2011 mfw

SmileyG_2

MFW #48 reporting in

Fourth overpayment of 2011 made on the 15th April 2011
Overpayment target: £1200
April overpayment : £50
Overpayments to date: £900

My overall mortgage status is now:

Mortgage at 17/04/2011
Outstanding balance: £47,965
Estimated endowment value: £26,541 (revalued 1 April)
Investments: £15,015 (a significant rise; see my diary)
Deficit: -£6,409

For my information on the damage I'm doing to the mortgage, here's the link to my diary...

http://forums.moneysavingexpert.com/...1854517&page=3

My overpayments since Jan 09 will also save me an estimated £1,275 before my original target MF date of September 2014.

My overpayment reserve is £7,650, well over 21 months regular mortgage payments.

With the success of this strategy, the stretch target of September 2012 is now the new target.

Going to spend the rest of today catching up with everyone's successes and update my diary. Enjoy the sunshine!

SmileyG

blizeH

Not sure where to ask this sorry, but as I desperately try to scramble together some money towards my next overpayment, can anyone please provide any good reading that'd help describe the difference between overpaying on my mortgage at 3.5% vs putting the money into a saving account at the same rate? ;o

curlygirl1971

Hi BlizeH

Just to be clear - it would have to be the same rate after any tax on savings interest or you would have to gross up the % rate on savings. So depending on what you earn you'd be looking at a savings interest rate of:-

3.5% Mortgage
Savings:- 4.4% as a basic rate taxpayer,5.8% at the higher rate
or 7% at the additional rate

I take it the MSE guide doesn't help?

http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings#paying

blizeH

Great post, thank you! And that was exactly what I was after I did think/assume that if the interest rates are the same, then either option should work out pretty much the same too - but despite my mortgage rate being a little higher than my savings, I guess you also have to allow for the 'rainy day' factor too with savings!

curlygirl1971

Yes, I have a savings pot to fall back on - some of it instant access, some of it not. It all happens to be in ISA's (so tax free). I always make sure it's in the best place for earning interest. Ie. I can get 3.2% at Halifax as a current account customer.

You can get higher rates but then you would have to fix...... You could fix at something higher ie. 4% and then 6 months into your fix you could find your mortgage rate at 4% or higher.

But other than having that fall-back, any spare cash I have I use to OP as my mortgage interest is 3.5% as well.

Some people do without a savings pot though 1) They rely on access to credit in the unlikely event of an emergency 2) they would take a Mortgage holiday should they need it. I prefer savings myself.

someday_soon

Hi Everyone

Reporting in Aprils overpayment of £1019.60. It's great to see the proportion of the mortgage payment not covering intrest, and therfore reducing debt increasing month on month.

Hope you are all enjoying the glorious weather.

Someday Soon

SeriouslySeekingtoSave

someday_soon wrote: »

I t's great to see the proportion of the mortgage payment not covering intrest, and therfore reducing debt increasing month on month. consuming



Someday Soon

It's fabulous! I did my daily interest calculations last night and in seven months I am paying £0.93 less each day; that's £29 in a 30 day month!

Seeing how all those little differences are really starting to add up add even more motivation to my OP's.

uzubairu

No: 19

eBay sales have been quite good so far (£130 in paypal account so far), and I received the rest of the money for the AV stand (£65).
I made another overpayment today of £100.

New April total is:- £1,650.

de1amo

Someway back i talked about paying some of my mortgage off but i needed to contact my bank as to whether there are any limits or penalties--i rang them and there arent and i can pay off as much as i like.
The set up is that i have 2 accounts on the one mortgage totalling 55k(odd)--one 30k and the other 25k--i am on IO of 2pc svr but currently get 4pc gross on my savings(soon to reduce to 3pc)--i have about 22k savings and and some shares --the logic says hold the savings and just build but the mind and this thread suggests pay down the mortgage!
İf i pay in against the mortgage would it be best to either spread the money between the 2 accounts or try to eradicate one of them?!!--i have a safe base of savings outside of these amounts abroad! which also brings in another more convuluted question-i can get about 7pc net on my money if i take a gamble and export it abroad where i live!(the gamble is in exchange rates!)--suggestions

fluffysox

Hello all,

April OP total £122- only because I'm an OP addict.:o.
We're still paying out weekly for work on the house, labour and materials- but its nearly finished. :j
Baby only a month away if he/she appears on time.:p:p:p.

Finished work Friday for 2 weeks holiday then maternity leave so will have a big drop in income soon- also told in my last week that one of my dept will be made redundant. I have to complete the form from hell to basically make myself look better than the other 4 people- horrible, but hopefully somebody will get another job so the process just gets halted. Thank goodness we've been overpaying on the mortgage so our minimum payment is lots less than it used to be.... stay low interest rates please!!! Just wish I didn't have to fill in the stupid form- all I want to do is get ready for baby :mad:.
So goals for next few weeks: fill in dreaded form and sell some dvds on ebay to allow an OP in May, already taken all our videos to charity.
Take care,
a very round fluffysox xx