Pixelwife MFW - Overpayment Diary

pixelwife

Just made another payment to my own mortgage and have now brought the term down by another 2 months

Updating signature file now!

wantabetterlife

pixelwife wrote: »

Thank you for the post, wantabetterlife. To be honest, I'd not felt we'd achieved anything the last couple of years but you're absolutely right - hanging onto them in such turbulent times IS a big achievement and one we shall celebrate! I treated my hubby to a steak for dinner so that can now be why he's having steak!

I see you have a BTL as well as your own mortgage - what's been the key to your success so far?

Pixelwife

To be honest PW our BTL property wasnt really a choice, it was our first home and when we decided to move we put it up for sale and had it sold only for the whole thing to fall through. We really didnt want to miss out on the house we are in now so we rented the other house out. That was five years ago and we are still renting it out due to the property market...if we sold it now i dont even think it would cover what we owe on it :mad:

Well done on getting another 2 months off the end date:j.
Deciding when is the right time to have children is a difficult one isnt it? We have three kids ranging from 6 years to 8 months. We always said we wanted 4 but my husband wants to start trying now and i think we should leave it for at least another year, mainly because i would really like to get our car loan paid off and my student loan which would give us an extra £250 per month. On the other hand i kind of agree with his theory of having them all close together so they grow up together and the whole childcare thing is done and dusted in a few years. Anyway enough rambling from me.........

pixelwife

Poop.

Just made another £500 overpayment on highest interest rate BTL and my final MF date hasn't changed from Feb 2026. Gutted!

Pixelwife.

pixelwife

Not been on for ages, sorry. Lots going on.

Made a one off overpayment last month on highest interest rate mortgage but as you can see from my sig file, I'm still way off paying these bad boys off!

Looking at sites like Zopa to try and bolster the capital I can pay off as little and often seems to be my best strategy. Any other suggestions of how to make the money work quickly?

I don't have the time to do surveys etc so it's all about opportunities to get my cash working harder for me!

PW

pixelwife

Hi everybody

Again, it's been a while since I last posted.

The recession has continued to hit us hard and we've had many months where we have chosen not to take a salary from our business in order to keep our business capitalised. This left us in arrears with all of our mortgages and generally in a bit of a mess.

Whilst we're not out of it, we are fighting back. Last week, we got a very nice lump sum from my hubby's loan that we paid off last year for missold PPI so that was fantastic and it went straight against the mortgage on our house which was most behind.

As you can see from my signature, we're still behind on all of them but with income from a variety of sources (the day job, plus currency trading, zopa lending, etc) and a commitment to posting here I am hoping I can pay bits off every day until I am back to overpaying - the activity I most enjoy!

Any cheers of support most welcome

Pixelwife.

pixelwife

I should add I did pay £300 off one of the BTLs just before I posted so my signature wouldn't look too bad so I am already back in the flow of MSEness!

jamesd

Those numbers look strange. Why are you overpaying on your own mortgage when you have BTL mortgages? You should normally be looking to increase the mortgage on your own property and decrease the mortgages on the BTL properties because residential mortgages are normally cheaper and at lower interest rates than BTL.

Either way the mortgage interest on the portion of new borrowing to clear the BTL mortgage is deductible from rental income for income tax because the purpose is the BTL business borrowing.

pixelwife

I totally agree but sadly those aren't overpayments. Those are underpayments! I'm still a bit behind with each, when it comes to overpaying I always overpay the one with the highest interest rate which as you rightly state is one of the BTLs.

jamesd

What's the equity level in your own home? You may be able to save significant money by getting a further advance on that cheaper mortgage to reduce the amount on the BTL loans.

pixelwife

Already investigated that but as I have a variety of other financial commitments, they aren't willing to up the lending so my only options are to pay them all down in order of interest rate.