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  • FIRST POST
    • Tropically
    • By Tropically 12th Sep 16, 9:56 PM
    • 271Posts
    • 815Thanks
    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 8
    • Fletchasketch
    • By Fletchasketch 9th Jan 18, 10:48 PM
    • 355 Posts
    • 606 Thanks
    Fletchasketch
    Just a thought, but are you sure his mum *can* pay off his loan? I would have thought he'd have to call up personally and make the payment, in which case your partner would probably be on the same page as you and would want to take it off the mortgage, non?
    Mortgage overpayments 2017, 17K
    Mortgage overpayments 2018 18.5K

    Debt @0% Jan '16; 9162, Jun '16 5845, Jul '16 3824, Aug '16 3105, Mar '17 2600 May '17 2342 Jan '18 1985 May'18 DEBT FREE!
    • Tropically
    • By Tropically 10th Jan 18, 1:39 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    Apparently paying off student loans is a big pain!

    He has to call the student loan company with all his payslips, and then get a settlement figure. Then he has to wait until next pay day and find out how much has come off for student loans, then he has to call back and get an updated settlement figure. Then switch to direct debit and then he will pay it off via direct debit and his mum will give him the money. Yes, it's true, he'd have to make the payment. I could not bear the wrath of the mother-in-law if I said he should lie about paying it off!

    Super slow!

    Work is also slow. I have been doing some surveys, making my own lunch, doing okay.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 18th Jan 18, 4:46 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    So now I feel a little bit ashamed about being so complain-y about my MIL!!!8217;s gift. Now I am really happy about it.

    My OH has also been given an opportunity to potentially side hustle some economic assessment

    Mini-goals:
    Need to find 500 of spare cash to pay for hotels in Iceland.
    Current total: 180.18

    We haven't made any OPs yet this year. I have been scheming and we have to remortgage in June.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 23rd Jan 18, 10:23 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Despite me complaining non-stop about the lodger (why does he put the soap NEXT to the soap dish????), he has given his notice and now I feel sad. No income for February!

    I have also cashed out 20 from a survey site so current total of side hustle is 200.18.

    My partner's side gig might pan out well, he gave a rate of 300/day which is sweeeeeeet.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • edinburgher
    • By edinburgher 23rd Jan 18, 11:03 AM
    • 11,148 Posts
    • 59,854 Thanks
    edinburgher
    We've got much bigger (debt) fish to fry at the moment, but I am slowly coming round to the idea of paying off our remaining student loans. As our salaries have gradually increased, we're no longer able to avoid making repayments (we used to use our pension payments to reduce our wages artificially).

    Yes, money paid off the mortgage or invested could be financially better for us, but they won't actually improve our cashflow for years and years. I quite like the idea of say a year of hard saving and then getting a 100/month 'pay increase' forever (well, for the next 10 years at which point they'd disappear anyway).

    No matter what MSE Martin says, it strikes me as one of the few ways to increase the earnings from your main job in an era of pay restraint.
    • michelle09
    • By michelle09 28th Jan 18, 11:25 AM
    • 786 Posts
    • 4,367 Thanks
    michelle09
    I was sad that our lodgers left early initially, but having the house back was amazing. So I really don't miss it (same, why did we go through a full toilet roll a day. WTH were they doing with it?). So enjoy your space to yourselves.

    OH's student loan is actually a high interest rate than our mortgage so I am toying with throwing a little extra at the student loan when the repairs are doing. But the mortgage is far bigger... pros and cons to all situations, shame we don't know what the future will bring!

    300/day? That is...incredible. Everything crossed that it pans out.
    • Tropically
    • By Tropically 29th Jan 18, 7:28 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    edinburgher, I think you are right. The trick will be not to spend it as his take home will go up.

    300 a day is really really good! He asked me what I thought his daily rate should be and I said 64/day - 8/hour for 8 hours. He gasped and couldn't believe I thought so little of him. He went for a contracting rate, as he will have to pay tax etc. on it. It is several times above the rate he gets at his day job, but I think contracting is like that. I don't think that there would be more after that but would be nice.

    I am home sick today. I think I have the flu. I switched energy supplier with MSE and got a cheque for 25 but now need to deposit the cheque. I also used Shopmium to get a free lunch last week so transferred 4 to the holiday fund.

    I am also thinking about doing a no-spend February. We've got a few things already paid for, e.g. Matilda which I got as a Christmas present! Plus I have two sets of work drinks, and visiting my OH's family.

    I am also fighting Ry4nAir for some flight compensation. A month or two ago I had a weekend holiday to Europe. The flight before the flight before my flight was delayed due to weather. They only allow 45 mins between flights, so my flight was delayed due to the lack of a plane. THEN they didn't log a proper flight plan so we were delayed another 2 hours while sitting on the tarmac in the plane. I got my 5 euros worth of food. I think my claim is borderline. My flight was delayed because they don't allow for any resilience in their systems. They run the planes which such high intensity that they have no capacity for anything to go wrong. I will escalate my claim a bit and see what happens. I was out of pocket because my flight was originally meant to get in at 7 pm, and it got in after midnight on a Sunday night when I had to work. I had to pay 40 for a taxi instead of taking the train for free and still got to bed around 2 am. We will see.

    I really need to find some market research or something else to do! I have been doing surveys but there are not enough.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Fletchasketch
    • By Fletchasketch 30th Jan 18, 10:10 PM
    • 355 Posts
    • 606 Thanks
    Fletchasketch
    Hello, if your delay was over 3 hours, then you definitely have a claim. I had a similar experience in 2009, and they originally declined my claim, but persisted and got 600 back! Good luck!
    Mortgage overpayments 2017, 17K
    Mortgage overpayments 2018 18.5K

    Debt @0% Jan '16; 9162, Jun '16 5845, Jul '16 3824, Aug '16 3105, Mar '17 2600 May '17 2342 Jan '18 1985 May'18 DEBT FREE!
    • Tropically
    • By Tropically 1st Feb 18, 9:57 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    February No Spend Challenge Day 1
    I am going to go hardcore this month with a no-spend. I have 100 cash and that is all I am permitted. There might be many more posts from me compared to normal. I am going to have as much fun as possible this month, as much for free! There is ONE minor spend that is unavoidable - a close friend's baby shower. I will still need to get a present for her.

    Win #1: Work was having a morning meeting and there were left over croissants. I had two including one chocolate one. Better than porridge! This is especially good because I have a packed lunch but it's cabbage and lentils, so not a thrill for the senses.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • SWSEGirl
    • By SWSEGirl 1st Feb 18, 11:00 AM
    • 109 Posts
    • 354 Thanks
    SWSEGirl
    Good luck with No Spend Feb Tropically - I'm trying to really reduce spending too, but not sure I can manage that extreme, so watching admiringly! I might try in March /April but only because I'll be away with work for a month, so no expenses!
    Original Mortgage as of September 2016 = 322,999 Paid off by 2051
    Current Mortgage Balance as of September 2017 = 316,649
    Emergency Savings = 9,661 10,000 10,500 11,200 11463 12,213 13,000 14,000 18,000
    [/STRIKE]Mortgage OP's Total = 1500 2200 2900 3900 4900 5900 6900 7900
    • try harder
    • By try harder 1st Feb 18, 11:40 AM
    • 787 Posts
    • 3,039 Thanks
    try harder
    I shall be watching your challenge with interest , im hoping to do the same this month .Good Luck.
    • VDOT47
    • By VDOT47 1st Feb 18, 11:54 AM
    • 122 Posts
    • 351 Thanks
    VDOT47
    It is doable Tropically - I only allow myself 80 a month of cash to spend, and often have some of that left over at the end of the month to throw at the mortgage. Petrol and one-off unavoidable spends go on the 0% CC and cash is used purely for lunchtime snacks, drinks, things which cannot be paid for with card.
    Original Mortgage (Feb '17) 269,995
    Current Mortgage (22/06/18) 244,902
    End Date Aug 2040 Original End Date February 2042
    • edinburgher
    • By edinburgher 1st Feb 18, 12:06 PM
    • 11,148 Posts
    • 59,854 Thanks
    edinburgher
    That is impressively low - Mrs E and I struggle with more than double that at times!
    • VDOT47
    • By VDOT47 1st Feb 18, 12:21 PM
    • 122 Posts
    • 351 Thanks
    VDOT47
    That is just mine - OH can do what she wants with her cash, after putting agreed amounts into the joint account.
    Original Mortgage (Feb '17) 269,995
    Current Mortgage (22/06/18) 244,902
    End Date Aug 2040 Original End Date February 2042
    • Tropically
    • By Tropically 1st Feb 18, 6:11 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    The 100 won't cover my partner's spends and I can't be responsible for that! I will not try and mooch off him though, as sometimes I am prone to do.

    Day 1 is COMPLETE as a NSD. Alas, there was no free lunch but I had my cabbage and lentils plus a leftover biscuit. I resisted the urge to get the 50p bowls at the market (so cheap! its frugal! no, bad you have food at home) as I walked home. I picked up the veg bag (comes out of the joint account as a subscription and we have to eat!). I resisted the urge to buy delicious things at the deli pick up point. Now safe at home, with a vegetable stew on the hob.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • Tropically
    • By Tropically 5th Feb 18, 10:25 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Hello 5th of January!
    I did have fun on Thursday. I finished a book I had on my kindle ages ago.

    On Friday night, I took my team out for a quick drink after we successfully completed a year long project. I got approval to expense the first round. It could have just ended there. Free drink, nice time, go home. I intentionally picked a cheap pub instead of the office favourite where a pint is more than 5.

    Ah, if only. It wasn't a crazy night but I did buy a round of raspberry Sambuca that I really really didn't need. The cost of the 4 shots round was 15 even. So I have 85 left for the month. I can get carried away when I go out with a particular set of coworkers that I really like.

    On Saturday, our lodger moved out and we returned his deposit less the two nights in February. Yay to being able to wear my housecoat around now, boo to not having the money. We've put the room up on Airbnb again, but for a minimum of 4 nights rather than 1 night like it was before.

    Later on Saturday, we went on a trip to the seaside to visit my future in-laws. I had bought the train tickets a few months ago, so they were only 30 for the two of us. I also bought them on cashback. I confess to this because while I'm not going to take this out of my entertainment budget, and while I did spend the money, I spent it a while ago. We missed our train and had to wait 20 minutes at East Croydon. I resisted the urge to buy myself a pity drink. We brought a water bottle and that was enough. I am going to count this day as a NSD.

    Sunday, we spent most of the day with the in-laws and then travelled back. We again missed our train and again had to wait at East Croydon. We took a different route back and discussed what we wanted for dinner. We were going to have baked potatoes but we had no sour cream. I looove sour cream and might have cracked and got some. Luckily the bus stop in front of the only open shop was closed, and we pulled to one slightly further away. It was not worth it to us to double back for the sour cream so we made do with beans and cheese instead. We also had some side veg of peas and cabbage to get our 5 a day. So Sunday was a NSD as well!

    I've got my lunch today - aubergine and lentil stew with pomegranate molasses, no plans this evening except to read more so should get a NSD. Don't count it yet, it's still early.

    [EDIT - of course I meant February, not living in the past!!]
    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 Feb 18, 9:13 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Managed another NSD yesterday! Although when I went home, I was absolutely starving and frantically google recipes while on the train home. I walked by the market again and my recipe would have been a little bit improved with some spring onions. I had to try super super hard to resist because I had onions at home and while not the same, they would be acceptable.

    I have two problems now. The first is that my partner is slightly allergic to cats, and we have two. He takes an allergy pill if the cats are particularly cuddly although he doesn't need them if doesn't get cuddles. Since I'm the one that brought the cats into the house (with permission!!), I have to buy the pills.

    The second problem is that we are also out of salt! In theory, we don't need to go out grocery shopping this month. We have a house full off food, and we get a vegetable bag each week that has 8 types of vegetables. We have rice, noodles, tofu, tomatoes, coconut milk etc. All the staples. Plus we have lots of frozen veg too, as well as frozen meals from when we've meal prepped. But how to get by without salt? Yesterday, I scavenged a small packet of salt rescued from a fried chicken escapade. I can probably find some more of those, but I think I'll have to go to the store and get some. Hopefully I can minimise whatever I buy by not going shopping when hungry.
    Mortgage started at 318,000 in June 2016. Original MF - 2041
    2017 OPs: 7000/7000
    Mortgage in Nov 2017 - 297,808
    • try harder
    • By try harder 6th Feb 18, 5:02 PM
    • 787 Posts
    • 3,039 Thanks
    try harder
    You are doing well .Hopefully it will get easier for you to resist as you see the great savings you make.I hardly ever manage a NSD sadly.
    • Tropically
    • By Tropically 7th Feb 18, 8:45 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    I didn't manage a NSD I caved and went to the chemist to get the pills and to the supermarket to get the salt. Even though I said I shouldn't go hungry, I went after work when I was ravenous. I bought milk (which I needed) and YS cheese (which I didn't need). I picked up a gluten free garlic bread stick with a YS and put it in my cart. I put it BACK in the fridge because I did not need it, I'm not even gluten-free! It wasn't that much cheaper than gluten-full garlic bread but I saw that YS and thought it was a good buy.

    I got home with my salt, allergy pills, YS cheese and milk. I texted my partner to say I got salt and he said, "Oh.. me too!" WHAT?!?! I didn't even need to go get it!!! I put his allergy pills on the dresser and then when he got home salt in hand, he said, "Did you get allergy pills?" I said yes and he said, "Me too!" Okay, so no one has ever complained about having too much cupboard salt or having too long of a supply of allergy pills. I didn't need the cheese, but I did use it that evening, along with the milk to make veg-filled mac and cheese. I used half the amount of pasta and loaded it with cauliflower, green beans and leeks. It was very good!

    I also roasted a squash we had in the fridge, and scooped out the seeds and toasted them too. Wash them, dry them as much as possible, add a bit of oil and worcestershire sauce, bake at for 15 minutes at 180-ish. Sprinkle with salt and eat warm. A delicious snack from the squash guts you might have been throwing away!

    I asked my partner if he could make a lunch with the squash I had roasted, and casually left the cook book open to the Save with Jamie (the best cookbook ever written) page that has 4 ways to use leftover squash. He went off-piste and made a chilli using WAY too much chilli powder, and I was coughing and spluttering in the next room. We will see how spicy it is today for lunch. The other chilli ingredients were all tins we had lying around anyway.
    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 Feb 18, 8:47 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Oh yes, the allergy pills were 7.49 and I spent 3.49 on salt, milk and cheese so I am down to 74.02.
    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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