Originalmiscellany's MF dreams

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Have a fab summer OM MOM and Little OM and bump-OM (congrats on your news- bit late to the game I know! )
Congrats on making it to the holidays- Im not a teacher but not too far away from involvement with schools and small people that I have felt similarly relieved this year to be on holiday!! :rotfl:

originalmiscellany

Whoppee! Am one of the lucky 5000 who will get a new electric toothbrush. I love my electric one, which I bought 6 yeats ago so will be interested to see how technologies have changed! Just trying to work out how my old one can be given to MOM (new tooth head on it mind you!) but I rarely win anything so it's a bit of a bonus if you ask me.

abouttimetoo

originalmiscellany wrote: »

So war has been declared.
We have started making overpayments on MOM's BTL - it's sat rented but no overpayments for some time.
I rang the Woolwich on Friday and it turns out we can make infinite overpayments with no cost.
To make matters better, they will send out a letter telling us of the new balance. What I didn't tell them was that I like sending a lot of small amounts on a frequent basis, so I think I will start getting a lot more post from them as we chip away at the mortgage.
Currently, 76.5k? (The first 2 numbers are right, the decimal place at the end is an approximation).

First overpayment is £10.00. Have sent it to confirm that we have the right bank details, then I will start making many small overpayments.

As a recap, there's me (OM), my wife (MOM), my young daughter (DOM) and one in the oven, Bump (BOM). MOM will stop working soon, so we will go down to one income so paying off the mortgage will slow down.

Having looked at how interest rates will affect us, it appears that being IO will affect us big time when rates go up (next few years) so being able to keep chipping away will mean the impact when they rise will not be as heavy if we owe less. Not rocket science. Also with savings rates being so low, there's not a huge incentive to save all of the money as we're talking about small quantities of cash and the interest profit will be very small.

So, first step on the road we go!

Hi OM, just catching up on your diary

I'm most intrigued by you OP'ing on your BTL; I started to do that but then stopped as it surely has tax implications that are not advantageous? Would you mind sharing your thought process please OM as it's perfectly possible I'm missing a trick here

Regards
ATT

originalmiscellany

Sure, it's simple as we have 2 mortages, our house in my name (I lived there before MOM moved in) and MOM's in her name as she lived in hers before she married me (lucky thing)). Now, she's stopped working, she will not earn money for several (3 or 4?) till she goes back to work, by which time the mortgage rates will have gone up. Therefore as the interest is so low, we can "afford" to overpay, as she is not earning therefore can't be taxed on it any more i believe.

The reality is that we can only clear a small amount per month, so it's not going to make a huge difference to the overall interest only charge, BUT when rates go up, we'll feel the impact hugely

I think that's right?! Let me know ATT if that makes sense?

unhappy_shopper

Congratulations OM and MOM :beer:

originalmiscellany

Thank you! We're off away for a few days where I'm going to do some serious number crunching into what exactly we spend and what on,so that we are able to work out what our next chapter looks like.
Plus filling in the form for a new toothbrush - It looks easy to do, just need to clarify that you/one keeps the old one if you don't want to recycle the toothbrush but still get to keep the new one?

LauraJo

Hi
Just having a nose! Congrats on the addition
Btw we are with the Wooly and they do send us letters but they never turn up if we OP under £500???
I have a stack of letters like my own little diary for when this is all over

originalmiscellany

Well hello LauraJo! I got a letter stating that my £10 overpayment had been made. Congratulations to you on clearing your mortgage too - you're getting there which is the key thing

originalmiscellany

And another £10 - we're really cutting this mortgage to shreds! On a serious note, it's a quiet month - holidays done - staying in friends houses and enjoying free days out. Now lots to do to get ready for baby 2, which all costs money it appears. I wasn't expecting that! So it's furniture (replacing tat that I bought years ago) and other things this week.

abouttimetoo

originalmiscellany wrote: »

Sure, it's simple as we have 2 mortages, our house in my name (I lived there before MOM moved in) and MOM's in her name as she lived in hers before she married me (lucky thing)). Now, she's stopped working, she will not earn money for several (3 or 4?) till she goes back to work, by which time the mortgage rates will have gone up. Therefore as the interest is so low, we can "afford" to overpay, as she is not earning therefore can't be taxed on it any more i believe.

The reality is that we can only clear a small amount per month, so it's not going to make a huge difference to the overall interest only charge, BUT when rates go up, we'll feel the impact hugely

I think that's right?! Let me know ATT if that makes sense?

Hi OM and belated thanks for the reply

Yes, that makes perfect sense. I need to revisit mine again as it makes me very uneasy the fact that the balance is just sitting there!

Hope you had a good few days away and are enjoying this lovely weather

Regards
ATT