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  • FIRST POST
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 8th Sep 12, 12:07 PM
    • 696Posts
    • 3,085Thanks
    SuperSecretSquirrel
    Onwards to freedom!
    • #1
    • 8th Sep 12, 12:07 PM
    Onwards to freedom! 8th Sep 12 at 12:07 PM
    Hello and welcome to my MFW diary. Not sure how often I'll update as I'm going down the boring 'increase monthly mortgage direct debit' route, not the more interesting to read 'random repayment as and when a bit of extra money is made' route. Still, no harm in starting a diary here, even if it's just for me to look back on in a few years time!

    It seems like a good idea to start with a bit of background, so here goes...

    We bought our house in July 2010 with an 87k repayment mortgage, fixed for 10 years at 5.29%. Nearly two years of £525pm standard repayments allowed us to rebuild our savings, but after 20 monthly payments (over 10k paid out) the mortgage balance had only dropped around 2.5k thanks to all the interest being paid...

    We decided to make a small start on overpaying - small overpayments early on have quite an impact over the long term so why not start small and ramp up later? March 2012 we made our first regular overpayment, £50pm. Amazingly, if we were to keep up with this £50pm over the life of the mortgage we'd be mortgage free nearly four years early (Nov 2031) and save ourselves a tidy bit of interest. Not bad rewards for just £50 a month!

    A few days ago I decided to step things up a notch. From next month the regular overpayments will increase to £250pm, £200 less will find its way into my long term savings (paying 2.8%, minus basic rate tax), £200 more will find its way to the mortgage provider. Makes a lot of sense looking at the interest rates! I'll keep on saving in a normal savings account though and won't be putting every penny into the mortgage - I'm used to seeing my savings grow monthly, and like to try to be prepared for any eventuality, so I'll keep on squirelling away a chunk of my income in savings each month. I know this isn't the most efficient option in terms of reducing interest payments, but it's a balance that keeps me sane, if there's any major disasters the savings are there to fall back on, that kind of peace of mind is well worth a few pounds! Anyway, here's where the numbers get really interesting - by overpaying £250pm for the life of the mortgage we'd be mortgage free nearly eleven years early (Oct 2024). Wow!

    Seeing the massive savings I started looking into this stuff in more detail. We're allowed to overpay up to 10% of the mortgage balance each year without penalty. I don't want to increase overpayments over £250pm right now, but maybe after another year or so of growing my savings I'll step up the overpayments to £500pm. Two years later the overpayment would need to drop to £450pm (to avoid penalty), year after that drop to £400, and the following year drop to £350, and the years after that drop to £250 at which level the op's would have to remain until the end of the fixed period (August 2020). If we were to follow this plan, at the end of the fixed period our mortgage balance would be around about 20k which we could pay off with a lump sum from savings. Mortgage free fifteen years early, at age 36, sounds awesome, and what's incredible is that it also sounds very realistic.

    At the moment overpaying is my project. OH and I have our own accounts that our wages are paid into, and a joint account that we feed monthly to pay the bills. As I earn a little more I also do the grocery shopping, pay a few extra bills, and overpay the mortgage. Beyond feeding the joint account OH's income is none of my business, it can be spent on whatever OH likes, same goes for my income. This works well for us - if I want to splash out on a new computer game or a night out or whatever I can do so without needing to consult OH, and if OH wants to splash out on a night out or clothes or whatever no need to consult me. We're both debt averse and savers by nature, so as long as we spend less than what's coming in and all the bills get paid all is well. I'm hoping that seeing the mortgage balance reduce might convince OH to get involved in overpaying the mortgage (or at least split savings into two pots, one 'spendable' short term pot for holidays and home improvements etc, and a long term one earmarked for paying down a lump sum on the mortagage), but there'll be no pressure, if OH joins in that would be excellent, but if not that's ok.

    Finally, I know life doesn't always go smoothly - anything could happen in the next 8 years, babies, redundancy, armageddon, "the best made plans of mice and men, often go awry"... But if things don't go to plan, nevermind, we'll have made a great start on the mortgage regardless, any overpayments we make early on will benefit us later on, so we may as well give it a shot while circumstances allow It's nice to remember that circumstances can go up as well as down too - maybe there will be payrises and good fortune along the way that make achieveing the target easier, who knows!
    __________

    January 2014 Update:

    Things have changed quite a lot since I first started this diary... The new aim is to hit the MFiT3 target of a 40k mortgage balance by end 2015, and to have 40k in savings by that time too, making us mortgage neutral 20 years early! Anything can happen, but I think it's time to aim high!
    __________

    March 2015 Update:

    We did it! We are mortgage neutral (savings balance higher than outstanding mortgage) and are locked in to achieve the MFiT3 stretch goal of mortgage below 40k by the end of the year I'm going to keep this diary going, the aim is total financial independence now!
    __________

    January 2018 Update:

    Paid the mortgage off in full today (12/01/2018)
    Last edited by SuperSecretSquirrel; 12-01-2018 at 9:42 PM. Reason: We did it! :D

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
Page 25
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 8th Dec 17, 8:28 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Thank you all for posting

    You seem to be in a fantastic position takingonedayatatime! Half a million in pensions, a smallish mortgage with plenty of equity, enough income to cover living your life as you like it - with plenty left over to save and help children out, and lots of time with your family - even your husband as sole breadwinner thanks to short commute and early finishes. Sounds like you've got it cracked!

    Those that brag about shiny things could well be envious of your lifestyle. I find there's no point comparing with others, we all have different values and aims, and live accordingly

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Dec 17, 10:12 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Last ever £828 monthly mortgage payment has gone out this morning

    A £1,400 fee free OP is pencilled in for new year's day, and the resulting automatic recalculation will drop our monthly repayments to around £260pm, which is pretty great in itself from a cashflow perspective

    Soon after, we'll almost certainly be raiding the savings, stumping up the ERCs, and paying it off in full

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • Karmacat
    • By Karmacat 10th Dec 17, 1:46 PM
    • 29,312 Posts
    • 167,814 Thanks
    Karmacat
    OMG, that's amazing! Your hard work is really, really paying off!
    Retired August 2016
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Dec 17, 4:43 PM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Thanks KC

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • michelle09
    • By michelle09 10th Dec 17, 5:52 PM
    • 785 Posts
    • 4,330 Thanks
    michelle09
    Wow, that's wonderful. You are so nearly there!
    • greent
    • By greent 10th Dec 17, 6:42 PM
    • 7,075 Posts
    • 72,075 Thanks
    greent
    Wow! Well done, SSS! - hopefully we'll see you as one of the first people in 2018 posting on the 'No Longer MFW' thread
    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. 2018 OPs (#18) £1068.37/£4000
    Net sales 2018 £519.32/£1000 PAYDOX18 (#15) £18459.38/£18918.90
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 11th Dec 17, 8:17 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Thanks michelle and greent I would love to get in early on that thread

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 22nd Dec 17, 8:06 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    My credit score increased from 611 to 661 this month. It has been business as usual (standard mortgage repayment, minimum repayments on stooze cards) apart from the fact that the mule card has been closed and removed.

    I now have a £53,100 total credit limit, 74% used. Last month it was a £61,500 credit limit, 64% used. I had previously wondered if closing the mule card would have a positive (due to reduced credit available) or negative (due to increased proportion of credit available used) effect on my score. All other things being equal, it looks like it had a positive effect

    Christmas soon, can't wait! We have everything ready and can relax for the next three days (it was the last day at work for the year yesterday ). Looking forward to seeing LO1s enjoyment on the big day, and LO2s sheer puzzlement as to what on earth is going on!

    Merry Christmas everyone! :

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • Kittenkirst
    • By Kittenkirst 22nd Dec 17, 8:13 AM
    • 1,897 Posts
    • 10,183 Thanks
    Kittenkirst
    Merry Christmas SSS- can!!!8217;t believe you are so close to being Mortgage free- I!!!8217;m so excited for you
    2018 MFW #20 - OP £1799.61/ £3000 60%
    Mar: £218 Apr: £528.91 May: £361.07

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • greent
    • By greent 22nd Dec 17, 9:53 AM
    • 7,075 Posts
    • 72,075 Thanks
    greent
    Have a great Christmas with your family
    x
    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. 2018 OPs (#18) £1068.37/£4000
    Net sales 2018 £519.32/£1000 PAYDOX18 (#15) £18459.38/£18918.90
    • Karmacat
    • By Karmacat 22nd Dec 17, 12:18 PM
    • 29,312 Posts
    • 167,814 Thanks
    Karmacat
    It's been great reading your analyses over the year - hope you have a lovely time over Christmas and the New Year
    Retired August 2016
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 1st Jan 18, 10:30 PM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Net Worth Update - 1st January 2018
    Thanks for posting everyone, and a happy new year to you all!

    2017 was another good year for us, the highlight of course being the addition of LO2 to the family OH was on maternity leave for most of the year, but our finances appear to have held up quite nicely

    Here's how things stand on the 1st January 2018:

    Code:
                  CURRENTVALUE     +/-MTH      +/-QTR      +/-YOY
    House Value:   £125,000.00      £0.00       £0.00       £0.00
    Pensions:       £78,458.66  £1,994.89   £6,008.09  £17,134.61
    Cash:           £39,576.36   -£876.56  -£1,776.18  -£7,648.66
    S&S:            £26,607.27  £1,432.73   £4,067.75  £13,293.90
    Car Value:      £14,715.00   -£110.00    -£430.00   £5,815.00
    Student Loan:     -£314.95     £66.26     £198.84   £1,823.42
    Due to HMRC:      -£513.23    -£29.90     -£80.83    -£132.97
    Mortgage:      -£14,140.28    £764.15   £2,286.08  £11,522.44
    Total:         £269,388.83  £3,241.57  £10,273.75  £41,807.74
    89.8% of the way to 300k net worth (2020 challenge), 11.3% mortgage ltv, £51,530.12 beyond mortgage neutral in liquid assets, 18.0% financially independent.

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 4th Jan 18, 8:11 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    The 10% OP allowance has been paid off the mortgage, and I'm now ready to withdraw a lump sum from PBs. It was a very nice surprise to find that I won £175 in the January draw! Pretty good start to the year!

    Stooze stats as they stand - I've paid a total of £151.34 in money transfer fees, and £6.35 in interest, received £25.27 cashback, and won 10 x £25 prizes. 6 months into a 24 month experiment I'm £117.58 up.

    In other news, I've started working on a new simplified personal finance spreadsheet. My existing one is an absolute beast, and it's actually quite slow to work with thanks to all the bloat. My simplified one is not quite finished, but the file size is a whopping great 50x smaller than the beast, and it's a dream to work with so far. I find it quite amusing that it's perfectly normal to mention this here!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • edinburgher
    • By edinburgher 4th Jan 18, 8:29 AM
    • 11,147 Posts
    • 59,841 Thanks
    edinburgher
    Congratulations on your good fortune and 'the beast' made me laugh

    The structure of my spreadsheet (the formulae, charts and tables) is actually pretty basic, but the amount of data in it does tend to lead to the odd spreadsheet collapse. Luckily I back up regularly. No regrets, there's nothing more illuminating (or terrifying) than collapsing down 3 years of data to look at trends
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 4th Jan 18, 8:39 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Hi ed, happy new year

    I have quite a lot of stuff detailed at the day level at the moment, the new spreadsheet will only have monthly entries for historical data. Similarly, I have charts spanning a decade worth of data, when really I think an annual overview is all the main spreadsheet needs. I can always add little satellite/throwaway spreadsheets for specific analyses, instead of using the one monster to do everything

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • edinburgher
    • By edinburgher 4th Jan 18, 9:22 AM
    • 11,147 Posts
    • 59,841 Thanks
    edinburgher
    A decade? Ooh la la!
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Jan 18, 7:57 AM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Our mortgage provider has failed to recalculate our repayments following the £1400 lump sum transfer well over a week ago. £828 has been direct debited this morning. Not that this is a problem - in fact I'm quite happy to have dropped below 10% LTV as a result, and another brick in the spreadsheet house can be coloured in a few days earlier than expected

    Once it's fully paid off, I think I'll be cancelling the direct debit mandate. I wouldn't be surprised if they were to try taking more of our money after we've settled in full!

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • Betterthanever
    • By Betterthanever 10th Jan 18, 9:03 AM
    • 526 Posts
    • 3,606 Thanks
    Betterthanever
    Just catching up - that net worth update looks pretty darned good!


    And hurrah for another brick being coloured in. I LOVE colouring in bricks. Again, only something that you can easily mention on MSE without crazy looks and people running for the hills!!!

    Current balance £112,593.71. Offset £2,677.73. £109,951.98 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22 - 2018 O/pay £600
    Make £2018 in £2018 = £406.75/£2018
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 10th Jan 18, 9:18 PM
    • 696 Posts
    • 3,085 Thanks
    SuperSecretSquirrel
    Thanks Betterthanever Lots more colouring in to be done soon, and hopefully much smaller numbers in the red section of the February net worth update

    I've realised that the mortgage provider's failure to reduce our monthly repayment amount should save us about £23 in ERCs - I guess that means the inevitable celebratory curry takeout will be on them then

    Mtg [2013 £64k|2014 £51k|2015 £38k|2016 £26k|2017 14k] Zero!
    MN [2013-£25k|2014-£2k|2015+£16k|2016+£34k|2017+£52k] +£56,615.31(MFiT4:+60k)
    NW [2013 £126k|2014 £156k|2015 £190k|2016 £228k|2017 £269k] £278,659.39 (2020:300k)
    FI [2013 -1.2%|2014 2.8%|2015 6.9%|2016 13%|2017 18%] 30.9% (exc SP)
    • NorthernMonkey1
    • By NorthernMonkey1 12th Jan 18, 1:35 PM
    • 241 Posts
    • 970 Thanks
    NorthernMonkey1
    Not sure If I've asked this before, but why do you keep such a high proportion of your savings as cash?
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