**Deefa's** MFW Diary 5 year plan...

dexter_fan

Cheers dexter, much appreciated! Good luck on your too! Now please don't take this the wrong way, but when people like yourself is doing the same goal but has a higher balance than myself it makes me feel even better that my goal is achievable - in the nicest sense of course - i don't have the best way with words sometimes, so don't want to offend!


none taken Deefa:beer:

deefadog

Well I paid £40.57 off my balance this week (Small i know, but all helps). It took around 1 working day to show off my online statement, which is nice to see the results quickly :beer:

As i am overpaying around £107 a month at the moment, this amount does not get added to the borrow back, as Northern rock require an amount of £500 + for this. So i am trying to figure out how much i would lose out by paying the minimum amount for 3 months and on the forth month overpay £500 as a lump sum.

According to another helpful MSE'er i would only lose around £3.50 and i would be willing to lose this for the ability to have that amount to borrow back if i so desired! - Safety net as it were!

deefadog

Ok as of some strange luck, i had my mortgage overview in the post today with my payments

I need to work out the difference between:

interest is 5.19% -Balance to date is £95760.19 - normal payments are 675.53 (i kept these the same after i paid off 20k)

Here are the next 4 months :

Nov 548.70
Dec 548.70
Jan 548.70
Feb 548.70 + overpayment of £500


Compared to:

Nov 675.53
Dec 675.53
Jan 675.53
Feb 675.53 + overpayment of £7.32

**Edit - I work out the difference of £17.94 extra if i did the £500 every 4 months, but would have that as borrow back.

Now what to do....... any advice welcome



Many thanks

chirpchirp

Well, I suppose it's a case of ifs and buts. Whilst it's paid in it's saving you interest over the lifetime of the mortgage. Will you definitely need to borrow money back? If not, then it may be worth the risk. If you know for certain you will be needing to borrow it back then you may want to wait till you have the £500.

chirpchirp

Oops, messed up! Last post was in reply to your message on another thread!

deefadog

Thanks and no worries, i double posted, should be on here really LoL

Well I was thinking that rather at 5.19% compared to crappy interest in savings accounts I should try and chuck as much as possible at the mortgage.

So i think i'll go for option B and pay the £500 actually £518

deefadog

Northern Rock trying to pull a fast one?

WE have recently reviewed your mortgage and it has come to our attention that your contractual payment is incorrect - Your correct payment will be debited form Nov 1st

i.e less the £126, which is what i wanted anyways :rotfl:

deefadog

Transfered the £126 - well £130 actually to round it up to my new mortgage overpayments savings account. So every 4 months i'll overpay by at least £520 - more if i can add to it!

Have a good weekend all!

deefadog

Sorted out my Gas & Electric as i had just come off the fixed rates and was on the really expensive standard rate! (Cheeky !!!!!!s)

Completed my spread sheet for bill's for next year! - Realised our council tax is over 10 months, so Jab & Feb are free - so thats £392 towards the pot!

evab_2

well done, some great progress there!