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  • FIRST POST
    • shangaijimmy
    • By shangaijimmy 13th Mar 15, 12:18 PM
    • 2,736Posts
    • 13,570Thanks
    shangaijimmy
    New Diarist - Attacking the Banks!
    • #1
    • 13th Mar 15, 12:18 PM
    New Diarist - Attacking the Banks! 13th Mar 15 at 12:18 PM
    Hi all,
    Thanks for popping and helping me to stay motivated. This would be the 3rd version of the opening post, but is reflective of where we are currently at. Lots has changed over the last 3 yrs, not least adding a 3rd child to our household!

    This post details my current goals, and as it seems a shame to ignore previous achievements I've summarised them below. This is a 120 payment challenge which would knock 11yrs off our initial draw down of 30yrs. I'm hoping for 100 payments so we'll see how we progress!

    Achievements - 39 payments
    • Balance - 93,938.84
    • Diary Reduction Total - 42,061.17
    • Cumulative Overpayments - 23,292.60
    • Monthly Average Overpayments - 597.25
    • Monthly Average Net Reduction - 1,078.49

    Long Term Targets
    • 5yr/60th payment - 70,000
    • 7yr/84th payment - 38,000
    • 9yr/108th payment - 7,000

    Targets for 2018
    • Jan 2019 - 98,200 - Actual 98,173.08 (26.92 ahead)
    • Feb 2018 - 97,000 (End of Yr 3 Balance 39k diary reduction) - Actual 97,132.75 (132.75 behind target)
    • Mar 2018 - 95,900 - Actual 96,102.38 (202.38 behind target)
    • Apr 2018 - 94,800 - Actual 95,015.63 (215.63 behind target)
    • May 2018 - 93,700 - Actual 93,938.84 (238.84 behind target)
    • June 2018 - 92,600
    • July 2018 - 91,500
    • Aug 2018 - 90,400
    • Sept 2018 - 89,300
    • Oct 2018 - 88,200
    • Nov 2018 - 87,100
    • Dec 2018 - 86,000
    Last edited by shangaijimmy; 02-06-2018 at 8:25 AM. Reason: Updated Goals
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
Page 1
    • lippy1923
    • By lippy1923 13th Mar 15, 1:16 PM
    • 1,245 Posts
    • 3,472 Thanks
    lippy1923
    • #2
    • 13th Mar 15, 1:16 PM
    • #2
    • 13th Mar 15, 1:16 PM
    Good Luck

    You have a similar goal to me. Pay off in 10 years. I still have 20 years remaining on my mortgage at present, so to half it would be amazing. This can only be achieved if we stay in our current home and not upsize though. I'm still not sure if I want to stay in our house that long, but the idea of paying it all off early and being MF is making me think otherwise.

    Will be watching this thread with interest to see how you get along. Have you got ideas on how you are going to save the money to overpay?

    Lippy
    Total Mortgage OP 24,500
    House Value 280,000 Mortgage 82,299
    Emergency Fund 24,000

    • shangaijimmy
    • By shangaijimmy 13th Mar 15, 3:23 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    • #3
    • 13th Mar 15, 3:23 PM
    • #3
    • 13th Mar 15, 3:23 PM
    Hi lippy.
    We too have exactly 20 years remaining!
    My initial thoughts are to allocate 1/3 of income to the mortgage initially. I'll list our finances soon but with our current mortgage deal that equates to a 423 overpayment. To make 8 years I think we need to find an extra 100 or so a month which I hope to get through savings interests, under spends on food and petrol, eBay and any other creative means.

    Obviously the whole plan will change throughout the years go take into consideration wage increases, more children etc... I can't mentally think of big timescales so it'll very much driven in cycles of 2 and 3 years. More of which will follow!!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • ourcornercottage
    • By ourcornercottage 13th Mar 15, 7:49 PM
    • 1,510 Posts
    • 7,500 Thanks
    ourcornercottage
    • #4
    • 13th Mar 15, 7:49 PM
    • #4
    • 13th Mar 15, 7:49 PM
    Hellllloooo! Same goals, 400 OP per month and pay off in 10 years max! Good luck!
    target under 89k by end of 2018
    • Maybe_its_because
    • By Maybe_its_because 14th Mar 15, 8:37 AM
    • 391 Posts
    • 1,145 Thanks
    Maybe_its_because
    • #5
    • 14th Mar 15, 8:37 AM
    • #5
    • 14th Mar 15, 8:37 AM
    Hi,

    Great to see you've got your diary up and running. Glad your remortgage has been done and you can start getting your teeth into the MFW challenge.

    Following your diary with interest as we're similar timescales (22yrs -->10 yrs)

    MIB
    MFW2018 #10 1389/3000 Aim for MF-in-10 from 2015
    Sep'12 233,750 Jan'15 222,329 Jan '18 186,816 May'18 181,852
    MFiT T4 #24 25,349/35k

    13,428 in 2012 Debt Free day 30th April 2014
    • shangaijimmy
    • By shangaijimmy 15th Mar 15, 9:20 AM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    • #6
    • 15th Mar 15, 9:20 AM
    Mortgage Details
    • #6
    • 15th Mar 15, 9:20 AM
    Ok i said i'd post details about current mortgage so here goes (trying to keep things short and figures/stats driven)!
    • House Value 225000
    • 4 Bed Detached - Is our family home and intended to be so until we downsize ain approx 25 years
    • Mortgage originally 163000 over 30years in June 2006
    • Remortgaged for 136000 over 20 years, so knocking a year or so off the original term
    • First Direct 1.99% for 2 years, monthly payment of 687
    • Intention is to allocate 1/3 of income to the mortgage so total payment of 1110 per month
    1. After the 2 year fix ends i'd like us to be at 115000 minimum
    2. Our intended overpayemnt will do this
    3. We'll then throw any extra's we can such as food and petrol underspends, months with no council tax etc...
    4. So secretly hoping for 113000!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • shangaijimmy
    • By shangaijimmy 15th Mar 15, 9:24 AM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    • #7
    • 15th Mar 15, 9:24 AM
    • #7
    • 15th Mar 15, 9:24 AM
    We have some savings squirreled away in current accounts that any interest will be thrown at mortgage, so in the 8 days we've been on new mortgage we've actually overpaid 19!!

    I'll detail more about savings, outgoings, past mortgage product and distance travelled in subserquent posts. My intention is to be brief remember!!

    Good luck everyone, keep inspiring the next mob of MSE's!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • shangaijimmy
    • By shangaijimmy 17th Mar 15, 9:33 AM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    • #8
    • 17th Mar 15, 9:33 AM
    Family situation
    • #8
    • 17th Mar 15, 9:33 AM
    Quick post to give some details about the SJ family before I move onto savings and statement of affairs.

    We are a family of 4 plus 1 bionic fish that seems to have lived forever, and a miniature schnauzer puppy called Vinnie. I am 36, Mrs SJ is 34 and our 2 boys are 6 and 2. We both work full time including evenings and weekends for me so our lives are pretty hectic. Mrs SJ is from a family of 5 and she is number 3 child so inevitably the pressure is on!!

    Which leads nicely onto why a 2 yr fix when we could have got slightly better with a tracker. Well the reason is plans are afoot for number 3, so the 2 yr fix gives us a bit of security to plan for maternity leave should we need it. And overall our overpayments more than make up for this anyway.

    So that's us, and it's my day off today so I'm off to play group with the youngest before dumping him at nanny's so I can finish decorating his room!! Then at some stage a snooze is definitely on the cards!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • shangaijimmy
    • By shangaijimmy 17th Mar 15, 12:05 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    • #9
    • 17th Mar 15, 12:05 PM
    • #9
    • 17th Mar 15, 12:05 PM
    Hellllloooo! Same goals, 400 OP per month and pay off in 10 years max! Good luck!
    Originally posted by ourcornercottage
    Same goals and similar mortgage amounts too! What mortgage deal are you on as it'll be interesting to see the impact of our overpayments with different products.
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • ourcornercottage
    • By ourcornercottage 17th Mar 15, 12:29 PM
    • 1,510 Posts
    • 7,500 Thanks
    ourcornercottage
    Same goals and similar mortgage amounts too! What mortgage deal are you on as it'll be interesting to see the impact of our overpayments with different products.
    Originally posted by shangaijimmy
    I have mortgage in 2 parts with HSBC tracker I cant quite remember the rates now but the higher part is 2.64 I think.

    I actually need to contact HSBC to see if the newer products better this. You have prompted me!
    target under 89k by end of 2018
    • shangaijimmy
    • By shangaijimmy 19th Mar 15, 4:27 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    1200 per year to find, somehow!
    Ok, so I've already mentioned about my standard 423 overpayment which will see us finished in approx 11 years (obviously interest rates will have a major bearing on this), but for us to sneak it to 10 we need to find an extra 100 per month

    I have a plan developing but still think I'll come up short. I'm trying to view it as a yearly 1200 rather than a monthly thing but here goes:
    - 2 months of no council tax at 173 per month, so 346.
    - we have 3 Halifax rewards account to smash and grab the 5, so 180.
    - we have savings in nationwide and tsb current accounts which I plan to put all interest against mortgage, which will be approx 20 per month, so 240.
    - from sweeping current account every Sunday to round it down I think I'll about 10 per month so 120
    - from putting change away I reckon I can find 60 per year.

    So overall 946, without too much trouble.

    Any ideas on the other 250 per year or, 20 per month?
    Last edited by shangaijimmy; 19-03-2015 at 4:30 PM.
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • ourcornercottage
    • By ourcornercottage 19th Mar 15, 6:09 PM
    • 1,510 Posts
    • 7,500 Thanks
    ourcornercottage
    10 a month or 120 this year from a hsbc advance account and a save together isa.

    Car boot spring clean once a year 50 (maybe more)

    Apply to Join Hasbro family and do their questionnaire $10 per month and it's fun for kids too!

    Put all spends on a credit card that you clear monthly and make all purchases through Quidco and top cash back!

    That's all I can think of!
    target under 89k by end of 2018
    • shangaijimmy
    • By shangaijimmy 19th Mar 15, 11:25 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    Well reminded. I forgot 6% regular saver interest which will generate another 110 ish!

    Just looked at hsbc and will be applying tomorrow! Joint account with 2 Isa's makes 240.

    So I'm now 100 over!!

    Spreadsheet readjustments beckon!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • shangaijimmy
    • By shangaijimmy 20th Mar 15, 11:24 AM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    Spreadsheet adjustments and i'm 1 month short of target!!!!

    That damn month, guess we could live on dust for 1 month!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • lippy1923
    • By lippy1923 20th Mar 15, 2:11 PM
    • 1,245 Posts
    • 3,472 Thanks
    lippy1923
    Spreadsheet adjustments and i'm 1 month short of target!!!!

    That damn month, guess we could live on dust for 1 month!
    Originally posted by shangaijimmy
    You will find it in 1 month, dont worry. Maybe a premium bond win/ lottery, or 50% off a purchase will see you through

    Apart from the earlier suggested topcashback and quidco, things like tesco clubcard boost, cashback credit cards etc.... it all adds up and you won't even notice.
    Total Mortgage OP 24,500
    House Value 280,000 Mortgage 82,299
    Emergency Fund 24,000

    • shangaijimmy
    • By shangaijimmy 20th Mar 15, 2:15 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    To be fair we're pretty good with the cashback things and get loads out of clubcard!

    Overall the whole 10 year target is there, but really i'm just breaking it down into 2yr chunks, that way its not too daunting. So the current target is to reduce by 21k for our 2 year fix. My standard 423 overpayment will achieve this with a few quid to spare and anything else is a fabulous bonus, all the time as we try to live, holiday etc...

    As you will all be aware it's so addictive and spreadsheets are amazing!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • lippy1923
    • By lippy1923 20th Mar 15, 2:27 PM
    • 1,245 Posts
    • 3,472 Thanks
    lippy1923
    I do love spreadsheets, although I'm not very good at creating them! Once it's all set up and I put my figures in though it's so addictive
    Total Mortgage OP 24,500
    House Value 280,000 Mortgage 82,299
    Emergency Fund 24,000

    • lexington013
    • By lexington013 20th Mar 15, 2:45 PM
    • 257 Posts
    • 341 Thanks
    lexington013
    Welcome along, im in a similar position, 133k mortgage remaining but term is 9 years and 10 months, i have just remortgaged to a 2 year fixed deal at 2.29% and intend to use the monthly saving to overpay. I have managed to knock 8 years off my term as i started out on a 25 year term 7 years ago. It hasnt been easy but since i had the LBM i have been focussed on my money working harder for me.
    Keep going its definately worth it. My next goal is to clear it by the time i hit 55 (so 7 years to go!). This forum is very supportive, we are all at different stages but all have a common desire!!!!128077;
    • shangaijimmy
    • By shangaijimmy 20th Mar 15, 3:03 PM
    • 2,736 Posts
    • 13,570 Thanks
    shangaijimmy
    Thanks Lex for popping in. Support and inspiring i'd say!

    Overall i'm hoping to knock 11 years off our original 30yr term. We stretched ourselves to the maximum we could in 2006 so that we effectively missed a tier of housing ladder out, and all we could get then was interest only (we wouldn't have met affordability with todays regs). It meant the first 4 years were tough going but slowly (with overpaying too) we got ourselves in a strong position to get our current fix of 1.99% and LTV of 61%. We've even managed some great holidays, a wedding (we paid a 1/3rd) and a conservatory without more debt, so i think we've got the balance between living and paying off.

    I am going to post my version of a state of affairs hopefully this weekend.
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction 42,061.17
    Aug 2009: 163,051 // Current: 93,938.84 // Avg Daily Interest 4.22
    MFiT-T4 #8 - 74.24% of 41,000
    • lexington013
    • By lexington013 20th Mar 15, 5:49 PM
    • 257 Posts
    • 341 Thanks
    lexington013
    Sounds like you are (both) very committed to managing a healthy balance towards your mortgage and finances. Best of luck, you have made an impressive start, you WILL reap the rewards later on.
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