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  • FIRST POST
    • BookmobileBadGirl
    • By BookmobileBadGirl 25th Feb 18, 5:25 PM
    • 146Posts
    • 204Thanks
    BookmobileBadGirl
    Balancing mortgage free and single life
    • #1
    • 25th Feb 18, 5:25 PM
    Balancing mortgage free and single life 25th Feb 18 at 5:25 PM
    Hello,

    After reading for a while now I have decided to start a diary to keep track of what I am doing.

    Background
    In December 2016 I bought a shared ownership flat in an "up and coming" area of East London, I currently own 25%, and have been trying to overpay that since I got my mortgage. I do want to be mortgage free, or at least feeling comfortable I am making good progress with it but I still want to be able to enjoy my 30's in London so am slightly torn with my money.

    UPDATED 10th Feb 2019

    SOA
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1

    Monthly Income Details

    Monthly income after tax................ 2632
    Total monthly income.................... 2632


    Monthly Expense Details

    Mortgage................................ 235
    Rent.................................... 460
    Management charge (leasehold property).. 150
    Council tax............................. 79
    Electricity............................. 23
    Heating and hot water........... 43
    Mobile phone............................ 25
    TV Licence.............................. 13
    Internet Services....................... 35
    Groceries etc. ......................... 110
    Clothing................................ 100
    Train to work........................... 220 (this is also my general travel too)
    Medical (prescriptions, dentist etc).... 10
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 10
    Entertainment........................... 200
    Holiday................................. 50
    Emergency fund.......................... 200
    Total monthly expenses.................. 1983[/b]


    Assets

    Cash.................................... 10500
    House value (Gross)..................... 90,000
    Shares and bonds........................ 300
    Total Assets............................ 100,800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 64300....(235)......1.9%[b]
    [b]

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



    Monthly Budget Summary

    Total monthly income.................... 2,632
    Expenses (including HP & secured debts). 1,983
    Available for debt repayments........... 649
    Amount left after debt repayments....... 649


    Personal Balance Sheet Summary
    Total assets (things you own)........... 100800
    Total HP & Secured debt................. -65300
    Net Assets.............................. 35,500


    Last edited by BookmobileBadGirl; 10-02-2019 at 11:31 AM. Reason: Updating SOA
Page 4
    • getmore4less
    • By getmore4less 16th Sep 18, 2:54 PM
    • 35,051 Posts
    • 21,414 Thanks
    getmore4less
    You are paying 150pm rent for each of the 3/4 you don't own.

    How is the value changing you may want to look at the economics of staircasing.

    The interest on another 25% may be less than the rent.
    • BookmobileBadGirl
    • By BookmobileBadGirl 16th Sep 18, 3:04 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    I have looked into staircasing and can afford to borrow enough to buy another 20%, however I am waiting until things are a bit more settled in my job.

    It also depends on what I can get on my current mortgage when my two year fix is up in January, I am quite risk averse and may be able to get a five year fix which is 10 less a month than now or another two year fix that would be 30 a month less.

    I still do not quite earn the minimum household income they asked for to qualify for this flat, I had just scrimped for so long that my deposit made it for it.
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • BookmobileBadGirl
    • By BookmobileBadGirl 18th Sep 18, 8:45 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    Today has been a no spend day!!!!!!

    I have been listening to Dave Ramsey’s podcast today. I can not stand him, I find him rude and the religious aspect grating. So no more of that for me

    Any recommendations for a money saving podcasts that will not make me want to cut my ears off?
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • BookmobileBadGirl
    • By BookmobileBadGirl 27th Sep 18, 7:22 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    Have just overpaid the remaining money from August pay, mortgage is now 66,200

    I received my annual letter from the student loans company, still another four years until that is due to paid off. Still toying with overpaying that a bit.

    SSE have said they are going to increase my DD from 18 to 23, I have a smart meter and have never paid more than 50p a day. They shall be getting a phone call from me this weekend to get that moved back down
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • BookmobileBadGirl
    • By BookmobileBadGirl 1st Nov 18, 8:21 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    End of the month and another little overpayment of 94.46, am now under 66k

    The big news is that I have got a new job, and that it comes with a 10k pay rise, should work out at an extra 400 a month take home.
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 1st Nov 18, 8:44 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    End of the month and another little overpayment of 94.46, am now under 66k

    The big news is that I have got a new job, and that it comes with a 10k pay rise, should work out at an extra 400 a month take home.
    Originally posted by BookmobileBadGirl
    Great news on the new job
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 5th Nov 18, 9:12 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    To celebrate turning 32 I have set up the next fix for my mortgage starting in February 2019, fixed for three years at 1.9%

    Plan is to continue trying to pay 5,000 off a year for the next three years, to get it down to 50,000 owing
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 5th Nov 18, 9:22 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    To celebrate turning 32 I have set up the next fix for my mortgage starting in February 2019, fixed for three years at 1.9%

    Plan is to continue trying to pay 5,000 off a year for the next three years, to get it down to 50,000 owing
    Originally posted by BookmobileBadGirl
    That should be doable?
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 13th Nov 18, 9:22 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    I have a very basic overpayment question, that I should know the answer to really. I can overpay by 10% every year but I need a bit of help to work out how much that is.

    So for example I have a 100,000 mortgage, and pay back 250 each much

    10% will be 10,000

    So could I overpay 10k on the first of January and then still pay my usual mortgage rate each month, so that by the end of the year I will owe 87,000

    Or do I need to take into the into account the amount I will pay so can only overpay 7,000 in January?
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 13th Nov 18, 9:45 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    I think it means you can pay 10% of the balance of your mortgage as it is on the anniversary of the date of the mortgage was taken out. This is over & above your normal payment.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 21st Nov 18, 7:19 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    This is not going to be a good month for overpaying. I did my usual 102 overpayment at the beginning of the month but since then I have spent all the money I budget on overpayment on

    - some lovely new boots for winter. They were half price so only 69.99
    - lots of meet up with friends

    Thankfully I am going to meet my target to be down to 65,300 by the end of December. I will kick everything off again in the new year.
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • Hazelnutty
    • By Hazelnutty 21st Nov 18, 9:10 PM
    • 201 Posts
    • 1,057 Thanks
    Hazelnutty
    Sometimes we have to relax the purse-strings and it sounds as if your money was well-spent!
    • BookmobileBadGirl
    • By BookmobileBadGirl 5th Dec 18, 12:38 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    I am under 65,300 \ /

    Have had an admin heavy week;

    - got a credit card for “just in case”, I asked for 1,000 and they gave me 5,500
    - have opened a Marcus saving account and transferred my 10,000 from my current saving account where it earns only 0.25%
    - started planning my budget for my new income, so just waiting for January for that to kick in now
    - my current five year plan ends in three years so have been planning to ensure that I will be so financially secure by the time I am 35
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 5th Dec 18, 12:43 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    Good news on your new figures
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 12th Jan 19, 9:49 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    Finally made my overpayment for January

    Mortgage payment: 248
    January overpayment: 302.08

    Remaining mortgage 64,800
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 12th Jan 19, 10:11 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    Finally made my overpayment for January

    Mortgage payment: 248
    January overpayment: 302.08

    Remaining mortgage 64,800
    Originally posted by BookmobileBadGirl
    Great figures
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 1st Feb 19, 9:14 PM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    First day of the month so payment and overpayment have been made

    Mortgage payment: 248
    Overpayment: 319.20
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
    • beanielou
    • By beanielou 1st Feb 19, 9:43 PM
    • 61,846 Posts
    • 265,095 Thanks
    beanielou
    First day of the month so payment and overpayment have been made

    Mortgage payment: 248
    Overpayment: 319.20
    Originally posted by BookmobileBadGirl
    Well done
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • BookmobileBadGirl
    • By BookmobileBadGirl 10th Feb 19, 11:34 AM
    • 146 Posts
    • 204 Thanks
    BookmobileBadGirl
    I have updated my SOA to reflect my new income

    However I have decided to keep my overpayments at around 300 a month as I now intend to go do an MBA part time. I would love to start it this September but I can’t really afford it so will instead start next September and be confident I have the money ready.

    Even with my normal payment and just the 300 overpayment I should be knocking 5,000 off the mortgage each year
    Currently (19/03/2019) 63,910 Aim (05/11/2021) 50,000

    Mortgage - Shared Ownership 25% 75,300 - MF December 2051 December 2046
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