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  • FIRST POST
    • atypicalblonde
    • By atypicalblonde 28th Sep 16, 2:14 PM
    • 2,874Posts
    • 20,191Thanks
    atypicalblonde
    ATB - mortgage freedom by 2020!
    • #1
    • 28th Sep 16, 2:14 PM
    ATB - mortgage freedom by 2020! 28th Sep 16 at 2:14 PM
    Good Afternoon All

    So much has changed since my last diary, I felt now was the right time to start a new one. Linkie to the old one is here http://forums.moneysavingexpert.com/showthread.php?t=5171678 if anyone wants a look-see!

    A little about me for those who haven't 'met' me before. I am married to a fabulous DH, who runs his own business. There are major peaks and troughs to that, some months we are brassic and others we feel quite flush. It is a precarious balance at times, and we have to deal with constant late payers, tax bills etc, but on the whole it is worth it. DH job is very physically demanding though, and he works away all week.

    We have two kiddies - DD is 4 and DS is 2. They are my world

    Our outstanding mortgage as at today's date is bang on £141,900. When I began my old diary at the start of last year it was £171k, so we have done pretty well thusfar However, my income is greatly reduced now as I no longer work - I am officially a home-maker, and that is how it will stay for the foreseeable.

    To clear our mortgage before we are 40 (i.e. 9 years time) is the grand plan. I would ideally like to do it in half that time, but 9 years is do-able and requires monthly OPs of £750.

    I now have a spreadsheet (thank you hiddenshadow) and an obsession with only having 000 at the end of the mortgage (thank you A Frayed Knot!), and most importantly a frugal mind-set. We need to make each penny do the work of 3, whilst remembering to have some fun on the way.

    The first target is to get into the 30s by Christmas... wish me luck, come along for the ride (but make sure you bring tea and biccies!)

    ATB xx
    Last edited by atypicalblonde; 26-05-2017 at 6:50 AM.
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
Page 40
    • shangaijimmy
    • By shangaijimmy 7th Dec 17, 1:13 PM
    • 2,736 Posts
    • 13,572 Thanks
    shangaijimmy
    Good step count! After our morning walk (the pooch is now exhausted and keeps sighing as he is only little) i'm at 10,500. So am gonna head out early to school run and push pram around the village a few times!

    Such a renegade approach to OPing - love it!!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction £42,061.17
    Aug 2009: £163,051 // Current: £93,938.84 // Avg Daily Interest £4.22
    MFiT-T4 #8 - 74.24% of £41,000
    • atypicalblonde
    • By atypicalblonde 8th Dec 17, 11:40 AM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    £800 OP made
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • shangaijimmy
    • By shangaijimmy 8th Dec 17, 1:10 PM
    • 2,736 Posts
    • 13,572 Thanks
    shangaijimmy
    So envious of that big OP number!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction £42,061.17
    Aug 2009: £163,051 // Current: £93,938.84 // Avg Daily Interest £4.22
    MFiT-T4 #8 - 74.24% of £41,000
    • atypicalblonde
    • By atypicalblonde 8th Dec 17, 2:35 PM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    So envious of that big OP number!
    Originally posted by shangaijimmy
    Thanks SJ, we have quite a way to go but big OPs like that help.

    Interesting discussion with DH today. There is an asset (office building) connected to his business that he bought 10 years ago. It is, truth be told, surplus to requirements - I do all his admin and work from home satisfactorily. I suggested getting it valued with a view to sell, and he was on board to my amazement.

    It's a company asset so we would have a tax faff to sort (what's new!) but could realise anything up to £30k equity. I've booked a viewing with a local agent for next week and will take it from there....
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • greent
    • By greent 8th Dec 17, 6:36 PM
    • 7,077 Posts
    • 72,094 Thanks
    greent
    Oooh - now that could make a serious dent in the mortgage! x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • michelle09
    • By michelle09 8th Dec 17, 8:13 PM
    • 785 Posts
    • 4,336 Thanks
    michelle09
    Wow, £30k is awesome. Hope it goes well.
    • atypicalblonde
    • By atypicalblonde 13th Dec 17, 3:54 PM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    £999 OP made & valuation booked for next week of business premises.

    Both kiddies up a lot in the night last night so verrry tired now. Easy tea then early nights all round
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • atypicalblonde
    • By atypicalblonde 14th Dec 17, 7:11 AM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    Morning all,

    No OPs to report this morning, although today will be a NSD which is always good. I've joined some FB selling sites that specialise in some of the branded clothing the children have, so will list a few bits this morning.

    Need to wrap a couple more gifts too, almost time for the big ho ho ho! Just need the kiddies to break up now, but that's not until next Thursday
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • shangaijimmy
    • By shangaijimmy 14th Dec 17, 7:31 AM
    • 2,736 Posts
    • 13,572 Thanks
    shangaijimmy
    I have to confess that i always break up a week before the kids and love that time off, at home with peace, quiet and dog walks!!
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction £42,061.17
    Aug 2009: £163,051 // Current: £93,938.84 // Avg Daily Interest £4.22
    MFiT-T4 #8 - 74.24% of £41,000
    • CathT
    • By CathT 15th Dec 17, 7:36 PM
    • 5,586 Posts
    • 38,884 Thanks
    CathT
    Great to read that a lot of your recent stresses seem to be resolved. You are super oganised with christmas presents, I have still have lots to buy and haven't even bought any wrapping paper!
    June 2018 -
    part 1 - £77,571
    part 2 - £45,272
    Total - £122,843
    • atypicalblonde
    • By atypicalblonde 20th Dec 17, 6:13 PM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    Good evening all,

    Well we are limping towards the end of term here, the kiddies break up tomorrow and we all need a well earned rest.

    I have one final biggish OP to make tomorrow then we are done for the year. Once that clears I will post our year end figures and targets for 2018.

    In other news, we had the valuation done which gave us food for thought. There is a tenant in there at the minute, they pay below market rent but at the time we were of the view that we wanted someone in there quickly to cover the mortgage payments. There has been a fair amount of wear and tear to the place since we let it out too.

    So the options are:

    - sell it with current tenants in situ & not spruce up would clear us around £10k equity (it's a poor yield for any landlord investor at the current rent and they are in the middle of a 12 month lease)

    - get rid of tenants at end of lease, spruce up and then market to sell. Would clear us around £45k equity!

    The latter is obviously preferable, however would mean that we need to start saving fairly hard now to a) cover the sprucing up costs - around £2k and b) cover the mortgage and council tax whilst its vacant until it sells.

    The bottom line is we don't need the space anymore, and don't need the headache of being landlords. I know the latter is exposing us to more risk (it mightn't sell for months, if at all, and we would have to stand all those costs).

    Thoughts appreciated please!
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • greent
    • By greent 20th Dec 17, 8:20 PM
    • 7,077 Posts
    • 72,094 Thanks
    greent
    I'd personally go for the latter option.

    Option a = no costs, 10k realised at end

    Option b = 2k + mtge/ c tx costs, 45k realised at end

    Unless mtge and council tax costs = 30k I'd favour option b. Would also guess sale costs would be higher (based on %age of sale price)

    Can you reclaim any of the wear and tear costs from the tenants if above what is deemed 'fair wear and tear'?
    x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £1068.37/£4000
    Net sales 2018 £522.39/£1000 PAYDOX18 (#15) £18564.38/£18918.90
    • hiddenshadow
    • By hiddenshadow 20th Dec 17, 9:13 PM
    • 2,482 Posts
    • 11,362 Thanks
    hiddenshadow
    I'd also vote for option B - 6 months (ish) isn't that long as far as waiting to sell, and 30k+ is pretty big incentive.

    Depending on how big the mortgage/council tax payments are, you can also drop the price to sell quicker. Price for 45k equity initially, and drop by X amount every couple of months until it sells. Presumably in the meantime tenants are covering part of mortgage payment, at least?
    Last edited by hiddenshadow; 21-12-2017 at 9:11 AM.
    MFW: £197,100 (2013) to £99,838 (June '18)
    2018 MFW #56: £4,806/£105,000 4% / MFiT-T4 #15: £59,661/£90,000 66%
    • atypicalblonde
    • By atypicalblonde 20th Dec 17, 9:49 PM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    Thanks guys. Yes the mortgage is currently covered by the rent so no issues there. We could certainly try and recover some of the funds to put right the wear and tear from them, but I suppose how amenable they will be to that given that we are wanting them out would be anyone's guess!

    I'm a bit puzzled and cross with myself as to why I didn't think of selling it before - I guess that I never thought DH would be on board so put it out of my mind completely.

    Have just checked properly and the lease doesn't expire until September. Which gives us ample time to stash some cash for doing the work, & covering the mortgage whilst doing so. So an autumn / winter project for us beckons it seems!

    HS - we would do exactly that, drop the price as required. I would have been delighted with £30k, so the suggestion of £45k is amazing!

    Thanks again for your input I really do appreciate it. Only DH and my MFW friends know of this idea, keeping from our nosy families for now!
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • Jessy103
    • By Jessy103 21st Dec 17, 9:26 AM
    • 525 Posts
    • 2,237 Thanks
    Jessy103
    Good luck with saving, sprucing up and selling the rental! Hope you have a great Christmas and New Year! x
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount Jan 2018 - £58,500.00
    Overpayment Target for 2018 - £5,000 /£663.78
    Jan - £369.23 Feb - £294.55
    • hiddenshadow
    • By hiddenshadow 21st Dec 17, 12:20 PM
    • 2,482 Posts
    • 11,362 Thanks
    hiddenshadow
    We had a similar debate with our house - we could hypothetically sell now with a tenant in place, but would potentially have to pay our lettings agent ~5k (very much do not wish to do this!), and lose out on up to 20k equity by selling as a BTL rather than a personal home. We may live to regret our decision (esp. if the exchange rate tanks in the meantime, lowering the value of our equity), but we've decided to wait until our tenants' lease is up (August 2018) to sell. We're hoping it won't take too long to sell and we'll be done and have lots of cash to roll around in.
    MFW: £197,100 (2013) to £99,838 (June '18)
    2018 MFW #56: £4,806/£105,000 4% / MFiT-T4 #15: £59,661/£90,000 66%
    • atypicalblonde
    • By atypicalblonde 22nd Dec 17, 9:56 AM
    • 2,874 Posts
    • 20,191 Thanks
    atypicalblonde
    Morning all,

    I expect this will be our last update for the year, so here goes with some figures:
    • Starting balance at 1.1.17 - £137,510.72
    • Balance as at today's date 22.12.17 - £115,000
    • Total reduction this year - £22,510.72
    • Average monthly OP - £1,875

    I am pleased with what we have achieved, although still too far away from five figures for my liking, I am loathe to use our remaining savings mine to inch us closer as we are now decided that we will sell the rental house this time next year. That money is therefore going to stay where it is for now to form the start of the 'spruce up the house to flog it' pot

    Massive thanks to every single one of you who takes the time to read my drivel, it really does help to spur me on, encourage me and generally give me a boost through those inevitable dips in the rollercoaster that is a MFW journey.

    Wishing you all a very very Merry Christmas and a peaceful and MFW style new year
    MFW
    Mortgage 8.2.15 - £171,064.64 Mortgage 1.5.2018 - £99,980.45
    Aiming to be MF 1.10.2020
    • shangaijimmy
    • By shangaijimmy 22nd Dec 17, 10:39 AM
    • 2,736 Posts
    • 13,572 Thanks
    shangaijimmy
    £22k off balance in 12 months. Congratulations, excellent figures.
    MFW: Turning June 2036 into March 2025... 39//120 Payments Challenge, Diary Reduction £42,061.17
    Aug 2009: £163,051 // Current: £93,938.84 // Avg Daily Interest £4.22
    MFiT-T4 #8 - 74.24% of £41,000
    • Betterthanever
    • By Betterthanever 22nd Dec 17, 12:37 PM
    • 526 Posts
    • 3,606 Thanks
    Betterthanever
    Excellent figures indeed!


    Enjoy the festivities!

    Current balance £112,593.71. Offset £2,677.73. £109,951.98 needed to be mortgage neutral!
    End date - 03/29 but aiming for 10/22 - 2018 O/pay £600
    Make £2018 in £2018 = £406.75/£2018
    Former DFW Nerd 230. Determined to be MF. Bring it on!
    • themadvix
    • By themadvix 22nd Dec 17, 4:12 PM
    • 1,717 Posts
    • 9,989 Thanks
    themadvix
    Great achievements this year ATB, well done!

    Have a fantastic Christmas and here's to 2018 and 5 figures! x
    OPs 2018 = £2090
    Moving savings = £636.46
    OPs 2017 = £3103
    Starting balance 2012: £132000; balance Jun 2018: £92,000
    MFW2018 no. 38
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