Mortgage Free Challenge

If it's not one thing holding me up with my Mortgage Free Challenge - it's another!!

2010-02-21T15:06:00.000-08:00

Hiya All

Another week and another reason why my Mortgage Free Challenge is being compromised!! Last week I was telling you about our new additions (they've had far too many treats bought for them in the last week but that's another story and one I'll worry about when my Tesco Credit Card Bill comes through!)

Ok, so what's my excuse this week? Well, in a much earlier post (all the way back in November!), I told you about a holiday I'd booked. Now the problem with booking holidays is that eventually, you have to pay for them. Well where has the time gone because at the weekend I received a letter stating that the balance has to be paid by 2nd March. Oh why does February have to be such a short month? I always feel like the beginning of March creeps up on me without me realising.

Right, so the last 4 months have just whizzed by and now I have to establish how I'm going to pay for this holiday.

I have 2 options:

1) Pay on my Debit Card, pay no fees and be safe in the knowledge that the job's done - the holiday's paid for.

2) Pay on my Tesco Credit Card, pay a 2.5% handling fee, worry about the fact that as much as it appears the holiday's paid for, it isn't really as I've just borrowed off Peter to pay Paul (and paid an extra 2.5% for the privilege!)

So guys, which payment option did I choose? Those of you who have been following my blog will answer with no hesitation. I paid on the Tesco Credit Card of course!! So why am I prepared to pay a 2.5% handling fee when I already have the money saved up to pay for the holiday? Surely option 1 is the much more attractive option?

Well, the reason I chose to pay the 2.5% handling fee and pay on my Tesco Credit Card is because of Tesco points. By paying for the holiday on my Tesco Credit Card, I will earn Tesco Points which I can then convert into deals and cash in 4 times as much in financial terms. Working out how much I will pay in fees and comparing this with how much I will receive in Tesco Deals, I am a good £20 up. No argument then!

Also, as I already have the money saved up, not only will I earn another months worth of Interest (not that that amounts to much in the present, economical climate) but I won't really be sat there worrying about where the money's coming from!!

I'm going to keep my fingers crossed that I can get back on track with my Mortgage Free Challenge but I won't be holding my breath!! So lets see how the next week pans out - here's hoping it's a good 'un!!

Px

New family commitment that's potentially going to affect my Mortgage Free Challenge!!

2010-02-14T14:56:00.000-08:00

Hiya All

How things can change on the space of a week (well, since my last, more optimistic post :-) As finances have started to become more stable and thoughts of making mortgage overpayments have become more of a reality, what do we end up doing? We go and buy our boys some pets!!

To be fair, I think the boys have been brilliant and although it's not been great whist we were having to watch the pennies, they've not been as demanding as maybe they could have been. My boys have wanted a pet ("any pet, it doesn't matter mum, we just want something to look after") for such a long time but my eldest recognised that whilst the financial situation was as it was, this wasn't going to be an option.

By "giving in" to their desire of having "something to look after", it was also our way of saying not to worry about money (kids are more clued up and tuned in than we realise - a fact I feel I'm learning more and more about by the minute).

Soooo, what have we treated our buys to? Two Guinea Pigs!!! And they've cost us a fortune already (oh, imagine how much I could have saved on the mortgage - stop it, stop it - you did it for the boys, don't forget!!) They're brilliant little animals (though I found out this w/e that they grow much bigger than I'd anticipated - wish I'd invested in a larger cage now!) We've only had them a week and although it's put my Mortgage Free Challenge to one side (again!), they've given us so much pleasure, they're worth every penny I've not saved off the mortgage :-)

Px

Mortgate Free Challenge - we're (nearly) back on track!!!

2010-02-05T14:09:00.000-08:00

Hiya All

Well can somebody tell me where the weeks are going? It's been a while since I last posted and updated you on my Mortgage Free Challenge. My last update was pretty doom and gloom as we'd just found out that my hubby had lost his job and I was feeling somewhat guilty about the mortgage over payments I'd been making when suddenly we found ourselves strapped for cash. Well I'm unbelievably thrilled to report that hubby has landed himself another job!! It's still early days but what a difference it makes - not only to the financial worry of potentially getting into debt but also the fact it's lifted the mood of the family no end.

My thoughts had been turning to having to borrow on the credit card, or rather not being in a position to pay off the bill at the end of the month, cutting down on shopping bills - most significantly, not letting my boys place anything and everything into the shopping trolley (boy they have not been impressed - thankfully it has only lasted a few shopping trips!). And my biggest fear has been the thought of defaulting on my mortgage repayment. The fear of this was so great that I even found myself having nightmares of the consequences. The act of having a default payment on your mortgage is so significant as it has such a negative affect on your credit rating - and a long lasting one at that. In fact, I think once it is on your record, I'm pretty sure it stays there, thus drastically affecting your chances of obtaining another mortgage in future.

I know I'm waffling but it's scary to think how quickly things can snowball out of control and before you know it, you're in a dire situation. Thankfully, this hasn't happened to us, and boy am I relieved that this is the case. So as the title suggests, we're very nearly back on track with ploughing our hard earned cash into our mortgage pot.

Hope 2010 is treating everybody well - keep reading, keep overpaying and lets get rid of that mortgage and be mortgage free sooner rather than later!!

Px

Not the best start to my Mortgage Free Challenge

2010-01-03T13:12:00.000-08:00

Happy New Year Everyone!!

I'm trying to be optimistic about the new year but things haven't got off to the best start unfortunately. My husband found out he lost his job on the eve of New Years Eve. Things have been quite tight over the past 2 months or so but I've been trying to keep focused on my Mortgage Free Challenge and have made the odd mortgage overpayment here and there. I'm wondering now whether I've made the right decision or not. We've used our credit card quite a bit over this time and although we've always managed to pay off the outstanding balance each month in full, the past 2 months has seen me dipping into my (very small!) savings pot, which in hind site, is not the most Money Saving rule to follow.

OK, so now my husband has been given the news, it's time to review how we are spending money to avoid us getting into further debt. OK, so I don't consider us being in debt as such but I'm very uncomfortable about the fact that the Overdraft facility is in full use as is our good old friend the credit card.

I have been trying to cut spending but as I mentioned in an earlier post, it is far too easy to spend money (that we can't afford at the moment!) It has been the most expensive time of the year and as much as I'm through it now, there are certain money spending decisions I've made that I think I would think twice about if I was given the chance again.....but I won't get that chance again so instead, my New Years Resolution is to 'Think Twice when Spending Money' and ask myself - 'Do you really need that purchase?' I'm sure in 75% of cases, the answer will be 'No!!' but we'll see.

So here's wishing you all a Very Happy New Year and lets hope things move in the right direction for us all!!

Px

Every little helps towards my Mortgage Free Challenge!!

2009-12-21T16:10:00.000-08:00

Hiya All

I know most of you must be getting excited about Christmas now (well, it is only 4 more sleeps away!!) but I'm still obsessing about The Mortgage Free Challenge and finding funds to overpay my mortgage!! It's not been the best of months in terms of making mortgage overpayments but I was analysing my accounts and worked out that I could afford to make an overpayment of £50 without feeling the pinch. OK so it could pay for some goodies for over Christmas but you don't have to go mad you know!!

So that's exactly what I've done. I've logged on to my on-line bank and made a mortgage overpayment of £50. Now this usually makes me feel quite excited - I update my spreadsheet and see the pounds fall off. Strangely enough, however, on this occasion, it made me feel quite nervous. I think it's that whole Christmas thing. You overspend and take out credit via the good old credit card (Tesco Credit Card of course!!). However, I feel like we're spending left, right and centre.

I have tried really hard this year not to go overboard with our spending. But it's too easy!! I can be sat on the PC and before I know it, I've spent near on £50 and added it to my trusted friend, the Tesco Credit Card - all that and I've not moved from my chair yet can still be on Facebook having a chin-wag with friends.

So as my title suggests - even though it is only £50 - every little helps - and only serves to bring me one step closer to my Mortgage Free Challenge!!

Px

The Mortgage Free Challenge starts today - it's official!!!!

2009-12-12T00:40:00.000-08:00

Morning All!!!

It's the 12th December 2009 and it's official - The Mortgage Free Challenge starts today!!!! I've phoned my mortgage provider and asked for an Outstanding Mortgage Balance and am really chuffed to say that my official starting figure turned out to be a good £1,000 less than my original balance when I signed up all those many weeks ago (well, it was only in October so to have paid off £1,000 of my debt in that time is truly amazing!!)

I mentioned in an earlier post that my original objective of paying off 30K over the 3 years was a touch too optimistic. Since using my special overpayment spreadsheet, I have worked out that there is no way in this world I could afford to pay off that kind of figure - unless of course I don't eat, drink, go out, buy any clothes, stop the boys doing any after school activities, etc, etc - you get the picture!!

So what's my new Mortgage Free Challenge objective going to be? How much of my Mortgage Debt do I hope to have paid off by 12/12/12? Well, I'm still stretching myself with this new revised figure but I've declared a figure of 20K - arghhhhhh!!! It always frightens me when I see the figure written down. It's such a massive task, but one I am determined to achieve.

If I manage to meet the challenge and pay 20K off my Mortgage Debt in 3 years, it will make such a difference to our lives. I'm on a 5 Year Fixed Rate Mortgage Deal at the moment and I'm hoping that if I can sustain the Mortgage Overpayments for 3 years, then surely I can sustain it for a further 2 years. In which case, my Loan-to-Value ratio (LTV) will be significantly better. I know I'm getting ahead of myself because I'm only on day one of the Mortgage Free Challenge but that's the great thing about joining such a challenge. It totally focuses your mind and makes you more determined than ever.

Please wish me luck and keep me motivated!!

Thanks All

Px

13 Days to the start of The Mortgage Free Challenge - T2!!

2009-11-29T13:36:00.000-08:00

Hiya All

13 may be unlucky for some but there's only 13 days left to the start of The Mortgage Free Challenge - T2 and it feels like Christmas is coming early, I'm that excited!!

I know this sounds crazy but since joining the Mortgage Free Challenge on Martin Lewis's Money Savings Expert website, I've never felt so focused in my life - OK, obsessed is probably a more accurate description but if it means my family and I become Debt Free sooner rather than later, then that's OK with me.

My last Mortgage Payment before the challenge begins is due to go out next week and I can't wait to ring up the Mortgage Provider for an Outstanding Balance quote. I've already set an objective but I think it's a touch too optimistic. I will be making a final decision next week and will update with my Starting Mortgage Balance along with a new End Target Balance.

I have talked of a spreadsheet I have created (thanks to financialbliss!) that helps to calculate the effect of the Mortgage Payments, but more interestingly, the effects of Mortgage Overpayment's - it's so addictive that I am playing about with different figures the whole time.

Although this challenge is for 3 years, I have extended this spreadsheet to the end of the term of my Mortgage. Interestingly, I have worked out what my Outstanding Mortgage Balance will be at the end of my 5 Year Fixed Mortgage Deal I have in place now. The Outstanding Mortgage Balance after 5 years will be significantly less after making the Mortgage Overpayment's - which is great - but it also means I will have a better Loan-To-Value Ratio (LTV) and as you all know, I'm sure, this will help me find a better deal next time, meaning my Mortgage Overpayment's will work even harder in future!

13 Days and counting - Role on 12/12/09!!!

Px

Mortgage Challenge - Birthday Spending Spree - a record number of requests to take out a store card!!

2009-11-26T13:10:00.000-08:00

Hiya All,

Welcome back to my Mortgage Free Challenge

Where are the weeks going?!! Four weeks today and it's Christmas Eve!! Sorry everyone, didn't mean to frighten you.

As you know, it was my birthday last week and as part of my celebrations, I went to Leeds to engage in some serious Credit Card shopping!! And boy did I have a great time doing it (OK, so some slight guilt was felt wondering how much each spend could potentially help with my Mortgage Free Challenge, but hey, it was my birthday!!)

What surprised me, however, was the number of shops who were (almost hard) selling their Store Cards. I take it they must be on some sort of commission? I didn't mind because I know I have benefited from these Store Cards in the past. Opened it, took the generous benefits including the use of the vouchers you are sent with the first mail out, paid off the balance in full then never used the Store Card again.

In fact, only today I read on Martin Lewis' Money Saving Expert website that it's not too bad an idea to take out store cards to take advantage of the opening offers -remembering to pay off the balance in full. So if it's good enough for Martin, it's good enough for me!

So do you want to know how many times I was offered a store card, told of the benefits (even though I said I wasn't interested!) then reminded again of the fantastic opening offer? Eight, that's right, eight different shops were in effect offering me their credit at hugely inflated APR which, had I been any younger (I wish!!) could have landed me into some serious debt.

I managed to "get them off my back" after about the 3rd shop that offered me their card by simply saying I already have their card. OK, so they then ask you if you would like to use their Store Card to pay today (even though I've already handed over a card) to which I politely reply, "no thanks"

Px

Money Saving and Paying off Debt to one side Please :-)

2009-11-19T14:10:00.000-08:00

Hiya All!!

Every now and again, I put saving money and paying off debt to one side and embrace the now well established charity evenings that have become so part of our calendar that I just couldn't imagine life without them. What am I talking about? Well it's Children in Need of course!! It's my birthday today and every year, around my birthday our lives are surrounded by the one and only Pudsey Bear!!

All my money saving thoughts go down the drain and my thoughts turn to donating a few pounds to these great causes - well, quite a few ponds to be honest, I go a bit mad with my donations!! I sit and watch the entertainment so why shouldn't I pick the phone up and give something back? My husband has sent a text to 70077 tonight and straight away, £5 was donated to Children in Need.

I'm soooo lucky to have 2 very happy, healthy boys, but not everyone is as lucky as I am. So if I can help in any small way possible, I will - and I urge you to do the same - go on, it makes you feel great you know!!

Px

8 in 10 Savings Accounts Lose Cash

2009-11-18T14:39:00.000-08:00

Hiya all

I was reading a headline in one of the papers today and it read 'Eight in 10 savings accounts LOSE cash: Inflation goes up - but banks still pay interest rates just above zero'

On closer inspection, it was referring to banks which are part-owned by taxpayers, such as the Halifax and Lloyds, as these are among the worst of the 'savings sinners', paying rates as low as 0.05 per cent.

So for example, a basic rate taxpayer with a £10,000 nest egg, will earn £4 a year after tax - or £3 for a higher rate taxpayer.

Is this totally crazy or what?!!

Have a look back to one of my earlier posts about playing free daily scratchcards with certain bingo sites. I worked out that as long as I log on to the website and play the free daily scratchcard, I will earn a minimum of £78 a year.

Now I've got no where near £10,000 in savings and I know it would be rather nice if I did, but it does put a little smile on my face when I think I'm earning nearly 20 times as much cash (for nothing!!) than they'll earn for probably not touching that capital.

Remember that I said I make a MINIMUM of £78/yr. That's based on making 10p per go per day (twice on a Sunday with one of them) Now if I analyse how much I actually earn on a scratchcard each day and do my sums correctly, I am probably making in the region of £132.60 per year (which will be paid off my mortgage)- for nowt.

So - who says you can't get something for nothing :-) Having said that, I do play bingo every, now and again (it's very exciting, especially when you win!!). It wouldn't be right to just take, take, take, now would it ;-) Px

Spending on my Tesco Credit Card has earned me £158!!

2009-11-10T07:41:00.000-08:00

I use my Tesco credit card to pay for everything! It helps that Tesco is my main supermarket but using their credit card has many more advantages than just the credit side of things. In fact, the credit side of things is my least tapped into benefit of using it (if you can call being in credit card debt being a benefit!!)

OK, so like I said, I use my credit card to pay for absolutely everything I purchase. I would only spend, however, if I know I can afford it. I build up the debt then each month, I make sure to pay off the full amount.

The benefit? Well, I don't freak out at receiving my credit card bill each month (OK, well that's a bit of a lie 'cause even though I think I know all payments are covered, even I'm surprised how quickly those little spends soon add up!!)

Well the other big benefit, especially as Tesco's have kindly been giving us shoppers double club card points for the last month or so, is the fact that this morning I received my clubcard vouchers - a grand total of £39.50!!! I am made up because, if you've been following my blog, you'll know I like to convert these vouchers into Bella Italia vouchers worth 4 times as much.

Soooo, my £39.50 in clubcard vouchers = £158.00 in Bella Italia vouchers!!! Boy am I going to enjoy some great meals out courtesy of the Tesco Credit Card. Thank you Tesco!!

Px

£200 paid today results in £232.53 overpayment after 3years

2009-11-08T06:36:00.000-08:00

OK, so I've got to the 8th November and most of my direct debits have been paid out. Surprisingly, there's £200 that I can afford to take out without it affecting our budget. I've just logged onto my internet banking and paid off another £200 off the mortgage.

Now if you've been reading my blog, one of my earlier posts talks about a spreadsheet I use to caluclate the effect of the overpayment. I calculated the effect of that £200 overpayment and to my surprise, it actually takes off a further £32.53 over the £200 by the time I reach 12/12/12 - the end of the 3 year challenge.

Well I think that's crazy!! Not too sure how it all works but when you see figures working for you like that, it makes you all the more determind to keep overpaying!!

I think this is going to help me get back on track - yeahhh!!!!

Pintsized 1 x

Going off Track a Little

2009-11-05T14:54:00.000-08:00

Hiya Everyone

Sorry I've not posted for a few weeks but life has been a bit hectic to say the least! So, how have I been doing with gearing up for my Mortgage Free Challenge? Well, not very well to be honest! I've recently spent a large amount of money on a family holiday - and rather than making me feel guilty and wishing I'd saved it or over payed a little bit more on the mortgage, it's making me feel REALLY excited!!

I've not been abroad for over 5 years for one reason or another (mainly down to some very serious operations) and my main motivation has been my 3 year old son. He is desperate to go on an aeroplane and this has made me feel more guilty than the spending of the money. My eldest son (who is now 9) had been on numerous holidays including a cruise round the med by the time me was 3 years old.

OK, so I've not bought the holiday on credit and I can afford to pay it off now if I so wished - I'm not made of money but do have a little savings account that's for rainy days - well I decided last week that this was my rainy day. The way it has made my boys feel and knowing we have the excitement leading up to the holiday is totally worth it in my eyes.

I've not lost sight of what I want to do in terms of the mortgage but every now and again I have a look at what I've got and where I am in my life and I think, my boys come first - I want them to have these memories to look back on. But it's not only them, it's me and my husband who will cherish these memories that will be made on our 1st summer holiday as a family of 4 next year - so roll on May 2010!!

Px

£78 Minimum gain from playing Bingo Scratchcards

2009-10-26T15:24:00.000-07:00

Hiya All

How many of you play Bingo Scratchcards? I've been playing on one since January 09 and the other since about June 09. For those of you who aren't aware, a number of Bingo sites offer a free daily scratchcard and you can pocket the cash once you reach a certain limit (either £5 or £10). I was working out earlier this evening that even if I earned the minimum of 10p per scratchcard, per day then I would earn a well respected £78 per year. This is clear profit with no outlay - well, there is a bit but you get it back pretty much straight away!

Since the beginning of the year, I've won £5 on a scratchcard on at least 3 occasions and I've won £5 on the Bingo on at least 2 occasions - I'm already £25 up!! I have done really well with these scratchcards and more than that, it's a real buzz to play. Even better, it doesn't cost me a penny but it takes me a step closer to my goal of being mortgage free. I now use this money to make overpayments on my mortgage!!!

Px

Spending went down the Bowling Alley - postal strike partly to blame

2009-10-23T14:48:00.000-07:00

Ok, so today hasn't been the best day in terms of saving the pennies but we had a great time and you sometimes have to put this mortgage free challenge into perspective. My eldest is having his 2 friends over for a sleepover tonight and the idea was to take them Ten Pin Bowling (during hapy hour - of course!) then out for a meal at Bella Italia courtesy of Tesco Deals Vouchers.

All was going well. I booked the lane for 6pm - these lanes usually sell out very quickly, Tesco vouchers converted on-line, and table booked at Bella Italia. All looking great for a fun filled evening. However, by this morning, slap bang in the middle of the postal strike, no Tesco vouchers materialised!! We had to use money that we hadn't accounted for but at the end of the day, there were 6 mouths to feed and we were at a bowling alley - it was never going to be the cheapest, most healthy set up but do you know what, we all loved it!!

Oh well, this was a one off and like I said to begin with, we all had a great time and I know my eldest will treasure the memories for many more years after I've paid the mortgage off

Px

Start Raiding the Penny Jar!!

2009-10-21T15:30:00.000-07:00

Hi All

Ok so keeping my 12/12/09 mortgage challenge in mind, it struck me tonight that I was about to go to the cash machine to withdraw £10 to buy a loaf of bread. Instead, I decided to raid that money jar that I'm sure we all have that contains loose change - you know the one, it contains 1p's, 2p's, those dreaded 5p's (are they even worth anything!!) etc, etc.

I mustered up just enough pennies (£1.45's worth) and went to my local shop to buy what I needed - and that was it. No 'buy one get one free' or 'half price' offers - I got what I needed, nothing more, nothing less. OK, so the loaf of bread may have been cheaper at the supermarket - but it would have cost me a whole lot more!!

So back to my point, start raiding that penny jar on occasion and you'll be amazed at how much you can save - it saved me withdrawing £10 and wondering where it all went within 24hrs.

So go on, give it a go :-)

Pintsized1 x

ps - I was out on a cubs fundraising night last night and won a grand total of £1.05 - yeahh!!! OK, so the £1 went into my money saving tin and the 5p went into the pennies jar :-)

£100 paid off the Mortgage this w/e :-)

2009-10-18T15:20:00.000-07:00

Hiya All

Just a quick update before I go to bed. I manged to pay an extra £100 off my mortgage this w/e!! Adding it to my spreadsheet was a real buzz. I keep playing about with the figures and it's great to see the final balance coming down.

I've also put about £3 away in one of those tin money saving containers (that you have to open with a can opener!) I feel like I cheated a little here because my husband gave my eldest some money for the disco and (bless him!!) he came home with £1.20 change (he's 9 and will soon learn not to own up to having change left over!). Anyway, before he could pass the money back to his dad - I hijacked the £1 - it all counts and takes me a small step closer to being mortgage free :-)

Pintsized1 x

Can you get Obsessed with Overpaying?!!

2009-10-16T15:01:00.000-07:00

Ok, so how am I going to prepare for this challenge? I have 56 days left until the Mortgage Free Challenge begins. I have been reading posts on the www.moneysavingexpert.com website for quite some time and have gained some invaluable advice. I've been overpaying on my mortgage for quite some time now (but not long enough!!).

We got our first mortgage over 10 years ago and honestly, if I knew then what I know now, I would be in a far better financial situation. If any of you feel inspired to pay a little bit extra each month then that's great. Honestly, every penny helps. Don't think you have to overpay by hundreds each month. It doesn't have to be like that. With the present levels of interest rates, if your payments go down, then leave the payments as they are - the difference is classed as an overpayment and means you will pay off your mortgage months, if not years earlier.

I have created a fabulous spreadsheet (curtesy of the challenge founder) and it's amazing! It lets you complete the figures relevant to your own situation. You can then test out the impact of making overpayments - even by paying £10/month, you will make a big difference to the length of the mortgage term, hence how much you re-pay for the mortgage over the years.

So in answer to the question in the title - yes you can get obsessed with overpaying. Once you realise what an impact overpaying can have to the term on your mortgage, you too could start giving in to the obsession.

If anyone would like to know how to create the fabulous spreadsheet I'm referring to, please let me know and I will post some instructions on.

Thanks for reading!!

Pintsized1 x

My Mortgage Free Challenge

2009-10-14T14:17:00.000-07:00

I have joined a challenge that begins on the 12th December 2009 via the the http://www.moneysavingexpert.com/ website - the 'Mortgage Free in 3 Years - Take 2 Challenge' I suppose it's literally what it says on the tin other than you set your own target.

I can't imagine for one minute that I'll be mortgage free in three but am aiming to plough every hard earned penny I have into making overpayments so that I can make a dent and reduce the mortgage term by years!

I hope you enjoy following me on my big challenge and I will provide updates most evenings so make sure to come back and see how I'm getting on - you never know, it may give you the incentive to give it a go yourself!!