2020 Mortgage Goals

I have upped the overpayment back to £250, we should have enough for New York and that was the only big expense left really, therefore back to overpaying the full amount we can afford!

According to Money Saving Expert’s mortgage calculator, based on our current mortgage of £152,475 with 24years to run, we will pay £39,227 in interest over the remainder of the mortgage. By the end of 2020, our mortgage would stand at: £147,459 and we would be mortgage free by 2044.

It is good to know, so I can play with the overpayment calculator and find out what the overpayments will do!

So, with our regular overpayment of £250 a month, starting on January 1st 2020, we would pay £25,966 in interest, saving £13,261. We would be at £144,432 by the end of 2020, this would be paid off in 16 years- 2036. This seems like a great achievement long term!

Though I would like to have paid off 10k, you know, just to round this off nicely!

So I added 2k as a one off overpayment in December 2020, it would save us an extra £700 over the life of the mortgage, end date would be 2035, a year earlier.

And out of curiosity, I added a one off payment of £4500, this would take us into the 140’s at the end of 2020. We would pay off the mortgage in 15 years, same as the 2k one off payment though would be saving an extra £1610 in interest!

In reality, I think that the 2k may be managable, the 4500 not so much, maybe if all we did was overpay it might work but we have other things to save and do next year! Hubby is happy with the £250 overpayments, so I would have to see about anything extra!

Uber Frugal Month Homework, Step 2-7

Step 2- So, I looked through my personal spends in November and then our joint account spends. It got a bit confusing as we often pay ourselves back from the joint account, but it isn’t always clear what we have spent it on. Such as, we pay for dog appointments and medication, then the house (joint) account pays us back. We both put a lot of our earnings into the house account, so this is why it pays for things like this. We also use it, if we decide to buy house based things, it is where the holiday money sits until it is used etc. So I am not 100% sure what I have been paid back for, as I will often pay for a few things before taking back and the online account isn’t as detailed as I would like! Last month personal spends has included a trip out with my friends for afternoon tea for a friends birthday, where I did go shopping as well as Christmas Presents, which I don’t always have to buy. I have spent over £200 on clothes, I am expecting about £75 back in returned items. Still a lot of money, I did need a waterproof coat- I don’t have one that fits and haven’t for many years, choosing to just get wet! But the other items were desire items!

Step 3-

Fixed Mandatory Expenses- This is non moveable costs

  • Mortgage- £717 (£50 overpayment, rising to £250 overpayment Jan 2020)
  • Gas- £106 every 2-3 weeks in the Winter, less in the Summer
  • Council Tax- £159 (think its for 10/11months)
  • Energy- £25.51
  • Water- £35.50
  • Life Insurance- £60 (I am sure I can get this cheaper if I actually looked, we got it through the mortgage broker)
  • House insurance- £paid in full, approx £114 a year
  • Credit Card- £110 minimum payment (often pay some more)
  • Car Insurance- £26.64

Discretionary Spending-

  • NSPCC and Dogs Trust- £13.67 (I want these to continue)
  • Vodafone- £14.39 (I own my phone outright)
  • Account fee- £5 (we used to earn more back than this, but at the moment we are barely earning to cover it)
  • Zoo- £13.75 (we can discuss if we wish to keep the membership going or not)
  • RCN- £23.70 (This is my insurance for nursing as well as a magazine- could stop the magazine though)
  • TV licence- £154.50 a year
  • Groceries- £90 per week :0 (Between £75-90 on average)
  • Fuel- £80 a month-ish
  • Takeaways- £15 a week on average
  • Hair for me- £10 haircuts once every 4-6months, hair dye £5.50 every 3 weeks
  • Current monthly saver- £250, 5% account, ends soon
  • Clothes and miscellaneous c- unsure what these costs are!
  • The dogs are both on medication-Meloxaid, Desmopressin (we buy from a human pharmacy) and supplements- youmove cheap version, I am unsure of costs as all paid seperately and adhoc! Recently needed x-rays for younger dog so big cost. No insurance as both dogs are rescue with issues so would either be uninsurable, or a ridiculous cost. We have always paid for everything they need outright
  • Dog food- they are now raw fed and we are still trying to get the feeds correct so unsure of costs
  • We eat out but not that often- we went away this month to Glasgow, so spent a lot more there than usual when at home
  • I will sometimes buy lunches for work, these can cost around £5 and I work three days a week
  • I rarely go to McDonalds , Costa or other but can find some months my use increases- last month for example
  • Hubby pays for Amazon Prime and Netflix
  • Internet- something like £18- hubby pays for this from his account
  • MOT and Service- £170ish depending where we go!
  • Adhoc Chicken costs, they don’t need a lot and we buy food as needed,we paid the big costs outright- their home!

Step 4-

What can we get rid of? Well, its tough. I guess that is the point. The Zoo could be dropped, I will work out if we have made use of the membership or not this year and base it on that. Will require a discussion with Hubby, who is working away the next few nights. We do need to work out the costs for the dogs, medications, food, appointments three monthly for reviews etc. Our dogs are our children, they need medication as they both have ongoing conditions that without medication would be life affecting. We get Red’s Desmopressin from the Human Pharmacy, we have to pay for his prescription then pay for the meds, this is still cheaper than it used to be getting them all from the vets! We don’t eat out often, but have a weekly takeaway, we both dislike cooking so it is nice to know that once a week we get something lovely to eat with no effort! Perhaps this can be something to reduce in the future, please?! I am unsure if we can stop the TV Licence, I mean, I could easily not watch the BBC channels, but am unsure how it all works these days! That could be a nice saving!

We could look at the Life Insurance, I am fat, therefore I make it more expensive. But I think that our mortgage broker went for the best deal for her, rather than us, thats fine, she is great with mortgages and I am happy to help her get extra commission, but really we should be investigating this ourselves now! I could look at my mobile phone plan and see if I can get it cheaper. Internet is a new deal and I am sure it was the best we could get- our connection is shocking! I feel haircut costs and hair dye costs are perfectly acceptable, I am 32 with many greys that I am not ready to embrace yet! I will look at moving our joint account, we used to earn good interest when we had more cash in there, but now its in a 5%saver so not helping the current account. Fuel is what it is, I don’t use my car ridiculous amounts, we have a very efficient joint car, and Hubby has his truck. I have no issues with his truck! Could do with being more prepared with work lunches and helping myself as I do 12hour shifts, this would benefit two fold. Clothes are a non budgeted buy whenever thing, I really need to address this with need not desire! We are not ready to stop netflix or amazon yet- sorry UFM!!

Step 5- Substitution

I will be honest, can’t really think of substitutions at this time. I mean, I buy Options hot choc which I love and is cost effective. I love wine and other alcoholic beverages- perhaps I should look into trying to brew my own stuff? I could definately make a version of creme de cassis with blackberries from the garden, missed that this year though. I have started to try and grow veg, my rocket is still doing well and it is almost Winter, but I struggle to grow other things! Another must try! We have chickens, they are ex batteries so laying is hit and miss, that is fine, we just wanted to save them so they didn’t go to slaughter! Will ask my stepmum to help me with foraging I think. I am not conviced about barter and trade at this time!

Step 6-

Reduction of Discetionary Spending- accidently covered this earlier! Except grocery shopping is something we really need to work on! We are upping the mortgage cost, this is because we are on a great deal and want to pay it down more, ultimately helping us!

Step 7- Insourcing

I mean, we don’t outsource often. We paid professionals to do our driveway, much more time effective and a fantastic job comparative to what we can do. Same with the car, we will use a mechanic and ask around for quotes to get a good deal. We paid a gas man to check the boiler when it was playing up. I want to pay a cleaner but Hubby says no! Recently we made shelves ourselves, this was a great example of insourcing. We need to paint and redecorate some rooms, I would like to outsource these jobs but will probs end up doing them with Hubby. Some things are worth trying yourself, but others we need to think about the skill level required and the time constraints we both face.

I am exhausted, this has made my brain hurt to be honest! Will continue on the next steps after my next shift at work!haha.

Uber Frugal Month Homework, Step 1

Establish your goals:

  1. Why are you participating in this challenge? To be honest, it is because we earn ok money and are falling into the pattern of earning more and spending more, but on wasteful things, money just disappears and it shouldn’t be. I would like to pay down the mortgage, grow my savings, increase pension payments and look to invest! We should have more money than we do at the end of the month. We also use credit cards- mostly due to going on two expensive holidays, Florida in Sept was with my family, then next year we are going to New York for a wedding, but turning it into a big holiday. We have our car on a personal loan, need to work out how much longer that is for- interest is calculated at the start of the loan so repayments won’t reduce the amount payable, and the credit card is 0%, we are very good at tarting cards and have been doing this for a few years now. I would love to be credit card and personal loan free.
  2. What do you hope to achieve? I guess I would like to achieve a feeling of freedom and also the security that comes with less debt, this includes on the mortgage as well. I would love to be able to save more money, invest money and see money do more for me, rather than helping to line the banks pockets!
  3. What are your longterm goals? I struggle with this if I am honest, I kind of think about the future but it is often vague and blurry, Hubby doesn’t have job security like I do as a nurse- ie I have lots more job oppertunities should this job change, I have toyed with the idea of looking to go towards management within my current role and have discussed this with my manager who has said she would work with me towards this. But mostly, my long term goals would be more vague, like, to be mortgage free at some time, to have good savings, investments, to have choices around when I retire, to be able to travel more- possibly a van of somekind to transform, to be stable in my relationship with Hubby, for the dogs to live forever….To have a job I can tolerate, to work because we can do things with the money, rather than because we have to work to pay off x, y and z. To choose a lower paying job if I desire, for Hubby to feel he has choices around his work.
  4. Where do you want to be in 10years? At the grand age of 42, I would like to be looking at a smaller mortgage, either in this home, or in a lovely little house in a woodland somewhere! For Hubby to be less stressed and feeling more like himself, for me to have experimented with management- whether I enjoy it or not, the oppertunity would be good! Or to consider trying to specialise, I would like to do more around Dementia, perhaps I could specialise more in this area? Oops, still not got clear ideas…Perhaps what this signifies, is that in 10years I want to be happy in work? Mad idea I know! I want to have travelled and explored different places, and have many more places to adventure. On a very personal level, I would like to be in a lot better physical health and have a much better relationship with my body!
  5. What about your current lifestyle might prevent those goals from coming to fruition and what can you do about it? Hmm, habits are very hard to break and I do struggle in the self belief department, so this is probably my biggest barrier, getting my brain on board! I think having Hubby do this challenge alongside me will definately help, its good to have someone on the same journey to offer mutual support. I struggle with motivation and can struggle to think long term, I guess this is something that being aware of will help me to try and work on this. Plus, this challenge is meant to be hard, so that can be a massive downer! It would be easier to carry on how things were, day to day we do well, we have a lovely home, we can make payments, the debt is manageable etc. But I must remember my desire to want more from life, rather than things!

Step 2 is on its way!

October Mortgage Roundup


October Mortgage Stats:

Was: £153,817
Now: £153,420
Monthly Payment: £666.72 + £50
Capital Paid: £397
Interest: £319.72

Another month, and it is good to see that even with a reduction in overpayment, the money is still going down!

Mortgage Yearly Roundup!

So, we started off the fixed five year mortgage with £159,975 borrowed against our home, which is valued at £210k. This is over 25years.

At year end our mortgage stood at £154,262.28

We paid a total of £3,599.52 in interest

Which means that we paid £5,712,72 off the capital!

I feel very pleased with this over a year, especially since the interest is so much less than the capital reduction now!

Only downside, which may not actually be a downside, is Tesco are stopping mortgages. They will be sending us over the Halifax any day now, we will still keep our fixed rate etc thankfully. Wondering if Halifax may have a cleverer OP system!

Hurrah over all, great years work!

Mortgage catch up!

I accidently went AWOL for a while!

Our mortgage currently stands at £153,817 , I haven’t kept tabs on it since July, but have had a print out of my year to date. Will post this soon just in case anyone is interested!

After making expensive holiday choices, have altered the overpayments to £50, a reduction of £200 until we are back on finacial track with holibobs! Think I may need to rename this blog!haha

Will do a more thorough update soon!

May Mortgage Stats

At the beginning of April after payments, the mortgage was: £156,834
As of the 1st of May, the mortgage is now: £156,193
Our monthly payment as of 1st May: £666.72 + £250.28
We paid this much off the capital: £641
Which means that our interest for the month was: £276
Therefore, £276 divided by the 30 days of April, indicated we paid: £9.20 a day in interest!

This is very exciting, I really hope that these overpayments can continue!

Overpaying the Mortgage

Today I am playing with the Overpayment (OP) calculator on Money Saving Expert- I love doing this, its amazing how even a tiny OP can make a huge difference to the mortgage!

We currently pay £666.72- I like the 666 number, shame the pennies weren’t 00!

If I were to increase our monthly OPs by £333.28, for example, taking us to £1000 a month, we would save £19,964 in interest over the term of the mortgage, and we would pay the mortgage off 10years and three months earlier. Thats amazing! It would also be a lot of money extra to find to throw at the mortgage…

Even rounding the amount up to £700 a month- £3.28- would see us save £337 in interest and we would pay the mortgage off two months early, this would still be fantastic in the long run! Every penny really does count, and this is based on our fixed rate and the current base rate so this would fluctuate.

I *think* that we might be able to afford to OP 250.28 a month- the 28p is to round it to a whole number, sad I know! Hubby may not agree with this though!Haha. If we were to OP that amount, it would save us £16,742 in interest and we would knock 8 years and 7 months off the mortgage.

Playing with the calculator is addictive, I totally recommend anyone who is considering overpaying has a look at this, it really shows that every penny/pound counts when paying down the mortgage.

My aim is too have a good discussion with hubby and see if he agrees we could start OP the mortgage again, as we used to!

Below is the links to the basic mortgage calculator and the overpayment calculator:

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

Groupon, Wowcher etc

I have gotten some great deals using Groupon and Wowcher- I am sure there are other similar sites as well but these are the two I have used! If I want to go for afternoon tea, a Spa day or a day out locally, I will always check on these sites for any deals. This has definately lead to some great savings on something I would have done anyway. Most recently I got a great deal on a local festival I planned on going to, I got the VIP tickets for the same price as the normal entry fee, this got me lots of free items including rum and cake- perfect!

Though, not all deals are as good as they look- for items, furniture etc, they can be found for the same price or cheaper online on sites such as Amazon, so it is always worth shopping around before you buy.

I have used groupon for Las Vegas- I signed up with the hotel address of where we were staying. I got buy one get one free on yard length margaritas and unlimited alcoholic drinks on the Linq Hotel’s big wheel, the High Roller for a bargain cost for three people! So it often seems that local bargains, even abroad can be found.

I tried when we went to Paris, but it was in French- unsuprisingly really- so I wasn’t able to understand it at all!

We are off to New York next year, and one of the places we want to stay is often on Groupon so I will be doing the same again closer to the time!

These type of sites are also a great way to discover what awesome and interesting things are in an area, I learnt new things about where I live by looking through the deals, some great finds to be had- but be sensible, you dont save by buying something you dont want, or if you dont check that you are getting the best price!

Some ways I have been working towards Mortgage Freedom and things I have noticed!

Just a reminder, I am a Nurse, and in no way should what I say/do be taken as proper advice, I am merely sharing my novice ways of heading towards mortgage freedom! Any financial choices should not be based on my ramblings!

Always look at debts as a whole- if you have expensive debts, the advice would be to pay these off first. For us, the most expensive debt we have is the mortgage. We do have a loan, which is 4%, but this has set interest and we will pay the same amount regardless of how soon we pay it off! The mortgage is at 2.99% and our credit cards are all 0%- we TART our cards to ensure we dont pay any interest on them. This has been working well for us, we currently have a 0% spends card and a 0% balance transfers card. We make note of when these run out to ensure that we don’t get charged interest!

Martin Lewis from MSE (Money Saving Expert), points out that if you can get more from savings than OP (Over Paying) the mortgage, then that would make sense. For some people being MF (Mortgage Free) is the overriding desire- but bear this in mind, your money may work better in other ways. We are saving in a 1.5% current account and have a 5% savings account, there is a cap on this for £250 a month and we can’t touch this for a year to get the interest. As it stands, the mortgage rate is now much better for us, our first mortgage was over 5%! So some savings accounts are better than OP now.

OP my morgage helped when remortgaging, for example, I was able to get a better rate once I hit 10% comparative to 5%LTV. This is the same with other key LTV points, namely 90%, 75% and 60%, though when we most recently remortgaged and hit 80% and this made a big difference to us!

We are only able to OP 10% of our mortgage a year this has always been the case- there isn’t any chance we will reach 10% in a year currently. But as the mortgage decreases, 10% wont be as much, so maybe one day this could be an issue! For our first mortgage, we kept the term as long as possible as it was more affordable, then chucked OPs at the mortgage on top of this. Meaning the outcome is similar to a reduction in years, but we had flexibility with regards to our standard monthly payment being affordable. For our latest remortgage, we could afford the payments over 26years, shaving years off the mortgage. We then plan to OP on top of this when possible.

We have had a great mortgage advisor. I look on Money Saving Expert as well to see the kind of costs we would be looking at, and she always gets us a great deal. Having an expert you can trust is definately helpful, she was very impressed at how much we had taken off the mortgage! The second time we remortgaged, we did it by ourselves with the same bank- the deal was fine and incured no fees. When we were looking at remortgaging with another bank and a different term, I let Fiona lead the way!

When we first got our big mortgage, paying it down was the most important thing. I knew in the long run we would thank ourselves for two years of frugality in other areas when we could remortgage and the house would be a lot more affordable. Now, in theory, we can afford the house and bills with one wage, which is reassuring! I have been reading about mortgage neutrality recently, but we have other things to save for and do now, so OP the mortgage when we can fits better these days!

Remember, with OP, every penny/pound counts! For every pound borrowed we pay £1.51 back therefore everytime you pay off an extra £1, you save 51p in the future! That’s a motivating thought! A diary on MSE introduced me to Tilly Tidies- namely someone called Tilly, started to skim down their accounts. Rounding down to a whole number, what was skimmed was then OP or sent to a savings account to build up to be OPayed! This is something I am doing now as I have to save £1000 before I can send an OP, I am also considering setting up a regular overpayment again… get itchy not seeing any extra change to the mortgage!

WARNING- Mortgage overpayments can be seriously addictive and cause others in your lifes eyes to glaze over! Find other like minded folk to share with 🙂