My "Tighten your belts, cats, we're going to reduce our mortgage!" diary

Catslovelycats

OK. I wasn't going to bother, but having enjoyed reading so many threads on here, have decided to do my own diary. It might help someone somewhere...!:o

I'm single, have a comfortable but not huge salary and in Feb 2010 moved into a new house, :j taking up a mortgage of £130K over 23 1/2 years. I'm on a special discount rate until Feb 2012 & now I'm used to the bigger monthly payments, I thought I'd take advantage of that for the next 12 months' payments by overpaying by £100 starting in Feb once I've cleared all the Christmas debts! What happens after Feb 2012 I don't know but I'd like to try overpaying still.

Mum and dad have lent me some money to help me with the mortgage and I am also going to pay them an extra £50 a month - though am going to save this and repay them at the end of each year, as I'm not sure if I'll be able to afford it.:(

I've rebudgeted and spent the weekend learning how to use excel to keep track of my spending, payments and savings etc. Am now looking forward to next month to see my spreadsheet in action!

I can understand why people say this is addictive. :rotfl:

Hi everyone, by the way! :wave:

LilacPixie

Hi and goodluck... If you rate is a special discounted rate are you sure overpaying is best... could you get a better net return with a regular saver????

Spiggle

Hi and good luck catslovelycats!

Looks like you'll have an interesting journey that I'll enjoy following.

All the best,
Spigs

cha97michelle

welcome and good luck cats. All overpayments on a new mortgage are a good thing. Well done for attempting it.

Catslovelycats

LilacPixie wrote: »

Hi and goodluck... If you rate is a special discounted rate are you sure overpaying is best... could you get a better net return with a regular saver????

Thanks Lilacpixie
Well, I wondered that. But I thought 1.94% interest on 130K debt will cost me more than any loss of credit interest in a savings account with just a few thousand in it - am I right or not? I'm paying debit interest of about £200 a month.

pavlovs_dog

love the title of your diary

Catslovelycats

pavlovs_dog wrote: »

love the title of your diary

Trouble is that the irony lies in the fact that my cats eat better than me! Even if we are tightening our belts, I can't see them accepting anything but the best when it's meal time! :beer:

LilacPixie

Well cats that is the question. if your mortgage IR is under 2% then you would only be saving that interest in whatever amount you were overpaying.

for example if you saved £300 a month in the FD regular saver for 12 months you would 'earn' £124 net interest (assuming 20% tax payer). Paying that £300 extra per month on top of your mortgage would also save you interest but not as much as you would 'earn' by saving at a higher rate.

yukkibear

Good luck with your journey

gallygirl

catslovelycats wrote: »

OK. I wasn't going to bother, but having enjoyed reading so many threads on here, have decided to do my own diary. It might help someone somewhere...!:o

I'm single, have a comfortable but not huge salary and in Feb 2010 moved into a new house, :j taking up a mortgage of £130K over 23 1/2 years. I'm on a special discount rate until Feb 2012 & now I'm used to the bigger monthly payments, I thought I'd take advantage of that for the next 12 months' payments by overpaying by £100 starting in Feb once I've cleared all the Christmas debts! What happens after Feb 2012 I don't know but I'd like to try overpaying still.

Mum and dad have lent me some money to help me with the mortgage and I am also going to pay them an extra £50 a month - though am going to save this and repay them at the end of each year, as I'm not sure if I'll be able to afford it.:(

I've rebudgeted and spent the weekend learning how to use excel to keep track of my spending, payments and savings etc. Am now looking forward to next month to see my spreadsheet in action!
[Hi everyone, by the way! :wave:

As you've already see Cats, it's helping you!

catslovelycats wrote: »

I can understand why people say this is addictive. :rotfl:

He he he, another convert to our flock he he he

gg x

gerbiljo

Good luck! I love my cats too