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  • FIRST POST
    • Tropically
    • By Tropically 12th Sep 16, 9:56 PM
    • 282Posts
    • 871Thanks
    Tropically
    Getting rid of a London-sized Mortgage
    • #1
    • 12th Sep 16, 9:56 PM
    Getting rid of a London-sized Mortgage 12th Sep 16 at 9:56 PM
    Hello,

    I tried to look for other situations which were like mine but you all seem to have everything so under control. You are all very inspiring so I thought I would put up my story too.

    I bought a house in June with my partner for £425,000 (London) and our mortgage is £318,000. Our mortgage payments are about the same as we were paying in rent but we have over 3 times the space now. Yes this a huge mortgage, no, we don't make a lot but the time came for us to buy instead of rent.

    Plan:
    1. Call bank tomorrow and see if I can 'round up' our mortgage which will cut off 2 years from the term.
    2. Get £10,000 in savings again as an emergency fund before over paying mortgage - I don't have any money at all any more.
    3. Get in a tenant from November 1st and rent the second bedroom for hopefully £700/month and apply that as over payments.

    It would be amazing if we could pay off the mortgage 10 years early. I would be just over 40. I have a lovely spreadsheet which calculates all of this for me. If we were to only apply the extra rental money to the mortgage, we would be able to pay off 10 years early.
Page 10
    • FloppyDisk
    • By FloppyDisk 6th Apr 18, 12:52 PM
    • 636 Posts
    • 4,248 Thanks
    FloppyDisk
    I used L&C for a remortgage to BTL with no other house owned and release of equity, plus a new mortgage bolted on a few weeks later. They have been faultless in what was quite a complex situation, can you ask for another advisor?

    Hope next week's interview goes well, what an opportunity!

    Mortgage Apr 18 £417,894
    Mortgage now --- £414,381
    BTL Mar 18 £162,857
    BTL now --- £162,753
    • Tropically
    • By Tropically 11th Apr 18, 10:02 AM
    • 282 Posts
    • 871 Thanks
    Tropically
    Well I turned the other UK-based job down. Even though it would have been £4k more per year, and they also do bonuses up to 25% of people's salary. I sat down with my boss this morning and without mentioning the other job said that I needed better work. I'm not in the right headspace to change jobs and I didn't want to close down the opportunity to move abroad.

    I dunno. No progress on anything, except I'm very close to my targets of not doing anything in April! I can't wait till I get a £500 Airbnb pay out which has been sent to me.

    The hardest part of the MFW journey is realising just how long it is, and how much consistency you need to put in. I think it's even slightly harder than DFW because the numbers are usually so much lower (and the circumstances more dire).
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Runders
    • By Runders 12th Apr 18, 3:42 PM
    • 192 Posts
    • 517 Thanks
    Runders
    Hey Tropically,

    I've just caught up on your diary after being AWOL for several reasons.

    I did laugh at Chip-gate and the Chip-traitors, personally I would have been in a right huff, I do love chips!

    If I remember correctly we are in the same field of work. I've been looking to make a change too. I did get a job offer in Jan, but turned it down as I would have to move and I wasn't ready too at the time. I find it can be quite difficult to find jobs with salaries that mean I could keep living on my own So for now I am staying where I am, but keeping an eye out in the jobs sections.

    I too think the MFW is a long old slog, but it's one that is worth it in the long run. I got a bit disheartened this morning when I realised I had only paid off 15K in 3.5 years. But still, it's more than if I hade just been paying the payment and nothing else.

    Food and entertainment are still my biggest problem areas, but I am starting to get into the batch cooking M'larky!
    MFW Start: September 2014 - £110844
    Current: £89,634.34 Offset: £15.162.13
    £74,472.21 until mortgage neutral
    • Tropically
    • By Tropically 17th Apr 18, 9:13 AM
    • 282 Posts
    • 871 Thanks
    Tropically
    If I remember correctly we are in the same field of work. I've been looking to make a change too. I did get a job offer in Jan, but turned it down as I would have to move and I wasn't ready too at the time. I find it can be quite difficult to find jobs with salaries that mean I could keep living on my own So for now I am staying where I am, but keeping an eye out in the jobs sections.

    I too think the MFW is a long old slog, but it's one that is worth it in the long run. I got a bit disheartened this morning when I realised I had only paid off 15K in 3.5 years. But still, it's more than if I hade just been paying the payment and nothing else.

    Food and entertainment are still my biggest problem areas, but I am starting to get into the batch cooking M'larky!
    Originally posted by Runders
    Good to see you again!! We are in the same line of work! I have been finding that there is a skills shortage and so lots of opportunity, but not necessarily companies willing to pay more to get someone.We are definitely in the same boat.

    We've still not made overpayments for the year, we are spending lots with the wedding.

    Hmm... Can I post an image? Let me try.

    Nope.. let me try again



    Success! That is the difference our OPs have made and it would be great to carry on the trajectory.

    I am SO close to cashing out uGov, but haven't been getting many surveys lately.
    I also am mid-way through a £30 pr0lific survey which would be amazing if it cashed out.
    We go on holiday next week, and then some cash back savings from Quidco should finally be processed.
    I got a £5 refund for the delays I had during the snow storm, and also got a refund from TfL. They should owe me a refund again for another thing.
    My partner's job seems okay again so I might make an OP soon. I think I need to get spreadsheet'n.
    Last edited by Tropically; 17-04-2018 at 9:17 AM.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Runders
    • By Runders 18th Apr 18, 2:59 PM
    • 192 Posts
    • 517 Thanks
    Runders
    [QUOTE=Tropically;74172294]Good to see you again!! We are in the same line of work! I have been finding that there is a skills shortage and so lots of opportunity, but not necessarily companies willing to pay more to get someone.We are definitely in the same boat.

    I think I may fall into that skills shortage category after nearly 10 years at sea. If people want me to interpret geophysical data to plan and conduct a HAB or EBS then no problemo, and I can fix and maintain all the equipment with my eyes closed. If however, they want me do stats and make some wonderful GIS maps with the data, then I start to struggle a little. I have just downloaded QGis, hoping I can work through the online tutorials and teach it to myself. I need to start coming up with a plan to expand my skill set so it's not just PM and Offshore.
    MFW Start: September 2014 - £110844
    Current: £89,634.34 Offset: £15.162.13
    £74,472.21 until mortgage neutral
    • Tropically
    • By Tropically 20th Apr 18, 7:22 PM
    • 282 Posts
    • 871 Thanks
    Tropically
    Runders, I meant that people want our environmental skills because there aren't many people who can do what we do!! But, they don't necessarily want to pay us for it.

    I had the job interview. I keep working myself into negative thoughts, I became convinced today that they were going to offer me a position lower than my current one, and spent the day trying to find a cached page of the job offer. When I couldn't I asked the interviewer for it, and he gladly complied and sent a really nice message. I do hope I get the job. It would be a big change but so exciting. My partner is away this weekend and I am spending too much time alone with my thoughts. Sometimes exciting things happen, sometimes good things happen. If the don't, I still have a good life. Breathe.

    My £30 prolific survey DID cash out, sweet.

    Plus I have exciting news. Bank of Ireland now have a system where you can see the amount!!! Woo!

    Our mortgage balance is precisely £293,132.65. PRECISELY precisely!! It's never been precise before.

    Plus, they have offered us a 2 year fix at 1.79% so slightly more than we are currently paying, but we'd not have to have any fuss and could get consent to let. Our mortgage broker didn't quote as low as that.

    No overpayments lately. I need a bigger emergency buffer in case my partner is made redundant and/or we move. I have budgeted a 6 month emergency fund (£12k ish) and £6.5k moving fund. I have no idea what an international move costs. I think it could cost anything, couldn't it? Am I going to sell most things or move a bunch of useless things?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • mfmaybe
    • By mfmaybe 20th Apr 18, 8:17 PM
    • 1,132 Posts
    • 3,663 Thanks
    mfmaybe
    It all sounds very exciting - fingers crossed!

    I moved abroad with precisely the amount I was allowed on the flight. 2 bags plus a bike. Visiting relatives brought more stuff in the couple of months that followed. I rented a furnished apartment, had to buy electricals anyway, because of the different voltage and plugs; and in any case rented out my flat with the stuff still in it. So bought plates and bedding and stuff on arrival.

    What was expensive was paying deposits (house, utilities, phone), buying a car, that sort of thing. So a decent slush fund for that. There are many different factors and it will depend on where you are going.
    BTL Overpayments since 20/4 £30.63

    AFD June 8/15 NSD June 5/11

    Other debts paid since 1/1/14: £17,005
    • de_artie
    • By de_artie 30th Apr 18, 2:27 AM
    • 7 Posts
    • 3 Thanks
    de_artie
    is zipcar actually cheaper than keeping your own car?
    • Tropically
    • By Tropically 2nd May 18, 12:09 PM
    • 282 Posts
    • 871 Thanks
    Tropically
    de_artie, it's certainly cheaper than the start-up costs of getting a car. Plus, we don't actually use it that much so I might cancel before the membership. I live in central London. The membership fee is £60/year, a residents parking permit in my area of London is £120/year.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • NorthernPeach
    • By NorthernPeach 2nd May 18, 9:12 PM
    • 46 Posts
    • 121 Thanks
    NorthernPeach
    Hi Tropically,

    Just read through your diary and gosh I do not envy your london mortgage However you are doing fab with your overpayments

    Hope you decide what you want to do about work, I've had similar feelings about my job over the past 9 months or so (without the wanting to move abroad bit). It's so unsettling when you are not sure what the future holds for your job!

    Hopefully your wedding planning is coming along well
    OP's 2018 = £447.83 / £1000 Emergency fund = £300.00 / £1000
    Target 1: £367.63 / £2471.97 Pay off first 10k of capital!
    • Tropically
    • By Tropically 3rd May 18, 10:00 AM
    • 282 Posts
    • 871 Thanks
    Tropically
    Thank you Northern Peach! I don't know what I want to do, I'll be so terrified if they offer it to me! The most straightforward would be if they don't. Then I could grumble about it, without having had to make any scary decisions on my own. If they don't, I'll feel stupid for turning down the other job, though. No news on the job though. It annoys me a little bit, I applied for the job in December, and was invited for an informal interview right away which was very positive. Then, I waited until April to have the official interview, and mentioned that I would want to move in November. They said that would be a problem for them because they want someone to start in June.

    A few months ago, I found an incredible deal for a trip to Iceland. The flights were £30-ish, return! I bought them, and have just come back from my long weekend holiday. Iceland is horrifically expensive. I knew it would be expensive but I didn't know just how expensive. A private room in a house on airbnb near the airport was £50/night. Two soups and a single beer (which we split) was £30. Two bags of crisps, two pot noodles and a container of Skyr was £17 (our cheapest meal). Yikes. That said, Iceland was beautiful beyond measure and was incredible. Although expensive, the hostels we stayed at were of very high quality and the food was quite good, especially since I was bracing myself for fermented fish.

    I had paid for the hotels, the tickets to the Blue Lagoon etc. over the last few months and so my partner paid everything on the trip. Yay for me!

    I feel so happy and refreshed after the trip. Ready to work hard and save hard and get life and mortgage sorted!
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • NorthernPeach
    • By NorthernPeach 3rd May 18, 10:32 AM
    • 46 Posts
    • 121 Thanks
    NorthernPeach
    Can totally relate, I'm off for an interview tomorrow but I'm not sure whether I want to make the decision to leave or not if I get offered the job
    OP's 2018 = £447.83 / £1000 Emergency fund = £300.00 / £1000
    Target 1: £367.63 / £2471.97 Pay off first 10k of capital!
    • Runders
    • By Runders 3rd May 18, 12:26 PM
    • 192 Posts
    • 517 Thanks
    Runders
    Hey Tropically,

    Glad you had a wonderful break. I'm often in Norway, Denmark etc. and the prices there are eye watering too! I once ordered a Gin and Tonic and then got the bill of £15 - ouch!

    That is so annoying you haven't heard anything about the job yet, can you chase them up at all?

    I've literally just put my application in for a new role this morning, It would be a change to what I do now, but still in the Env sector. Like you and Northern Peach, I'd be terrified if I was offered it, but I guess sometimes in life we have to just make a leap. Remind me I said this when I am dilly dathering around any job offers in the future
    MFW Start: September 2014 - £110844
    Current: £89,634.34 Offset: £15.162.13
    £74,472.21 until mortgage neutral
    • gallygirl
    • By gallygirl 6th May 18, 8:25 AM
    • 16,612 Posts
    • 109,705 Thanks
    gallygirl
    The hardest part of the MFW journey is realising just how long it is, and how much consistency you need to put in.
    Originally posted by Tropically
    I once remarked to someone that I was thinking of doing an OU degree, but six years was a long time. He replied 'yes, six years IS a long time - it's going to pass anyway, you might as well have something to show for it'. That stuck with me, I did the OU degree then applied the same to paying off the mortgage (except in reverse - I wanted to have NOTHING to show for it ).

    Thank you Northern Peach! I don't know what I want to do, I'll be so terrified if they offer it to me! The most straightforward would be if they don't. Then I could grumble about it, without having had to make any scary decisions on my own.
    Originally posted by Tropically
    That made me laugh, sorry . Be careful what you wish for .
    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"
    • Tropically
    • By Tropically 14th May 18, 11:35 AM
    • 282 Posts
    • 871 Thanks
    Tropically
    Well they offered me the job and I've accepted so in September I will be moving abroad. How is that for a spanner in the MFW works. The salary, when taking into account the difference in currency and cost of living, is slightly more than my partner makes now. So um. I think this is happening?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • chelseablue
    • By chelseablue 14th May 18, 11:39 AM
    • 2,444 Posts
    • 2,909 Thanks
    chelseablue
    Congratulations! Is your partner moving abroad with you?
    Mortgage starting balance £231,000
    Mortgage after Year 1 £225,000
    Mortgage after Year 2 £218,000
    • Tropically
    • By Tropically 15th May 18, 12:46 PM
    • 282 Posts
    • 871 Thanks
    Tropically
    Yes, he is! I don't need a visa but he does, so he could have a couple of months in between jobs. We are trying to work it to maximum income, but in any case my new salary would be higher than his here (and also income tax free). I think it's going to work out well. The Cayman Islands has very high VAT on everything and high import costs, but it doesn't have any income tax.

    Being the frugal MFW that we are, I think we could work it quite well. On just my salary, we are down about £800/month so every month before he gets a job we are slightly worse off. He is quite employable and still going through a weird time at his current employer.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • NorthernPeach
    • By NorthernPeach 15th May 18, 2:13 PM
    • 46 Posts
    • 121 Thanks
    NorthernPeach
    Congratulations on the job offer! It sounds very exciting!

    Where does this leave you on your quest for mortgage freedom, will you be looking to sell up or keeping the house on as security and renting it out?
    OP's 2018 = £447.83 / £1000 Emergency fund = £300.00 / £1000
    Target 1: £367.63 / £2471.97 Pay off first 10k of capital!
    • mfmaybe
    • By mfmaybe 15th May 18, 9:47 PM
    • 1,132 Posts
    • 3,663 Thanks
    mfmaybe
    Congrats on the job. I lived there for a bit as did another family member, and still have contacts there. It's a very very expensive place to live though - don't underestimate the cost of your electricity (with A/C, bills can be huge) never mind the food bill, rent, water bill etc. Cars can be quite expensive to buy but you don't spend much on fuel. Some things are cheap (childcare is cheaper than the UK but that doesn't help you!) but not much. I did ok but I rented out my spare room; I don't think I'd have wanted to support 2 of us.
    BTL Overpayments since 20/4 £30.63

    AFD June 8/15 NSD June 5/11

    Other debts paid since 1/1/14: £17,005
    • Tropically
    • By Tropically 30th May 18, 12:08 PM
    • 282 Posts
    • 871 Thanks
    Tropically
    Northern Peach, I think we will keep the London house and rent it out. In retrospect, it probably wasn't a smart move to buy it, if I think this was on the cards.

    For the house, we spent:
    £200 on a house sale we pulled out of
    £300 for surveys on new house
    £250 on movers
    £26 on certified things
    £770 on HomeBuyers survey
    £120 on mail redirection
    £1,113.55 conveyance
    £11,250 stamp duty
    £13,785.10 new kitchen
    £180 x 2 house insurance
    £130 to remove waste from previous people
    £560 on boiler repairs
    £155 on new cupboards

    So, £29,019.65 on this house since we started. I donít seem to have recorded the little things like paint, and some big things like furniture. I think we probably spent another £2000 on furniture which would bring the total up to £31,019.65.

    For renting:
    We were paying £1300 in rent before, and we had to pay our pound of flesh to the estate agent each year, usually £200-ish. I donít know if we would have stayed in our 1-bed flat had we not bought Ė I think so, but I really disliked the estate agent that was running the house and the landlord didnít want to go straight to us, despite living 2 streets over, because they thought that the relationship with the estate agent was one they wanted to maintain. They also were trying to raise our rent, but I later saw that they reduced the rental asking price.

    £1300 x 24 months + £200 x 2 = £31,600

    In short, if we had continued to rent we would have paid £31,600 but we outlaid £31,019.65 in the first two years of owning the house. That makes me feel a bit better about moving. If we hadnít bought the house, we wouldnít have had a second bedroom to rent on Airbnb or with a lodger. Our total rent since we bought the house is £5,778.96.

    We've overpaid by £7001, and have gained £26,572 in equity (not including any house price gain - I don't think there is any).

    So even if we move now, we will be better off than if we were renting during that time. We will have spent a net £5,669.69 to live in this house for two years.

    For the economists out there, I haven't factored in any opportunity costs, nor the change between having cash versus a non-liquid asset and a giant debt.

    Future Plans

    We will rent out the house, and I have devised a flow chart for how we will approach finances in the future. We don't currently have any credit card debt but we might by the time we move.

    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
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