Want to be a mfw but worried?

ally18

Hi all,

Thanks very much for all your replies, sorry havent been on for a few days as only have access to the pc at work. I'm going to have a look for stuartgmc's thread to see if I can find that spreadsheet and when I get home tonight, I'm going to double check just how much I do owe and start working things out like the daily interest payments and stuff.
I recently found out about quidco and have started using that to save a few pounds. I actually cried as well when I saw about the £110 cashback for moving to Scottish power. I'd only just done that two weeks before. All that lovely money that could have gone in my pot!

Never mind, better late than never.

SmlSave

Hi ally

Don't be sad about the scottish power cashback, it happens and now you definitely know for next year!

Re the spreadsheet: - just PM Stuart to ask for the spreadsheet His thread's huuge but well worth the read

ally18

Believe it or not, I don't know how to pm anyone. Very new to all this.

cake21

ally18 wrote: »

Believe it or not, I don't know how to pm anyone. Very new to all this.

On every screen when you're logged in you should see "User CP" under the "Welcome, ally18" line. From there, click on "Send new message" down the left-hand side. In the "Recipient's username" box start typing in their MSE username and it will make suggestions, click on the one you want.

Or click on someone's name in their post, then there will be a drop-down menu including "send a private message".

Or click on StuartGMC's profile and then "send a private message to StuartGMC"

HTH

ally18

Hello all.

After initially starting my diary back in Nov last year, I have decided to come back and this time make sure I stay on track. I really need to keep tabs on my spending and I need to see that my mortgage is going down. So today, is the first day of a new start.

If you look back at my earlier posts, I'm still single (and going to stay that way!) with 3 kids aged 16, 14 and 11. My mortgages currently stand as follows:
M1 - £62,367.59 @0.68% (Was at £66k this time last year) Paying £50 extra each month
M2 - £17,441.98 @1.49% (Was at £19k this time last year( Paying £45 extra each month
Both were taken over 28 years back in 08 and so aren't supposed to finish until 2036, by which time I will be 70!!!!!! I really don't want this so am aiming to keep overpaying as and when I can. Since 08, according to the calculator I am using, i have reduced m1 by 10 months and m2 by 3yrs 9mths which is a good start. :j

I had to have a new car back in July so decided to opt for a decent one so it would last, this cost me £5100 which I borrowed on my mortgage reserve, this is great because its costing me less interest. Hopefully that will be paid off in a years time and then that money can go back to overpaying the mortgage.

If someone can direct me to a SOA, I will fill one of those in to keep track further. I tend to be on here everyday whilst at work, naughty I know, but reading everyone else's diaries keeps me hoping I can do the same.
Thanks

Caroline73_2

Welcome back!

drewwa

To give you a feeling for how well overpayment works in the long term consider this (easy numbers for the sake of clarity)

£100,000 mortage
5% interest rate
25 year term

You'd pay £584.59 per month

If you paid an extra £10 per month from the start (i.e. £594.59 each month) you'd knock almost a year off your mortgage and save about £2,700 in interest over the term.

If you paid an extra £100 per month from the start (i.e. £684.59 each month) you'd knock six years off your mortgage and save nearly £20,000 in interest over the term.

So yes, every little overpayment is definitely worth it!

Cheers,

Drew.

ally18

Thanks caroline and drew for your comments. I'm going to stick with it this time!

It doesn't feel as if I'm paying much extra at the mo basically because of the car but like you say drew, anything will make a difference in the end.

I have my 3 months emergency fund now tucked away and a little amount in an ISA for day to day emergencies.

I budget every month and save for bills and xmas throughout the year so as to have enough for when I need it so xmas is sorted this year. I've already told the kids that they have a limit amount of money for their present and this will be handed over as cash. Last year I also bought them pjs, underwear, socks that were wrapped up so they had something to open on the day. I also did them a little mystery box with little bits in which came out of the savings so didn't cost me any more but they loved.

Because I bought my car in the middle of the year, it looks like I have around £350 left in my bills account which is going to go towards another payment off the car loan, that will mean an extra payment to my mortgage this time next year. I think thats the best way to go as I hate seeing my bank account overdrawn and its going to stay that way until car loan is paid off.

Budget is in place for holiday next year as well so will try and get a last minute deal for October school hols. Eldest child won't want to go so only 3 to pay for, should be able to do that on budget amount set.

Just written down Novembers payment towards the car loan, that now stands at £3140. Paying that off at £350 each month, which until July, £280 used to go on the mortgage and £70 was paying for my kitchen units. Can't wait to get back to adding that to the mortgages!

Have got 3 jars for loose coins sitting ready though only the coppers one has anything in at the moment.

At work all day today so a NSD for me, nothing in the purse anyway.

babyb06

Hello!

I am a newbie to the site, but already picked up so many tips - and I think a regular diary does keep you on track. Well done on the current O/Ps but have you thought about just concentrating on one of the mortgages?

M2 is higher interest rate and so it makes financial sense to pay more off this as it will save you more and your challenge (long term) could be to clear that completely - for me clearing one mortgage completely and having one left would be a bigger mental success than if you have paid the same amount off but split over the two mortgages.

you may prefer making o/p's against both - personal preference - just putting my view forward for what it's worth!

BabyB

ally18

Hi Babyb,
You know I hadn't actually thought of that because I was wanting to see both amounts go down at the same time. I'm not very good with figures, I thought the bigger mortgage is still costing me more even though its a lower interest rate, going to have to get my head round this properly now.
If anyone is good with figures, would appreciate any advice on working it out.
ty