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    • jackieblack
    • By jackieblack 9th Mar 17, 11:24 AM
    • 7,827Posts
    • 11,481Thanks
    jackieblack
    Getting the right balance - aka 'wanting my cake and eating it too'!
    • #1
    • 9th Mar 17, 11:24 AM
    Getting the right balance - aka 'wanting my cake and eating it too'! 9th Mar 17 at 11:24 AM
    Recently divorced (after 24 years of marriage) and mutually agreed financial settlement finally sealed by the judge 6 months ago. Thanks to ex-H's generosity, I have been able to keep the former family home, where I have lived for almost 17 years - yay!

    Unfortunately, in order to meet the affordability criteria for the (luckily for me, relatively small, particularly by today's standards) previously joint mortgage to be transferred into my sole name, I had to extend the term quite significantly. Mortgage would originally have been paid off in about 8 years time, but now (officially) has 16 1/2 years left to run

    One thing I have recently done, although more as a security blanket for myself rather than as a purposeful OP, is to transfer the equivalent of a year's monthly mortgage payments to the mortgage. This is mainly so I have the security of knowing that if something happened, if I was seriously ill or in an accident, that I would have a year's breathing space on having to worry about how I'm going to pay the mortgage. Hopefully (fingers crossed) I will never need to use this for this reason and will get the benefit of finishing the mortgage a year earlier at the end of the term.

    In the meantime, I really want to chip away at the mortgage as much as possible and get it paid off sooner, however I also want to build a new life for myself and travelling is a very very important part of that, for me. I travel exclusively to the USA (for the last 11 years) having 'done' most other places I wanted to go to before I was married.

    I don't earn a huge amount, so I need to find a way to still be able to travel (albeit maybe not as frequently as before) but also chip away at the mortgage and bring the term down as much as I can - hence 'wanting my cake and eat it too!'

    I work in a school, in a support role, so there are two months of the year I don't get paid for (although pay is averaged out over 12 monthly pay days). This also means I am restricted to travelling during school holidays, when prices are at their highest!

    Extending the term has reduced the monthly mortgage payments by about 130 a month. I could just about afford this, but it would mean only being able to afford to travel about once every third year. I know this wouldn't be the end of the world but have, unfortunately, known enough friends/family my age or younger who have suddenly developed serious health problems, or suddenly passed away, to have developed a strong need to live life now while I have the opportunity to do so and not put things off until some vague point in the future that may or may not ever come.

    I live fairly frugally. I keep to a strict budget that allows me, despite a fairly modest income, to do most of the things that are most important to me. However there is not a lot of wiggle room to accommodate mortgage overpayments, so I have decided that the only realistic way I can erode the mortgage term is by using any extra money that comes my way to chip away, little by little. eg I have recently changed my current account to one that pays interest and have transferred the interest into the mortgage each month. I also do survey and anything earned from these will go as OP to the mortgage. Sometimes rewards come in form of gift vouchers so I will transfer an equivalent amount to the mortgage when I spend these.
    Hopefully there should be a (small) handful of these payments each month (but nowhere remotely approaching the 130 needed to bring it back to the original remaining term).
    I shall be utilising the 'every little helps' theory

    Apologies if this has turned into a bit of a ramble..... one drawback of living alone is no-one to talk to!
    Last edited by jackieblack; 10-03-2017 at 6:41 AM. Reason: typo :o
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
Page 2
    • jackieblack
    • By jackieblack 4th Nov 17, 7:01 AM
    • 7,827 Posts
    • 11,481 Thanks
    jackieblack
    OP for October = 59.15! Much better than I expected, mainly due to a couple of survey rewards paying out
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
    • Silence101
    • By Silence101 4th Nov 17, 7:45 AM
    • 356 Posts
    • 552 Thanks
    Silence101
    Well done! Every little does help. I calculated that with our mortgage, if we only overpayed 5 a month we'd manage to cut off nearly a year off our mortgage (We're on a much longer term than yours but it does show how even small amounts can make a huge difference)
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • louloubelle79
    • By louloubelle79 4th Nov 17, 7:58 AM
    • 340 Posts
    • 183 Thanks
    louloubelle79
    Well done, it all adds up! I am trying to get more balance between OPs and actually living and house repairs etc we are currently overpaying a lot but house falling apart around us lol so we just OP small amounts from next month. Good to see the positive impact still of these small payments
    • jackieblack
    • By jackieblack 3rd Dec 17, 12:07 PM
    • 7,827 Posts
    • 11,481 Thanks
    jackieblack
    OP for November = 47.59
    Not quite the 50 I was aiming for, but not too far short (and that is an average target)
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
    • jackieblack
    • By jackieblack 4th Jan 18, 5:25 PM
    • 7,827 Posts
    • 11,481 Thanks
    jackieblack
    OP for December = 63.53

    Total OP for 2017, including my initial 12 x monthly payments = just over 3300, a little over 11% of the balance

    For 2018 I'm still aiming for an average of 50 per month, so 600 over the year. This equates to approx 2/3 of the interest charges for 2017 so hopefully will be more than 2/3 of 2018's interest charges.
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter,
    south facing (-5 deg), 30 degree pitch, no shading

    Quidquid Latine dictum sit altum videtur
    (Revera linguam latinam vix cognovi )
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