Mortgage Reduction Beginner to Novice - The Show Begins

chirpchirp

Hi MRN

I'm not an expert at this but I think you should put it into savings like you suggest and pay 10 days before the interest is due to be calculated (10 days to ensure they have time to process etc maybe 14 days - you know what banks are like). The problem with this is that you may be tempted to withdraw it, especially if there is an emergency.

Martin is recommending the Barclays regular savings account which allows you to save between £20 and £250 a month at 6%. I've got their Golden ISA which is paying 3.61%. I don't no how adverse you are to risk but I have a Stocks and Shares ISA to go some way towards paying my mortgage. It hasn't performed well of late but at least at the moment I'm buying shares at a low price so when the market picks up I should hopefully see a good return. However, stocks and shares need to be viewed as a long term investment so I wouldn't put too much money into them. I've also taken the Ing account which is paying 2.75% at them moment. It's one of the best deals around and someone on here may have a refer a friend code which they may give you allowing you and them to gain £25.

Good luck finding a decent interest rate.

Mortgage_Reduction_Novice

That threw a spanner in the works of our plan... enforces the notion to "stay flexible" I guess! Glad we asked when the interest is calculated (November) for our mortgage before amending the direct debit. Was a bit gutted that we wouldn't be officially making overpayments from June at first... but now I realise that we can earn some interest on whatever we do save for the annual bulk over payment. Also I think we'll be more likely to round this final figure up when it comes to it.

I think we'll leave our ISA's as savings (we both have Golden ISA's) and open a different savings account specifically for the mortgage overpayments. We won't miss out on a full year's worth of tax free that way and I think if it's an account just for the mortgage money then we won't dip into it unless we've used other money elsewhere.

Thanks for comments!

Mortgage_Reduction_Novice

Looks like another MSE weekend planned:

Don't need to go Supermarket so just fruit and veg at the Market in town.
Seefilmfirst - Sunday morning so there were still free tickets for our local cinema!
Need to finish painting the shelves and put them up... then a huge sort of all bills, bank statements... it's all still packed up in boxes since we moved in 6 months ago! No doubt the shredder will over-heat again, just like it did when we were sorting and packing to move into new house!
Oh yes and the rain water collecting device that connects water butt and drain pipe, it pains me to use the outside tap for the veggie patch when we're on a water meter!

What's everyone else up to this weekend? How MSE are you?!

littlemrtinkle

we connected our water butt to the shower water because we were finding our water butt was never getting full enough for all the plants we have. grey water is fine for most plants apart from leafy veg.

SmlSave

Sounds like you've got a jam packed weekend ahead of you MRN!

How MSE are you?!

Not very going shopping tomorrow for clothes

we connected our water butt to the shower water

I would have never thought of that mrtinkle, forgive me if I'm being dim but how does it work?

Mortgage_Reduction_Novice

littlemrtinkle wrote: »

we connected our water butt to the shower water

I mentioned this to OH, he asked how the water would get up there!:rotfl:
After I explained, we went into the garden and it's just not possible without having the water butt right outside the back door.

Mortgage_Reduction_Novice

I'm pleased to announce our first contribution to the newly opened Mortgage overpayment Savings Account: £51

It should have been more but I haven't been paid yet. Contract says "on or around the last day of the month". Infact my collegues haven't been paid either. One of my collegues has gone overdrawn and spent yesterday morning at the bank trying to sort it out.

SmlSave

Mortgage overpayment Savings Account: £51

:T Well done, hope you get paid soon

setmefree2

Mortgage_Reduction_Novice wrote: »

I'm pleased to announce our first contribution to the newly opened Mortgage overpayment Savings Account: £51

well done on that :T

Mortgage_Reduction_Novice

Mr MRN is away this weekend, so I've had more of an organising weekend than a typical MSE weekend... but its a means to an end and I didn't spend any money doing it (just some electricity for the shredder and drill).

The shelves finally got put up... by me!!! I've been sorting out statements, bills and all sorts of other paperwork. The shelves are now adorned with well lablled and neatly ordered boxfiles & folders. The mortgage got its own folder and I printed out the schedule of payments to be the first page in this folder... a bit of a reminder if we're slipping on the OPs and a boost if we're not.

Thankfully our council allow shredded paper in the recycling (some went in the compost bin too). Our poor shredder overheated quite a few times and had to have a few rests.

Oh I got paid. Which was a relief, I was getting very close to being overdrawn but being stubborn not withdrawing from an ISA.

What have others been up to this weekend?