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  • FIRST POST
    • Tropically
    • By Tropically 12th Sep 16, 9:56 PM
    • 253Posts
    • 742Thanks
    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 7
    • Scrimps
    • By Scrimps 17th Nov 17, 7:34 PM
    • 203 Posts
    • 893 Thanks
    Scrimps
    Sorry I meant 2 days worth in Wednesday
    MFW: May 17: 143,000 o/s. Oct 17: 135,090 o/s. End Nov:133,588 Mid March 131,490.18
    OP Target 12k by end May 18. As @ end March 18: 8,170.48
    • vetstudent
    • By vetstudent 18th Nov 17, 9:54 AM
    • 145 Posts
    • 288 Thanks
    vetstudent
    Following, I read the start of this before and lost you for a while. Congrats on the engagement, we are just about to buy a house, been engaged 2 years at new year and could be a lot longer as we want to OP this mortgage once we get it!
    • michelle09
    • By michelle09 18th Nov 17, 12:41 PM
    • 777 Posts
    • 4,277 Thanks
    michelle09
    I sympathise - some days I am out at 5:45am and not back home until 8pm if I have both jobs. I try and use days off / not so busy evenings to cook up meals that can be portioned and frozen in tupperware containers to be grabbed on your way out to work. I also keep a couple of tins of soup, some ryvita and a bag of fruit / nuts in my locker at work so I have an option there if I forget. (Can you tell that I work somewhere with no food options for me nearby!)

    Hope the busy period calms down though...
    • Tropically
    • By Tropically 21st Nov 17, 9:37 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    Busy period survived! I got to my major deadline. And 150 of mystery dining reimbursement came back so I am all set to survive until payday.

    That sistema pot is going on the christmas wish list! Those filled pastas are a great idea, they make some nice ones where I can see a vegetable - my fear with some of the pasta salads at places like Tesco is that they don't have any veg.

    I normally take in leftovers, or make grain salads or pasta salads. One of the troubles with the grain salads is that I can't quite get them right and when you are really busy at work, a sad lunch can ruin your day.

    Scrimps, you batch cook lunches and then take them to work from frozen? I like that idea, I hadn't thought of it. I am making freezer burritos as we speak. With dried blacks beans and everything, very MSE.

    All wedding things are going well, we are coming in to budget and family drama is all resolved (for now). My future-step-father-in-law and future-MIL don't want to come because it is in Dorset. They think no one will want to go there, and no one will be able to have fun on a Saturday because they have to drive the next day. I said later in the conversation, "If someone is invited but doesn't want to come, they don't have to! No one is making them and I would prefer that they stay home than not have a good time." Ah MIL! I am really pleased with our venue because we found a really affordable caterer and can buy all our own booze, plus there are some rooms at the venue so some key people can stay.

    In terms of mortgage free, I have been sitting at 19 for weeks on a 20 min payout survey site. Plus I have 100 of quidco cash back (the one benefit to wedding purchases) that won't turn to cash out! I snagged an 80 mystery dine. Our lodger is still here, asking for the heating to be turned on.... I feel a bit like I am waiting for him to move out. Like things are on hold, e.g. I think that when he goes I will have a big clear out.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Lolu
    • By Lolu 22nd Nov 17, 11:49 AM
    • 14 Posts
    • 18 Thanks
    Lolu
    Hi Tropically just spent most of the morning reading the entire thread! I!!!8217;m not new to MSE but am new to forums (1st ever post) you have done amazingly with your MFW journey. Just thought I!!!8217;d share a few money saving ideas for your work issue and wedding. If I stay late at work I ensure I have a stash of instant noodles in my drawer. 3 mins/ hit water /done. Works out about 25p per serving ( pack of 4 99p) cheap and quick and guilt free on the budget and doesn!!!8217;t need refrigeration! To save money with wedding purchases we used a quidco/ Amex combo to maximise on savings and rewards (now reaping reward with 300 return flights to the Caribbean). Also for any indulgent purchases from stores like Confetti they had a 40% of one item sign up incentive. With multiple email addresses this was very rewarding. Got our Vera Wang cake cutting set for 15 for example ! Also homeware shops are great for lanterns. We got some for 7 and personalised them for a 1. They were stunning!

    I!!!8217;m a MFW also and your passion regarding paying it off is reminiscent. I was hoping to have mine paid off by next year but just had a cash wedding, so has delayed it slightly.

    I would also say at your earliest opportunity move your mortgage to a bank that offers online viewing options. I!!!8217;m with NBS and since moving from NWST have been inspired to reduce the balance to get it under the next 1000. Your dedication WILL pay off, so keep at it! Don!!!8217;t be so hard on yourself re entertaining per se, just find cheaper things to do ( stay away from the pub! !!!55357;!!!56832;) because from experience saving and scrimping too hard with no release / entertainment takes it toll on your happiness just need a balance.
    • newbiesaver55
    • By newbiesaver55 22nd Nov 17, 10:36 PM
    • 75 Posts
    • 49 Thanks
    newbiesaver55
    Really enjoying your thread-I've just read all of it this evening! It's very entertaining. You're a good writer!

    Maybe you could consider giving your lodger a discount if there's no heating..? Just an idea.

    Weddings are so expensive aren't they!

    So - how on earth do you get to do the mystery dinings? I need to know!!
    • Tropically
    • By Tropically 5th Dec 17, 3:58 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    So It is the 5th of the month, and I opened up my bank account and again it was empty!!

    I need a SOA. Just for me, not household income. And based on the last three months. I have gone through my debit card transactions and pulled everything out. Cash is entertainment.

    Let's play spot the problem.

    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 2289
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 130
    Total monthly income.................... 2419


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 1000
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 27
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 7.99
    Groceries etc. ......................... 115
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 166
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 25
    Pet insurance/vet bills................. 50
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 193
    Holiday................................. 446
    Emergency fund.......................... 0
    Regular Saver........................... 300
    Naughty Food (Takeaways etc)............ 73
    Gym..................................... 19
    Charity................................. 40
    Total monthly expenses.................. 2461.99



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-



    Monthly Budget Summary

    Total monthly income.................... 2,419
    Expenses (including HP & secured debts). 2,461.99
    Available for debt repayments........... -42.99
    Monthly UNsecured debt repayments....... 0
    Amount short for making debt repayments. -42.99


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -0
    Net Assets.............................. 0


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • chelseablue
    • By chelseablue 5th Dec 17, 4:29 PM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    Is the SOA just for your portion of the bills? As I cant see your partners income on there?
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • Tropically
    • By Tropically 5th Dec 17, 5:51 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    Yes, this is how I spend my money. We both transfer 1000 to the house account, which pays all joint bills and then some. Our mortgage is 1300 and so there is 700 for bills and safety net. I pay the Netflix. I also didn't bother to put my savings in there and we still carry no debt but the mortgage.

    So that's just my current account alone! I can't blame anybody else. The 130 of bonus income is reimbursement for mystery dines. It covers all of the naughty food (which was mostly MDs anyway) and would take monthly entertainment down to 130-ish.

    It's the sneaky 400/month holiday spendy spends I've been doing. The 'Holiday' fund does count the out of town weddings that I have had so many of, plus a rather expensive 30th birthday weekend where we rented a luxury house (with a heated swimming pool!) Even split among a large group it was quite a lot. It also includes a holiday to Rome in January and a holiday to Iceland next summer.

    It doesn't include any spending money while we are in Rome, and it doesn't include any hotels or spending money in Iceland. So, while I've spent a lot, I still have committed to a lot. I can't exactly eat nothing while on holiday.

    With that in mind, I am going to try and find some income boosts for those holidays. I have cashed out 20 on a survey website, and have some quidco money waiting for me. I also have a bunch of Amazon gift vouchers AND also a Christmas savings account (not listed in the SOA), so if I use the vouchers, I will transfer from the Christmas savings account to Holiday savings account.

    I will try and find some income boosts elsewhere. Anyone need some presents wrapped? I am pretty good at it!!
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 6th Dec 17, 3:14 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    Bad news friends. My partner got the word that his company is out of money. He has been there for less than a year and is unlikely to get any redundancy or anything. Luckily I don't think they are the kind to go bankrupt without paying wages, but who knows.

    We can survive on my salary easily enough. Plus, we've got 15,000 in savings, and I have a secret 18,000 in run-away money if it came to that.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • chelseablue
    • By chelseablue 6th Dec 17, 3:19 PM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    Oh no! So sorry to hear that.

    What does he do? Would it be easy for him to get another job?
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • Tropically
    • By Tropically 6th Dec 17, 3:44 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    He is an economist, and is often being contacted by recruiters so I think he will be fine. The company is trying to find more money so he hasn't been made redundant yet.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • fiona100
    • By fiona100 7th Dec 17, 1:15 PM
    • 25 Posts
    • 76 Thanks
    fiona100
    Ouch. That must hurt... No matter how many jobs are out there, or opportunities etc. It definitely hurts if you are the one who is told... Sorry we can't take you with us..





    How did you manage to end up with your running away fund being that big?? As well as savings? Wow! What is the trick?


    Thanks fiona100
    • Tropically
    • By Tropically 7th Dec 17, 1:15 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    Did some MSE things today.

    I changed energy supplier (to a brown supplier... ew....) because we are on a poverty meter and want to get off it to a regular meter. I find it really upsetting to think that when people are struggling for money they get stuck on prepayment meters. It costs 2 to top up your meter, and you have to go to a corner shop where there is so much temptation and things which such a high markup. Then, you also don't have access to the good deals so you are paying more in energy than a rich counterpart. They are designed to keep people in poverty, not 'help them control their energy spending'

    I also took out a season ticket loan with my employer. I never wanted to have a yearly ticket. I always thought my life was so free, and spontaneous. I would never go back and forth between the same place day after day after day. But of course, I'm a drone like the rest of them. Tube in to work. Tube back from work. Tube into work. Tube back. In the face of a 3.4% hike in rail fares, I thought even if a yearly ticket doesn't save me money, I will save the 3.4 %. But I did the math, and I think it will save me approximately 20 per month

    So I will save 3.4% on 1400 and 20 a month as well. 288 of future money saved. I encouraged my partner to do the same thing and bought it before his company made that announcement... I think it should stll be fine though.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 7th Dec 17, 1:29 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    How did you manage to end up with your running away fund being that big?? As well as savings? Wow! What is the trick?
    Originally posted by fiona100
    Have a relative die, unfortunately. I wouldn't suggest trying to make it happen, but I had a death in the family about 10 years ago and inherited that pot. It is in Canada though, and essentially impossible to access, so I consider it my escape fund and don't count it for anything else. It is the deep-sh*t emergency fund. The your-partner-has-been-made-redundant-and-you've-spent-all-your-savings fund.

    As for the savings - THAT we earned. After we bought the house, I felt really worried that our savings were so low. We rented out our spare room on Airbnb, then we switched to having a lodger (650 a month!), we both save 300 each into a savings fund each month so that's another 600, plus I ebayed a lot of stuff, used ziffit for many books and dvds, do mystery shopping, online surveys, lots of market research workshops, used quidco, went for cashback, followed up on pricematches etc. I used the MSE email to get 75 cash back on my internet, and find deals on everything.

    I did the maths in October to find out how much the side-hustle earned us and it was 4,327. Most of that was the rent from the lodger (2600) and mystery dines (so comes in the form of free food rather than cash),

    I am at the point where I don't have anything else left to sell! I have had to agree not to sell my partners' belongings even though I am eyeing up those Calvin and Hobbs books.

    Then, with everything we did save, I made sure to invest an appropriate amount in stocks and shares. I would consider myself an informed beginner, but have 5000 in cash in a regular saver, and the rest in stocks and shares.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • daisy 1571
    • By daisy 1571 7th Dec 17, 3:09 PM
    • 273 Posts
    • 3,368 Thanks
    daisy 1571
    Just 2 quick things tropically - I assume you make some sort of withdrawal or deposit on the Canada account every so often to make sure they don't close it as not having been touched for so long and 2) I just bought another Calvin and hobbes book today so they would Def sell

    Daisy xx
    "Never save something for a special occasion. Every day in your life is a special occasion" Take hold of every moment by anon

    The difference between what you were yesterday and what you will be tomorrow is what you do today
    • Tropically
    • By Tropically 7th Dec 17, 5:08 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    It's invested with an investment manager who charges too high of a fee. But, I can't open any other accounts in Canada because I'm not resident there, and frankly, I'm too nervous about Brexit to cash it all in and transfer it into pounds. Plus, it's currently in a Tax Free Savings Account (the equivalent to an ISA) and I can't open one of them without being a Canadian taxpayer. PLUS I have no idea what the tax implications are of bringing that money into the UK. So, it's fine where it is, and making suitable gains despite the high fee. I don't like lining an investment manager's pocket, but I don't really see a good way out.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • michelle09
    • By michelle09 8th Dec 17, 4:26 PM
    • 777 Posts
    • 4,277 Thanks
    michelle09
    Wow, that sounds complicated.

    Sorry to hear about your partner, at least as there's been some warning he has some time to try and secure something else? Rubbish time of year to hear it.
    • Tropically
    • By Tropically 4th Jan 18, 10:36 AM
    • 253 Posts
    • 742 Thanks
    Tropically
    Happy New Year! I am very pleased with my robot vacuum Christmas gifts, as... did I mention I adopted some cats?? Two sweet older kitties who shed everywhere! They are super cute not MSE, but considering I've already said, "Let's not go out... let's stay inside with the cats..." I think they will provide us with happiness equal to their cost.

    His company might have one more year of money, who knows. I'm not stressing. It will be okay.

    So, I really like investing. I keep most of my savings in funds as I mentioned in my last post. I also do some weirder investments, for example I use Abundance (investments with environmental and social benefits) and also have invested in CrowdCube/Seedrs etc. I invested in BrewDog and got money back equal to my investment plus still own 85% of shares. I normally only do 100-ish amounts in each thing. I took an unnecessarily large risk when feeling flush in 2013 and invested 500 in a small start-up company which has now... gone... bust :'( I claimed EIS tax relief and also now get to claim 'loss relief' so I **only** lose 280. That's still 280 I would have rather had!!! Note to self. Make sure that any silly money spent on these is a value that I can stand to lose! 500 was too much, toooo much.

    I don't count these as any of my savings or anything though, and in fact, the remaining 'fun' investments I have don't even total 500. Why did I put half my 'fun' money in one company. Foolish. This was at least before I was MSE! Lesson learned.

    I am going to find some nice, responsible bonds.

    In order news, lodger is staying for all of Jan and probably Feb now too.

    My future mother-in-law has also offered to pay off all of my future-husband's student loans as a wedding present. I have mixed feelings about it. He owes about 2000 in student loans and so it is an extremely generous gift. However, Martin Lewis recommends NOT overpaying student loans and our mortgage rate is higher than his student loan rate. I also feel a little bit weird - my partner's student loans are his and his alone, so this is really a gift for him and him alone. Is that completely selfish of me?

    I suppose if I think about it in isolation and it is completely kind and I do have gratitude. Thinking about it in combination with wedding stresses is what is making me feel that way. I kicked up a lot of fuss with my parents early on saying that even though they were paying for the wedding, I wanted my marriage to start out as an even partnership. For example, they wanted the hotel nearby to be totally blocked out for priority for my family and his family could only stay if there was space after my family had first dibs. My parents eventually relented, and everything is going well with my family. But his family are now making demands - e.g. we have to pay for his international relatives (who I have never met, and he hasn't seen in 10+ years) to stay at the hotel. Then, our wedding gift excludes me and is also not an optimal financial decision (we'd save more if we paid that onto the mortgage). PLUS, if he does end up unemployed, he would not have to repay student loans during that time, but we will still have to pay our mortgage payment regardless of whether he has a job or not. If we do end up struggling for a longer period of unemployment/one salary, the wedding gift would have been much better applied to the mortgage or even given in cash.

    On the other hand, our lives are now intertwined, and although I would never be personally liable for his debt, we are a pair now and anything that benefits him is also good for me. Although I won't be affected by the gift specifically, we will have an extra 200ish a month which used to go to paying off student loans. I will be able to influence that and direct that to the mortgage.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 8th Jan 18, 1:31 PM
    • 253 Posts
    • 742 Thanks
    Tropically
    Okay, my selfishness has now totally worn off. I am no longer ungrateful for a gift.

    * It is 2000 of debt that my future-husband won't have to pay
    * It is extra money every month for us that I can direct to the mortgage
    * There is an emotional aspect of a mum paying off her son's student loans when she wasn't in a position to pay for his uni
    * Parents in general, like their kids more than their daughter in laws!

    This year's mini-goals are to:

    1. Side hustle enough to pay for Icelandic hotels (need 500)
    I cashed out prolific, quidco, some surveys etc and I now have 150 toward this.

    2. Change bank accounts once the lodger has left. He will be leaving sometime in Feb and then I will switch to a better account than the Santander 123
    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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