My Mortgage Free Diary

mpgsheep

Total balance down to £249,528.53 - so a small milestone in breaking through the £250,000 barrier.

At the moment am scheduled to finish paying off in August 2034, 7 months after my 50th birthday - determined to get it earlier than that, at the moment with 2 young children it is all a bit tight at the moment, so can't do much to overpay more than the £215 we are doing already. But I am happy with that effort, means that we are getting used to not having that money and won't miss it in the future i hope.

Had a change in position at work this month. More of a sideways move, but the role suits me and my skill set better, so am positive i can progress quicker on this path now, but has led to me putting in some serious hours in the past couple of weeks!

mpgsheep

Had to reduce our overpayments to £15, as we decided that my wife should stop working. She has to complete 3 months back after her maternity leave, which takes her upto early August. She simply wasn't earning enough once nursery bills taken into account. We both a bit relieved we made the decision, nice (and very lucky) that we in a position where one of us can do this and concentrate on the children and decorating the house. However mfw dreams put on hold, but work has been brilliant recently, and feels like am contributing a lot more in my new role, which will hopefully be rewarded come bonus time!

mpgsheep

So today is my wife's last day at work, and for the next year at least, overpayments are on hold. Of course though, started to look at my overpayment spreadsheet, and envision what we can do once she is able to work full time again (looking like September 2017). What we are planning is that whenever she starts to work part or full time, her entire salary (as we won't "need" it) can be put on the mortgage. Man will we be smashing this mortgage to pieces when that happens!!

mpgsheep

Balance down to £248,853.03 - puts us at 19.07% ownership of the house...slowly slowly...

Miss_Money_Magnet

I've just read your diary...well done. Regarding the discussion on saving for children, I was saving in a child trust fund but rates are so poor I've abandoned it and am putting the monthly savings in a stocks and shares ISA in my name, but earmarked for son. It's my first venture in the world of stocks and shares but I feel hopeful it's the best choice at the mo for me!

mpgsheep

thank you - will have a read of yours now

Ref children's accounts, the eldest has a CTF, paying 2.10%, and the youngest has a Junior ISA, paying 3.25%. So not totally horrible rate wise, and they quickly accumulating it seems (in fact combined they both have more in savings then my wife and I do!). Although I want to earn max for their money, the principle of saving for them is the important thing, and that in a few years can show them what we started, and the impact cumulative interest has had. Was never shown to me, and am sure if it had I would have done better when I was younger!

MallyGirl

I have a S&S ISA in my name but for my daughter which I pay the equivalent of child benefit into. It is doing much better than any savings accounts but is something she knows nothing about. She has a 3% Santander account which I pay her pocket money directly to - not having it burning a hole in her hand helps her to not want to blow it. As she is 11 she gets a debit card so we have used it as a way of teaching her about statements, cash points, paying in a shop, etc.
I have also just opened a Halifax cash ISA for me with £1 as then she can get a JISA which gives 6%. She has a 4% fixed bond maturing soon so I needed somewhere to put that money. Again it is money she knows nothing about so it is not a problem that it is tied up till she is 18.
I don't use my ISA quotas myself as I have a current account mortgage.
My Granny put money into a savings account for me in secret on birthdays and Christmas. She gave it to me on my 18th just before I went to Uni. It was the days of 15% interest so her £800 odd pounds in had become £1500 when they made up the book. That was a whole year's uni grant at the time. It was a wonderful and totally unexpected gift and it is something I want to repeat for my daughter. It showed the power of small but regular saving. I always thought it was a shame that my younger brother was there when I got it as then he knew he would be getting something similar in a couple of years so the surprise was lessened.

mpgsheep

Living on 1 salary is working out ok (bit tight with redecorating and youngest's 1st birthday party etc), however it is agonising not being able to overpay!

Latest balance is £248,525.86, 19.18% of house under our sole ownership.

What is promising is that sold prices in our road and local area are seemingly higher than what we paid, for similar or (imo) worse places. Assuming this is correct, when it comes to remortgaging in January 2015, will a mortgage company take a new valuation? I guess this would only be if i switch my mortgage, wouldnt happen if we stayed with current provider? Just could tip us closer to 75% LTV instead of 80%.

MallyGirl

I think you can ask for a new valuation

mpgsheep

i hope so - if interest rates stay as they are then eager to stick with RBS because part of our mortgage is at 1.5% above base, and balance then is what we would get at market rate.