Pay off mortgage and start having fun!

Goldiegirl · 23 January 2015 at 9:06PM

Hope you feel better soon, there's a lot of nasty bugs going round

CathT · 23 January 2015 at 10:23PM

I know a few people been floored by this nasty bug. Hope you are feeling better.

newgirly · 24 January 2015 at 1:01PM

Thanks for the kind wishes everyone, still quite poorly but better enough to use the laptop!

I've decided to switch half the mortgage to repayment:

current bal is £139,999 so plan is to put £70K on repayment and keep the other half IO.

Payments should be £883 and £151.

This year I will clear all the 0% ccs at £781 pm and then that leaves 6 years 4 months to save the surplus £781 from Jan 2016

I worked out to hit the 70K magic figure needed at the end of term to cover the IO part I would have to have an interest rate of 6.5 % on average. This would make up for the fact that the savings would only be over 6 yrs 4 months not 7yrs 4 months like the repayment part.

So no doubt I will be a few thousand short or more! But I thought it may be an interesting comparision, and gives a bit more flexibility, plus might be a challenge learning about investing rather than just oping.

newgirly · 26 January 2015 at 7:05PM

Well, it seems my plans have changed already. I rang the Chelsea to change the mortgage to part repayment (like they are always trying to get me to do) and I will have to have a 45min mortgage interview and they will do an affordability test on us. This would be a waste of time as we will not pass affordability as dh's company is making a loss. So although we are tied to a mortgage that ends in just over seven years and can afford to pay it back, officially we can't go repayment?! We will still op and just have to save any surplus in the future for when the limit has been reached. Seems a bit crazy to me if they have already lent you the money to then say you can't afford to pay it back.

newgirly · 27 January 2015 at 9:03AM

I had a thought this morning, quite obvious really, but I think its unlikely that we will be able to extend the term of the mortgage at all due to the affordability checks. I don't want to, but it will have to be a very careful seven years or so, with no option for breathing space if it gets too hard. On a brighter note, I've got a veg box being delivered today, large fruit and veg £18.65 from riverford, plus a mr t shop which I used a £7 off voucher so only cost £43.

newgirly · 28 January 2015 at 9:59PM

Still not feeling great, my Tesco shop came last night and I had managed to order quite a few doubles by mistake, not sure if it was the dodgy laptop keys or me!

The new monthly cc budget started yesterday £600pm, I'm a bit fed up as the mortgage issues mean we HAVE to stick to a budget. We are also still trying to gather together loans to buy the factory, dh is now almost at the point he owns the whole company, hopefully in the next few weeks it will be all sorted. He has to own 100% to be able to get the loan to buy the place.

The main loan will have to be secured against the house as well as the factory, although the risk should be minimal as the factory will have no mortgage and should be worth over £250k. However we still have to make a profit not a loss like we currently are, scary stuff. No other options really though, its a dying trade and most of the staff (us included) need the company to succeed, its not a job you can walk into elsewhere, plus we are not all spring chickens!

My head is spinning with it all lately, but if I think about it too much I wont sleep at night, so its best to focus on the everyday stuff that is in my control, like food budgets, the kids birthday budgets etc. and trying to convince dh that I don't need loads of money spending on my 40th.

SmlSave · 29 January 2015 at 12:11PM

Gosh NG, sounds like enough is going on to cause a large headache!

Poo to the bank, I'll never understand why they use the affordability calculator so rigidly

newgirly · 30 January 2015 at 4:18PM

Argh, just got back from the shops and the iron is not working, very annoying. Will have to g to mr t and buy one - their value one is my favourite and is usually under £4.

I've been buying myself clothes today to update my "capsule" wardrobe. This year its navy (again) but with a peachy pink colour that seems to be In at he moment.

So I bought in the pinky colour:

Short fake leather jacket £30 reduced to £15 asda
cropped jumper with crochet trim £20 to £10 Dorothy perkins
short sleeved silky top £2 primark sale
silky vest £2 primark sale
scarf £3

In navy:

floral chiffon tie top £3.90 primark
capri pants £8
plain vest £1.80

£45.80

Its a bit naughty but I need brighting up!

I thought I might do a mini challenge for feb as fingers crossed it shouldn't be a dear month, maybe £200 for everything.

newgirly · 1 February 2015 at 10:20AM

It's the first day of my live of £200 month, I was getting an online shop at Mr t where I have free delivery at the moment , but I'm going to try lidl instead today.

I took dh out for lunch yesterday at the harvester (before the tight budget started !) they are doing 1/3 off main meals if you download a code off their site. So they do main meals from £4.99 and then the discount plus a free salad bar, and the refillable fizzy drinks were £2.50, not a bad price for a cheap treat :beer:

Now I have my iPad back and fixed apart from being very happy , I am able to do the online banking, the old laptop was so dodgy I didn't want to do it. So it's back to oping the 0% ccs (just incase we can't renew them when the deals finish). With dh cutting wages we will not be able to clear the mortgage in the seven year three month term but I'm going to try my best to get as close as possible

edinburgher · 1 February 2015 at 10:27AM

Sorry to hear about you being stuck on your current mortgage deal, it sounds trying. You can understand their point of view, but affordability calculations don't show you how hard people work to keep everything ticking over. I think that banks should let you link to your MSE diary as evidence

I am considering buying a refurbished/second hand iP@d this year (largely for matched betting offers). What flavour do you use and would you buy it again?

Pay off mortgage and start having fun!

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