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newgirly · 18 October 2017 at 7:13AM

You could always "offset" the £10k when working out your mortgage balance but keep it seperatly as an EF. Have you looked at joining the mortgage free in 17 or probably now 2018 thread?

Merchandiser2367 · 18 October 2017 at 7:44AM

newgirly wrote: »

You could always "offset" the £10k when working out your mortgage balance but keep it seperatly as an EF. Have you looked at joining the mortgage free in 17 or probably now 2018 thread?

Thanks newgirly :j

We're only just starting out on this, have heard of 'offset' before but do you mean an offset mortgage or just included the £10K in any sums when working out mortgage (i.e our mortgage is £146500 so with these savings, it is £136500?)

How do you join the thread you mention?

Betterthanever · 18 October 2017 at 8:07AM

I'm another one hoping to get a largeish mortgage paid off in 5 years - mine is £116k at the moment, and my spreadsheet certainly indicates that it is doable, whilst still maintaining some level of "life".

I'm aiming to over pay the allowable 10% each year, and then anything more is going into savings which I consider my "offset" pot as it will be used to clear the remainder of the mortgage at the end of the 5 year fixed rate period. I'm aiming to be "mortgage neutral" at the very least - ie my savings being equal to or greater than my outstanding mortgage, by the end of the 5 year term.

Merchandiser2367 · 18 October 2017 at 8:21AM

Betterthanever wrote: »

I'm another one hoping to get a largeish mortgage paid off in 5 years - mine is £116k at the moment, and my spreadsheet certainly indicates that it is doable, whilst still maintaining some level of "life".

I'm aiming to over pay the allowable 10% each year, and then anything more is going into savings which I consider my "offset" pot as it will be used to clear the remainder of the mortgage at the end of the 5 year fixed rate period. I'm aiming to be "mortgage neutral" at the very least - ie my savings being equal to or greater than my outstanding mortgage, by the end of the 5 year term.

Thank you for explaining 'offset'! I understand now. If all goes well, we too hope to be mortgage neutral by the 5th year at some point.

I know there will be ups and downs but if we can keep it going even in the down points to some degree, we will get there!

Merchandiser2367 · 18 October 2017 at 2:35PM

I was wondering if any of you experts out there could suggest other ways to top up OP payments?

I was thinking along the lines of

Current account switch (to use the switch fee)
Cashback credit cards

These kind of routes but hoping some of you experts may have ones I have never heard of/thought about?

Merchandiser2367 · 18 October 2017 at 2:53PM

Just set up a Halifax 5% Savings Account (Max £250 a month) and 5% Santander Savings (Max £200 a month) - so will start to add to these and OP at same time as 5% beats my 2.09% mortgage....think that is right thing to do?

Merchandiser2367 · 19 October 2017 at 9:52AM

ooooH, just found out that the next Bank of England Interest rate meeting is on November 2nd (I thought it was the 5th)......which everyone is expecting will rise

We can apply for our new mortgage (which I have made all the calculations for) on 1st November! It should literally be a click to accept one online with Halifax. Not the best 5 year deal on the market but they allow you to switch to another Halifax mortgage 3 months before the end date penalty free, 1 month to another mortgage company - so with the expected rate rise, my thinking is better to get in now!

Hope it all goes smoothly and we don't stuck with a higher rate!!

newgirly · 19 October 2017 at 9:56AM

It's a personal choice the the savings accounts, if you are a resposnsble adult who will not touch the money and use it to clear the mortgage in the future -yes, it makes sense.
If you you have a history of overspending and making rash purchases like me then no, it's safer coming off the mortgage :rotfl:

Merchandiser2367 · 19 October 2017 at 10:13AM

newgirly wrote: »

It's a personal choice the the savings accounts, if you are a resposnsble adult who will not touch the money and use it to clear the mortgage in the future -yes, it makes sense.
If you you have a history of overspending and making rash purchases like me then no, it's safer coming off the mortgage :rotfl:

Thanks, that's a very good point! Had not thought of that. When we saved for our house, we were pretty good so I think we should be ok....just have to be careful if any 'down' periods come along.....the money could be tempting! But if we keep sight of our goal, I reckon we should be fine

Merchandiser2367 · 19 October 2017 at 11:39AM

Getting into this MFW now! Just completed payments into both new savings accounts for Halifax and Santander. Will keep £10k emergency fund in highest interest rate accounts as possible.

MFW to do list:
1) Dump current credit cards, apply for cashback ones (After mortgage renewal 1/11)
2) Open 3% Tesco savings (Max £3000 each) account for me and OH (After mortgage renewal 1/11)
3) Open Post office 1.27% Savings account (After mortgage renewal 1/11)
4) Check for vouchers on things need to buy/restaurant vouchers/days out with family etc.
5) Go onto cashback boards - see how these work, top cash back in particular
6) Open 2 x current accounts for switching purposes (After mortgage renewal 1/11)
7)People Per Hour - CV etc.
8) batch cooking

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