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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 9
    • try harder
    • By try harder 7th Feb 18, 10:03 AM
    • 787 Posts
    • 3,039 Thanks
    try harder
    Oh no ,me too .I spent around £16 on two bottles of vitamin supplements ,still health is more important. Hope you have a NSD today.
    • Tropically
    • By Tropically 7th Feb 18, 11:18 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Thanks Tryharder, you too!! Health is definitely most important, and the allergy pills keep the peace!
    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 Feb 18, 8:45 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    NSD day yesterday! I got tickets to go to a free showing of Thor Ragnarok for the EE Rising Star Award and had a great time. Really good film.

    I was absolutely ravenous before we went though. So I looked up cheap places around that area and found a place that did jianbing (chinese crepes). Even getting a burger at Five Guys ends up being a tenner at least. The jianbing were super filling - we probably could have split one between the two of us. And a bit weird but still good. E.g. a Crepe with an American-style hotdog branded as a 'Chinese sausage', pork belly, and a variety of fried goods. My partner picked these up, and in total it was only £12 so I don't feel too bad about it. Still an NSD for me!

    Have some left over veg mac and cheese for lunch so no lunches out either! That is my usual weakness.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 13th Feb 18, 9:22 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    So... I have been avoiding my daily update because, you will not be surprised to learn, that I did not escape Fri-danger unscathed.

    Where was I?

    Woke up Friday morning, £74.02 in my pocket.

    Had a hankering for a bacon sarnie. Didnít bring my lunch. Great.

    Asked my partner if he knew where to get a cheap one, and he did! £2 for a breakfast bap and a coffee. Bargain! I went there and alas, inflation has hit so it was actually £2.50. Got one anyway because I was there and it was tasty, and hugely filling. It had two fried eggs in it and three or four bits of bacon. Plus this was right next to Borough Market, so itís hard to find something cheap around here.

    I didnít have lunch and so I was googling desperately a place to get lunch for about £2 or £3. I didnít find one, and ended up getting a £4 sandwich. It was tasty but still tooooo much.

    We were having drinks in the office after work, so drank lots of free drink at work. Then, was starving so split a pizza from Franca Manca for £5. Then, I was having too much fun to go out so went to the pub. NO rounds of Sambuca, but I did spend £4 on a G&T. So much spending. I also then paid £5 to get into a night clubÖ but didnít buy any drinks there as I certainly didnít need any more. Despite going to the chicken shop with my colleagues, I didnít buy anything there either, and so really was quite successful in terms of a night out. I had a few work friends, and they left about 6 months ago. Since then, I didnít really hang out with work colleagues because I felt like I didnít belong. For example, there was a work-related hen party for one of my co-workers and all the women in the office except me and one other woman was invited. I donít know why. Worse, I unknowingly helped plan it because I know all the good places in London to go and was asked for recommendations. I think itís because Iím neither a graduate nor one of the more senior people, Iím just in the middle so donít have many work peers. I donít need to have work friends, and day to day I just get on with it, but I do still like having the occasional work buddy. Weíve had some new people start that I really get along with and so been out with work a bit more.

    Fri-Danger = £2.50 breakfast, £4 lunch, £5 dinner (all three meals out Ė very bad), £4 G&T, £5 club entry = £20.50

    Saturday was a NSD, and we went to a friendís house for wine night. Got fed dinner and it was delicious. We were all meant to bring a bottle of wine and then rank them based on a few categories. I brought a bottle I had in the cupboard and it won best wine!! Woo! An amazing night and I didnít have to spend anything.

    By Sunday, I realised that we probably needed to get some groceries. I sold an item on Fbook for £10, and spent £15 at the supermarket, so really only spent a net £5.

    Yesterday, I went to see I Tonya at the cinema which was a great film. Also a NSD thanks to SFF.

    So it is the 13th and since I had a spendy Friday I am down to £48.52. Itís just under half way through the month and I'm slightly over halfway through my budget. I had intended to go until the 25th, which is my payday. I hope I can last that long. Today, shall be a NSD.

    I hear there are pancakes in the kitchen, so that's all for now.
    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 13th Feb 18, 10:44 AM
    • 787 Posts
    • 3,039 Thanks
    try harder
    You are actually doing really well then ,you had a hundred for the month and we are almost half way through and you have spent just over half you are doing so well .

    Enjoy your pancakes ,i am having mine this evening
    • Tropically
    • By Tropically 14th Feb 18, 5:51 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    Spanner Alert!
    Thanks tryharder, ours were delicious! I hope yours were great too!

    Today was meant to be a NSD, but I had a noon to 2 pm meeting off site. When I got to work to eat breakfast, I only had a tiny bit of cereal. I worked for a bit and left for the meeting, but when I got to the train station I was starving. £3 wasted on a train station pastry. Waste.

    Then. A spanner was thrown in the works! Our lodger moved out, and we were debating what to do. In the end, I put our place back on airbnb with a minimum 2 weeks stay. I didn't think anyone would go for it, but today just before my meeting we got a booking!

    Great - yay, 2 weeks is about £450 of income after airbnb fees!! But, I need to spend some money on cleaning products because since I haven't bought any in a while and I need the house to be spotless. Plenty of things I didn't clean as much while we had the lodger, like the microwave and the fridge. This will be my Saturday night parrrrty!

    Second spanner, this morning when I woke up I had a valentine's day card waiting for me! Yay but also damn because I had to run out and get one too.

    Went to the shops to get air freshener and toilet liquid for the airbnb, draught excluders (so I don't have to keep the heating up so much for these people!), plus mozzarella for our V-day meal. No draught excluders but everything else came to £5.35. I had £4.99 left on a BT rewards card from switching internet last year, I put in 40p into the machine and used the rest of the rewards card so the stuff only cost me £0.40 really. Plus the air freshener and toilet cleaner is really a business expense... We'll see how I calculate it closer to the end.....

    Got home, made pizza dough for Valentine's Day! Better than a take away or going out to eat.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 19th Feb 18, 9:16 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    Airbnb guest has arrived!

    Had a NSD FRIDAY! My parents got me tickets to Matilda for Christmas and I loved it. Really resisted hard the urge to get programme/icecream/drinks etc. Made it unscathed.

    On Saturday I had a friend's baby shower so alas, I spent £20 even on a sit-down meal and a glass of wine.

    On Sunday, did an amazing MD at a cool cafe, and came out under budget so still had a brilliant day and a NSD!

    So, looks like I'm down to *gulp* £25.12.

    I haven't had any breakfast (ran out of cereal) and didn't pack any lunch so will not be a NSD.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 22nd Feb 18, 2:58 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    Alright.

    I bought cereal and an expensive (but oh so delicious) lunch on Monday because I was so hungry having not had breakfast or packed a lunch. £6 lunch + £2 cereal for an £8 day.

    Tuesday, brought a wrap for lunch, NSD!!

    Wednesday morning, I was putting on my shoes and wobbling a bit as I pulled my boots up. Right at my elbow at chest height was a sneaky glass of water, which came tumbling down, drenching me and the wall, and floor. Luckily no glass smashed. I looked behind me to see a shocked boyfriend who carrying the glass to water the kitties moments ago. In the distraction we both forgot our lunch.

    I had referred him to Shopm!um and my credits came through so even though I really really wanted a fancy lunch, I used the credits plus the discounts to have a free lunch. Ended up getting £6 worth of free food by combining the referral credits with the discounts! Win!

    Did a MD for lunch today but went over budget by £2.

    Three days to go before the next pay day, but could I make it to the actual end of the month?

    I am at £15.12 now.

    Airbnb paid out which is also lush. We haven't made any overpayments this year because we want to save up and then see where we are when we go to remortgage. I expect to get a really good rate as we will be at like 62% LTV. If the rate is lower than 1.5% then I would rather have the money in a savings account.

    Our mortgage balance is currently £294,833. It is SO nice to be in the 200s. Still a huge amount but looks so much more manageable than the £318,000 we started with.
    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 23rd Feb 18, 10:37 AM
    • 787 Posts
    • 3,039 Thanks
    try harder
    Great news about the airbnb that is going to be really helpful and such a great idea having the two weeks minimum condition that definitely saves a lot of bed changing for a start.
    • Tropically
    • By Tropically 23rd Feb 18, 11:00 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    It's really helpful! Plus, our guests are really cool. They are both fashion models so there are a lot of avocados in my kitchen now.

    I have a dilemma. I have been invited for a trip to Margate with seaside chips however if I go, I will lose my competition. The train there costs £15 and I would probably need £5 for chips. If I have NSDs today and tomorrow, but still spend £20 then I will lose.

    What do?

    Win and ditch friends? Or lose by a tiny amount? If I hustle £20 from PA/£co etc. will that still count as losing?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 27th Feb 18, 12:34 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    So I lost my no-spend big time.

    NSD Friday.
    NSD Saturday despite having an excellent time with my friends.

    Firstly, I went to Sainsburys to get some cat food and, it was actually a MSE-win. My cats only like sensitive cat food, and the Sainsburys doesn't usually carry it except in small sizes that last about 1 or 2 weeks. But today, they had the big size - the 3 kg ones of the sensitive catfood AND they were just over 30% off. So I ended up buying all the ones they had in the store and now have 3 months worth of cat food. I think it was worth it to break the no-spend because I will save money in the long run from i) not buying multiple small packs and ii) it being on sale. All in all, it was £30 for the 3 months worth of food.

    Secondly, I decided to go to Margate which was a BIG waste of time and money. Not because of Margate itself (lovely). Should have trusted instinct and resisted FOMO and stayed home. Due to a minor mix-up, we missed the train my partner's friends got on. We got on the next one, and it was no problem (so we thought). My boyfriend was super upset with himself, I've been a bit annoyed with him sometimes because he does a 95% job (e.g. will put the washing away but leave the basket on the bed or will wash the dishes but not wipe down the counter etc.). I wanted to cheer him up because I wasn't mad about it, so we bought some coffees for £6. I bought the train tickets too, which were £35 on the day for the two of us.

    Then, our friends did something quite horrible. They ate fish and chips without us. I was really grumpy! The plans stated earlier in the day were that we would walk around, go to the Turner Gallery and THEN get fish and chips. But they decided to get fish and chips first, without us. What is the point of going to the seaside if not to fight off seagulls from your fish and chips?!!?!

    I was very grumpy. I realise it sounds silly but my FOMO turned into actually missing out so I wish I had stayed home and just had the fear of it! My partner had to persuade me to go to the pub to meet the chip-traitors and then I bought 2 drinks so another £8. I am exaggerating for dramatic effect but I did think it was really rude that they went to get lunch without us.

    Monday - NSD
    Today should be a NSD too.

    So starting with £15.12, spending £30 on catfood, £35 on train tickets to Margate, £8 at pub, £6 on coffee and I lost by £63.88. I am filled with regret. As soon as I made the decision to spend, I exploded with spends.

    But I shall do a spending round up now.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • FloppyDisk
    • By FloppyDisk 27th Feb 18, 3:08 PM
    • 629 Posts
    • 4,227 Thanks
    FloppyDisk
    I agree with you on chip-gate, and worst bit is that you didn't even get any chips! Did the friends apologise? Can you hunker down this week and save up some spends for another weekend and really enjoy it?

    Mortgage- £415,836
    BTL- £162,782

    • Tropically
    • By Tropically 27th Feb 18, 3:51 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    I know! They are more my partner's friends. The one time I spoke them about hurting my feelings they weren't empathetic. I'm a Canadian who is into compassion and mindfulness (sorry if that causes anyone to groan!) so I am prone to being polite/nice and talking about feelings. We met with them at the pub and when I mentioned the chips, one person said, "You could go get them now and then come back!" My inner Canadian twitched but we just joined the group and there was no further discussion of chip-gate. We ate granola bars I had packed and then made a delicious supper when we got home.

    But, I've done the maths and actually the month was pretty productive -

    Salary: £2177.40
    Into the joint account for house/bills: -£1000
    Regular Savings: -£400
    Leftovers: -£540.51

    There is a slight difference in the maths because my phone, some charity, and transactions from January that were processed in Feb have thrown me out of line a bit.

    All in all, saved £940.51 which is EXTREMELY good for me and this doesn't include the £424 set aside from the airbnb. Have ear marked £269.96 for hotels for our holiday and have banked £1094.55 (totally mindblowing!)

    All of this is very good because my partner had the first round of redundancies today. He will be having a job role change, I've only just found out and don't know what it means yet. I do feel confident that we could live on my salary for a few months, I just really really hope that he can keep his job until after the wedding. It would be such an extra stress to be looking for jobs now.
    Last edited by Tropically; 27-02-2018 at 3:52 PM. Reason: spelling
    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 3rd Mar 18, 2:37 PM
    • 787 Posts
    • 3,039 Thanks
    try harder
    Fingers crossed he will be safe.

    Well done with all the savings ,a great month all round
    • Tropically
    • By Tropically 23rd Mar 18, 4:12 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    Oh my, another month gone by so quickly. I didn't overspend but I definitely overextended myself in March with all the things I planned.

    I am setting a new goal for April: enjoy being home. We are going to Somerset for wedding things over Easter. We are going to Iceland at the end of April. In between, I'm going to try and do NOTHING. Sweet nothing. OK, I've got 8 things in the diary but those are my only things. By comparison, I had 22 things in the diary for March.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • michelle09
    • By michelle09 24th Mar 18, 9:59 AM
    • 786 Posts
    • 4,367 Thanks
    michelle09
    That sounds like a great set of plans! Doing nothing included.
    • Tropically
    • By Tropically 3rd Apr 18, 1:21 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    Gosh, I am lacking any long-term financial goals. We need to remortgage in July but I can't seem to make up my mind about anything.

    • I applied for a dream job abroad. It would be doing what I am doing now except sometimes I'd have to stop to go count turtles in the Caribbean. I think that I have a 5% chance of getting it, my partner things I have a 95% chance of getting it. I would request that I would start in November which would be after we are married for a few months.
    • If I got the dream job, we both could live with my sister and save on rent for probably up to 6 months.
    • If I got the dream job, my partner would have to move and find a job too.
    • We need to remortgage now, but would struggle to find a mortgage lender who would give us consent to let because we would have just remortgaged to a residential rate.
    • If we went on a variable rate and then tried to get a buy to let, we'd struggle because my partner won't have a job when we first move.

    I don't know if I should simply give up on the dream job and remortgage as normal. Compounded on that is the fact that I have an outstanding job offer, and interviewed for a third job a while ago. But to be honest, I don't know if I would take any of these UK-based jobs over my current one.

    I have been speaking to a L&C mortgage broker about the situation and don't think he is listening or understanding. I don't want to give up on the chance to move abroad with an amazing opportunity. I also don't want to pay through the nose for what is just a remote possibility. I want him to find me a 5% fixed rate residential mortgage with the potential for a consent to let if I did get the job. Confusing.

    To top it off, we are at the 66% LTV mark, and I was asking him about whether it would make sense to OP to get down to the 65% mark. We'd have to overpay £7k to get to that bracket, which could be possible if it's worth it. He kept telling me that it wouldn't make sense for us to overpay because we wouldn't save enough money on the interest to justify 'spending' £7k. I kept saying to him that it is not *spending* that money because it's not gone - it's now equity. He didn't seem to really get that. He was also pushing the mortgage protection payment insurance too much. I said I didn't want it 10+ times and was on the brink of hanging up on him.

    His justification was that if we BOTH lost our jobs because we BOTH had long-term illnesses, then after two years of unemployment we would have spent our savings and THEN have to change our lifestyle. We weren't face to face or he would have seen how ridiculous I thought that was. If we both had long-term illnesses of course we would change our lifestyle. I'm not paying £75/month for MPPI!!

    So I don't know what to do about the job situation, I don't know what to do about the remortgage situation and I'm also trying to plan a wedding. And there is still the possibility that my partner could be made redundant.

    We have picked a honeymoon destination! I originally wanted to take 8 weeks off and travel south-east Asia but that's not going to happen what with all the above. I found super cheap flights to South Korea so we are going there for a week in September!! Woo! Years ago I bought guidebooks to go and planned out a whole trip, but couldn't justify it financially. I'm pleased that we will be actually going.

    On the plus side, my partner got some hustle money from a gig, and we have another £500 Airbnb stay (21 nights).

    Our mortgage is currently £293,983, no overpayments this year, but building up a good bank for once I know what is going on in my life.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • Tropically
    • By Tropically 3rd Apr 18, 1:22 PM
    • 271 Posts
    • 815 Thanks
    Tropically
    PS. flights to South Korea were only £350 each on special. Apparently food and transport is very cheap and there are always budget hotel options.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • katep23
    • By katep23 3rd Apr 18, 8:12 PM
    • 1,334 Posts
    • 9,497 Thanks
    katep23
    I have been speaking to a L&C mortgage broker about the situation and don't think he is listening or understanding.
    Originally posted by Tropically
    I used L&C to remortgage recently as we identified the mortgage we wanted but it was broker only - L&C were dreadful!

    The chap wouldn't listen to me when I explained that I knew what product I wanted and insisted on "recommending" the same product, but he couldn't tell me even the most basic details about overpaying.

    He also managed to list our 4-bed 2 reception room detached house as a 2-bed 4 reception room semi which caused mayhem with the valuation and lead to a 2-month delay!

    Would never use them again and that was for something "standard" so can imagine your pain when asking them to advise on something out of the ordinary.

    • Tropically
    • By Tropically 6th Apr 18, 10:43 AM
    • 271 Posts
    • 815 Thanks
    Tropically
    He also managed to list our 4-bed 2 reception room detached house as a 2-bed 4 reception room semi which caused mayhem with the valuation and lead to a 2-month delay!
    Originally posted by katep23
    Oh no!! That sounds very frustrating. I think they are great for people who don't have an understanding of mortgages, but not so great when you know what you are doing. He has done a better job lately, after we suggested he recommend a different type of product. It remains to be seen.

    The job abroad has been promising me an interview since December, so yesterday I told them that we would be interviewing next Thursday. It worked, hahaha. So I'll know what we are doing soon.

    It's hard to know what to value our house at.

    We purchased it for £425,000, in London, at certainly a peak, but then we put in a gorgeous new kitchen, replaced the door and improved the energy performance of the house. There is a house that is on our road but it much poorer decorative condition on sale for £425,000 and a house sold last year for £425,000, also in much poorer decorative condition. There is a bigger house of the same style, but an extra bedroom, for sale at £500,000.

    I assumed 2% house growth per year, and want to get £445,000 on the valuation. Hopefully it is realistic, but it might not make much of a difference as we are at 66% at £445k and 68% at £425k.
    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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