Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • katsoocam
    • By katsoocam 9th Jul 18, 3:35 PM
    • 89Posts
    • 254Thanks
    katsoocam
    Long Term Mortgage Free Wannabe
    • #1
    • 9th Jul 18, 3:35 PM
    Long Term Mortgage Free Wannabe 9th Jul 18 at 3:35 PM
    Hello
    I am a long time reader and finally have some time on my hands to write this so here goes!
    I am 34 and just started maternity leave (baby due today in fact!). First baby.
    My husband and I bought our first home last year and have 24 years to go on our mortgage, which is s 2.18% five year fix - we knew we wanted kids in the next couple of years and didn't want to be looking for a new deal while I was on maternity pay. The balance is £310,402.72. We bought a decent sized family home and plan to be here at least 5-6 years, after which we may need to move for hub's work. We scraped together a 20% deposit with significant frugality and overtime, but haven't made any overpayments. We have been restoring our emergency fund and saving up a maternity leave fund over the last year, plus we have a retirement ISA. We both have work pensions too and it is a good scheme.

    Debts other than mortgage....we have a car and some furniture both on 0% finance. We actually have the money to pay for these stashed in the highest interest easy access account we could get, and take the money from the account each month to pay the DD. We have no CC, though we have toyed with getting a cashback one, but have never done it.

    We earn a good salary each and our monthly expenses inc mortgage etc are covered by one of our wages. We planned this for maternity leave purposes. We could have three children in nursery full time and it would still be worth my while to work, just focusing on this one at the moment though!

    However, I would love to retire at 55 which means we need to pare down our debt and increase our savings substantially. Hence my post.

    Would be really grateful for areas to focus on to reduce our expenditure. Thinking about this a tiny chunk at a time, not even even 1% but 0.1 of a % at a time!

    Things we do already: shop at Aldi (and Asda for a couple of bits). Our monthly budget is probably about £150-180 for two adults, this includes all cleaning products and toiletries. Pre move we were spending about £100 so I know we could cut this back a bit, but we have been stocking up the freezer with batch cooks etc for when the baby arrives, so our spend should reduce a bit when we start using that (and we have about four months worth stashed away in the freezer!), shop around for our insurances and for our utilities. We do have the basic sky package but I hustle every time they try and put the bill up, and we do utilise it.

    Suggestions, tools, areas to focus on...all gratefully received!
Page 1
    • julicorn
    • By julicorn 9th Jul 18, 5:22 PM
    • 285 Posts
    • 1,160 Thanks
    julicorn
    • #2
    • 9th Jul 18, 5:22 PM
    • #2
    • 9th Jul 18, 5:22 PM
    Happy shiny new diary!
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £191,400
    • greent
    • By greent 9th Jul 18, 5:24 PM
    • 7,351 Posts
    • 74,501 Thanks
    greent
    • #3
    • 9th Jul 18, 5:24 PM
    • #3
    • 9th Jul 18, 5:24 PM
    Hello and welcome - and wishing you a hassle free birth of your baby (exciting times!) x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    BTL Mtge 12/16 £69786. 2018 OPs (#18) £6100/£7500
    Net sales 2018 £655.15/£1000 PAYDOX18 (#15) Done £18918.90
    • katsoocam
    • By katsoocam 9th Jul 18, 7:53 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    • #4
    • 9th Jul 18, 7:53 PM
    • #4
    • 9th Jul 18, 7:53 PM
    Statement of Affairs & Personal Balance Sheet

    Summary

    Monthly Budget Summary Amount(£)
    Total monthly income 6,773.56
    Monthly expenses (incl. HP & secured loans) 2,259.03
    Available for debt repayments 4,514.53
    UNsecured debt repayments 0
    Amount left after debt repayments 4,514.53
    Personal Balance Sheet Summary Amount(£)
    Total Assets (things you own) 273,176
    Total Secured & HP Debt -310,402
    Total Unsecured Debt -0
    Net Assets -37,226
    Household Information

    Number of adults in household 2
    Number of children in household 0
    Number of cars owned
    Income, Expense, Debt & Asset Details

    Income Amount(£)
    Monthly income after tax 3713.56
    Partners monthly income 3060
    Benefits 0
    Other income 0
    Total monthly income 6773.56
    Expenses Amount(£)
    Mortgage 1386
    Secured/HP loan payments 367
    Rent 0
    Management charge (leasehold property) 0
    Council tax 201
    Electricity 18
    Gas 18
    Oil 0
    Water Rates 18.66
    Telephone (land line) 15.75
    Mobile phone 0
    TV Licence 12.37
    Satellite/Cable TV 33.5
    Internet services 15.75
    Groceries etc. 0
    Clothing 0
    Petrol/diesel 0
    Road tax 0
    Car Insurance 0
    Car maintenance (including MOT) 0
    Car Parking 0
    Other travel 0
    Childcare/nursery 0
    Other child related expenses 3.17
    Medical (prescriptions, dentists, opticians etc.) 0
    Pet Insurance/Vet bills 0
    Buildings Insurance 0
    Contents Insurance 0
    Life Assurance 169.83
    Other Insurance 0
    Presents (birthday, christmas etc.) 0
    Haircuts 0
    Entertainment 0
    Holiday 0
    Emergency Fund 0
    Total monthly expenses 2259.03
    Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
    Mortgage 310402 (1386) 2.18
    Secured Debt 0 (108) 0
    Hire Purchase (HP) Debt 0 (259) 0
    Secured & HP Debt totals 310402 - -
    Unsecured Debt Description Debt(£) Monthly(£) APR(%)
    Unsecured Debt totals 0 0 -
    Asset Description Value (£)
    Cash 183583
    House Value (Gross) 89593
    Shares and bonds 0
    Car(s) 0
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets 273176
    • Terry Towelling
    • By Terry Towelling 9th Jul 18, 8:39 PM
    • 579 Posts
    • 488 Thanks
    Terry Towelling
    • #5
    • 9th Jul 18, 8:39 PM
    • #5
    • 9th Jul 18, 8:39 PM
    Best of luck with the new baby.

    I think you shouldn't do anything rash or in a hurry until you've had the baby at home for a while and know how you feel about things. Babies have a habit of changing things. You may never want to work again.

    Seems like you've got things planned OK and your combined monthly income would be the stuff of dreams for many people. As things stand it looks like you could easily increase your pension provisions to retire early but you really need to see the lie of the land after having your first child before planning too much further ahead.

    After child No1 you'll have a better handle on the costs involved (which never end no matter how old they get) and you'll know better how you feel about the potential for having more/going back to work.
    • chelseablue
    • By chelseablue 10th Jul 18, 9:31 AM
    • 2,563 Posts
    • 2,994 Thanks
    chelseablue
    • #6
    • 10th Jul 18, 9:31 AM
    • #6
    • 10th Jul 18, 9:31 AM
    Might be a typo but it says your house is worth £89k but your o/s mortgage is £310k?
    Mortgage starting balance £231,000
    Mortgage after Year 1 £225,000
    Mortgage after Year 2 £218,000
    • katsoocam
    • By katsoocam 10th Jul 18, 10:09 AM
    • 89 Posts
    • 254 Thanks
    katsoocam
    • #7
    • 10th Jul 18, 10:09 AM
    • #7
    • 10th Jul 18, 10:09 AM
    Hi chelseablue I just included the bit of our current house value that we actually own. Is that no right? Should I have put the whole value?
    I need to update it with petrol and food prices too.
    • katsoocam
    • By katsoocam 10th Jul 18, 10:13 AM
    • 89 Posts
    • 254 Thanks
    katsoocam
    • #8
    • 10th Jul 18, 10:13 AM
    • #8
    • 10th Jul 18, 10:13 AM
    Hi Terry Towelling
    I completely appreciate what you are saying but I do love my job - it's a vocation for me. I appreciate hubby and I am very lucky but we worked hard for it and continue to do so! Not to mention the student loans !!!128584;. I can't imagine giving it up entirely but can conceive I would do less hours.
    • Terry Towelling
    • By Terry Towelling 10th Jul 18, 12:33 PM
    • 579 Posts
    • 488 Thanks
    Terry Towelling
    • #9
    • 10th Jul 18, 12:33 PM
    • #9
    • 10th Jul 18, 12:33 PM
    Hi Terry Towelling
    I completely appreciate what you are saying but I do love my job - it's a vocation for me. I appreciate hubby and I am very lucky but we worked hard for it and continue to do so! Not to mention the student loans !!!128584;. I can't imagine giving it up entirely but can conceive I would do less hours.
    Originally posted by katsoocam
    You are probably right - you know your own mind and life best but still...

    One question, will you be using terry towelling or disposables? You might just be too young to remember terry towelling nappies!
    • chelseablue
    • By chelseablue 10th Jul 18, 12:41 PM
    • 2,563 Posts
    • 2,994 Thanks
    chelseablue
    Hi chelseablue I just included the bit of our current house value that we actually own. Is that no right? Should I have put the whole value?
    I need to update it with petrol and food prices too.
    Originally posted by katsoocam
    Is it shared ownership?

    If not then no you just put the value of the whole house
    Mortgage starting balance £231,000
    Mortgage after Year 1 £225,000
    Mortgage after Year 2 £218,000
    • katsoocam
    • By katsoocam 10th Jul 18, 1:23 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    At the moment Terry Towelling I have zero acceptance factor from the husband! However a friend has leant me a few reuseable nappies to try. I certainly was a terry towelling baby!
    • katsoocam
    • By katsoocam 10th Jul 18, 1:26 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Hi chelseablue no it is all ours. Or rather mostly the banks!
    • katsoocam
    • By katsoocam 11th Jul 18, 10:31 AM
    • 89 Posts
    • 254 Thanks
    katsoocam
    I've joined the DFW sealed pot challenge 11 to save for all our Christmas food. Just adding in all the bits of change I can find around the house. I've also joined the 3-6 month emergency fund challenge, which will split my focus from saving to be a mortgage free wannabee but especially now we are starting a family it will make me feel a bit more secure! We are aiming for £15000 and currently have £5011...it might take a while, especially on mat leave money.
    Also been taking advantage of my down time to get started on some home made Christmas presents, planning on crocheting and knitting a lot of scarves this year.
    • julicorn
    • By julicorn 11th Jul 18, 11:19 AM
    • 285 Posts
    • 1,160 Thanks
    julicorn
    At first I didn't read your post properly, and thought those numbers were related to the 'bits of change you find around the house' challenge - £5k would have been a pretty incredible amount of change to just find in random corners
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £191,400
    • katsoocam
    • By katsoocam 11th Jul 18, 12:33 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Juliecorn that would have been amaaaaaaxing. No not sure I have even made a £5 in the change pot yet!
    • katsoocam
    • By katsoocam 11th Jul 18, 1:46 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Just looked properly at our supermarket shopping for the first time in a few months and it is horrifying! Even allowing for batch cooking and the fact that we have been stocking up on nappies etc this has horrified me right there! First target for cutting back identified.

    New SOA:
    Statement of Affairs & Personal Balance Sheet

    Summary

    Monthly Budget Summary Amount(£)
    Total monthly income 6,773.56
    Monthly expenses (incl. HP & secured loans) 2,574.29
    Available for debt repayments 4,199.27
    UNsecured debt repayments 107.8
    Amount left after debt repayments 4,091.47
    Personal Balance Sheet Summary Amount(£)
    Total Assets (things you own) 583,578
    Total Secured & HP Debt -310,402
    Total Unsecured Debt -2,156
    Net Assets 271,020
    Household Information

    Number of adults in household 2
    Number of children in household 0
    Number of cars owned
    Income, Expense, Debt & Asset Details

    Income Amount(£)
    Monthly income after tax 3713.56
    Partners monthly income 3060
    Benefits 0
    Other income 0
    Total monthly income 6773.56
    Expenses Amount(£)
    Mortgage 1386
    Secured/HP loan payments 259
    Rent 0
    Management charge (leasehold property) 0
    Council tax 201
    Electricity 18
    Gas 18
    Oil 0
    Water Rates 18.66
    Telephone (land line) 15.75
    Mobile phone 0
    TV Licence 12.37
    Satellite/Cable TV 33.5
    Internet services 15.75
    Groceries etc. 269.14
    Clothing 0
    Petrol/diesel 154.12
    Road tax 0
    Car Insurance 0
    Car maintenance (including MOT) 0
    Car Parking 0
    Other travel 0
    Childcare/nursery 0
    Other child related expenses 3.17
    Medical (prescriptions, dentists, opticians etc.) 0
    Pet Insurance/Vet bills 0
    Buildings Insurance 0
    Contents Insurance 0
    Life Assurance 169.83
    Other Insurance 0
    Presents (birthday, christmas etc.) 0
    Haircuts 0
    Entertainment 0
    Holiday 0
    Emergency Fund 0
    Total monthly expenses 2574.29
    Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
    Mortgage 310402 (1386) 2.18
    Hire Purchase (HP) Debt 0 (259) 0
    Secured & HP Debt totals 310402 - -
    Unsecured Debt Description Debt(£) Monthly(£) APR(%)
    Furniture Payment 2156 107.8 0
    Unsecured Debt totals 2156 107.8 -
    Asset Description Value (£)
    Cash 183583
    House Value (Gross) 399995
    Shares and bonds 0
    Car(s) 0
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets 583578
    • katsoocam
    • By katsoocam 13th Jul 18, 10:54 AM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Feeling a bit better about the grocery shopping after seeing a family of five who spend £1500ish a month on food on 'Eat Well for Less' last night Even though that includes 3 adult males, it made me feel significantly less rubbish about my £269 a month. Still going to work on it!
    Does anyone else watch that show though? I really like it and have picked up some good recipes for the meal plan over the years!
    • katsoocam
    • By katsoocam 22nd Jul 18, 2:12 AM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Well I have a new small daughter who is making her presence in our life felt! It has made me all the more determined to be financially savvy so I can help be secure for her future and help with education and houses etc etc.
    This month's budget has been helped and hindered by her arrival - helped because my parents are here, doing all the shopping, batch cooking for us and stocking the freezer up. They won't take any money for it. It's so kind and makes it possible for us to focus on madam.
    Hindered because there have inevitably been a few small bits I didn't realise I would need or put in the budget, like a baby sun hat, plus we didn't know if we were having a girl or a boy so we have inevitably got a couple of girly bits for her - though only £9 so far.
    In other news: her savings have already started, with a total of £57.83...possibly for her future deposit so she can also be a MFW one day!
    • julicorn
    • By julicorn 22nd Jul 18, 6:53 AM
    • 285 Posts
    • 1,160 Thanks
    julicorn
    Congratulations! I hope you're having a wonderful time getting to know your little one, and that you're not too sleep deprived
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Current: £191,400
    • katsoocam
    • By katsoocam 28th Jul 18, 7:36 PM
    • 89 Posts
    • 254 Thanks
    katsoocam
    Well DD's savings are doing much better than mine as she has been sent a cheque for £100 from my Uncle for premium bonds. Neither of us have ever had any and part of me is tempted just to put it in her savings account but he sent it specifically for that purpose so I guess we will need to do that. She has got masses of presents and I picked up a giant bag of clothes for her for £5 so we don't need to worry about anything but consumables for her for a couple of months, so hopefully it shouldn't add too much to the bill - she is EBF, so just nappies and cotton wool and nappy bags to think of. And snacks for me for middle of the night cluster feeds!

    Re the mortgage I have decided on a concrete goal of MF by 50. I will need to work out what that means in terms of overpayments to assess the feasibility but it seems a good goal to work to.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,934Posts Today

7,291Users online

Martin's Twitter