Mortgage Free Newbie!!

Jonbvn

OP,

With such low interest rates, it would be madness to overpay your mortgages now. You should be saving your money in ISA's and other investments, which are paying much more than your mortgage rates.

When the rates rise, think about making a lump sum overpayment from savings.

How will you repay the capital?

MoneyQueen

Hi Button21,

Welcome to the MFW forums and Good Luck with the your MFW journey

MQ

Button21

Hi and thanks to everyone for their replies!

My thinking was, I only pay the interest at the moment, and try and save as much as possible into a saving account, then, when interest rates rise, lump sum it across into my mortgage and go back onto a repayment mortgage.

I'm not sure if it's 6 and half a dozen, but I think my rate averages around 1.31% at the moment (incorporating beneficial rate of 0.5% and 1.69%) and I have a savings account paying 3% less tax.-

I'm sure I read somewhere another taxable benefit of having an ISA rather than the obvious tax free etc?? Can anyone shed any light for me??

Jonbvn

Button21 wrote: »

I'm sure I read somewhere another taxable benefit of having an ISA rather than the obvious tax free etc?? Can anyone shed any light for me??

Any income from ISA's & NS&I tax-free products does not have to be included in your income for WTC & CTC purposes.

wantabetterlife

Hi Button, well done on the grocery reduction, that is really good progress :j. We are also a family of four and ours would be around £65 a week, i am trying really hard to reduce this by making small changes gradually. As for the ISA, sorry i cannot enlighten you as i dont have one, terrible i know!

Button21

Jonbvn, thank you! That is the other benefit I couldn't remember! Thanks again!

WABL, my grocery shopping won't always be £20!! I am eating mostly out of the cupboards at the moment and just buying things to go with the food I already have - ie tinned salmon etc, so have just been buying veg, fruit, salads, bread and milk etc!! I think at one point I must of had a passion for buying tinned fruit as I have about 8 tins of peaches in syrup!!:rotfl::rotfl:

We had roast chicken for tea tonight (reduced to £3 in M&S) and rather than throwing away the leftovers, I picked the chicken and have more than enough to make lemon chicken and rice tomorrow night!! I wouldn't have done that before!

My next mission is to venture into the depths of the freezer and see what is there!!

BTW, I found a packet of rice which was dated 1998!! OMG what a terrible housewife I am!! That poor packet of rice has survived 3 house moves and 12 years of loneliness sitting next to the paprika jar!!:rotfl::rotfl::rotfl:

Button21

BTW take 2.....my husband thinks I have officially lost the plot and sniggers at this!!

I will sooo prove him wrong!! ;)

Queen-Bee_2

Button21 wrote: »

JI found a packet of rice which was dated 1998!! OMG what a terrible housewife I am!! That poor packet of rice has survived 3 house moves and 12 years of loneliness sitting next to the paprika jar!!:rotfl::rotfl::rotfl:

:rotfl: I turned out my larder after Christmas to make some more room in the kitchen and found a huge bag of ten year old dried fruit lurking at the back... The birds round here are well fed round here at the moment!! I also found a three year old home made Christmas pud from my mother, which I can't bear to part with. As it's made with vegetarian suet, I assume it'll probably be inedible by now, which seems such a shame. I might just have to cook it and see :eek::eek::eek:
QB

Button21

Just a quick update on my MF diary!!

I'm doing well on the shopping budget - up to £23.50 - so far so good! Just eating from the cupboards and buying stuff to go along with! Hoping not to exceed £30 for the week ending this Sunday!!

I did 3 and a half hours overtime at work - normally I would have turned it down!!

I did however spend £50 in Boots today! But.....I have all my birthday presents and Christmas presents for the WHOLE YEAR (excluding kiddies Santa presents). Now all I have to do is discipline myself to not buy any more "bargains!!"

Button xxx

Button21

Just to add.........has anyone experienced a down side to money saving????............

I have and it is PUTTING ON WEIGHT!!:eek::eek::eek:

I am now of the mindset.....well, it's in the cupboard so let's not waste it!!! And, I have to clear my plate so again, lets not waste anything!!!

I have no willpower when it comes to food!!!!!:o:o:o