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  • FIRST POST
    • Cicatriz
    • By Cicatriz 12th Dec 17, 3:03 PM
    • 44Posts
    • 146Thanks
    Cicatriz
    7 Year MF Plan
    • #1
    • 12th Dec 17, 3:03 PM
    7 Year MF Plan 12th Dec 17 at 3:03 PM
    With another year around the corner, and the current one disappearing barely noticed, I thought it about time to start to start being serious about being mortgage free.


    Currently Im at 97,700 of a 112,500 mortgage, 21 years remaining @2.24%


    Ive made a few overpayments so far, which have mostly been focusing at hitting LTV thresholds* for better rates. The early costs for furnishing and supplying a house from scratch are over and no [good] excuses left to not boil the mortgage off as fast as possible.
    Ive got a 6-month emergency fund built up and am now paying 200 in overpayments per month. Crunching the figures, over the coming months I should be able give myself 100 per week pure spending money and overpay 700 per month and be rid of it in 7.5 years. If I include excess in there, I might just manage it in 7.



    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2055
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 10
    Total monthly income.................... 2065


    Monthly Expense Details

    Mortgage................................ 481
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 80
    Electricity............................. 38
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 20
    Telephone (land line)................... 18.99
    Mobile phone............................ 25
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 7.99
    Internet Services....................... 14.99
    Groceries etc. ......................... 120
    Clothing................................ 15
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 21
    Life assurance ......................... 0
    Other insurance......................... 31
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 6
    Entertainment........................... 90
    Holiday................................. 75
    Emergency fund.......................... 0
    Bank account charge..................... 5
    Service charge.......................... 14.5
    Ground rent............................. 16.5
    Total monthly expenses.................. 1137.09



    Assets

    Cash.................................... 6000
    House value (Gross)..................... 130000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 136000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 97700....(481)......2.24
    Total secured & HP debts...... 97700.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-



    Monthly Budget Summary

    Total monthly income.................... 2,065
    Expenses (including HP & secured debts). 1,137.09
    Available for debt repayments........... 927.91
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 927.91


    Personal Balance Sheet Summary
    Total assets (things you own)........... 136,000
    Total HP & Secured debt................. -97,700
    Total Unsecured debt.................... -0
    Net Assets.............................. 38,300


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.



    The SOA shows slightly different figures to my estimates as it wants monthly costs/budgets for entertainment, holidays etc. Perhaps no bad thing, but following this lead, I have more spare cash than expected.


    *A possible tip here. When I first came to switch mortgages with the Halifax at the end of the initial 2 year fixed period the first thing I did was check the websites automatic tool. I wasnt expecting too much from this but I was very pleasantly surprised to see that my house had been valued 150,000, which is significantly higher than its market value (25k more than paid). This resulted in a better LTV and consequently rate. A colleague saw something similar with a different bank we dont live in a place with a 10% YOY house price inflation so Ive no idea whats happening here. Moral is to check what the website says before going to a branch.
Page 1
    • pinkypig
    • By pinkypig 12th Dec 17, 9:21 PM
    • 1,268 Posts
    • 10,249 Thanks
    pinkypig
    • #2
    • 12th Dec 17, 9:21 PM
    • #2
    • 12th Dec 17, 9:21 PM
    You look super organised The very best of luck on your journey xx
    • getmore4less
    • By getmore4less 13th Dec 17, 4:16 AM
    • 32,192 Posts
    • 19,352 Thanks
    getmore4less
    • #3
    • 13th Dec 17, 4:16 AM
    • #3
    • 13th Dec 17, 4:16 AM
    Does the SOA feel right, do a spend diary and a last 12month analysis to see where the money really went.

    Halifax are not a cheap lender for small mortgages shop around at the end of your current deal. eg. Nationwide

    2.24% is quite high for a 75.15 LTV should be under 2% get under 75% and can be looking at around 1.75%

    97700 7 years
    @ 2.24% needs a payment of 1,258 interest 7,951
    @ 1.75% needs a payment of 1,237 interest 6,177

    short term does not make a massive difference per month but saves approaching 2k over 7 years
    • Cicatriz
    • By Cicatriz 13th Dec 17, 10:05 AM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    • #4
    • 13th Dec 17, 10:05 AM
    • #4
    • 13th Dec 17, 10:05 AM
    The SOA isn't far off. I use moneydashboard and it can give accurate reports if the user is judicious enough in breaking down what cash withdrawals are used for.

    This year has seen the final bits of furniture added to the house and also getting stung for four years of service charges (I blame Morris Homes incompetence, they blame my conveyancer for that) and completion of the six month emergancy fund.
    It's perhaps a little low on entertainment costs but the remaining slack can go there if needed (but no more) after the 700 in overpayments.
    I'm also overpaying on insurance, which I plan to fix as soon as its up for renewal. I meant to address that earlier in the year but the window coincided with a heavy workload period.

    Point noted on the mortgage. I'll have to switch in 2 years to something more suitable anyway due to the 10% overpayment soft limit.
    • getmore4less
    • By getmore4less 13th Dec 17, 10:21 AM
    • 32,192 Posts
    • 19,352 Thanks
    getmore4less
    • #5
    • 13th Dec 17, 10:21 AM
    • #5
    • 13th Dec 17, 10:21 AM
    Good, if you have the history and it feels right an looks like you have a bit more might as well round the mortgage payment to 1200pm

    Also a good idea to have a top up to the emergency fund as if you do use it you have to put something in then, if it gets too big you can overpay a bit more as a one off or use it to buffer any new planned spends.

    Thing with the mortgage is if you get the rate down overpayment limits are less of a problem as you can get better rates saving.
    • juststuff123
    • By juststuff123 13th Dec 17, 6:55 PM
    • 220 Posts
    • 663 Thanks
    juststuff123
    • #6
    • 13th Dec 17, 6:55 PM
    • #6
    • 13th Dec 17, 6:55 PM
    Good Luck. I'm sure you'll smash it!
    NEW GOAL Mortgage Balance 0k & 50k Savings by Feb 2020
    MORTGAGE: 0 / 0
    SAVINGS: 30000 / 50000
    CREDIT CARD: 8111 / 0
    COMPLETE - MFW & DFW - Goal - Debt Neutral COMPLETE
    2018 MFW #152: 26,100/26,100 / MFiT-T4 #80: 45,232/45,232
    • edwink
    • By edwink 14th Dec 17, 3:49 PM
    • 1,911 Posts
    • 12,688 Thanks
    edwink
    • #7
    • 14th Dec 17, 3:49 PM
    • #7
    • 14th Dec 17, 3:49 PM
    Just to say the very best of luck.

    We paid ours off some years ago and it has made our lives so much easier now. Well worth it if you can achieve it.

    All the best

    Edwink
    3.36 kWp system, 10 x Ultima & 4 x Panasonic solar panels, Solar Edge Inverter
    7 ducks ~ 5 hens ~ 1 handsome Cockerel
    2000ltr Rainwater harvesting system for loo flushing Hybrid Toyota Auris car

    Hens & ducks chat thread
    http://forums.moneysavingexpert.com/showthread.php?t=5282209
    • Cicatriz
    • By Cicatriz 3rd Jan 18, 12:43 PM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    • #8
    • 3rd Jan 18, 12:43 PM
    December Update
    • #8
    • 3rd Jan 18, 12:43 PM
    Okay, Christams done for another year. Other than the fairly high food spend when family came over (mixed game from Booths*) got away with things fairly cheaply.

    Some Wiggle vouchers will come in fairly handy as I get my bike ready for some winter cycling. No matter how much I try, I can't get along with an indoor trainer, so I might look at selling that.

    2018 brings with it an immediate spanner in the works with a work related trip to the US that I couldn't really turn down. At the least it's meant a passport renewal (definitely an inefficient overpriced service...) and probably a lag on getting expenses back.

    Still, I hopefully should manage that 700 target overpayment on payday.

    *First year doing this, turkey is fine next time!
    • Betterthanever
    • By Betterthanever 3rd Jan 18, 1:35 PM
    • 526 Posts
    • 3,606 Thanks
    Betterthanever
    • #9
    • 3rd Jan 18, 1:35 PM
    • #9
    • 3rd Jan 18, 1:35 PM
    I too am learning that "less is more" as far as Christmas food spending is concerned - no one is worried about what we serve up as long as it is yummy and there is plenty of it!


    I'll be looking to clear my own mortgage in the same 7 years so I will follow this with interest! Good luck!

    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!
    • Cicatriz
    • By Cicatriz 3rd Jan 18, 4:41 PM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    Thanks.

    It's ambitious but doable. A lot will depend on my work situation which can definitely go either way. I'll definitely look at your progress and wish you the best of luck, too.

    It was nice doing something a bit different for Christmas, but it's been done now. Hopefully expectations have not been raised too high for the future
    • sofarbehind
    • By sofarbehind 3rd Jan 18, 4:59 PM
    • 288 Posts
    • 1,228 Thanks
    sofarbehind
    Hello!
    Great to read your diary and SOA as we are in a very similar position, though my mortgage is a lot bigger. I'm replying to you here instead of on pinkpig's diary so I don't clutter up her thread. Thanks for taking the time to reply. You are right about batch cooking I know and your food spend is low. I have a half empty freezer waiting to be filled. I can make a decent chilli so will get off my bum and do that. I am thinking about buying a slow cooker and using it to batch cook. I'm a big fan of spicy food and the thought of walking in to yummy food is a good one. I have been and bought a lot of stir fry ingredients, that is quick, very easy and healthy. I have just bought ready made sauces but will look for some homemade Thai sauces. If I batch cook the sauce that will be a good start..

    Your overpayments are amazing as a percentage of your income.
    Save 12k in 2015, Number #052 (19.4k)
    Save 12k in 2016, Number #031 (15.1)
    Save 12k in 2018, 3500 / 10k target

    Mortgage overpayments 2018: 1388
    Huge mortgage 138K
    • pinkypig
    • By pinkypig 3rd Jan 18, 5:10 PM
    • 1,268 Posts
    • 10,249 Thanks
    pinkypig
    Happy New Year C, I hope you have an amazing one

    Great start with your healthy eating SFB. Slow cookers are fab - come in to one yummy dinner and have several more for the freezer xx
    • Cicatriz
    • By Cicatriz 3rd Jan 18, 5:28 PM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    Hello!
    Great to read your diary and SOA as we are in a very similar position, though my mortgage is a lot bigger. I'm replying to you here instead of on pinkpig's diary so I don't clutter up her thread. Thanks for taking the time to reply. You are right about batch cooking I know and your food spend is low. I have a half empty freezer waiting to be filled. I can make a decent chilli so will get off my bum and do that. I am thinking about buying a slow cooker and using it to batch cook. I'm a big fan of spicy food and the thought of walking in to yummy food is a good one. I have been and bought a lot of stir fry ingredients, that is quick, very easy and healthy. I have just bought ready made sauces but will look for some homemade Thai sauces. If I batch cook the sauce that will be a good start..

    Your overpayments are amazing as a percentage of your income.
    Originally posted by sofarbehind
    Slow cookers are great. I don't use mine quite as much as I should for some reason and tend to use the hob most of the time. I think it's because I can't get used to setting it off first thing in the morning. They're great at casseroles, which I keep meaning to make more of. Best of luck with the cooking though; Thai is great.

    The overpayment is as much as I dare while leaving myself a good cushion for entertainment. I thought about going full mustachian but I'm not sure I'm cut out for that. I'll see how it goes, probably well until the warmer months get here and invitations to weekends away start and a desire to spend money on my bike hits me.

    Wish I'd have got my act together in my twenties, the amount of wasted money...Still better late than never.

    Happy New Year C, I hope you have an amazing one
    Originally posted by pinkypig
    Happy new Year pinkypig!! That was some stream of conscious you posted! Good going though!
    Last edited by Cicatriz; 03-01-2018 at 5:31 PM.
    • sofarbehind
    • By sofarbehind 3rd Jan 18, 5:38 PM
    • 288 Posts
    • 1,228 Thanks
    sofarbehind
    The overpayment is as much as I dare while leaving myself a good cushion for entertainment. I thought about going full mustachian but I'm not sure I'm cut out for that. I'll see how it goes, probably well until the warmer months get here and invitations to weekends away start and a desire to spend money on my bike hits me.

    Wish I'd have got my act together in my twenties, the amount of wasted money...Still better late than never.
    Originally posted by Cicatriz
    Hell yes, I second that! How I wish I had got it together a decade earlier. Still, better to wise up at 30 than a decade later. We're not in such a bad place and we're aiming for a better one.

    Full on mustachian is a step too far for me these days after the ultra frugal deposit saving years. I do want to enjoy my life and my tastes aren't as simple as his. I agree with him about cycling though and wish my job didn't demand a car. Hey ho.

    I'm going to get off here and look at slow cookers.
    Save 12k in 2015, Number #052 (19.4k)
    Save 12k in 2016, Number #031 (15.1)
    Save 12k in 2018, 3500 / 10k target

    Mortgage overpayments 2018: 1388
    Huge mortgage 138K
    • debtfreeforlife
    • By debtfreeforlife 3rd Jan 18, 5:49 PM
    • 152 Posts
    • 917 Thanks
    debtfreeforlife
    Looks impressive! Also 10 travel a month?? Where on earth do you live/work that you've managed to do that? It's when I see SOAs like yours that I think about getting rid of my car - but I'd easily end up spending hundreds a month on bus fares instead if I didn't own one.

    Have subscribed and will be watching your journey with interest and hoping to be inspired by it - we're in similarish positions (I think I have about 15k more on my mortgage than you do) but you're far more dedicated than me...
    GC Feb 18: 204.97/200 | Mar 18: 207.93/200 | Apr 18 165.53/200.00
    • Cicatriz
    • By Cicatriz 3rd Jan 18, 6:10 PM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    Hell yes, I second that! How I wish I had got it together a decade earlier. Still, better to wise up at 30 than a decade later. We're not in such a bad place and we're aiming for a better one.

    Full on mustachian is a step too far for me these days after the ultra frugal deposit saving years. I do want to enjoy my life and my tastes aren't as simple as his. I agree with him about cycling though and wish my job didn't demand a car. Hey ho.

    I'm going to get off here and look at slow cookers.
    Originally posted by sofarbehind
    Unless they're a complete disaster, you're allowed a few mistakes in your twenties.

    I think MMM's philosophy and principles are all great, it's just a matter of how far you want to run with them. I also think, alhough maybe wrong, that there is more scope for that lifestyle in the states than here. The principles still apply though.


    Looks impressive! Also 10 travel a month?? Where on earth do you live/work that you've managed to do that? It's when I see SOAs like yours that I think about getting rid of my car - but I'd easily end up spending hundreds a month on bus fares instead if I didn't own one.

    Have subscribed and will be watching your journey with interest and hoping to be inspired by it - we're in similarish positions (I think I have about 15k more on my mortgage than you do) but you're far more dedicated than me...
    Originally posted by debtfreeforlife
    Edit: Lancashire btw.

    Walk to work daily. I was involved in a car share but my buddy got another job. The 2/2.5 hours of commuting each way plus the petrol (even shared) was what caused me to buy the house I did. I decided that living near work and cycling daily would be a whole lot better.

    So, I bought a house practically next to a canal and cycled to work 5 miles, half of which on the canal tow patch, each way. A couple of years later our office moved to the same town, just the opposite side to me. I now have a 2 mile walk. In the summer months I sometimes get in a nice circuitous 40K ride to the office and make use of the shower there - should use that shower all year round and save my water really
    No car costs and I lost about 2 stone of weight.

    The 10 other transport is just jumping on the train once a month or two to visit family. I count other train use as entertainment as it's what it ends up being used for.

    Best of luck to you, too. And you only need to be dedicated to what your goals are.
    Last edited by Cicatriz; 04-01-2018 at 2:05 PM.
    • Cicatriz
    • By Cicatriz 6th Jan 18, 6:54 PM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    Check in for the week.

    Don't know for certain yet if whether I'm off to the states next week with work. If I do, it will kill me for expenses till next month.

    Winter cycling gear bought with Wiggle vouchers. Mudguards attached to bike. Now I just need this ice to clear so I can get out on it. !!!10052;

    Sri Lankan Chicken curry made + some extra fajita filling in the freezer.
    • Cicatriz
    • By Cicatriz 29th Jan 18, 11:25 AM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    Belated checkin.

    Increased my default overpayment to 319 to make it a round 800 for mortgage payments.

    Back from a week in the states in freezing cold Minnesota working in a innovation lab. Pretty cool stuff, and not just weather outside. Unfortunatley I'm now waiting for my expenses to get paid which includes all travel costs, leaving me ~1400 short

    Used some of the left over game from Christmas (it was frozen!) to make a game stu in the slow cooker. Very, very tasty
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