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  • FIRST POST
    • The frugal fairy
    • By The frugal fairy 2nd May 18, 4:37 PM
    • 57Posts
    • 85Thanks
    The frugal fairy
    Our quest for mortgage neutrality
    • #1
    • 2nd May 18, 4:37 PM
    Our quest for mortgage neutrality 2nd May 18 at 4:37 PM
    I wanted to start a monthly diary to focus and push us on our quest to be mortgage free.

    I have been reading lots of diaries and looking at our paperwork.
    • Our fixed rates end next year (on main mortgage and further advance) so I am planning to fix for another two years as the rate is so much better than the standard variable.
    • As we have already overpaid the mortgage the repayments should decrease substantially, we can overpay 10% of each original balance which we are able to do at present, so the extra saved on the monthly payments will be put in a savings account. I think a regular saver looks a good option.
    • So for us I will look at the mortgage balance when we re-fix next year and the amount saved to give us the outstanding balance, like an informal offset.

    Ways to focus on the mission are listed below, happy to have more suggestions
    • Colour in the cell in the spreadsheet every time we drop to the next thousand.
    • Spreadsheet set up to monitor daily interest and each month end balance.
    • Sell things we no longer need.
    • Declutter, makes you realise what you have and buy less.
    • Set budgets for monthly spending.
    • Start MSE diary.
    • When we pay off each 10k have a treat !!!128522;

    So as of the 1st of May 2018 the balance of both mortgages is 56,443.85
    Last edited by The frugal fairy; 02-12-2019 at 11:39 PM. Reason: Dae
Page 1
    • louloubelle79
    • By louloubelle79 2nd May 18, 5:35 PM
    • 408 Posts
    • 205 Thanks
    louloubelle79
    • #2
    • 2nd May 18, 5:35 PM
    • #2
    • 2nd May 18, 5:35 PM
    Good luck on your MF journey
    • The frugal fairy
    • By The frugal fairy 2nd May 18, 8:28 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    • #3
    • 2nd May 18, 8:28 PM
    • #3
    • 2nd May 18, 8:28 PM
    Thank you. It felt good to get my thoughts organised and I am looking forward to updating in June.
    • shangaijimmy
    • By shangaijimmy 2nd May 18, 8:38 PM
    • 3,264 Posts
    • 16,990 Thanks
    shangaijimmy
    • #4
    • 2nd May 18, 8:38 PM
    • #4
    • 2nd May 18, 8:38 PM
    Welcome onboard. You'll be obsessed in no time!
    MFW: Was: 136,000.......Now: 76,704.80......Reduction: 59,295.71... in 58 months!
    MFiT-T5 #8 - 10,313 of 23,100 (44.65%)
    Save 12k in 2020 - 0 // 24,000 (0.00%) & 2020 - Banish the Clutter - 28 // 366 days (7.65%)
    • The frugal fairy
    • By The frugal fairy 2nd May 18, 9:54 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    • #5
    • 2nd May 18, 9:54 PM
    • #5
    • 2nd May 18, 9:54 PM
    Hello, I'm already obsessed on seeing the balance and daily interest go down. I have really enjoyed other people's diaries and ideas. I thought this was the place to find like minded people
    • beanielou
    • By beanielou 3rd May 18, 4:54 PM
    • 68,536 Posts
    • 313,223 Thanks
    beanielou
    • #6
    • 3rd May 18, 4:54 PM
    • #6
    • 3rd May 18, 4:54 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14. MFW. 14 months to mortgage freedom.
    **Credit card debt free 30/06/10~**
    **Weight loss 2 stone 11 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.***
    • The frugal fairy
    • By The frugal fairy 4th May 18, 12:38 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    • #7
    • 4th May 18, 12:38 PM
    • #7
    • 4th May 18, 12:38 PM
    Thank you beanielou. It has renewed my enthusiasm.


    It will be interesting to see the daily interest reduction at the end of the month, how much we can overpay and if we get some more 'bricks' to colour in. I going to get listing over the weekend to try and increase the overpayment.
    • beanielou
    • By beanielou 5th May 18, 7:20 PM
    • 68,536 Posts
    • 313,223 Thanks
    beanielou
    • #8
    • 5th May 18, 7:20 PM
    • #8
    • 5th May 18, 7:20 PM
    Happy listing!
    Lou~ Debt free Wanabe No 55 DF 03/03/14. MFW. 14 months to mortgage freedom.
    **Credit card debt free 30/06/10~**
    **Weight loss 2 stone 11 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.***
    • gallygirl
    • By gallygirl 6th May 18, 10:09 PM
    • 16,785 Posts
    • 110,611 Thanks
    gallygirl
    • #9
    • 6th May 18, 10:09 PM
    • #9
    • 6th May 18, 10:09 PM
    Ways to focus on the mission are listed below, happy to have more suggestions
    Colour in the cell in the spreadsheet every time we drop to the next thousand.
    Spreadsheet set up to monitor daily interest and each month end balance.
    Sell things we no longer need.
    Declutter, makes you realise what you have and buy less.
    Set budgets for monthly spending.
    Start MSE diary.
    When we pay off each 10k have a treat !!!128522;
    Originally posted by The frugal fairy
    You could try adding some of these to your spreadsheets:
    - Initial pay off date and revised pay off date - days saved
    - As above - days remaining to revised pay off date
    - Interest saved
    - % paid off (based on whatever you want - % of house price/current value/starting mortgage/start of MSE journey - all or some of them!)
    - In addition to the current situation spreadsheet have one where you build in future assumptions. How much is needed to knock another month off the mortgage end date? This works even better if you have a daily calculations spreadsheet and make overpayments during the month on fixed days - e.g. if you are committing to 100 from your wages then pay that on a different day to your mortgage payment, maybe another 10 when x happens, another 100 when there are council tax free months, 150 when z loan is paid off etc. Multiple projected payments means you will need less to knock a period of time off - it's much more inspiring to know you only need to find 18.62 to knock a day off rather than 597 to knock a month off!
    - Total overpaid
    - Total overpaid vs total of normal payments
    - Monthly figures showing the % of capital repaid against interest charged - it's gratifying to see the capital % rise!
    - Actual mortgage figure and unofficial offset figure.

    Basically, there are loads of different things you can do. All take time to set up on a spreadsheet but once set up you'll have lots of different things to waste time obsessing over monitor and there is always progress on one of them to keep you interested. Personally I loved seeing how much I needed to knock off another day, then trying to find it from somewhere!
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • The frugal fairy
    • By The frugal fairy 8th May 18, 11:43 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    You could try adding some of these to your spreadsheets:
    - Initial pay off date and revised pay off date - days saved
    - As above - days remaining to revised pay off date
    - Interest saved
    - % paid off (based on whatever you want - % of house price/current value/starting mortgage/start of MSE journey - all or some of them!)
    - In addition to the current situation spreadsheet have one where you build in future assumptions. How much is needed to knock another month off the mortgage end date? This works even better if you have a daily calculations spreadsheet and make overpayments during the month on fixed days - e.g. if you are committing to 100 from your wages then pay that on a different day to your mortgage payment, maybe another 10 when x happens, another 100 when there are council tax free months, 150 when z loan is paid off etc. Multiple projected payments means you will need less to knock a period of time off - it's much more inspiring to know you only need to find 18.62 to knock a day off rather than 597 to knock a month off!
    - Total overpaid
    - Total overpaid vs total of normal payments
    - Monthly figures showing the % of capital repaid against interest charged - it's gratifying to see the capital % rise!
    - Actual mortgage figure and unofficial offset figure.

    Basically, there are loads of different things you can do. All take time to set up on a spreadsheet but once set up you'll have lots of different things to waste time obsessing over monitor and there is always progress on one of them to keep you interested. Personally I loved seeing how much I needed to knock off another day, then trying to find it from somewhere!
    Originally posted by gallygirl

    That is fantastic advice, I thought I would see which of these I can answer and which need working on

    1 Pay off day is 2031, hoping to get to mortgage neutrality 2020, so roughly 11 years
    2 So to mortgage freedom hoping to be 24 months
    3 Percentage remaining as of today 36.29
    4 I have a monthly and yearly plan. I have the carry forward, add interest less repayments, overpayments that we have ringfenced and bonus repayments. I try to get to the next 1,000 below if we can.
    5. Total overpaid I see this as security if we needed to take a break on the mortgage. At the moment we are over 3.5 years on both.
    6.Offset will start next year when we fix again.

    The other things I am doing at the moment is tracking the two year fix rate it is 1.94% at the moment . I think I last got 1.49% last time. So trying to get the maximum 10% of original balance repayments on both mortgages before we refix.

    Also keep doing lovely graphs and percentage reduction in the interest rate.
    • The frugal fairy
    • By The frugal fairy 5th Jun 18, 10:53 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    June update
    So as of the 1st of June the balance of both mortgages is 55,800.31.

    !!!8226; A capital reduction of 643.54, less than normal due to some unexpected expenses, result is emergency fund now started.
    !!!8226; One brick coloured in.
    Money saving activities
    !!!8226; 3 bay sales, more things found to list too.
    !!!8226; Decluttering for a local charity collection.
    !!!8226; Checked if we can save with a water meter and I think the answer is not.
    !!!8226; Food budget followed.
    !!!8226; Current account switch started.
    !!!8226; Forward projections done to try and achieve the balance starting with 4 in August. Very excited about this target.
    !!!8226; Checked the mortgage rate for when we remortgage next year. Done some sums regarding the early repayment charges.
    Last edited by The frugal fairy; 07-06-2018 at 12:35 PM. Reason: Dupllication
    • The frugal fairy
    • By The frugal fairy 5th Jun 18, 10:55 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    Oh dear my bullet points are broken....
    • Sugarplump
    • By Sugarplump 6th Jun 18, 11:52 AM
    • 22 Posts
    • 71 Thanks
    Sugarplump
    Hi Frugal Fairy,

    Your journey sounds very similar to ours, current mortgage balance is around 56500 and is due to end in 13yrs but I want to get it paid off before our oldest turns 18 so I have 9yrs to crack these overpayments.
    Sounds so easy when you write it down, not sure how easy it is in practice.
    Good Luck with your journey I shall enjoy reading along.
    • The frugal fairy
    • By The frugal fairy 6th Jun 18, 2:15 PM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    It is difficult, I was concentrating on the over payments and then the unexpected plumbing problems mean the over payment money needs to be used for this. My thinking is to have a house rainy day fund. Build it up and then at a certain amount some can be sent to overpayments.
    • The frugal fairy
    • By The frugal fairy 2nd Jul 18, 10:21 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    July 2018 update

    So as of the 2nd of July the balance of both mortgages is 53,710.24.
    - A capital reduction of 2,009.15, triple that of last month, very happy with this.
    - Two bricks coloured in.
    - I get impatient and forget that good progress is being made so checked we owe 34.51% of the mortgage, at new year this was 41.76%. So by next month two thirds of the house will be ours.
    Money saving activities
    - 4 bay sales, more things found to list too.
    - Decorating and decluttering being done. Trying to decorate with supplies we already have.
    - Good use of solar panels the electricity is down 12 a month.
    - Current account switch complete, awaiting cb.
    - Forward projections done to try and achieve the balance starting with 4 in August. Very excited about this target, this is not looking likely but still going to try to do this.
    - Checked the mortgage rate for when we re mortgage next year. Done some sums regarding the early repayment charges. Considering not fixing both mortgages. It will cost slightly more at double the interest rate but will have the ability to overpay as much as possible.
    - Trying to make the food budget easier and working on the basis of 10 a day instead of the 300 per month. Makes it easier to see where you are mid month.
    Last edited by The frugal fairy; 02-07-2018 at 12:40 PM. Reason: Format issues
    • The frugal fairy
    • By The frugal fairy 1st Aug 18, 9:07 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    So as of the 1st of August the balance of both mortgages is 51,658.74
    .
    - A capital reduction of 2,051.50, 50 more than last month, very happy with this. Only 537.92 of this was due to our monthly payment
    - Two bricks coloured in.
    - I get impatient and forget that good progress is being made so checked we owe 33.19% of the mortgage, at new year this was 41.76%. So this month two thirds of the house is ours. Aiming for 25% by February 2019.
    - Also interest 5.57 down to 4.61, almost a pound a day less in interest each day.
    Money saving activities
    - 1 bay sale, more things found to list too and reductions been made to starting prices
    - Decorating and decluttering being done. Trying to decorate with supplies we already have.
    - Current account switch complete, received cashback.
    -; Forward projections done to try and achieve the balance starting with 4 in August. Very excited about this target, this is not looking likely but still going to try to do this.
    -; Checked the mortgage rate for when we re mortgage next year. Rang Nationwide and have decided to reduce the terms. This means we have turned 75% of overpayment reserve to capital to get an agreement on this. The big mortgage will be 6 years, was 2031. The small mortgage 3.5 years, I think this one was 2026. This will increase the payment by about 120 a month but this will be paid with the overpayment money as at present we were going over the overpayment allowance.
    - Trying to make the food budget easier and working on the basis of 10 a day instead of the 300 per month. Makes it easier to see where you are mid month.
    - Have paused gym membership as not using at the moment, so that will be 250 saving.
    Last edited by The frugal fairy; 01-08-2018 at 9:09 AM. Reason: Format issues
    • The frugal fairy
    • By The frugal fairy 3rd Sep 18, 11:50 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    So as of the 3rd of September the balance of both mortgages is 49,649.35, made it to the 40’s happily waving goodbye to the 50’s.
    Reward for reaching this milestone to be sorted this week, new stools for breakfast bar, present ones 12 years old and broken.

    • A capital reduction of 2,009.39 50 less than last month, very happy with this. At this rate we would be mortgage free in 25 months.
    • Two bricks coloured in.
    • I get impatient and forget that good progress is being made so checked we owe 31.9% of the mortgage, at new year this was 41.76%, so by the time I start making overpayments this month 10% will have been paid So this month two thirds of the house is ours. Aiming for 25% by February 2019.
    • Also need to consider the mortgage lending is less than the value of house so I reckon value is at least 250,000, 20% of value is mortgaged. So the house is ours just paying for garden and garage now !
    • Also interest 5.57 down to 4.37, 1.20 a day less in interest each day.
    Money saving activities
    • 1 bay sale, more things found to list too and reductions been made to starting prices. Really need to start putting more time to this. Will give my self a goal of 100 for September.
    • Decorating and decluttering being done. Trying to decorate with supplies we already have.
    • Forward projections done to try and achieve the balance starting with 3 in January. Determined to do this and already considering where to book holiday to celebrate the milestone.
    • Checked the mortgage rate for when we re mortgage next year. Rang Nationwide and have decided to reduce the terms. This means we have turned 75% of overpayment reserve to capital to get an agreement on this. This is now done and the mortgage terms are now reduced.
    • Trying to make the food budget easier and working on the basis of 10 a day instead of the 300 per month. Makes it easier to see where you are mid month, failed on this in school holidays but had lots of lovely picnics.
    • Looked at bills again we are with Virgin for telephone and broadband, price is going up again. Considering moving to KEE or Pnet would this be a good money saving move ?
    • Planning autumn birthday presents and Christmas presents, I already have some will be great to tick those recipients off my list. Then I can plan budget and gifts to be bought/made.
    Last edited by The frugal fairy; 03-09-2018 at 11:51 AM. Reason: Format issues
    • Escapar2020
    • By Escapar2020 8th Sep 18, 11:18 AM
    • 100 Posts
    • 172 Thanks
    Escapar2020
    I find one of the best motivators is a simple spreadsheet chart so you can track the trends as savings increase and and mortgage balance decreases. I've recently posted one in my diary.
    • The frugal fairy
    • By The frugal fairy 2nd Oct 18, 10:16 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    October update
    So as of the 1st of October the balance of both mortgages is 47,697.39 with this months overpayment will achieve a balance of less than 46,500.
    Reward for reaching this milestone to be sorted this week, new stools for breakfast bar, present ones 12 years old and broken. Finding it difficult to find what I want, went to Swedish shop at weekend but not sure Glenn is what I want. Any suggestions for shops to try ?

    A capital reduction of 1,951.96, 50 less than last month, very happy with this. At this rate we would be mortgage free in 25 months.
    One brick coloured in.
    I get impatient and forget that good progress is being made so checked we owe 30.65% of the mortgage, at new year this was 41.76%, so 11% will have been paid this year So this month 70% of the house is ours. Aiming for 75% by February 2019.
    Also need to consider the mortgage lending is less than the value of house so I reckon value is at least 250,000, 20% of value is mortgaged. So the house is ours just paying for garden and garage now !
    Also interest 5.57 down to 4.14, 1.43 a day less in interest each day. Very happy with this
    Money saving activities
    1 bay sale, more things found to list too and reductions been made to starting prices. Really need to start putting more time to this. Will give my self a goal of 100 for September. Achieved this on Sunday, cut it really fine. Going for 150 for October.
    Decorating and decluttering being done. Trying to decorate with supplies we already have.
    Forward projections done to try and achieve the balance starting with 3 in January. Determined to do this and holiday booked for next year to celebrate the milestone, was a voucher, deposit of 20 only and cash back too so went for it. Also it is out of normal school holidays so 60% cheaper.
    Checked the mortgage rate for when we re mortgage next year. Rang Nationwide and have decided to reduce the terms. This means we have turned 75% of overpayment reserve to capital to get an agreement on this. This is now done and the mortgage terms are now reduced.
    Trying to make the food budget easier and working on the basis of 10 a day instead of the 300 per month. Makes it easier to see where you are mid month.
    Looked at bills again we are with Virgin for telephone and broadband, price is going up again. Considering moving to EE or Plusnet would this be a good money saving move ?
    Planning autumn birthday presents and Christmas presents, I already have some will be great to tick those recipients off my list. Then I can plan budget and gifts to be bought/made.
    Last edited by The frugal fairy; 02-10-2018 at 9:55 PM. Reason: Title
    • The frugal fairy
    • By The frugal fairy 2nd Oct 18, 10:18 AM
    • 57 Posts
    • 85 Thanks
    The frugal fairy
    I love spreadsheets, I have many.
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