My Mortgage Free Diary

mpgsheep

Am planning to open a First Direct Regular Saver, to save overpayments in. Been thinking about how the interest rates work on a Regular Saver as follows:

Month Deposit Interest Earned Equiv Interest Rate
Jan 300 24 8.00%
Feb 300 22 7.33%
Mar 300 20 6.67%
Apr 300 18 6.00%
May 300 16 5.33%
Jun 300 14 4.67%
Jul 300 12 4.00%
Aug 300 10 3.33%
Sep 300 8 2.67%
Oct 300 6 2.00%
Nov 300 4 1.33%
Dec 300 2 0.67%

Total 3600 156 4.33%

What its making me think, that whilst for the first 8 months, whilst earning +3% interest, it makes sense to deposit the full £300, think after that you are better off reducing to the minimum (think £25 for FD RS), and doing something else with the money. Have I got that right? Ie the last 4 months bring your overall interest rate down? So for Sep/Oct/Nov/Dec, better off paying in £25, and balance £275 into another account earning more than 2.67% (or start a new regular saver etc).

mpgsheep

Latest on the money saving/generating front. Have gone a bit bank account mad, trying to maximise returns etc, and we are now set up as follows:

First Direct Regular Saver (8%) - £300 per month (earmarked for mortgage)
HSBC Regular Saver (4%) - £275 per month (to cover train season ticket in January)
Norwich and Peterborough Regular Saver (4%) - £250 per month (earmarked for tesco credit card / mortgage)
Overpayment - £400 per month
A Halifax current Reward account each, for generating £5 per month, still need to go in branch and set up a joint account for same for the extra £5.
Waiting to set up a Halifax Reward Web Saver (2.8%), for little bits and pieces to go in (ebay sales, Halifax £5 etc), as is best easy access saver, and we would like a bit of liquidity in some of our savings as few things potentially coming up over next few months.
We still have both our ISAs, these will be added to over the course of the year (or upgraded if rates rise significantly).

I would definitely be lost without my spreadsheet keeping track of all these, my OH thinks I am insane...i quite enjoy it though haha.

mpgsheep

Latest money saving efforts..

Our 6 monthly Gas+Electric bill has come in, and we are £70 in credit which is fine, I like to have a little in reserve so not wacked with a big bill later on when it gets cold in. Pleased though because we both made an effort, and our DD has been reduced by £24 per month.

We cleared the shed out on Sunday, and found two things to sell, my OH's bike and a BBQ we have used twice in 2 years (shameful). My FIL has sold both within 24 hours on his staff message board, somehow got £30 for the bike and £20 for the BBQ, so that is an extra £50 to go into the savings pot. Had some money in from Ebay also, which was moved over to start paying off the 0% credit card. Unfortunately think we are coming to our limit on things to sell on ebay, I have a few more bits that we can sell, and then will need to direct our focus elsewhere.

GeorgieFTB

mpgsheep wrote: »

Quick update, very impressed with First Direct as my new current account, only had my first wage packet go in earlier this week, and they have credited me with the £100 joining bonus today! Was a very nice suprise. Maxed both our ISAs now which is pleasing.

mpg

I want a first direct account, haven't gotten round to setting it up yet, must do that, good to hear they are as good everyone says!

A friend of mine is with them and has the iphone app, I'm so jealous, I want an app! I would probably go a little overboard on it, ohh, I can just see me always tinkering with it, do you think a mortgage company would be peeved if I made 20 payments a day?:rotfl:

Gx

mpgsheep

Haha yes I love the app, very convenient. Unfortunately my mortgage is with Direct Line, who are technology phobic it seems. After my May mortgage payment bounced (money transferred to joint account hadnt cleared in time over bank holiday), i made a payment by card on the same day, however 2 weeks later they have taken my mortgage payment again. So this month I have now made an overpayment of £1023 instead of £400. I could have it back, but it hasnt cleared yet, and then once cleared is 5 working days to payback, by which time will be time for my usual payment. So have told them to not make the usual overpayment in June, but overall will be slightly ahead then of my 2011 target (will prob hit 5k in overpayments most likely no).

mpgsheep

So despite very clear instructions, Direct Line managed to cancel my mortgage payment direct debit entirely, and introduce an extra £400 overpayment for October... Lucky I called them! Basis this, and the low interest rate (1.5% above base), have decided to just stick to my regular payment of £623, and will work to fill ISAs properly and pay off 0% credit cards. Also have 3 regular savers with varying completion times over next 11 months.

mpgsheep

Our latest exercises in money saving...

- Cleared shed out and sold BBQ (£30) and OH's bike (£20).
- More junk on ebay, ends this weekend, should be a few more £££
- 2 free tickets to the zoo, hoping to use this Saturday after weather stopped us last week and work/illness stopped me going last weekend.
- Still bringing my own lunch to work everyday (in fact cannot remember the last time I didn't).

My plan now is to save up money to pay for holiday (£2600) and 0% credit card (£4000) again. The money is already mostly covered in an ISA, however would prefer to leave that alone, and try and save again. That way the ISA is earning nice amount of interest, and all ready for an overpayment once interest rates rise. The holiday has to be paid in September, however I have just started a new 0% credit card (M+S for 15 months), so holiday will go on that, and initial target will be to save again the 4k for the first 0% card (Tesco, expires Christmas ish)

mpgsheep

Shamelessly stealing this format from Uzubairu, though I have simplified it, as we are now saving money monthly instead of overpaying, so we are ready for when interest rates do eventually rise. We also have £5100 in one of last year's ISAs that is earmarked for the mortage eventually.

June Update
Phoned Direct line and the mortgage is:-£152579.27

Reg Savers
First Direct = £900
N+P = £500
N+P = £250

Nationwide E-Isa = £5100

Total Overpayment Savings = £6750

Mortgage remaining = Mortgage - OP Savings = £152,579.27 - £6,750 = £145,829.27

In the meantime, saving seperately to pay off the Tesco 0% card (ends Jan 2012) as follows:

Tesco Credit card balance = £3910.54
Halifax Reward Web Saver = £1217.00
Outstanding = £2693.54

The amount on the card goes down by £50 a month (my set payment to cover minimum required plus a little more), and then setting aside approx £500 plus anything from ebay/cashback etc to boost it. Thus should have it paid off by Christmas easily.

mpgsheep

My OH cashed in £50 worth of premium bonds, and donated another £110 to the Tesco Credit card pot, and I added £40 from joint account (to make it a round £200) thus updated as follows:

Tesco Credit card balance = £3910.54
Halifax Reward Web Saver = £1417.00
Outstanding = £2493.54

However now thinking about moving another £3 to make it a round £1420..but then another £30 makes it a round £1450...and then another £50....think will just leave it as it is for now!

Peonie

Hi mpg, I'm de-lurking to say I'm subscribing to your thread. We'll have a the same sized mortgage as you soon so it'll be good to follow someone on a similar journey. I like that in you have deducted your savings from your mortgage, it's a good way to focus on saving and paying off the mortgage. Thanks for the idea.