And so it begins: The Pig Vs The Mortgage

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  • pinkypig
    pinkypig Posts: 1,814
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    edited 18 August 2017 at 4:33PM
    Hi :). Thank you all so much for dropping by - what a lovely bunch you are, I feel at home already :A
    You'll have to be patient as I'm quite technically challenged! I will work out quotes and the likes eventually I promise.
    Bex, Miss Lemon, and Kitten - hello :). Do you have diaries? I'll have a look later as I'd love to read them.
    WTMA - nice to 'meet' you! - didn't sound patronizing at all, just very thoughtful and kind observations.
    MW - Hi:). I've read all your diaries and think your attitude and your a achievements are amazing. Our current approaches seem somewhat aligned as my current dilemma is the OP or pension contribution one. You can all look forward (:eek:) to endless ramblings later.
    Greent - thanks for the reminder, I'm inclined to be a little hard on myself and each step deserves to be celebrated and I will try!

    So here goes ...

    After several tumultuous years of uncertainty whilst also locked into a rubbish mortgage deal that was done in a bit of a haze during a particularly difficult time, thinking that it would bring stability and peace of mind. The picture, I'm glad to say is now clearer and a little
    rosier. Last week the mortgage was £143,780 on a rate of 5.5% with a 23 year term :eek: Now it is £112,000 on a 10 year fixed rate of 2.75 % (offset) with a 10 year term.

    There have been so many things latterly that I couldn't control but I decided, largely due to this forum and a few great blogs that the one thing I could control was my finances.

    I've always been quite good with money but often got lax through lack of planning, waste and the odd impulse buy. In the last few years I've really knuckled down. I've joined the GC which is brilliant , I meal plan (which I kid you not, has changed my life!!), I keep a spending diary and have saved, saved and saved:)

    This has allowed me to get a mortgage on my own (I couldn't borrow the full amount on one salary) and although the responsibility is daunting, I feel more secure than I have done in years.

    That said, its still a massive mortgage with massive e repayments due to the term and I'm determined to attack it with all my might!
    I want financial freedom well before my normal retirement date and clearing the mortgage is a big part of this. My SOA is almost done and my next goal is to post that and hopefully get some feedback on how I can tighten things up. Beyond that I want to decided on some challenging but achievable goals for the remaining part of 2017 and to celebrate my successes, however small in order keep myself motivated.
    Long, rambling post is now over:o
    PP x
    Original mortgage £112,000 . Final payment due August 2027.
    Mortgage neutral achieved August 2020 - 7 years early!!!
  • newgirly
    newgirly Posts: 8,893
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    Hi pinkypig, welcome and best of luck with your new diary :)
    2022 MFW 67 - 33 month challenge to clear mortgage, month 17 completed and and extra 2 knocked off 🙂MFI3 No.12
  • michelle09
    michelle09 Posts: 912
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    Hey Pinky, and good luck! I'm with you, this forum and reading about what others are doing is a big help. Most of my friends in RL don't really get it either, so I find it better to chat about on here.
  • Welcome to the forum Pinky! I'm not going to lie, it gets a little addictive once you start!
    "You won't bloom until you're planted" - Graffiti spotted in Newcastle.

    Always try to be nice, but never fail to be kind - Doctor Who

    Total overpayments in 2021 - £901.28!
  • pinkypig
    pinkypig Posts: 1,814
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    Hi :)

    Thanks for stopping by eatingtheelephant DSM, MissLemon, newgirly and VH, your encouragement is very much appreciated :)

    I've gathered everything together and my SOA is as follows. I've rounded up to the nearest pound for simplicity.

    Mortgage £1024 :eek:
    Life insurance, CIC and income protection £83
    Boiler and central heating insurance and annual service £17
    Basic TV, broadband, telephone, my sim card for mobile £35
    DC mobile £8
    Council Tax £129
    Gas and electric £60
    Water £23
    Union sub's £22
    TV licence £13
    Pocket money £14
    Food £140
    Petrol £130
    Xmas savings £25
    Holiday savings £150
    Annual costs (inc car running costs, coal, house insurance and tax on 2nd self employed income ) £250
    Replacement car savings ( should need one for several years but want to be prepared) £100
    Personal spends £150

    I have tried to really control my spends over the last few years but any feedback on tricks I might be missing would be very much appreciated.
    Measures I have already put in place include;

    Meal planning and shopping with a list
    Had a smart metre fitted and take more care with utilities
    Cook from scratch
    All of us take lunches and drinks from home
    Bought a good quality coffee thermos cup which is always full and in my bag :o
    Clean my own house, car and windows
    Use all leftovers
    Batch cook
    Do the odd YS shop to fill freezer
    Reuse where possible and recycle the rest
    Charity shop shopping ( must only go when needed as often can't resist wants when it really should be needs :o)

    My next goal is to set some goals :rotfl: I'm going to number crunch OP Vs Pension contributions and will set myself a target for the remainder of this month and then a monthly amount from 1st August.
    I feel I maybe negotiating my way out of the overwhelming stage and towards the light:)

    One small step was a roast dinner for 6 using a £2.50 ys pork leg joint, 4 different types of 10p ys veg, hm stuffing followed by rhubarb (free:)) crumble and smartprice custard :money: lovely to end the weekend surrounded by family and friends:)

    Hope everyone's had a good weekend too.

    PP x
    Original mortgage £112,000 . Final payment due August 2027.
    Mortgage neutral achieved August 2020 - 7 years early!!!
  • Jessy103
    Jessy103 Posts: 1,818
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    Good luck with your journey PP! The people on this forum are the best!
    Mortgage Balance as of Jan 24 £36,500 Starting Mortgage Balance (June 2019) £72,000. 2024 Overpayment Challenge: Jan £558.40,
  • Can I come for dinner PP?
    Outstanding mortgage: £23,181 (December 19)
    MFW 2020 Challenge Member #10 0/£2318
  • pinkypig
    pinkypig Posts: 1,814
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    Jessy103 wrote: »
    Good luck with your journey PP! The people on this forum are the best!
    Hi Jess,good luck with your journey too. Do you have a diary? Once I get my own up and running I'm going to get caught up on reading x
    Can I come for dinner PP?
    Ha! Only eat here if you don't mind it having ys origins :)
    michelle09 wrote: »
    Hey Pinky, and good luck! I'm with you, this forum and reading about what others are doing is a big help. Most of my friends in RL don't really get it either, so I find it better to chat about on here.
    Hi Michelle, my experience is they look at me like I'm a bit odd and on subsequent conversations their eyes glaze over !!! I'll keep my chats confined to here I think :)

    Get me multiple quoting ! I'll be working out how to use the timer on my oven next :rotfl:

    My number crunching has made my poor little brain hurt but I think I've come to a reasonable conclusion.
    Based on pure numbers extra pension contributions win hands down because of the tax relief. The projected tax free lumo sum would probabky pay off my mortgsge. The downsides however are;

    1. Once its in the pension pot its there until I'm at least 55 so not accessible in a crisis.

    2. Its indexed linked so there is always a degree of risk especially as I am looking at an investment period of less than 10 years

    3. Psychologically I'm left with a mortgage that is decreasing at the pace of a snail which just doesn't sit comfortably in terms of feeling financially secure.
    4. I want my pension lump sum to do nice things when I retire :rotfl:
    5. If I don't want to retire at 55 my money would be tied upeven longer because partial withdrawal is complicated and has an impact on future contributions.

    Putting all my surplus cash into OP would clear my mortgage in 4 years 3 months :eek: however this would leave me only give me 2 years 9 months to save for ER and I would have missed out on about £20k in tax relief.

    Consequently my decision is part head\ part heart as I'm going for a combination of the two.

    My goals from 1 September are to contribute £1000 pm (£800 cost to me due to tax relief at source) and £400 in OP :eek::eek:
    This would leave me MF in 7 years but alongside that I would have enough in the pension pot to retire at 55 and I would also have the tax free lump sum available for adventures:D
    This will leave me with £100 pm to dip into if anything unexpected crops up. I'll OP anything that's left out of this and my other budgets at the end of the month.

    Today's goal is to look at some big bills that are due throughout August to decide how much I can OP in the remainder of July and in August.
    Actually can't wait to get started - I can see how you get addictive :A
    PP x
    Original mortgage £112,000 . Final payment due August 2027.
    Mortgage neutral achieved August 2020 - 7 years early!!!
  • Looks like a very sensible head/heart compromise. To me PP.
    yellow stickers all the way.
    When we were at uni one of our friends worked for mr Sparks, their staff shop is awesome, we ate like kings on a pauper's budget on an evening after she'd finished her shift.

    Have a great mse day
    Outstanding mortgage: £23,181 (December 19)
    MFW 2020 Challenge Member #10 0/£2318
  • bexster1975
    bexster1975 Posts: 1,576
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    Hi pinky

    I don't have a diary. I have lurked/contributed to many others. MFW diary no longer needed here. Just here to help/encourage. Will go back and read you SOA

    Bexster :)
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