The future's bright - the future's mortgage free!

Treacle_Toes

Sorry about the rubbish grammar in the above post but I couldn't seem to get paragraphs to work, even when I edited it.

TT

setmefree2

Good Luck TT:D

Treacle_Toes

On Friday I had my car serviced. Being a typical girl I really don't know what is involved in this, but I have already noticed a significant improvement in MPG.

My car has a little display showing what my MPG is, and in true MSE style I've been keeping an eye on it and before the service is was about 34 - 35 MPG, but since Friday it is 38.1!

I'm not sure if I can change my fuel budget yet, and I'm definately sure that it won't work out to cover the £315 it cost for the service, however I'm pleased to see such a tangible result!

By the way my budget for the service was £350 (the company's original quote) so I saved £35 ready for my offset mortgage!

TT

StuartGMC

Treacle Toes, having the vehicle regularly serviced is definitely worth doing, if only to ensure any safety issues are picked up. It should assist in maintaining the engine at it's most efficient but I doubt the improvement was due to that! Most likely combination of driving style and ambient temperatures?

You may want to do a fule in & mileage driven to confirm in-car readings, the output in my Jag reads some 31mpg (on an S-Type 3.0) but when I do the calcs it is back at 28mpg....

Do you have your alignment (tracking) checked regularly? I usually do so every 6 months but didn't earlier in the year and it was picked up at the service in terms of some wear. Usually I would look for the first signs of "feathering" on the tyre edges and am annoyed I didn't do so in the Spring. No issue as the tyres are OK, but there are so many ramps etc now that checks every 4 months (depending on distance you drive) may be worthwhile with a trusted specialist dealer; often the check is free.

It seems you are on the right track with the mortgage planning and I think FD will allow you to offset the Cash ISAs without taking them out of the wrapper so that should help too (you'll need to modify the spreadsheet I sent you to include these).

Treacle_Toes

So, I've been offered an offset mortgage, and the offer is good for six months (which is good as it's been withdrawn now). As I don't want it to start til my current deal ends on 22nd Jan I've been in no rush to complete the paperwork.

I also wanted to wait until 3rd Nov when my latest mortgage payment was made to get a more accurate figure. I decided to phone my current lender to see if they could give me a redemption figure for 22nd Jan, and after a bit of a fuss, they gave me a figure that is higher than my mortgage stands today! And I've got two more payments still to make! When I pointed this out the advisor said something about daily interest making it higher - not £1500!

Anyway, I've gone with my forecast from my spreadsheet. It may be £200 - £300 out come January, but I can either adjust it nearer the time or just pay the amount that's over off. Also I've automatically reduced my mortgage by 1 year as I've taken it out over 18 years rather than the 19 years it is currently. OH is unaware of this and it's staying this way!

So it's already to send off.

Even more exciting than this - my sister has gone into labour this morning, so I'll hopefully be doing some money SPENDING on little stuff soon! (actually I've already budgetted for this in my Christmas/Birthday spreadsheet - is this going too far?!)

TT

Treacle_Toes

I haven't posted on here for ages as i didn't want to tempt fate, but my new mortgage deal of 0.79% above BOE rate offset tracker with First Direct finally started last week!!!

I have been scared for weeks (months) that they would find a reason to pull out of this deal.

I've transferred all my savings (approx £2.5k) into the offset account so I feel quite in control now.

But I can't work out if it is worth me transferring the money in my ISA over too.

I've only got £500 in the ISA and it is only at 2.05% now. I'm a basic rate tax payer if that makes a difference.

I'd really appreciate it if someone could do the maths and recommend what they would do - or give me a (simple) equation so I could work it out for myself.

I keep looking at the mortgage summary online and smiling to myself - I might even make a £1 overpayment -JUST BECAUSE I CAN!

TT xx

Kaz2904

Out of interest (well nosiness) what was your end redemption figure? Were they right or wrong? I'm hoping they were wrong!

RosieTiger

That would be a very nice deal if it was avaialable !

Treacle_Toes

Kaz2904 wrote: »

Out of interest (well nosiness) what was your end redemption figure? Were they right or wrong? I'm hoping they were wrong!

Am I being thick but I don't really understand your question! Do you mean what is my mortgage amount? It's £117000. If you mean did I have to pay early payment redemption charge, then no, I waited until my previous deal was over.

Sorry if I'm being thick!

StuartGMC

Treacle_Toes wrote: »

I've transferred all my savings (approx £2.5k) into the offset account so I feel quite in control now.

But I can't work out if it is worth me transferring the money in my ISA over too.

I've only got £500 in the ISA and it is only at 2.05% now. I'm a basic rate tax payer if that makes a difference.

I'd really appreciate it if someone could do the maths and recommend what they would do - or give me a (simple) equation so I could work it out for myself.
TT xx

TT, firstly well done on that deal :T:T:T

Secondly, PM me and I'll send you my spreadsheet which may help as it is a household budgeting spreadsheet with offset calc for effective interest rates built in.

Thirdly, the maths is quite simple, and as you have so little in the ISA losing it and the tax free interest in future years is to be realistic, unlikely to hurt you much?
As it is in an ISA you get interest tax free at 2.05%, whereas the mortgage is only costing you (presently) 1.79%, so in theory it is better in your ISA....

Fourthly, do see if your new offset can include Cash ISA. Whilst they would not grow whilst offsetting, if you expect to be able to save a lot to them over the time you have the mortgage, they can offset against capital in that time, then when mortgage-free you have these savings still in their tax-free ISA wrapper for years afterwards.

Good luck and enjoy the ride.