in this. We are stopping eating out as much and I'm hoping to get this down.

    Thanks so much for your tips, I'm going to change my insurance and sky first. Any more general money saving tips greatly appreciated.
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