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  • FIRST POST
    • kaycastle
    • By kaycastle 2nd Mar 19, 1:00 PM
    • 90Posts
    • 186Thanks
    kaycastle
    Twent-y something dreaming of not paying mortgage
    • #1
    • 2nd Mar 19, 1:00 PM
    Twent-y something dreaming of not paying mortgage 2nd Mar 19 at 1:00 PM
    I've been stalking diaries for a while now. And have gained a lot of tips but I'm still not doing as well as I hoped and know there are things I could do better. So by starting this diary I'm hoping it will encourage me to just keep getting even better at overpayments.

    I live in the south east, married and I'm in my late 20s. I'm a good saver but I could be better at knowing where my money goes. My big dream is to overpay the mortgage and have a healthy pension so we can retire really early. I'm not a big spender so hoping this is achievable if I'm good!

    We love our home - We picked it so that we could live in until we retire and downsize as the fees/hassle is so crazy. All we will need to accommodate our future family is a loft conversion and we want to to re-do the kitchen hence the massive savings I'm putting away. I would never want to just keep growing my house/debt as we grow older.

    We brought our house for £269,000 and started mortgage of £228,041 in October 2017. Tried to save as much deposit as we could and couldn't wait to stop renting so just went for it finally.

    Money details:
    My husband and I go 50/50 on mortgage and we roughly split up the bills evenly, he pays more of the council tax.
    My fixed costs each month:
    My half of Mortgage: £455.00
    My portion of council tax: £44.00
    I pay for BT (internet): £33.99
    My mobile: £15.60 (apparently due to increase this year bleh)
    I pay for gas/electricty: £55.00
    My mortgage overpayment: £300.00 (I try to treat this as fixed so I never stop! )
    Train to work: £181.20 (Always increasing. Even with 15% discount the price has gone up over £20 in 2 years)
    Gym: £42.00 (Cancelling this from April 2019. Probably the most silly decision I've made in the last few years)
    Netflix: £5.99
    Transfer to savings accounts: £650

    My income annually:
    £38900 (Will decrease by 2% as part of salary sacrifice pension from this April but I think I am getting a pay rise too so we'll see how that pans out!)

    My current total savings: £6500

    My money left over for food/entertainment each month:
    £563.58

    I want to get better at tracking where that £563.58 goes!! It doesn't all go and my money does tend to trickle up and the extra leftover covers the bills that aren't monthly like water bill twice a year and buildings insurance etc. And also I try to use this for weekends away/holiday budget. I think I go to the pub too much. Hoping this diary will make me a bit more accountable for myself on this front!

    I'm also trying to make sure our LTV is really good for when our fixed term is up in October 2019. But I also really want to do our kitchen. Not sure whether to aim for the increase in value more - we've done a lot of work in the past 2 years. Re-did the bathroom and toilet...they were absolutely awful with carpets on the floor. Decisions. Decisions. Ahh.

    Mortgage is at £215,765.98 as of February.

    With my over payments apparently I'll be mortgage free 7 years earlier (if I've calculated correctly) so some time around 2036 when I am 44 but I want to aim for below 40. If that's even possible somehow.

    I need to start seriously thinking more about pension - from April my employer's contribution will be 6% and mine 2% so a total of 8%. I did the good thing in the last few months of tracking down one old pension pot I had from first job which was about £360 and almost finished the transfer process into my one main pot. My pension pot is about £5000 currently.
    Last edited by kaycastle; 02-03-2019 at 1:05 PM. Reason: typo
Page 3
    • kaycastle
    • By kaycastle 2nd Apr 19, 4:05 PM
    • 90 Posts
    • 186 Thanks
    kaycastle
    I've always used my maiden name on everything - I'm just Mrs Maiden Name now I'll happily answer to Mrs Married Name, just as OH answers to Mr (my) Maiden Name
    x
    Originally posted by greent
    After briefly looking at my list of all the things I would need to update, I'm definitely going to stick to my maiden name for now and do the same as you.

    So not up for it at the moment after doing so much admin things this year already
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 3rd Apr 19, 6:47 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    So yesterday I did a £2100 overpayment on mortgage felt good.
    I'm exploring joint accounts and I think I'm going to opt for the 123 Santander one.
    I need to check the minimum money in required on my current one and check where best to have our savings in terms of interest. I sense I will have an exciting Saturday morning...
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • greent
    • By greent 3rd Apr 19, 9:18 AM
    • 8,033 Posts
    • 81,474 Thanks
    greent
    ooooooh - that was a lovely OP!

    Have fun researching accounts.....!
    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 12/18 £54829 2019 OPs (#18) £1603.41/£5K
    Net sales 2019 £155.17/£500
    • amycool
    • By amycool 3rd Apr 19, 10:28 AM
    • 826 Posts
    • 3,673 Thanks
    amycool
    When OH and I were younger and really saving hard we had a joint account where all earnings went in, but kept our individual current accounts and set up a direct debit so we both got a set amount per month that we could spend how we liked.

    Things have changed since (I'm a SaHM) so we just have the one current account (Santander 123).

    My partner has never been interested in money and I doubt he ever will. He's so clueless he wouldn't even know how to log in to check the balance. I still inform him if I've opened a new account or if I've done a big overpayment but in a way it's easier being able to make all the decisions!

    I think the hardest thing is balancing everything - home improvements, pension, overpayments etc but it's good to remember that so many people are living paycheck to paycheck and however you split the money, you're doing really well. We have £9000 left to pay on the mortgage (age 34 but our house cost less than yours) but the need for a new bathroom is greater than my desire to be mortgage free right now. It will all get paid eventually.
    Mortgage (Start Sep 2014)- £70,295/£8903.48- 87.3%
    Overpayments - £42659.03
    • BachSoon
    • By BachSoon 4th Apr 19, 6:16 AM
    • 97 Posts
    • 149 Thanks
    BachSoon
    A very interesting diary, I shall follow with interest. You're already making great inroads!
    • kaycastle
    • By kaycastle 4th Apr 19, 6:37 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Thank you everyone

    That's amazing amycool, you've done so well on your mortgage, I hope I do as well - we did our bathroom last year too, it was so terrible it needed it desperately so I didn't overpay for the first 6 months of the mortgage while I was saving for it. I'll be really relieved when the main house things are done so I don't have to save for anything apart from emergency repairs and like you say less to balance.

    I'm getting very excited for spending this saturday morning looking at some finance things
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 6th Apr 19, 12:59 PM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Hi All.

    So I didn't do much spreadsheeting this morning - spent all morning from the early hours in the garden I did so much I'm well sleepy. Sowed all my vegetables, lots of digging and started a raised bed. Lots of weeding and removing stones.....

    I'll get back out there again in a minute.

    Its been 15 days without any television I'm well pleased with us, I wonder how long we will continue this.

    I did the big mortgage overpayment - and it was really pleasing - so close to the £210k figure now.

    When my husband and I are next off on a Saturday together we will sort out our Santander joint account. I think this will be really great - we will be able to do much better at overpayment/tilly tidies I think and earning interest

    I've been trying to work out what is the earliest possible mortgage free date we could possibly do with overpayments limit/what we can afford. Just out of interest. Going to wait and see how the joint account goes. But I'm wondering how fast we could race towards mortgage freedom....exciting.
    Last edited by kaycastle; 06-04-2019 at 1:00 PM. Reason: typo
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 8th Apr 19, 3:14 PM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Hi All,

    So some unexpected monetary things have happened in the last 48 hours. My parents want to sell the contents of their attic,garage and shed which is...full of absolutely random stuff,some valuables and just so much stuff. They don't want to do it themselves as they'd rather be having fun/holidaying so they've said for me to sell and split the proceeds
    I've already sold £450 yesterday on the first day.... and that's everything already packaged and delivered.

    I'm going to see how this month goes - then decide whether to put it into my savings for house projects or even more overpayments. I think there might be several thousand pounds worth of stuff around but I think it will take years to get through!!!

    This is very exciting - I've never really sold lots of things before because I've tried to be careful not to hoard in the first place
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • greent
    • By greent 8th Apr 19, 5:21 PM
    • 8,033 Posts
    • 81,474 Thanks
    greent
    Oooh - what fun!! (I think so, anyway!) - and bonus money : - I know you've got to do the work to sell the stuff - but it's still a bonus! Fantastic
    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 12/18 £54829 2019 OPs (#18) £1603.41/£5K
    Net sales 2019 £155.17/£500
    • kaycastle
    • By kaycastle 9th Apr 19, 7:11 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Oooh - what fun!! (I think so, anyway!) - and bonus money : - I know you've got to do the work to sell the stuff - but it's still a bonus! Fantastic
    Originally posted by greent
    Its true and its really exciting there is tons of old stuff and coins,stamps,records and just so so so so much stuff. Having to tackle it in parts. I'm really pleased they are encouraging me to do this now so they can enjoy the money too. They go on holiday all the time now but hoping to give them enough of a boost that they can do their dream destination that they said was too pricey at the end of the year.

    Its such perfect timing as well as it gives me a bit of a project to work on bad weather days - and keeps me out of my spreadsheets as much as I was. Admittedly in another one! As I'm organised I have to do exact lists and records

    We're up to £650 in the first couple of days - thats with normal work as well. This is just so much fun.
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • amycool
    • By amycool 9th Apr 19, 12:48 PM
    • 826 Posts
    • 3,673 Thanks
    amycool
    How exciting and what a lovely way to make some extra money. Sounds like a big job but definitely beats doing surveys.
    Mortgage (Start Sep 2014)- £70,295/£8903.48- 87.3%
    Overpayments - £42659.03
    • kaycastle
    • By kaycastle 10th Apr 19, 7:15 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    So it's been a busy few nights of selling and packing and organising.
    But we are almost up to £1000
    I've decided each month I'll wait for eBay to charge us and then I'll put our share in savings.
    If there is enough made to get down to even the next LTV when we remortgage later this year I'll use it for that, if not it will go towards loft conversion. If we manage to do loft and kitchen within the next 2 years before the next remortgage that would be well amazing and ahead of schedule!!
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 15th Apr 19, 7:22 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Well, its been a very busy past week with this collection.
    I've listed over 1500 items in a spreadsheet with all their details and I've done lots of valuation and research.
    We've sold £1400 worth of stuff already!!
    I'm very pleased. That's 700 each for ourselves and my parents.
    I've already got lots of overpayments planned in the coming months to be at under 75% for remortgaging. I think if I want to get to the next under 70% I need to find just over £10,000. I'll work it out exactly in my spread sheet later. It would be quite a challenge but it would get our monthly payments down by a lot.
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 16th Apr 19, 7:05 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    I forgot one thing in my calculations - I can't get down to the next LTV because I would exceed my overpayment limit!! Darn it.

    It shall go on the savings for loft conversion and that
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kittykatneedscash
    • By kittykatneedscash 16th Apr 19, 12:13 PM
    • 96 Posts
    • 213 Thanks
    kittykatneedscash
    Hi kaycastle maybe some more experienced MFW brains will know better than me but I think you can make an overpayment before starting your next fix. For example if your overpayment allowance gets you to say 73% LTV once you hit that then start saving a lump sum towards the last 3% to be paid before you start your next fix. I remember last time when I got a new deal still with the same lender they asked me if I wanted to make a lump sum payment at that point over the phone but I wasn't in a position to then. Either that or go onto SVR for a couple of days make a payment then start your new fix
    • kaycastle
    • By kaycastle 16th Apr 19, 12:39 PM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Hi kaycastle maybe some more experienced MFW brains will know better than me but I think you can make an overpayment before starting your next fix. For example if your overpayment allowance gets you to say 73% LTV once you hit that then start saving a lump sum towards the last 3% to be paid before you start your next fix. I remember last time when I got a new deal still with the same lender they asked me if I wanted to make a lump sum payment at that point over the phone but I wasn't in a position to then. Either that or go onto SVR for a couple of days make a payment then start your new fix
    Originally posted by kittykatneedscash

    That sounds really interesting - I have no idea what happens in the remortgage process No matter how much information I read I feel like these processes are such a mystery until they happen for the first time.

    I'll save and then see what they say at the time with the remortgaging...it will be really awesome if I can go down to the next one as I think it would put us around £750 a month with current lender which would be well nice compared to £940!
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • kaycastle
    • By kaycastle 17th Apr 19, 6:35 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    I feel like there is a bit of a push on to have these extra savings for a payment at remortgaging.

    If we get down to the 700s in monthly payments - that will just be really fantastic. That will mean way more savings capability. I don't know how to find the money as I feel like I've proper squeezed as it is. I need to find out how much OH has anything we can use towards it too.

    I've reached out to some friends for freelance work. And I'm cracking on with this collection (my parents have said they have even more stuff after this batch).... I have a short holiday in May where I'm going to try to switch off and when I come back I'm going to make a proper plan around freelancing and getting more business in there, as I mostly just get it from friends and then referrals from old colleagues over the years at the moment, but I've never pushed it.

    And now more ebaying before work...
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
    • BachSoon
    • By BachSoon 17th Apr 19, 6:59 AM
    • 97 Posts
    • 149 Thanks
    BachSoon
    What an excellent bonus towards your mortgage! That's very kind of your parents
    I love a good declutter personally
    • Firegirl
    • By Firegirl 17th Apr 19, 4:36 PM
    • 788 Posts
    • 3,089 Thanks
    Firegirl
    Popping in to say hello!!!! Good look in your mortgage free journey! Looks like your doing great!
    Mortgage balance Feb 2015 start of MFW Journey-£245316.06/Aim to be mortgage neutral 2022
    Current Mortgage Balance £174, 268
    Target for May 2019 - Somewhere inbetween 2 figures below!!
    19 Year Target Balance MF55= £193, 132
    14 Year Target Balance MF50= £174, 766
    • kaycastle
    • By kaycastle 18th Apr 19, 6:58 AM
    • 90 Posts
    • 186 Thanks
    kaycastle
    Thanks BachSoon and thanks Firegirl I don't know what it is about your posts but it got me all thinking and reviewing things hehe

    So here goes my mightiest post in a while:

    I got a bit lost in Mr Money Mustache's blog last night - I've often read that blog as I feel like I have similar reasons for doing this. I really want to choose what I do if I want to do it - I think if I do land up retiring mega early I won't sit around. And most of all I want to spend lots of time with my kids when I do have them. We don't have as higher salary to build up such a large fund in my early years but I think I can apply a lot of the principles.

    Here is a little % breakdown of my spending right now:
    Mortgage: 21%
    Council tax: 2%
    BT: 2%
    Mobile phones: 1%
    Gas/Electricity (Ovo): 3%
    Train: 8% ( Even with a discount card, I do try to WFH to save, its ridiculous)
    Savings 30%
    Food 7%
    Mortgage: Overpayments 14%
    Other: 12% (About £250 which covers me for any non monthly bills/unexpecteds throughout the year as I don't spend it all, and if I ever build up a large buffer I just OP or move to savings)

    According to MMM 30% savings will leave me 28 years from retirement. But I already sacrifice my salary for 14% pension (company puts in only 6% though) and I've worked it out so I can definitely retire at 55 on my pension no matter what apart from if there is an apocalypse.

    However, my savings go on my house currently for renovations and saving for loft conversion. This is mostly so I can make the most from any LTV boosts and so I don't have to do it when I'm older.

    I have worked out that if I do all that I plan with mortgage overpayments and savings, then I will be mortgage free at 38 (10 years from now) and I will have amassed £140,000 in savings even with renovation costs..that doesn't take into account interest or pay rises either so should be even more than that! But also doesn't take into account lower income during any maternity leave so I'm hoping the things I can't be bothered to predict/over complicate will sort of balance out.

    So mortgage free 38. That is then 17 years away from retirement at 55. I want to get into the 40s for retirement and I'm budgeting for £16k per annum but I really don't think I'd spend that. And I've got to balance any early retirement with still doing pension payments...

    So in order to live on £16,000 a year even just from savings I would need £272,000. And my 38 I would have that £140,000. So I just need £132,000 more. But obviously that goes down each year I don't retire.. soooo balancing that out it seems to come to around age 43. This will all need to be recalculated when I do become mortgage free....particularly if my kids are still young I might want to just go down to part-time...that would probably feel like retirement at 38 :P

    Discounting mortgage and house renovations, I don't spend anywhere near £16000 a year...One of the reasons I overestimate massively my spending is so that don't have to account for increase in living costs and anything left over is the holiday fund.

    I do feel like I need to read some other FIRE blogs though as I do find it fascinating to hear about other people's experiences and motivating too any suggestions?
    Oct 2017: £228,041.09
    Feb 2019: £215,765.98
    March 2019: £214,209.62
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