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  • FIRST POST
    • smilingbright
    • By smilingbright 2nd Nov 18, 7:30 PM
    • 11Posts
    • 13Thanks
    smilingbright
    Smiling my Mortgage Away
    • #1
    • 2nd Nov 18, 7:30 PM
    Smiling my Mortgage Away 2nd Nov 18 at 7:30 PM
    I have been reading the mortgage free wannabe diaries for some time and was inspired to start my own mortgage-free journey a while back. I thought starting a diary would help to motivate me, give me a way to record my progress and hopefully contribute to some of the mortgage-reducing inspiration on here. I hope there is room for one more mortgage free diary

    About me. I am married with one child and we currently live in Ireland, where my DH is from, so all of my figures will be in euros (though I still think in pounds and don't know if I will ever stop that!). We bought our current house two years ago with a mortgage of €202,000. As of November 2018, we owe €163,000 so have overpaid just under €40,000 in two years.

    On the one hand, I am very pleased with this figure and seeing it written down gives me a boost. On the other hand, for a few reasons, both me and DH feel we could do better than this. Firstly, we are both in our early 40s and are keen to reduce (or eliminate) the mortgage as much as possible by the time we reach 50. We were a little later than some of our peers in getting on the property ladder so feel we are playing catch up. Secondly, we have both got back into full-time employment recently and are on good salaries which, combined with living reasonably frugally, means we should be able to allocate some very decent amounts to the mortgage.

    We do want to balance living in the here and now with overpaying the mortgage and still have family holidays and do not go without anything but we certainly live more simply than many people we know. For us, eating out is a treat that we do every month or two. We bring packed lunches to work every day. We buy good quality clothes but I hunt for things on sale before I buy them. I shop around for the best deals for things like gas, electricity and broadband and just generally make savings where I can.

    I will post again with a bit more detail on financials but for now, hope you will welcome me to this very inspiring board!
Page 1
    • Mortgage Minimiser
    • By Mortgage Minimiser 2nd Nov 18, 9:13 PM
    • 154 Posts
    • 668 Thanks
    Mortgage Minimiser
    • #2
    • 2nd Nov 18, 9:13 PM
    • #2
    • 2nd Nov 18, 9:13 PM
    Welcome! I have only recently started my diary, so I shall watch with interest.

    Happy shiny new diary!
    MM
    X
    2016 MFW#46 O'Pd- £3641.26; 2017 MFW OP'd £7779.28 ; 2018 MFW OP'd £11,515.16
    MFiT-T4 # 59 - reduce mtg to £195,000; MFit-T5 - reduce mtg to £140,000
    Mortgage at start (01/2/2015) - £243,750. @31/12/15 - £235,906.71. @31/12/16 - £224,120.98. @31/12/17 - £210,224.06. @31/12/18 - £190,821.21
    Mortgage today £184,997.48
    • smilingbright
    • By smilingbright 3rd Nov 18, 10:43 AM
    • 11 Posts
    • 13 Thanks
    smilingbright
    • #3
    • 3rd Nov 18, 10:43 AM
    • #3
    • 3rd Nov 18, 10:43 AM
    Thank you MortgageMinimiser for your kind comment! I shall make sure to check out your diary and appreciate the support. It looks like our figures are fairly similar
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • smilingbright
    • By smilingbright 3rd Nov 18, 10:59 AM
    • 11 Posts
    • 13 Thanks
    smilingbright
    • #4
    • 3rd Nov 18, 10:59 AM
    • #4
    • 3rd Nov 18, 10:59 AM
    So I said I would come back with a bit more on the financials.

    Our overpayments have slowed down since the summer of this year, as a family member was unwell and I decided to go part-time at work in order to be more available to them. They are now in a situation where they have carers in place and this has freed me up so I have agreed to go back to full-time hours from the new year. As well as my day job, I am involved in a small business with a friend of mine and earlier this year, we took on an office and decided to put a bit more energy into it. So far it has done ok in terms of the work we have put in to develop it, but with the costs involved particularly in having office space, it has pretty much just broken even for this year. Also, most of the work I have taken on for clients (which fitted conveniently around my caring responsibilities) has been off-site, so I am considering whether I can keep this going in the future but without the need for an office space. We have agreed to continue with the office until next summer and review the situation then. The work itself is potentially quite lucrative, so if we can find a way to deliver it while minimising overheads, it could be a nice stream of income. Realistically, I will also be able to do less of it from the new year as my hours in my main job will increase.

    My DH also has a day job and a sideline small business of his own. While the small business brings in a relatively small profit (perhaps €4000 in a year) this has paid for things like our family holidays, so has been very helpful in that regard. Both DH and I recently discussed how in another year we will review the true profitability of our 'sidelines' and decide whether they are truly worth continuing with as they do take up our time and effort and it is still unclear whether the financial rewards will be worth it.

    In terms of our main incomes, our current joint income stands at around €5000 per month after tax, not counting anything from sidelines. From the new year, this should increase to about €7000 per month when I increase my hours again. DH's sideline business sits in a separate account and brings in a few thousand in a year, that goes on separate things like holidays or a new laptop for him. Currently, my sideline is just breaking even, mainly due to costs of office space.

    Our mortgage payment is currently around €850 per month. Our mortgage overpayments have varied from several thousand to nothing in recent months, depending on circumstances. In September we had to pay a tax bill for DH's business for last year plus initial tax for this year. We also had to spend a couple of thousand euro on set-up costs for my sideline business in the two months before and we replaced our boiler in the summer, which was very costly but will ultimately reduce our heating bills.

    SO! After a period of increased expenditure, reduced income from salary and having to put work into a business that is not yet profitable, the last few months have meant not much mortgage overpayment and a general sense that we are not doing as well financially as we were (though we are obviously very fortunate financially overall).

    Our goals going forward are to overpay what we can between now and December, even if these are not huge amounts. I am also putting what I can into our savings account, as this has not got much in it and we don't have a proper emergency fund.

    From January our goals are:
    - bigger overpayments to the mortgage
    - build up proper emergency savings fund
    - put money in savings to upgrade main family car
    - allocate money to complete some refurbishments to the house
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • squirrelgirl
    • By squirrelgirl 3rd Nov 18, 6:11 PM
    • 407 Posts
    • 2,177 Thanks
    squirrelgirl
    • #5
    • 3rd Nov 18, 6:11 PM
    • #5
    • 3rd Nov 18, 6:11 PM
    Good luck on your journey smilingbright!!
    12 Month Challenge: Renovations - £10420/£21000; Mortgage - £2009/£16000 ; MFW 2019 No. 58 GC £407.26/£3600 Jan £270/Feb £50/ March £87.26
    • beanielou
    • By beanielou 3rd Nov 18, 7:22 PM
    • 61,839 Posts
    • 265,072 Thanks
    beanielou
    • #6
    • 3rd Nov 18, 7:22 PM
    • #6
    • 3rd Nov 18, 7:22 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 12 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. ***Be the difference.***
    • smilingbright
    • By smilingbright 3rd Nov 18, 7:51 PM
    • 11 Posts
    • 13 Thanks
    smilingbright
    • #7
    • 3rd Nov 18, 7:51 PM
    • #7
    • 3rd Nov 18, 7:51 PM
    Thank you Squirrel and Beanielou for the welcoming words!
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • greent
    • By greent 3rd Nov 18, 8:05 PM
    • 7,919 Posts
    • 80,523 Thanks
    greent
    • #8
    • 3rd Nov 18, 8:05 PM
    • #8
    • 3rd Nov 18, 8:05 PM
    Hello and welcome
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786 12/18 £54829 2019 OPs (#18) £1100/£5K
    Net sales 2019 £54.70/£500
    • smilingbright
    • By smilingbright 5th Nov 18, 4:34 PM
    • 11 Posts
    • 13 Thanks
    smilingbright
    • #9
    • 5th Nov 18, 4:34 PM
    • #9
    • 5th Nov 18, 4:34 PM
    So I came home to a pleasant surprise today. The bank have sent us a letter following October's overpayment (we overpayed €500 in September and October) and the updated mortgage figure is actually €161,938, just prior to November's payment going out

    I had thought the figure was closer to €163,000 so I'm really pleased! And taking the capital part of the payment just gone at the start of November, this should be closer to €161,500. Yes I know interest will build up over the month, but I try not to think about that bit. Annoyingly I can't check my mortgage account online, as I would need to have another account with the same bank and for now I don't, but I may do this when I can get around to it. Although our OPs have slowed recently, I did think it would be great to get just below €160k by the end of this calendar year. Even a figure of €159,999 I would be really happy with! So maybe that is something we could aim for, before increasing overpayments in the new year.

    Things are ticking over with the sideline business and I have a couple of possible pieces of work that should at least get it to pay for itself for November, so that's something.
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • smilingbright
    • By smilingbright 9th Nov 18, 11:11 AM
    • 11 Posts
    • 13 Thanks
    smilingbright
    Things are a little quiet on the money front for November, apart from the boost of finding the mortgage balance is a bit lower than I had thought. We have had an expensive few months with a tax bill, my reduced income and some other expenses so I am keen to have more money at hand from the new year when my hours increase. Although I would love to get just below 160k by January and get into the 150s, I'm not sure if we will manage this. We have done a few renovations to the house since we bought it and agreed that we would do some work on the kitchen in the new year. This will run into thousands and I need to allocate money from savings to this as well as money to savings for a car upgrade next year. Hopefully an increase in our income will allow for bigger overpayments plus money for these projects. It is difficulty to find the right balance between overpaying and allocating money for other things. The kitchen really does need doing although DH would prefer to throw everything at the mortgage. I have said to him that there is no point owning a house that is falling into disrepair, we need to also spend some money on the house itself. I need to look in more detail at the costs of the kitchen and get some quotes. I have about 2k in savings and would like to put as much as possible towards this fund in January and February and see about getting the work done then.
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • VDOT47
    • By VDOT47 9th Nov 18, 12:01 PM
    • 226 Posts
    • 665 Thanks
    VDOT47
    Hello Smilingbright - you are certainly correct when you say that it is difficult to find the right balance on these things. if you are anything like me, your decision making and views on where the balance should sit will change on an almost monthly basis!


    Good luck with getting below 160k by the end of the year!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (08/03/19) £235,055
    End Date February 2040 Original End Date February 2042
    • smilingbright
    • By smilingbright 9th Nov 18, 12:27 PM
    • 11 Posts
    • 13 Thanks
    smilingbright
    Thanks for your comments and encouragement VDOT! I agree it is a tricky balance and one that is constantly changing.... I can see how many people allocate a lot of their leftover money to doing things to the house rather than paying the mortgage. There is really no end to what you could spend once you start!
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • smilingbright
    • By smilingbright 13th Dec 18, 10:35 AM
    • 11 Posts
    • 13 Thanks
    smilingbright
    So a quick update on getting to our "into the 150ks" by the end of the year goal. With a further capital payment coming off in early December plus two further overpayments totalling 1000 I *think* the mortgage balance is close to, if not below, the 160k mark. I just made the most recent overpayment today so will wait until tomorrow and give them a call to check what the balance is. Annoyingly I can't login and see it online unless I also have a current account with them- which is actually on my to do list anyway so maybe I need to make that happen as it is motivating to be able to see the figures there in front of you on the screen! Currently they send me a letter a week or two after an overpayment with my adjusted payment amount (we reduce payments not the term) but the figure changes daily anyway because of interest. It seems antiquated in this day and age to be sending letter updates. I will report back if we have made it into the 150ks!! I'm a bit obsessed now so if we are not there, I will find the difference, even to get to 159,999!! Not bad considering this time two years ago we were in the 200ks.
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • smilingbright
    • By smilingbright 13th Dec 18, 10:37 AM
    • 11 Posts
    • 13 Thanks
    smilingbright
    Oooh- and this is really sad but maybe you will all understand- I can also update my signature hopefully to a "150s" balance and it will be so satisfying to see it.
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
    • smilingbright
    • By smilingbright 13th Dec 18, 7:04 PM
    • 11 Posts
    • 13 Thanks
    smilingbright
    Well surprisingly good news today. DH normally leaves the financial stuff to me (by mutual agreement as it is more my thing) but he is very much on board and we share the goal of getting the mortgage down. He announced this evening (not realising I had already just today transferred another OP to the mortgage) that he wanted to put in a 1000 payment from his sideline business into the mortgage. So we are going to smash the target of getting below 160k! I have already done the transfer online but will still need to phone the bank for the new figure as it is really tricky to estimate based on what I think has come off in capital from the actual mortgage payment in December plus the overpayments. Soon it will be time to set some targets for 2019 :-)
    Mortgage November 2016- €202,000
    Mortgage November 2018- €161,500
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