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  • FIRST POST
    • ch4rly2002
    • By ch4rly2002 19th Jan 17, 2:37 PM
    • 358Posts
    • 1,508Thanks
    ch4rly2002
    Dreaming of financial freedom!
    • #1
    • 19th Jan 17, 2:37 PM
    Dreaming of financial freedom! 19th Jan 17 at 2:37 PM
    Hi everyone reading this!

    I hadn't thought about writing my own MFW diary until another user suggested it, so I have no idea if anyone will be interested in what I have to say, but I'll just post it and you can ignore if it's rubbish So here's my story...

    I turn 30 next month and I would like to be mortgage free as soon as possible. My husband and I work in IT and, at least in my company, it seems to be that most jobs are being moved abroad. My dad also worked in IT was made redundant at 53 before my parents had finished their mortgage so I think that is why I am so anxious about having mortgage debt and would like to pay it off ASAP.

    We bought our first house in 2006 and sold it three years later in the middle of the recession for a loss of 6k, which wasn't ideal but it allowed us to purchase a house we couldn't have otherwise afforded as the vendors needed a quick sale so were prepared to drop their price. We moved in to the new house at the back end of 2009 and didn't need to do anything to it, which is a good job as we didn't have any spare money at the time! After a few years I got a job that paid well and we started overpaying on the mortgage, which we decided to do rather than save up as we would get a nice lump sum if we were made redundant. I loved seeing the mortgage go down!

    In 2011 my dad was diagnosed with a progressive neurodegenerative illness, which means his brain is slowly dying and was given a life expectancy of approximately 7 years, although it differs for everyone. My parents decided to make the most of their time together and bought a static caravan by a lake, which they lived in happily for a couple of years before my dad started having too many falls to continue living there and they moved into an independent living unit near Holmfirth, which isn't too far from where my in-laws live so it made visiting them all on our weekends up from Nottingham so much easier! By 2014 my dad had deteriorated quite a bit and my husband and I discussed leaving Nottingham so we could live closer to our parents in Yorkshire. At this point, the house was valued at 170,000 and the mortgage was at 108,000. Had we stayed and continued paying the same amount each month we would be mortgage free by 2021 but if we moved we would either have to rent (which we both saw as dead money) or buy another place that would be more expensive for a comparable house so it was a difficult decision. Around the same time my father-in-law got cancer, so we decided that moving up would be the best option. The only problem was that my dad was deteriorating rapidly and it takes ages for houses in our area to sell so we'd miss the last bit of time with my dad in a reasonable condition and could miss being there for the in-laws when they needed us through the cancer treatment process. At this point, I suggested we rent out our house and buy another house closer to our parents. I first spoke to my mortgage provider and asked if there was a way to release equity from our house and move it onto a buy-to-let mortgage then purchase another property. Unfortunately they wouldn't allow us to do this, but luckily MSE sings the praises of London and Country mortgage brokers and as they don't charge a fee I thought it would be worth giving them a call. I am so glad I did! My advisor Adam found me a new residential mortgage and let-to-buy mortgage (which is apparently very similar to a buy-to-let mortgage but it is when you already owned the property when you decided to rent it out) so we could use equity from our house. A couple of months later we moved into our new house and our old house was rented out shortly after.

    After 2 years, our fixed deals have just come to an end and this is where we now stand...

    Residential mortgage:
    Started at 216,000 on 3.29% with no OPs allowed.
    From January 4th, the property has 80% LTV and is on 1.99% for 3 years with 10% OP allowed. Started at 204,000 but as I had to guess what amount I would need when I first applied 3 months ago, we were refunded 1,404 so the mortgage now stands at 202,596. The standard mortgage payment 916 but I set the DD up at 1,100 as that's what we paid before so there is an overpayment there without any hardship. I can't wait to see this go under 200k, and then I will set 10k goals.

    Buy-to-Let mortgage:
    Started at 136,000 on 4.79%, and we started making overpayments of 250pm.
    From February the property will have a 73% LTV and will be on 2.64% for 2 years. Again, we applied for this mortgage 3 months ago and I guessed 129,000 but when I checked yesterday it stood at 127,895 so we will be due some money back and will pay that off the mortgage straight away.The standard DD is 638 but I am considering whether to leave the payments at 1,000 as they previously were.

    The only fly in the ointment now is that our jobs aren't as secure as they used to be, and there are rumours of redundancy packages being dropped to statutory rates, which I understand isn't very much. This has made me think that we ought to have some savings in case one or both of us gets made redundant. We have 1500 in premium bonds saved up for house repairs but that wasn't much of a safety net. Luckily, we have just received a cheque for 4,900 from my husband's stock that he just sold so for the first time ever we finally have some security. We would have previously put it straight on the mortgage but with the current uncertainty around jobs it is nice to have a bit of a safety net. The timing couldn't be better!

    I'll be honest. I'm rubbish with budgets. I don't know how much we spend and I know I could be a lot more careful with my spending. We do have takeaways and eat out quite a bit, mainly because we both work long hours and very tired on an evening and don't want to then spend a big chunk of our evenings cooking. If I'm even more honest, part of it is laziness However, I want to change that as I'm sure we could save some real money and be healthier if we cook more so I'm thinking maybe meal plans, online shopping so I don't get tempted by add on products and don't have to give up a load of time to go to the supermarket, and maybe the odd ready meal in place of a takeaway when we're feeling tired / lazy. I am also going to have a look into slow cooker recipes that I could put on in a morning so it's ready for us as soon as we finish working.

    My goal is to start logging what we spend and make a proper budget!

    Some (limited) financial info:
    Husband earns around 3,000 net each month.
    I earn around 1,700 net each month.
    Rental income, after expenses, is 678 per month.

    Mortgage 1 1,100
    Mortgage 2 322 (1,000 payment minus 678 rent, assuming we keep the payment the same)
    Car loan 500 (ends in October 2017)
    Loan to In-Laws 250 (not accruing any interest)
    Water bill 26
    Council Tax 128
    Gas & Electric 94.14
    BG Home Care 29.50
    Mobile 1 13
    Mobile 2 20
    Sky TV, internet and phone 70.93 (up for renewal tomorrow so will haggle or switch to Virgin)
    Car insurance 632 in 2016 (paid in a lump sum in April)
    Home insurance 491 in 2016 (paid in a lump sum in December)
    Pet insurance 69.61 in 2016 (paid in a lump sum in November)
    Landlord insurance 219.21 in 2017 (paid in a lump sum in January)
    Rent Guarantee and Legal insurance 125 in 2017 (paid in a lump sum in January)
    Gas Safety Certificate 60 (annual, paid in February)

    Unsure on food and entertainment costs (really need to get a grip on this) but after paying our credit cards we end up with between 500 and 1500 left at the end of the month, which we have recently been spending on home improvements, insurance, Christmas etc. so we haven't saved much of this. We are also thinking about joining a gym so that might also be another expense in future. If I think of any other expenses I will add them but I think that's pretty much it for now.

    I will try and update this as and when I get more information or manage to make savings / OPs. Thanks for reading!
    Last edited by ch4rly2002; 20-01-2017 at 10:44 AM. Reason: Forgot to include the current mortgage values.
Page 20
    • themadvix
    • By themadvix 24th Feb 18, 1:40 PM
    • 1,644 Posts
    • 9,614 Thanks
    themadvix
    That's great news Charly! Hope you have a lovely weekend too.
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • ch4rly2002
    • By ch4rly2002 27th Feb 18, 12:10 PM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    We had a lovely weekend We will tighten our belts now to try and balance it out.

    I have managed to sell a couple more items on the Bay and will go to the Hermes drop off today. I am going to look for more things to list tomorrow as DH is going to the cinema with BIL tomorrow evening (it's BOGOF and as BIL has a Cineworld unlimited card it shouldn't cost DH anything - at least that's what BIL thinks, so we'll see).

    Today should be the day we exchange contracts on the sale of this house. It should have happened yesterday but apparently the buyers' solicitor had to ask our solicitor for approval to go ahead because the money from their sale doesn't cover 10% of our property and I think they need 10% deposit in case the sale falls through. Anyway, our solicitor said it's fine to go ahead with less than 10% but then ran out of time so hopefully it will happen today.

    Regarding the new house, there is only one more thing outstanding and that is indemnity insurance for some old mining leases. The seller's solicitor said that they won't be putting any insurance in place due to the age of the leases and our solicitor went back to them to ask them to look into it as she believes they are still active. I spoke to our solicitor yesterday and asked her to look into the indemnity insurance as it is the last outstanding item and if it's not a lot of money we'll just get our solicitor to sort it so the purchase can go ahead. It's only a week and a half until completion date now so I just want things to be sorted!!!
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • ch4rly2002
    • By ch4rly2002 27th Feb 18, 2:04 PM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Woohoo! The solicitor has just confirmed that she has exchanged contracts with our buyers We have officially sold our house!

    Now we just have to wait for the last 2 queries on the new house and we can exchange on the purchase. It's getting close now, our solicitor is nervous that the purchase might not happen on the same day. Fingers crossed the seller's solicitor gets back to ours in time.
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • themadvix
    • By themadvix 28th Feb 18, 9:30 AM
    • 1,644 Posts
    • 9,614 Thanks
    themadvix
    Congratulations!! Fingers crossed you get everything sorted on the new house today too.

    I believe BIL is right about cinema tickets I hope they have fun and you have a productive time!
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • Jessy103
    • By Jessy103 28th Feb 18, 10:44 AM
    • 525 Posts
    • 2,237 Thanks
    Jessy103
    Congratulations Ch4rly! Fingers crossed for the new house getting sorted asap!
    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
    • ch4rly2002
    • By ch4rly2002 4th Mar 18, 10:52 AM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    All sorted with the new house (worse case scenario we can get indemnity insurance for the last outstanding issue, but hopefully the seller's solicitor will get the confirmation needed in time and it won't come to that), so the removal is confirmed and I'm starting to ring round our utilities to tell them of the move. It's all go now I'm so glad we're not moving this week, it's been snowing non-stop for 3 days here. Hopefully it will be nice clear weather by the time we come to move

    We had the in-laws round yesterday and FIL was helping us with some more jobs. I feel a lot less stressed about having everything done in time now. I have a few tip runs to do but I'm not sure if it's open today with the snow and there's nothing about it on the council's website so I am going to assume it's open and make my way there... wish me luck

    We've given the kitchen a good clean and hope to make as little mess as possible over the next few days. I've started on deep cleaning now so by the time we move it should just be a case of vacuuming and dusting where furniture has been a quick wipe down of everywhere else.

    My Regular Saver matures on Thursday. I will finally get the interest that has accrued, and I am so excited to see how much it will be. Apparently it will be automatically paid into my standard savings account on the day it matures and I am able to open another RS if I want. I think I might do that because even though I don't think I can put in a large sum upfront, the amount of interest I'll earn over the year will still be quite a bit more than if I put the whole amount in a low interest saver. There is a maximum of 3600 allowed in the RS so I need to investigate whether I can put in a deposit of 3300 and have a regular payment of 25 to maximise the interest I will earn. I suspect not, but it's worth asking.
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • Jessy103
    • By Jessy103 4th Mar 18, 1:02 PM
    • 525 Posts
    • 2,237 Thanks
    Jessy103
    Good luck with the tip runs ch4rly!
    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
    • Kittenkirst
    • By Kittenkirst 4th Mar 18, 4:36 PM
    • 1,885 Posts
    • 10,108 Thanks
    Kittenkirst
    Fantastic news on the house sale Charley !

    With my regular savers (I have two) and there is a maximum you can pay in per month I think its so you dont get a huge amount of interest, you dripfeed your money in over the 12 months so you only get one months full interest on the full amount (its still better than many accounts though!)
    2018 MFW #20 - OP 1465.85/ 3000 49%
    Mar: 218 Apr: 528.91 May: 27.31

    Emergency fund 4.2k/ 6k
    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
    • ch4rly2002
    • By ch4rly2002 5th Mar 18, 10:54 AM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Thank you guys. We had a very productive weekend. We managed two tip runs (thank goodness the tip was open). The kitchen is now down to only things we will eat or take with us, the wooden ramp has been dismantled and tipped (it's a shame as it was a really well built wheelchair ramp but we couldn't find anyone who wanted it), and we wrapped up the last of the alcohol. The alcohol is the only thing we've wrapped ourselves as it was an issue for the insurance... 10 boxes and a few hours later, I am very glad we don't have to pack the rest of the house! The plan for this week is to pack a couple of suitcases for staying with the in-laws, finish scanning and shredding paperwork, take down curtains and light shades and generally declutter. I will also try and sort out some more of the address changes and choose a new internet and TV provider.

    Is anyone planning to eat out tonight? It's a long shot but I'm not going to get chance to go to Zizi's and I have the free starter vouchers that expire tonight.
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • try harder
    • By try harder 5th Mar 18, 11:10 AM
    • 780 Posts
    • 3,002 Thanks
    try harder
    How exciting ch4rly but hard work all the same but you seem to be sailing through it all quite merrily .I hope you have a good week and im looking forward to hearing about the new house once you are settled in .Have a good week.
    • themadvix
    • By themadvix 6th Mar 18, 8:42 AM
    • 1,644 Posts
    • 9,614 Thanks
    themadvix
    All sounds good although, 10 boxes of alcohol???!!
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • ch4rly2002
    • By ch4rly2002 6th Mar 18, 9:56 AM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Yup, I was saying to DH that perhaps we should drink some of the bottles we have before he buys more at least it will make for a good housewarming!
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • ch4rly2002
    • By ch4rly2002 6th Mar 18, 6:11 PM
    • 358 Posts
    • 1,508 Thanks
    ch4rly2002
    Well, I spoke to the solicitor today and she hasn't heard anything back from the seller's solicitor. She said we're running out of time as they need to leave time between exchange and completion for the lender to transfer funds, and she asked if we have alternative arrangements. I said we do, but we've considered the risk and want to go ahead and exchange even if we don't hear back from her solicitor. I spoke to my brother (who works for the Council in Norfolk and asked him about it and he said it's low risk with a company like David Wilson Homes. He said he would be very surprised if DWH hadn't already paid the notice and if it were him buying the house, he wouldn't be concerned). So, hopefully our solicitor will get hold of the seller's solicitor tomorrow and we can get everything finalised. I just want it all to be done now!!!

    We're doing a good job at using up food and drink in the house. We had the BIL round yesterday for our usually weekly get together and I made us fajitas, which allowed me to use up some sauce from the cupboard, and I also did some mushroom rice as I have one pack that needed using up so it was kind of more like a burrito/fajita hybrid. We all enjoyed it and DH said he'd have it again with the rice, so that might be a variation we carry forward. We used up another bottle of wine (which was needed when we watched The Walking Dead) and pudding was a use up of some mousses that Mum gave me when I went to visit her and Dad yesterday (Dad doesn't seem to be getting through as many nowadays and she didn't want them to go off).

    Tomorrow I'm taking the cat to the cattery so it'll be a week before we see him again, and I'll be taking him back down to Nottingham! I'll have to make sure the cat flap is locked so he can't escape until he's got used to the house

    So much to think about and organise, but we're getting there. I finished off the information I was writing for the new owners yesterday as well. I'm trying to give them all the information about the house that we had to find out the hard way (such as when the shower in the bathroom starts leaking with water from the control panel, which thermostatic cartridge to buy and the video on Youtube to watch so you can change it yourself and avoid a plumber's fee etc. as well as some lighter things like the neighbours' names and the bin days). I've got a box file that I'm filling with things such as manuals for the appliances, all the keys on a big keyring, the information document I've written and so on - it's kind of like the pack you get when you buy a new house.

    Tonight we're packing a suitcase with clothes etc. to put us on for a few days while we stay with the in-laws and then unpack at the other end. We're also taking the last of our alcohol round and I'll be dropping off Mum's mother's Day card and present. I am actually feeling fairly organised - just!
    Savings: Aim 13.5k. Dec 2016 1,700 / Feb 2018 12,350
    Mortgage: Dec 2014 -216,000 / Mar 2018 -191,390
    BTL Mortgage: Dec 2014 -136,000/ Feb 2018 -123,400
    CC 0%: Nov 2016 -4,500 / Feb 2018 -3,368.27
    Loan to In-Laws: Sep 2010 -48,185.82 / Mar 2018 -30,065.49
    Student Loan: March 2011 -18,275.04 / April 2017 -14,003.85
    • shangaijimmy
    • By shangaijimmy 6th Mar 18, 8:23 PM
    • 2,704 Posts
    • 13,340 Thanks
    shangaijimmy
    So excited for you. You also make a case for a stress free house move with the way you talk about it!!
    MFW: Turning June 2036 into March 2025... 38//120 Payments Challenge, Diary Reduction 40,984.38
    Aug 2009: 163,051 // Current: 95,015.63 // Avg Daily Interest 4.27
    MFiT-T4 #8 - 74.24% of 41,000
    • Kittenkirst
    • By Kittenkirst 11th Mar 18, 5:23 PM
    • 1,885 Posts
    • 10,108 Thanks
    Kittenkirst
    Hey Charley! Hope it!!!8217;s all going well with the move!
    2018 MFW #20 - OP 1465.85/ 3000 49%
    Mar: 218 Apr: 528.91 May: 27.31

    Emergency fund 4.2k/ 6k
    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
    • newzywiki
    • By newzywiki 12th Mar 18, 5:05 PM
    • 1 Posts
    • 1 Thanks
    newzywiki
    It was Great. you can try make money through apps
    • themadvix
    • By themadvix 29th Mar 18, 4:49 PM
    • 1,644 Posts
    • 9,614 Thanks
    themadvix
    Hey Ch4rly, hope everything is ok and it's just Interweb problems keeping you away x
    OPs 2017 = 3103
    S&S ISA 2017 = 626
    OPs 2016 = 6142.12
    Starting balance 2012: 132000; balance Dec 2017: 96,822
    MFW2017 no. 38
    • try harder
    • By try harder 29th Mar 18, 7:35 PM
    • 780 Posts
    • 3,002 Thanks
    try harder
    Yes me too . hope the move is all going well ,looking forward to hearing all about it
    • Kittenkirst
    • By Kittenkirst 9th Apr 18, 6:29 AM
    • 1,885 Posts
    • 10,108 Thanks
    Kittenkirst
    Hey Ch4rley, hope you are settling into the new house well x
    2018 MFW #20 - OP 1465.85/ 3000 49%
    Mar: 218 Apr: 528.91 May: 27.31

    Emergency fund 4.2k/ 6k
    Mortgage Oct '16 170.995 LTV 90% end: Nov 2041
    Overpayments 2016 255.50 2017 2600.40
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