Tierd of living in a shoe box

cocalls

said baby is asleep, so ive just quickly come on to listen to the Saw Doctors after seeing them on breakfast tv-reminds me of my teenages hols in Ireland...
Liliac Pixie i'm with HSBC for mort and bills account and it's really quick for me to transfer the money across to the mort so there's tiny transfers going on like 17p. I'm trying to think where this money has come from; Quidco, CB, tax credits, lightspeed, halifax reward,atlantic gas/leccy yearly thank you,and my wage so its mostly extra money which is good as my mat wage is going down monthly.

cocalls

so the normal mortgage payment has gone out and i've put in a little bit as i like nice round figures (my only OCD tendency!!) so it currently stands at 63970.00 i will get paid on the16th so i'll be able to add more then. I dread to think what our gas bill is going to be like, i've had the heating on constantly to try and keep babs warm, it's still bloody freezing thou.

gallygirl

Good luck cocalls and stuff the heating bill -just keep warm

blueberrypie

cocalls wrote: »

So the aim is to pay off as much as poss so we can afford a much bigger place, the mort is currently 65,215 and the rate is a low 1.75% so we should be able to overpay quite a bit.

With such a low interest rate, you would probably be better off saving rather than overpaying:

1. You can easily get more than 1.75% interest on your savings, so it's better to save and "earn" that extra than overpay and "save" less.
2. You still have your savings available for unexpected expenses.
3. You might want to port your mortgage to a new place. Any additional borrowing will not be as cheap, so you want to maximise the amount you port and minimise the extra borrowing.

Caroline73_2

I was looking at what I have left to pay and wasn't happy that it wasn't round figures. I'm trying to get over it but it's not easy! LOL

cocalls

blueberrypie wrote: »

With such a low interest rate, you would probably be better off saving rather than overpaying:

1. You can easily get more than 1.75% interest on your savings, so it's better to save and "earn" that extra than overpay and "save" less.
2. You still have your savings available for unexpected expenses.
3. You might want to port your mortgage to a new place. Any additional borrowing will not be as cheap, so you want to maximise the amount you port and minimise the extra borrowing.

hi there I do agree with 1 and 2 however, i have a family who are rubbish with money, and always having 'emergencies' ie eviction bankruptcy and always need bailing out. A lot of emotional blackmail is used so if i dont have the money available and if its tucked up in my mort then they can't touch it-I hope that doesn't sound too horrible against my family but i'm starting the think enough is enough.My dad has just walked out of a job he didn't like and has nomoney so i'm expecting a pleading phonecall anyday now LOL!
With regards to no 2 we have 5k saved which is our emergency fund and will cover 6months of bills/mort payments so hopefully that should be ok.
no 3 errrr explain that one to me again,sorry i'm good at money saving for little things eg using coupons to get 35p off but big things and looking at the larger picture confuses me. I'm maths dyslexic so yiu'll have to explain verrryyy ssslllooowwwllllyyyyy.

LilacPixie

i think blueberry means can you port your mortgage to bigger house at the same rate? If you can you are as well trying to build up savings so you on say a house that is 100k you can port 60k at 1.75 then borrow the other 40 at 5% then once moved attack the 5% bitty.

blueberrypie

cocalls wrote: »

no 3 errrr explain that one to me again,sorry i'm good at money saving for little things eg using coupons to get 35p off but big things and looking at the larger picture confuses me. I'm maths dyslexic so yiu'll have to explain verrryyy ssslllooowwwllllyyyyy.

I'll do my best :-)

If you move to another property, sometimes you can "port" your mortgage - this means that you can take the same mortgage deal you've got now (which in your case is a very good one) to your new property. Not all mortgages are portable, and even for those which are, the lender must approve the new property etc, so nothing is guaranteed. But assume for a moment that your mortgage is portable and your lender has agreed to port it to your new property.

Additional borrowing - i.e. if you need a larger mortgage for your new property - is almost always at a new rate, so you end up with two mortgages with the same lender: one at your original rate for however much you ported, and one at a new (and in your case probably higher) rate for the extra you borrowed.

So your borrowing is split into two bits at different rates - if you can keep as much of it as possible at the lower rate, that means lower monthly payments for you and a lower total payable by the end of your mortgage.

Overpaying your low-rate mortgage now means that when you move, you will have less to port, and therefore will need to borrow more to make it up to the higher total. Whatever is left on your current mortgage when you move will (if you can port it) stay at the same rate you've got now.

Of course you do need to take things like your family situation into account - I'd be inclined to simply not tell them there was any money available, and say "Oh I wish I could help, but after paying the mortgage and everything this month, we haven't a penny left over!" - you don't have to mention that you *over*-paid the mortgage! But you might not be able or willing to do that, so you have to decide for yourself what's best.

cocalls

Thank you so much for that-that was really well explained even for my tiny brain, i did read yest that interest rates will probabally go up so i'm presuming that'll change the situation??
Anyway, ive opened a Halifax isa as its 3% so one of the highest out there as i have the halifax reward account, soooo i got paid today and have put £110 in there, could put more but we'll see how expensive xmas will be. I must be strong with my family and also hubby who is wanting to go away for new yr.
Got some champers from m&S yest for only £5!! It was half price and i had a £10 voucher from valued opinions to put towards it hurrah thats my sisters pressie sorted, i reckon ive got another £70 to spend then i'm sorted.

Also another reason why i want to move is that we live next to a council house (no disrespect to council gouse tennents-my dad is one) and the couple are a nightmare shouting at each other but what's worse imo is that she shouts and swears at her baby all the time to get it to stop crying-social services have been informed but i feel so stressed when im listening to it- it makes me really upset.Poor baby.

cocalls

So child benefit arrived yesterday,and as ive been holed up in the house as it's too cold to take babs out i've been a complete skinflint and spent v little money. (Met my mum for a drink last week but had a lovely free-i love that word-voucher)so i've transfered £290 to the isa so now the mort stands at 63,570 i'd love to get it to the 50's by the time i'm back at work................lets see if it can be done.