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  • FIRST POST
    • blocpartyfan
    • By blocpartyfan 31st Dec 17, 11:41 AM
    • 49Posts
    • 233Thanks
    blocpartyfan
    Lurking MFW finally posting: Mortgage free in 2025
    • #1
    • 31st Dec 17, 11:41 AM
    Lurking MFW finally posting: Mortgage free in 2025 31st Dec 17 at 11:41 AM
    Hi everyone,

    I have found this forum to be such a pillar of sense and strength since I started using it passively (learning from everyone else) in 2005. I grew up in a fairly frugal household, though have seen mortgages testing marriages, relationships, mental health and careers so often around me that I've wanted to be in control of the mortgage before it controls me. And my DH wholeheartedly agrees!

    It's also wonderful to see all the old posts here as points of reference for the fact that you make the choices you make at the time with the best intentions and things happen!

    My SOA is as follows:
    [tt]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2500
    Partners monthly income after tax....... 2600
    Benefits................................ 0
    Other income............................ 1250
    Total monthly income.................... 6350


    Monthly Expense Details

    Mortgage................................ 767
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 110
    Electricity............................. 56
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 27.78
    Telephone (land line)................... 0
    Mobile phone............................ 5
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 48.48
    Groceries etc. ......................... 400
    Clothing................................ 250
    Petrol/diesel........................... 25
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 110
    Childcare/nursery....................... 1100
    Other child related expenses............ 200
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 17
    Other insurance......................... 18
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 60
    Entertainment........................... 500
    Holiday................................. 0
    Emergency fund.......................... 0
    DH mobile phone......................... 30
    Subscriptions - SC...................... 8
    Subscriptions - TC...................... 10
    Subscriptions - GLL..................... 35
    Subscriptions - RSM..................... 20
    Subscriptions - ESU..................... 8
    Subscriptions - Netflix................. 6
    Total monthly expenses.................. 3893.38



    Assets

    Cash.................................... 11000
    House value (Gross)..................... 450000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 200000
    Total Assets............................ 661000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 135000...(767)......2.85
    Total secured & HP debts...... 135000....-.........-


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



    Monthly Budget Summary

    Total monthly income.................... 6,350
    Expenses (including HP & secured debts). 3,893.38
    Available for debt repayments........... 2,456.62
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 2,456.62


    Personal Balance Sheet Summary
    Total assets (things you own)........... 661,000
    Total HP & Secured debt................. -135,000
    Total Unsecured debt.................... -0
    Net Assets.............................. 526,000


    [/tt]

    DH and I realise how lucky we are. We made our financial mistakes in our early 20's - bought a house outside of London at the peak of the market in 2007, with limited job prospects for me and generally unhappiness. I was depressed (though never diagnosed), put on a significant amount of weight, and took admin work through agencies just to keep us tided over. Three years of pain and we decided to move back to London - boomeranged to live in my parents house (!) twice before finally settling in our lovely little house in London in late 2012. One good thing out of this is that we kept that house outside of London and have rented it out since 2010. A wonderful older couple live there and treat it better it better than we ever could. We've never raised the rent because of this but now make about £350 a month, which we can't complain about.

    I have been on secondment for coming up to two years, which is where the significant extra income has come from. We started off with a £200,000 mortgage in Nov 2012. I'd saved a £37,000 in three years (largely because of the extra earnings from the promotion and frugality!), and regularly overpayed the mortgage by £250. Our intention was to continue to save to pay for an extension to our house, but having spent a long time thinking about this it's a vanity project which, coupled with the extra debt we'd have, will not serve to make us happier. And with savings rates below 1% (!) I've realised it would serve us better to pay down our mortgage debt rather than keep the money in the bank. And since, I've overpayed by the maximum 10% our building society allows us to. I will also be doing that on the 2nd of Jan 2018, which will bring our mortgage down to the £135,000 I've quoted above. So exhilarating to know this joy is only a few days off!

    2018 will be an interesting year as I stand a fair chance of keeping this income level, but not sure it will suit our circumstances. Our DS is two and a half, and therefore our childcare bill will be under £200 come September so it should even out even if I return to my old job.

    My aim is to now continue to overpay by the maximum 10% every year, attempt to get a better rate (though am realistic that this might be unlikely by the time we come to renegotiate in July 2019). I have aspirations to work on my terms, to do the things that my parents never allowed for - perhaps drama related. The sense of control this gives is incomparable.

    Thank you all, here's to slow and steady progress for all MFW's in 2018
Page 1
    • Urbanshyne
    • By Urbanshyne 31st Dec 17, 12:06 PM
    • 37 Posts
    • 162 Thanks
    Urbanshyne
    • #2
    • 31st Dec 17, 12:06 PM
    • #2
    • 31st Dec 17, 12:06 PM
    Hi, welcome. I know it's a mortgage free forum, but Bloc Party? Whatever happened to them? I thought they'd crumbled like an old lady's hip in 2007. A quick look on Spotify suggests otherwise - FOUR further albums. Who'd've guessed it!

    Look forward to following your progress in 2018. Happy New Year.
    Neither a borrower or lender be; for loan oft loses both itself and friend.
    • blocpartyfan
    • By blocpartyfan 31st Dec 17, 12:21 PM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    • #3
    • 31st Dec 17, 12:21 PM
    • #3
    • 31st Dec 17, 12:21 PM
    Hi Urbanshyne!

    Thanks for the wonderfully supportive message! Haha, I am definitely revealing my age keeping this user name! They are still going - just about - toured the UK a year or so ago and lead singer Kele has just released a solo album. Definitely feeling old saying all this!

    Your signature is excellent, by the way.

    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • Urbanshyne
    • By Urbanshyne 31st Dec 17, 1:06 PM
    • 37 Posts
    • 162 Thanks
    Urbanshyne
    • #4
    • 31st Dec 17, 1:06 PM
    • #4
    • 31st Dec 17, 1:06 PM
    Ha! You're in good company. I...ahem...went to see them in 2007 at the Brixton Academy I think. I was in to them, then as suddenly, I wasn't. It was like a musical Haiku - brief, immediate and largely incomprehensible.
    Neither a borrower or lender be; for loan oft loses both itself and friend.
    • blocpartyfan
    • By blocpartyfan 31st Dec 17, 1:48 PM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    • #5
    • 31st Dec 17, 1:48 PM
    • #5
    • 31st Dec 17, 1:48 PM
    Might be a bit of stupid message, but could anyone point me in the direction of a calculator to work out the daily interest?
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • MissLemon
    • By MissLemon 31st Dec 17, 2:45 PM
    • 73 Posts
    • 426 Thanks
    MissLemon
    • #6
    • 31st Dec 17, 2:45 PM
    • #6
    • 31st Dec 17, 2:45 PM
    Welcome to the MFW boards !!!55357;!!!56832; A great aim to be MF by 40 too.

    To work out the daily interest you'll need to know how much money you pay in interest each month which should be on your mortgage statement. Then just divide it by how many days in the month.

    There might be a calculator out there but that's how I figure mine out.
    MFW #121. Mortgage at June 2017 £96,491.71. 26 March 2018 £85,220

    OP target 2018 £2626.35/£10,000
    OP target 2017 £4816.35/£5000
    Original MF Date January 2035. Target MF Date December 2023
    • blocpartyfan
    • By blocpartyfan 31st Dec 17, 3:06 PM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    • #7
    • 31st Dec 17, 3:06 PM
    • #7
    • 31st Dec 17, 3:06 PM
    Welcome to the MFW boards !!!65533;!!!65533; A great aim to be MF by 40 too.

    To work out the daily interest you'll need to know how much money you pay in interest each month which should be on your mortgage statement. Then just divide it by how many days in the month.

    There might be a calculator out there but that's how I figure mine out.
    Originally posted by MissLemon
    Further proof my maths needs a good old dusting off! Thanks so much missLemon, will sit with a calculator and try and figure this one out
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • blocpartyfan
    • By blocpartyfan 5th Jan 18, 9:13 AM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    • #8
    • 5th Jan 18, 9:13 AM
    • #8
    • 5th Jan 18, 9:13 AM
    Hope everyone is having a good first week of 2018 - TGIF!

    The relief paying off our maximum overpayment of 10% of the mortgage at the start of the year is wonderful. It now means I don't need to make any more overpayments this year, and instead can save towards making sure we comfortably have enough to pay the same proportion of next year.

    Question - how to stay motivated when I know there is no more coming off the balance through overpayments?
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • Cicatriz
    • By Cicatriz 5th Jan 18, 9:48 AM
    • 44 Posts
    • 146 Thanks
    Cicatriz
    • #9
    • 5th Jan 18, 9:48 AM
    • #9
    • 5th Jan 18, 9:48 AM
    Best of luck!

    I'm also looking at being mortgage free by 2025. The sooner the better!
    • Tropically
    • By Tropically 5th Jan 18, 10:26 AM
    • 269 Posts
    • 814 Thanks
    Tropically
    I saw Bloc Party in 2016 for the third time, so there are more of us!

    I don't understand though - you haven't recorded a mortgage for your old house which is being rented, but you also say you make £350 a month on this, but an income of £1250 is recorded in your SOA? How does that add up?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • newgirly
    • By newgirly 5th Jan 18, 10:38 AM
    • 6,325 Posts
    • 43,594 Thanks
    newgirly
    Hi and welcome

    To keep up motivation I would just do as you say and save for the next time you can op again, keep it in a separate savings account to everything else and personally I would update my op amounts monthly or whatever to reflect this amount as already overpaid. You could join the mfw 2018 challenge thread too, 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
    • blocpartyfan
    • By blocpartyfan 25th Jan 18, 10:34 AM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    Thanks newgirly! Sorry for the very late reply; you're suggestions have been great. I will definitely have a peek at the mfw challenge thread.

    I traded in my smart phone for a Nokia 3310 over the Christmas holidays as one of a few measures to stop falling down the Instagram/etc rabbit hole! So anxiety fuelling - has definitely been difficult but better for my health overall. But one of the difficult things is I can't easily access this thread

    In fact, overpaying the mortgage to the maximum so early in the year has meant I've been brave enough to spend money on booking our 10 year wedding anniversary trip to New York! So am probably not doing so well on saving, but it's almost like a tiny window of what mortgage free would be like i.e. not having to worry
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • blocpartyfan
    • By blocpartyfan 27th Jan 18, 8:03 PM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    Clearly a week of annual leave has given me way too much thinking time! Coming to the end of the month after paying the maximum amount off the capital for this year has meant more splurging than normal (aka that 10 year wedding anniversary trip!). Returning back to a more frugal sense of mind, I have downloaded a comprehensive mortgage calculator and read some old posts about clearing your mortgage in 3 years. I didn't think that would even be a possibility, but there more I think about it the more sense it makes.

    The last 3 years of my life has flown by, and it's bizarre to even consider that at this time in 2015 I was 5 months pregnant with my son, pondering what life would be like! It makes absolute sense to me to now want to plan for March 2021 in the same regard, and pay the dividends and do the hard work to be mortgage free. It would mean saving over 50% of our current earnings every month, and would entail a significant shift in the way we live, but I recognise this would only be for the short term of three years. We would still have enough money to live comfortably (and I will be much more reliant on the this forum to do it!) but to have that sense of freedom and security of knowing that we can live and work as we please is more rewarding than the comfort of not having to be particularly careful with our money (which makes no sense, really!).

    So we will have one more month so we can pay off our mortgage and from March will start a huge shift in our living style. Quite exciting, if scary!
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • blocpartyfan
    • By blocpartyfan 10th Feb 18, 8:43 AM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    Learning to save again
    Hi again lovely forumites!

    The realisation two weeks ago that the progress made at the beginning of the month to overpay the maximum 10% of the mortgage balance was a helpful one. Since that day, I've kept a few spreadsheets - one to scare and one to motivate!

    So to scare, DH and I have been tracking our daily expenditure - which means everything has to be recorded and poured over. Boy is it painful when you realise that third trip to M&S in two days for chocolate chunk biscuits may not be a necessary one

    And to motivate, I've calculated how long it would take us to clear the entire mortgage if we both save £1k a month and use it to overpay when the next date comes around. It's scary to even think about it - but it's possible to clear the entire mortgage by May 2020....

    So this is what I need - the combination of the scare factor and the motivation factor of this message board! Will get myself up to speed with where everyone else is now

    And on the scrimping, we've packed lunches to take along to our day trip to the Postal Museum in Holborn. I'm actually excited about what this represents for us!
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • blocpartyfan
    • By blocpartyfan 7th Mar 18, 10:04 AM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    Another few week's have passed since I've actually posted, it's amazing how that happens! Also weird to think that I've been lurking on the forum over this time for tips and and encouragement, and overall have been lurking since early 2005! This forum has stayed it's brilliantly helpful self with amazing posters that make it what it is, and yet the passage of time means 13 years have gone by. Anyway, enough existential chat.

    DH and I have continued with our plan to see how realistic it is to go frugal, tracking all our spend (a very easy way to induce feelings of frustration at any 'waste'), trying to spend our time seeing friends and family rather than spending money eating out many times a week, taking a flask of tea (we all, including the DS at age 2 and a half, love it!), finding vouchers we haven't gotten round to using and spending them rather than new purchases, rooting around my parents to find things I'd forgotten I had, making attempts to reduce the grocery spend down from £400 a month by using Lidl for basics, batch cooking and taking in lunches, re-gifting, finding cheap days out (Regent Street Cinema Kino club for kids is a new favourite at £1.75 each!)...and always open to suggestions.

    I definitely got into a habit of overspending as I felt I was worth it. Having a good job with a few material possessions but getting enjoyment from experiences and eating out made me believe we were being incredibly frugal. We've just found a clear goal to help us really prove that we could do more to control unnecessary spend. And this had the uncanny effect of making a date night eating out at a wine bar in East London even more pleasurable than ever.

    Now off to read all your stories!
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
    • Kittenkirst
    • By Kittenkirst 7th Mar 18, 7:18 PM
    • 1,897 Posts
    • 10,186 Thanks
    Kittenkirst
    Its amazing how all those small treats you reward yourself with add up and actually are so regular they arent really treats- just daily spends!

    Wow 2020 is an amazing time to have paid it off by- thats such a huge motivation right there
    Last edited by Kittenkirst; 07-03-2018 at 9:34 PM.
    2018 MFW #20 - OP £1799.61/ £3000 60%
    Mar: £218 Apr: £528.91 May: £361.07

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • Retter
    • By Retter 7th Mar 18, 8:46 PM
    • 10 Posts
    • 10 Thanks
    Retter

    The realisation two weeks ago that the progress made at the beginning of the month to overpay the maximum 10% of the mortgage balance was a helpful one.
    Originally posted by blocpartyfan
    Iím debating this at the minute and canít seem to come to a decision. Pay in £6k in one go and spend the rest of the year building up my pot or just keep it balanced at a £500 per month overpayment. The lump would save me £87 in interest. I have an aversion to reducing the size of my safety blanket but I think itís more a psychological thing. I hate the thought of cashing in any premium bonds... 6000 fewer chances to win the million
    • Kittenkirst
    • By Kittenkirst 7th Mar 18, 9:34 PM
    • 1,897 Posts
    • 10,186 Thanks
    Kittenkirst
    Retter- could you do half and half. Pay in £3k now and op £250 a month and £250 into savings a month. Best of both worlds?
    2018 MFW #20 - OP £1799.61/ £3000 60%
    Mar: £218 Apr: £528.91 May: £361.07

    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
    • Blibble
    • By Blibble 7th Mar 18, 10:55 PM
    • 449 Posts
    • 787 Thanks
    Blibble
    Hi, welcome. I know it's a mortgage free forum, but Bloc Party? Whatever happened to them? I thought they'd crumbled like an old lady's hip in 2007. A quick look on Spotify suggests otherwise - FOUR further albums. Who'd've guessed it!

    Look forward to following your progress in 2018. Happy New Year.
    Originally posted by Urbanshyne
    Nowt wrong with a bit of Bloc Party. I was 13 when you think they crumbled (yikes that makes me feel old! )


    Hope everyone is having a good first week of 2018 - TGIF!

    The relief paying off our maximum overpayment of 10% of the mortgage at the start of the year is wonderful. It now means I don't need to make any more overpayments this year, and instead can save towards making sure we comfortably have enough to pay the same proportion of next year.

    Question - how to stay motivated when I know there is no more coming off the balance through overpayments?
    Originally posted by blocpartyfan
    Could you save to become mortgage neutral? Bump up the 1% savings rate (5% is fairly widely available) and see how quick you can save up the £135,000?

    Best of luck, sounds like you've made grand progress already
    Wedding fund - £2390.92 (£1912.07)
    OP fund - £1591.49 (£163.67)
    Emergency fund - £0.00 Oops!
    • blocpartyfan
    • By blocpartyfan 18th Mar 18, 9:47 AM
    • 49 Posts
    • 233 Thanks
    blocpartyfan
    Hi Kittenkirst!

    Sorry for the delay in getting back to this lovely message and positive vibes The one thing about having a frugal old style nokia phone (only £5 a month to keep it going!) is that I miss so much on this forum.

    The small treats do indeed make such a big difference. I've realised just how much I am motivated by small rewards, and how my spending before I started this plan was totally that way inclined. For instance, "I've worked, I should use my money to reward myself by eating out with my friend/husband/family to have something to look forward to."

    I think 2020 is incredibly optimistic - feels really scary doesn't it?!

    Will now read your old posts to catch up with where you are. Hope this has been a good week for you
    Mortgage when started: £200,999
    Current mortgage (2nd Jan 2018): £135,000
    Mortgage free day planned for: 25th June 2025 (day before my 40th birthday!)
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