pammyj74's MFW diary (or possible wishful thinking!!)

pammyj74

ok so from spreadsheet (which I cant confirm with halifax yet until updated)

These are only figures from when i started the SS
I have saved £1,925 in interest so far
I have knocked off 11 months off the end of the term (full amount, 5 months on SS)
End date today now stands at april 2030. (orig feb 2031) a steady progress

SS total says £84,919.76 left to pay

I will look to see at the end of this year when i remortgage to maybe take a year off, will have to see what the payments are. although just overpaying is flexible as I can do it as and when i can afford to.

ok have just looked at mortgage calc again and it shows the following (i know its not exact and only an idea)
in Feb my mortgage will finish and if i pay £200 OP each month as planned up to jan i will have £83,404 left and would have 21 years
I am hoping that i can get a better deal than 5.89% but have worked it out on that for now.
If i take the term down to 19 yrs and still OP £200 it should only take me 12 yrs to be mortgage free
I would LOVE to be mortgage free in 10 years (my youngest will be 16)

StuartGMC

Best wishes with the new figures and target. Remember if you can only look at 19yrs now, in 3yrs you may be well able to improve on it again. Little by little....

However, do consider that at a certain stage it will become uneconomic to change mortgages as the fees will be a significant % of the remaining sum. May be worth looking at possible offset at time of review in a few years from now?

pammyj74

thanks Stuart, i did think about that, the fees to change every couple of years could be half the amount i am overpaying and so pointless to keep changing.
Is it better to go into a 5 year fixed rate next time do you think? with the way things are they may go up more but then i got stung this time around by being in a fixed this time

pammyj74

ok my figure on halifax this morning shows £85,219.76 left which means the £300 i paid hasnt come off, the mortgage payment did come out early due to bank holiday so maybe thats why?

StuartGMC

pammyj74 wrote: »

thanks Stuart, i did think about that, the fees to change every couple of years could be half the amount i am overpaying and so pointless to keep changing.
Is it better to go into a 5 year fixed rate next time do you think? with the way things are they may go up more but then i got stung this time around by being in a fixed this time

Pammy it is a very difficult call; basically fixed means "known" outgoings. We did so on gas and electricity in September last year to Sept 2011 for the first time.... I'm likely to pay the penalty to exit in October.

There is an expectation of rises in rates, but the critical point is when. With low SVR you need to decide at what point of increased interest rate would it really hurt; then look at the rate of change previously and monitor very carefully month by month whilst on the SVR. If your lender can put in place a fixed quickly then you may want to have a "trigger" point where you have decided in advance you must switch to a fixed.

Why not look at offsets now as well; whilst we are with NatWest you may want to look at Barclays (Woolwich) and FD who I think also allow you to offset Cash ISAs so the money stays in the wrapper once you are MF and then it reverts to earning interest but still tax free.

Best wishes with the research.

determined1_2

pammyj74 wrote: »

ok my figure on halifax this morning shows £85,219.76 left which means the £300 i paid hasnt come off, the mortgage payment did come out early due to bank holiday so maybe thats why?

Just give em a call and ask.

My seperate standing order was taken, both yesturday, and the balance has updated correctly today.

At least we now know the spreadsheet agrees to the penny (other than why the £300 hasn't been taken off by the bank)

pammyj74

balance today is £84,933.51 which is a difference of £13.75 which would have been my daily interest this month, not sure if that is going to be as SS says £13.70? (i suppose because of my OP) when does the dailiy interest get worked out?
I'll reply to stu later as need to get to work

determined1_2

Right pammyj74, this is your situation:

Balance at 01.09.2009 = £84,919.76 as per spreadsheet

The online balance today is showing £84,933.51 because as you correctly said, it includes one day worth of accrued interest - not yet actually added to the balance.

As you mentioned this is £13.75 more not £13.70

Just to confirm the £13.70 is calculated as £84,919.76 x 5.89% / 365

The £13.75 is calculated as the £85,219.76 x 5.89% / 365

So the 5p difference is due to £300 x 5.89% / 365

Do not adjust the spreadsheet to reflect this as the bank should adjust this when the interest is added next month. This is because they back-date the payment to went it is ment to be received, i.e. the 1st of the month.

So basically, hold tight and it will be sorted and do not adjust the spreadsheet.

HTH

pammyj74

determined1 wrote: »

Right pammyj74, this is your situation:

Balance at 01.09.2009 = £84,919.76 as per spreadsheet

The online balance today is showing £84,933.51 because as you correctly said, it includes one day worth of accrued interest - not yet actually added to the balance.

As you mentioned this is £13.75 more not £13.70

Just to confirm the £13.70 is calculated as £84,919.76 x 5.89% / 365

The £13.75 is calculated as the £85,219.76 x 5.89% / 365

So the 5p difference is due to £300 x 5.89% / 365

Do not adjust the spreadsheet to reflect this as the bank should adjust this when the interest is added next month. This is because they back-date the payment to went it is ment to be received, i.e. the 1st of the month.

So basically, hold tight and it will be sorted and do not adjust the spreadsheet.

HTH

dont panic :cool: I wont be adjusting lol, thanks for youe help D1

determined1_2

don't panic. WHAT!!! 5p is at stake here :eek::eek::eek::eek::rotfl: