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  • FIRST POST
    • blocpartyfan
    • By blocpartyfan 31st Dec 17, 11:41 AM
    • 47Posts
    • 230Thanks
    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 3
    • blocpartyfan
    • By blocpartyfan 13th May 18, 12:46 PM
    • 47 Posts
    • 230 Thanks
    blocpartyfan
    best mortgage for overpayments?
    advice request alert...

    what are people's thoughts on the best mortgage for making overpayments? You can tell I have some spare time on my hands as little man is down for a nap after a mammoth toddler fun morning of swimming and soft play (what a combo!) - and a bargain 9!

    I'm making a little spreadsheet of options we have when we get to move off our fixed - next December. We have always had a fix - apparently a very British thing, so very apt But I now want to weigh up the pros and cons of SVR, tracker, offset, etc and any advice anyone may have very welcomee!
    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!)
    • gallygirl
    • By gallygirl 14th May 18, 8:38 AM
    • 16,589 Posts
    • 109,545 Thanks
    gallygirl
    advice request alert...

    what are people's thoughts on the best mortgage for making overpayments? You can tell I have some spare time on my hands as little man is down for a nap after a mammoth toddler fun morning of swimming and soft play (what a combo!) - and a bargain 9!

    I'm making a little spreadsheet of options we have when we get to move off our fixed - next December. We have always had a fix - apparently a very British thing, so very apt But I now want to weigh up the pros and cons of SVR, tracker, offset, etc and any advice anyone may have very welcomee!
    Originally posted by blocpartyfan
    The way the world is at present I'd only consider a fix tbh, but next Dec is a long time away!
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
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