The End May Actually Be in Sight...

A question about : The End May Actually Be in Sight...

Hello all,

I’ve been lurking on these boards for a while, and have now decided to take the plunge and join in! I’ve been hesitant about posting, because the reason my mortgage may be gone sooner rather than later is that my OH and I recently received a sizeable inheritance which has annihilated a huge chunk of the debt. It doesn’t seem right in a way to be talking gleefully about how little we have left to pay when we haven’t exactly worked for the money that’s set us free. Having said that the relationship with those we inherited from was extremely special, they were very determined that we should have it. Plus we’ve had our own share of tough times, and still have a way to go to get shot of our mortgage completely, so I thought why not start a diary and see how it goes...

Bit of background – there’s me and my OH (Civil Partner, both women, both 38), our DS who’s 6 and DD who’s 1.5. I’m a SAHM, OH working full time, one decent salary but four mouths to feed, two of which are permanently open Mortgage at its height in 2005 was Ј150,000 over 23 years, we’d got it down to Ј120,000 with 16 years remaining before DD arrived but then had to re-mortgage back up to Ј140,000 over 20 years as some things were desperately needed ie. a kitchen as ours was 32 years old and didn’t have a working drawer, light or oven...

Then 4 weeks ago we received Ј116,300 in inheritance. We’ve added Ј2000 to our savings and paid the rest off the mortgage. So that leaves us with around Ј22,000 left to pay off. I’ve just secured a retention rate of 2.89% fixed for 4 years from my building society, payments are Ј486 PCM. We can easily pay (at least) another Ј209 PCM in OP which reduces the term to 2 years 9 months. I can OP 10% of my original loan per year without penalty which works out at Ј6000, so I’m well within that. Hoping to be MF by Sept 2016, which is a far cry from June 2032 which is what it was until a month ago

No credit card balances, cards only used for internet shopping and paid off every month, no other debts other than some old-style student loans which will probably be written off in the not-too-distant. We’re the kind of people who put money aside every month to cover the TV licence, BT annual line rental, Xmas/birthdays, new spectacles, next car etc.

There’s not much room for savings that we don’t want to make as we’re pretty canny with money as it is - shop at Ald1, I price up across various shops for household stuff (I have the opportunity to do it whilst out with baby), utilities all MSE-ed, every penny accounted for in my hilarious hand written old-style accounting books etc. Plus we’re hoping to have a bit of fun going forward as things have been increasingly tight over the last few years as they have for many. The lovely people we inherited from were always telling us we should have more of a life, and they were in their nineties, so I think we should probably take them up on it now as we really have no excuse!

Thanks for reading - I’ll post updates for anyone who’s interested – and good luck all on your MFW journeys xx

Best answers:

• Hey there, just stopped by to say welcome and good luck. Going from 2032 to 2016 is a fantastic achievement. Also that you ate just like me with every penny allocated, putting money asside each month for the yearly bills etc. Nothing to be ashamed of
• September 2016 is so close - well done. You can still have a life and be frugal, in my experience apart from childcare kids get much more expensive as they get older so you are doing the right thing getting rid off the mortgage now sounds like you and OH are on the same wavelength too which will help a lot. Good luck and keep us posted.
• Made my first OP today - Ј209 as planned. Might well be more by the end of the month but we'll see how it goes. My mortgage is with a building society so any OPs I make via Faster Payments take a couple of days to get from their bank account to my specific mortgage account. I worked out tonight that the delay in that may increase my interest by just over Ј1 across the lifetime of the loan. Not happy about that OH is fully on board with MFW but says my irritation over this Ј1 may be taking things too far . Her attitude is that her job is to earn it and my job is to get the most out of it, it's a yin-yang that works for us! She is a natural worrier and I know will be happy when the house is finally ours.
  Just wanted to say thanks to all who have MFW diaries here, I've been lurking and gaining inspiration even before our recent windfall. It's nice to be among the like-minded, I know not everybody shares the dream of being MF or the efforts in making the pennies earn their keep! So many thanks to you all
• Hello all, well I checked and the Faster Payment did reach my mortgage account, phew! I can only tell this by deducting it from the figure I noted on my online account the other day though, my building society are quite traditional I think, they've only just got into all this online business, I think they prefer quill and ink I like being with a mutual but I do envy those with major modern banks, I imagine if you make an OP from your current account you literally see it whizz across on the screen? Mine literally has a single figure, no kind of statement or record of transactions.
  Mine is also complicated by the fact that they add a years worth of unemployment/sickness/accident and buildings/contents insurance onto the balance on 1st Jan, I don't pay interest on it as it ticks off through the year, but it makes my balance look bigger than it is, so I have to work out what remains of that on the account to glean the actual amount owed. Well done if anyone's still here after that over-complicated whinge
  Yesterday was a good MS day, in between school run and baby group I did my usual rounds of Home Bargains/Wilko/Iceland etc to see who has the best prices currently on big brands . I desperately needed new [ahem] undergarments but timed the purchases right as M&S had Ј5 off a Ј30 spend on lingerie. While I was in the queue a lovely elderly lady behind me asked if I wanted one of her friends and family 20% discount vouchers, so that saved me another fiver. We had a nice chat and she got a smile from the baby. As she said, "every little helps"
  Off to do the Aldi thing shortly, meals planned as usual and meat in the freezer so hoping for quite a tight shop this week
• Can I just make a plea for help?! I've seen people posting here saying that they'll subscribe to others diaries, but I can't see how to do that, can anyone advise me? MTIA
• When I reply to a thread it automatically subscribes me to them.
  Or at the top of each thread in "Thread Tools" there is the option to subscribe
  HTH
• It's so reassuring when you get confirmation of the overpayment. I always get slightly worried that ny op has disappeared in the big wide internets between accounts. Nice bargain on the 'clothing' I always pass on vouchers and discounts to people as I believe in karma
• Hello! Welcome, just wanted to drop by and wish you well on your MF journey.
  I'm sure whoever left you the inheritance would take great comfort in knowing that they've made a tremendous difference to your lives and futures.
  FWIW the Ј1 would annoy me too
• Morning
  Welcome to mfw! I think as long as you are respectful of an inheritance and use it as the person (people) would want you too then it's amazing blessing.
  I'll subscribe. X
• Hi Roaring, your local Italian sounds fab, how lovely that you've been going there for so long. It sounds like you and your Oh have a good plan and 2016 is not long away at all. Good luck!
  Crumpets x
• Hi,
  This may sound crazy as I don't know you but I an thrilled that you have been given such an amazing gift! Many people dream of being able to do this for their children/grandchildren and so on and it is lovely to know what a difference it will make and that you are continuing by freeing yourselves of debt. Truly inspirational. I hope to see you have mortgage freedom very soon!
• Well the last few days have been completely NSD (that is No Spend Days isn't it?!) largely because I've been in bed I with a nasty throat and ear infection and fever Am coming round now, thank you Alexander Fleming So total spend from me since Sat is Ј7.85 to the NHS for my prescription!
  I didn't eat for three days so I've lost a bit of weight which would generally would be a cause for celebration except for the fact that I've just invested in a few new clothes in the M&S online sale, hoping they fit when they get here! Since DD was born and my shape changed (again) I literally don't have a thing to wear (said in that high pitch exasperated female voice ) Also got a few bits for the kids for coming seasons in the next couple of sizes up, all 30-50% off so a good time to buy.
  Hope to contribute to a few other diaries when time allows, again, I'm thankful of the inspiration others on this board provide
• *huggs* glad you are feeling better. And yes NSD is no spend day.