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  • FIRST POST
    • MichaelDH
    • By MichaelDH 2nd Aug 17, 2:18 PM
    • 121Posts
    • 541Thanks
    MichaelDH
    Adding value before making over payments
    • #1
    • 2nd Aug 17, 2:18 PM
    Adding value before making over payments 2nd Aug 17 at 2:18 PM
    Iíve spent a couple of weeks lurking around other peopleís diaries so thought starting my own might help me (and in turn my partner) stay on track with reducing outgoings and saving money.

    Our situation is somewhat different to most of you that post on this board. Currently, we donít make over payments on the mortgage, although this is our long-term intention. For now, any spare cash is saved (and often spent) on renovating our house. Our current mortgage deal ends in one yearsí time, 90% LTV over 30 years, fixed at 2.45% for 2 years, and we are hoping that the value we will have added to the house by then will allow us to remortgage with a LTV of 60-65% with a reduced term if possible.

    We bought our house in August 2016 for £188k, which was an absolute bargain to be honest, so we were very fortunate. Up until now we have spent in the region of £15k on works such as replacing all of the windows and doors, installing central heating, knocking down a wall and putting in a steel support, electrical work and some plastering. We still need to put down flooring and replace the skirting boards and door frames, as well as new internal doors, redecoration, and replacing carpet upstairs. The kitchen, bathroom were replaced by tenants who lived in the property for a year or so before we bought it, long story but they thought they would be able to buy the house then couldnít, so we donít plan to replace them yet.

    Once our current program of works is completed we intend to start saving towards replacing the garage with a single story side extension to expand the kitchen, add a small utility and downstairs toilet, create a room for the dog, possibly dogs by then , and we will also reconfigure the bathroom to combine the bathroom and separate toilet.

    Similar properties in our road have recently sold for £69k, £77k and £102k more than what we paid 12 months ago, so we are quite confident that once completed we should achieve the same (possibly more )

    We currently save £1k each month between us, although this is spent on the house as and when needed, but going forward anything left in the current account at the end of the month will be moved in to savings. We are aiming to reduce our outgoings as much as possible to increase the amount left in the current account at the end of the month.
Page 4
    • MichaelDH
    • By MichaelDH 4th Oct 17, 9:53 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Evening all

    This months monthly payment (£668.08) plus our monthly OP (£331.92) has now been credited so mortgage balance now stands at £164.720.53.

    Total OPs so far stand at £906.58, so this month's mini challenge is to get that to £1000

    We've had a surprise cheque from first Utility (who we haven't used for over 12 months!) for £28.99 so that'll be sent to the mortgage once we've paid it in. Hoping some cash back clears on quidco so that'll go to the mortgage too.

    Was a bit naughty yesterday, spent over £50 on candles, so going to try and recover that money from elsewhere in the budget to make sure we don't dip in to savings if things get tight this month.
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • Kittenkirst
    • By Kittenkirst 6th Oct 17, 8:53 PM
    • 1,916 Posts
    • 10,269 Thanks
    Kittenkirst
    I!!!8217;m so impressed by your OP figures Michael- definitely inspiring

    How is your Oscar?
    2018 MFW #20 - OP £2236.18/ £3000 74.5%
    May: £361.07 June: £182.76 July: £53.21

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • MichaelDH
    • By MichaelDH 6th Oct 17, 9:01 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Iím so impressed by your OP figures Michael- definitely inspiring

    How is your Oscar?
    Originally posted by Kittenkirst
    Hey Kittenkirst

    Thank you. The free money from survey sites really helps. Have slacked off a bit last few weeks as have both been so busy at work. Determined to get the mortgage below £160k before we remortgage!

    Oscar is good. He's almost 9 months old now so starting to lose his puppy looks bless him,

    How are the kittens doing? x
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 30th Oct 17, 3:37 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Well after a fantastic start in September we have been really naughty this month and only made our standard OP of £331.92

    I've been really busy with new role at work (a little stressful at the moment) and Drew has been busy studying for prince2 qualifications, plus we've been chipping away at the house to do list and making plans for extension project, so we just haven't had time for surveys this month.

    We've signed up to Weight Watchers this month. First weigh in was last Thursday, I lost 6lbs and Drew lost 3lbs, so we are very pleased with that. Hopefully WW will help wipe out the monthly bill for takeaways and popping to local Tesco for chocolate and biscuits!

    Will be making standard OP in November and hopefully a few extra small payments from cashback and surveys etc.

    Hope everyone is winning in the quest to be mortgage free!
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • newgirly
    • By newgirly 30th Oct 17, 4:26 PM
    • 6,359 Posts
    • 43,947 Thanks
    newgirly
    A standard op is way better than no op

    Well done losing weight, I've been doing WW since may and I find it hard sometimes, motivation goes up and down quite drastically! Best of luck
    MFW 21
    Target for 2018 £40k/£13,632 paid so far

    Mortgage £36,319 4yrs left. Total owed £48,358 plan to clear in 14 months
    • Kittenkirst
    • By Kittenkirst 15th Jan 18, 6:09 AM
    • 1,916 Posts
    • 10,269 Thanks
    Kittenkirst
    Hi Michael, nice to see you on my diary. Howís life treating you?

    Did you say you were contemplating a new puppy?
    2018 MFW #20 - OP £2236.18/ £3000 74.5%
    May: £361.07 June: £182.76 July: £53.21

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • MichaelDH
    • By MichaelDH 2nd Feb 18, 4:31 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Hi Michael, nice to see you on my diary. Howís life treating you?

    Did you say you were contemplating a new puppy?
    Originally posted by Kittenkirst
    Hey Kittenkirst

    Life is good. Settling in to my new role at work finally, has been hard going at times, and house finally getting there too!

    Yes we've decided to get another puppy, we must be mad!

    Just about to post full update x
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • Kittenkirst
    • By Kittenkirst 16th Feb 18, 5:07 AM
    • 1,916 Posts
    • 10,269 Thanks
    Kittenkirst
    LOoking forward to seeing your updated figures MichaelDH!

    You must tell us all about new pup too! How has Oscar taken to the new addition?

    Our kittens are well, cats, now! Its their 1st birthdays this week and theyve grown so much. Hugo has grown into the hunting cheeky cat who gallivants off during the day, Oscar will happily snuggle up all day with me and sleeps on the bottom of the bed
    2018 MFW #20 - OP £2236.18/ £3000 74.5%
    May: £361.07 June: £182.76 July: £53.21

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • MichaelDH
    • By MichaelDH 20th Feb 18, 5:27 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Hey Kittenkirst

    Not sure where my update went... sure I posted a long rambling update as I usually do lol

    Belated happy birthday to Oscar and Hugo!

    The new puppy is a Cockapoo. He's only 5 weeks old so can't come home for a few weeks yet. We are super excited though!

    We are taking Oscar with us for a week in North Devon, then will have a few days at home to settle before little brother arrives. Will have to find a way of posting some pics! x
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 8th May 18, 1:42 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Sorry, i'm rubbish at this! Never seem to get the time to write an update!

    We had some amazing news at the end of last week. I booked an appointment with a local estate agent to value the house and just give us some general advice about adding value by extending. She valued the house at £295k! Amazing considering we purchased the house for £188k back in August 2016. Mortgage is around £160k so that gives us around £135k equity and LTV of 54%.

    The only slight negative to come out of the appointment is that she doesn't think it's worth carrying out all of our plans as they wouldn't be cost effective, so taking this on board we've ditched plans to extend on the back of the house by 3.5m and instead just rebuild the garage, extend the kitchen in to the back of the garage (just over doubling the size) and adding a utility and downstairs loo and using the rest of the garage for storage (garage runs the entire depth of the house) as well as re-configuring the existing bathroom and separate loo upstairs in to one room and replacing suite, tiling and flooring etc.

    We spent most of the weekend looking at kitchens and bathrooms. Gosh they are expensive! Designed a kitchen in Wren and it came in at £24k including all appliances and fitting, or £20k if we use our own fitters, which they could do for £18.5k if we signed up there and then. Lots of shopping around to do. Should hear back from Magnet tomorrow too. Do you guys have any recommendations?
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • OUNN
    • By OUNN 8th May 18, 8:56 PM
    • 42 Posts
    • 67 Thanks
    OUNN
    Just delurking very quickly,

    We've done very similar to yourselves in completely gutting, extending and renovating our house. It's a task, but an enjoyable and rewarding one (as you found with the equity and LTV gain).

    Like you, I was really shocked at kitchen prices. We had a couple of the sheds come in and measure up and design things - even had Howdens quote via builder (They only send the quote to the builder, including builders discount, to allow the builder to mark it up).
    All of them were crazy.

    In the end we went with DIY Kitchens. I can't recommend them enough (they're also had in reasonable regard on the in home forum here too ) - the design and measuring process is up to you. So you need to be careful - but find a fitter, and they're wonderful Kitchens. The carcasses match the doors as well, which was a big plus for me, I hate coloured doors and then a white carcass behind it!

    They manufacture for a number of other companies too. We weren't sure about them to start with, but after visiting them up north, ordered the next day!

    Compare the prices, you'll be amazed. And it's very MSE

    We've just bought ourselves another basket case of a property, and I'm already looking forward to the kitchen part again

    (I can recommend creating a basket, and leaving it for a couple of days. You sometimes get a 10% off email from them to compete the purchase)

    *A quick edit. We didn't buy our worktop from them, or all of the appliances. (Worktop was worktop express for walnut, appliances are various).

    /Relurking
    Last edited by OUNN; 08-05-2018 at 9:09 PM. Reason: Remembered we didn't buy it all in one place
    • MichaelDH
    • By MichaelDH 10th May 18, 1:41 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    You are very brave doing it all again! Not sure we would, feels like a very long and tiring journey! Only way we would do it again is if we found somewhere small we could do up and then rent out maybe.

    We had quotes from a builder yesterday and he didn't have anything positive at all to say about Wren so will deffo avoid. He recommnends Magnet (and can get decent discount) so going to have another look there at the weekend. Will also check out DIY Kitchens. Thanks for the tip!
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • OUNN
    • By OUNN 10th May 18, 2:22 PM
    • 42 Posts
    • 67 Thanks
    OUNN
    I guess to put it into context, a £15k ish quote from Wickes/Howdens etc - from DIY was around 4k plus a worktop elsewhere and fitting. We probably saved 8-9k. It was a happy bonus that we also preferred the kitchen

    It's amazing how quickly the tired of decorating feeling fades. I'm actually really looking forward to getting started again, and I'm chafing at the delay all the searches etc are causing!
    Although I have asked the wife to remind me how much I'm looking forward to it all, when I start complaining, or losing the enthusiasm while it's all going on!
    • MichaelDH
    • By MichaelDH 25th May 18, 2:10 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Finally got round to looking at DIY Kitchens - kitchens look great and so do prices!

    We've had another kitchen designed by Magnet, excluding worktops, just under £20k, but with our builders discount just over £7k. Will make some comparisons to DIY Kitchens and see if there's any more savings to make.Have already found that I can get the appliances much cheaper online than Magnet, every little helps!

    Out builder has given us an estimate of £26k to knock down and rebuild the garage (it runs the length of the house), knock down external wall to extend the kitchen in to the back of the garage (more than doubling the size), add a utility off the kitchen, and install a downstairs loo off the hall.

    We met with an architect earlier in the week and we've now appointed him to produce plans so he's coming next weekend to take all the measurements. He's confident we won't need planning permission so fingers crossed! That would definitely speed things up a bit! Once we've got plans sorted we can get a full quote from the builder. Looking forward to getting started now!
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 1st Jun 18, 4:55 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    It's time to remortgage
    So, following on from recent posts about extension plans... Our current mortgage rate changes from 2.45% to 4.99% on 30th June. This is how things currently stand:

    House valuation - £295k
    Mortgage - £162k
    LTV - 55%
    Remaining term - 28 years

    We are planning to borrow an extra £50k towards the work we have planned.Once work has been completed our plan is to put as much money as possible in to the mortgage to reduce it as quick as possible.

    House valuation - £295k
    Mortgage - £212k
    LTV - 72%

    Our broker has come back to us with a few options, all over 28 years so term not increasing/decreasing.

    2 year fix @ 1.79% - £802.68
    3 year fix @ 1.99% - £823.49
    5 year fix @ 2.14% - £839.30

    None of the above have any set up fees and our broker isn't charging us any fees either. I know from looking around there's slightly better rates out there, but partner has a BTL which complicates things a little so would rather stay with broker.

    I'm looking for opinions on whether 2, 3 or 5 year fix is best option please.

    Thanks all
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • tootallulah
    • By tootallulah 10th Jun 18, 10:14 AM
    • 2,143 Posts
    • 7,463 Thanks
    tootallulah
    I would go for the 5 years, it is such an uncertain world at the minute knowing you have 5 years of mortgage certainty is a big plus and 2.4% is a good deal. Can you overpay on all of them?
    Mortgage House £45,000, 26 January 2018, 2nd July 2018 £14,000.
    • MichaelDH
    • By MichaelDH 10th Jun 18, 10:05 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Hi Tootallulah

    Thanks for advice!

    We've decided to go for the 5 year fix at 2.14% with HSBC. There's no set up fees which is a big plus for us. We can make overpayments upto 10% of the outstanding mortgage balance in any 12 month period.

    We've had provisional approval, just spent the last few hours getting bank statements and payslips together so they have now been sent over to our financial advisor Fingers now firmly crossed!

    Unfortunately we were a bit slow getting back to our advisor when he started chasing us months ago so when our current mortgage deal finishes at the end of the month we will be on the SVR so jumping from 2.45% to 4.49%
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 13th Jun 18, 2:00 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    So, once our new mortgage has been finalised (fingers crossed) the extra borrowing will take our monthly payment from £668.08 to £839.30, an increase of £171.22.

    Not at all worried about the increase, it's more than affordable, but it has made me focus a bit more on cutting down on waste and and looking at ways to save/make more money. We are doing a 'no takeaway June' which is saving us a fortune so will definitely be carrying that on. Any money left over at the end of the month is being swept over to savings. I've logged back in to Prolific, since the start of the month I've managed to earn £18.30 with a further £5.25 pending, not bad for just logging in on my lunch breaks and checking for available surveys a couple of times over the weekend! Again this money will be added to savings. I've also just checked a pile of Asda receipts for the price guarantee, most off which were too old to compare but the three that were valid got me vouchers for 44p, £2.06 and £3.89, so that's £6.39 off next weeks shopping!

    Once our building project is completed and we've managed to build up our savings a bit (rainy day fund) we will definitely be going back to making OP's on the mortgage with the aim of reducing it as much as possible before we remortgage in 5 years.
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 14th Jun 18, 1:26 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    More money saving today. Sainsbury's wanted to increase Gas and Electric from £78.50 to £87.94, an increase of almost a tenner a month despite the fact we are in credit! Just switched to E-on, £70.50 a month so that's a saving of £8 per month on what we were paying or £17.44 on what Sainsbury's wanted us to pay. £30 cash back from uSwitch via Quidco so that will go to the savings once received.

    I submit meter readings on the first day of each month so know exactly how much energy we have used over the past 12 months. Hoping the amount of gas we use will go down this year too now that we have flooring are curtains so should use less heating, and also we are getting rid of the gas hob when kitchen in replaced.
    Last edited by MichaelDH; 25-06-2018 at 1:18 PM.
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
    • MichaelDH
    • By MichaelDH 25th Jun 18, 1:33 PM
    • 121 Posts
    • 541 Thanks
    MichaelDH
    Managed to get up to £27.52 confirmed on Prolific. Have requested payment so should have £26.52 to move across to savings in a few days. Still have £3.50 in pending. Amazing how completing surveys for 10-15 minutes in my lunch hour a few times per week adds up!

    Still trying to cut down on what we spend on food. Going shopping tonight so going will do some meal planning before we go. We have both beef and turkey mince in the freezer as well as lots of chicken breast and also some sausages so will use them as the base of our meals this week. Must remember to take the Asda vouchers with us as that'll be £6.39 off

    Still no news on new mortgage which is annoying but suppose these things take time... Have had a letter from the Coventry confirming that our current mortgage payment is increasing because we have moved on to their SVR

    Also had full quote from our builder... £33,500 which includes all building work, plastering, tiling (we supply tiles), and fitting of the kitchen. Probably using the builders discount to get the kitchen from Magnet. Currently £15k with discount, including VAT, and including all appliances, tap and sink plus quartz worktops. Going to shop around for the worktops and appliances as sure we can get a better price on these elsewhere. This brings the units down to around £6k with the discount (65%).

    Still got to price up shower tray, new shower, bath, sink and toilet for main bathroom and sink and toilet for downstairs plus tiles. Lots to organise!
    Starting Balance August 2016: £170,199.00 | Current Balance (4th October 2017): £164,720.53
    OP's to date (starting August 2017): £906.58

    Target: Balance below £160,000.00 by June 2017
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