Feels like an impossible task...

sarahevie

I think that you are starting at a great time, I over paid the rest of our savings because rates are so poor in Dec last year, and haven't regretted it.

We are 26/27 and really wish that we had overpaid more before I left work to be a full time mummy.

We actually manage to over pay now although we didn't before, despite losing 2/3 of our joint income. If only we'd knew:rotfl:

I'm not too harsh on myself though, it's that age old thing whatever you earn you manage to spend. :rotfl:

lincoln-potter

kiran83 wrote: »

Hi Linciln Potter, as our rate at the moment is 2.49 we dont intend to enter into a fix rate umtil it rises to about 5%. I guess six months of mortage payments £958x 6 months£ 5748 plus bills etc , so i guess we need about £8,000, thats our emergency fund. We have that in the cash isa so everything else could go toward op's.....

Ah okay, I have gone for the opposite approach. I have gambled that rates will rise soon and I am best taking a small hit now and potentially benefiting later.

I am in a 2.95% 2 year fixed rate with 10% allowance for OPs

Have you stumbled across the threads yet with links for how much you would save yourseves on interest by paying off early? Quite a motivator.

kiran83

lincolnpotter- the potentional interest that could be saved is a pretty good motivator. Have just been discussing with hubby about making ops and reducing mortage term and he agreed, that i should call BM and tell them to keep monthly payment the same and just reduce the term of the mortage. He has actually suggested making a £5,000 op instead of £2,000. He thinks i should delay putting money into cash isa in April until later in the year as the rate is terrible. I guess it just feels good to chip away at the mortage...

gizmo111

Is yours a flexible mortgage where you can have back overpayments?

kiran83

gizmo111 wrote: »

Is yours a flexible mortgage where you can have back overpayments?

no, im pretty sure we cant get the ops back. our problem is no matter our best intentions, the savings always find a way of being spent... or loaned to family. so this way, at least the money is chipping away at the mortage and not disappearing and getting wasted! x;)

lincoln-potter

kiran83 wrote: »

lincolnpotter- the potentional interest that could be saved is a pretty good motivator. Have just been discussing with hubby about making ops and reducing mortage term and he agreed, that i should call BM and tell them to keep monthly payment the same and just reduce the term of the mortage. He has actually suggested making a £5,000 op instead of £2,000. He thinks i should delay putting money into cash isa in April until later in the year as the rate is terrible. I guess it just feels good to chip away at the mortage...

I would say the savings from your mortgage would far exceed your ISA savings benefit.

I have looked at my accounts and if I managed to pay off the mortgage in half the time I would save up to 60k (assuming the interest raises as expected).

Its good to have both of you on the same wavelength and will surely help with your aims.

kiran83

hi everyone, sorry i havent posted more regularly. I have had a fantastic month!!! I have managed not to exceed my monthly shopping target (so far) with the help of some Mr T clubcard vouchers. I have also been cooking a lot more home cooked food, which means that we have only eaten out once this month which is a huge achievemnet for us! Apart from the three trips to Mr T, i have had soo many NSD's! Its amazing how if you just think twice about spending money on rubbish, you can actually change the way you think and say no actually I dont need it!

I get paid on monday and we have decided to actually pay off £5,000 on the mortage account, which is way more than I thought we were going to! Hubby has actually really got behind this struggle now, hence the bigger overpayment! I have also rung the Birmingham Midshires and spoke to the payment centre. The lady there was actually trying to confuse me a bit and trying to persuade me to reduce the monthly payment instead of the term of the mortage... But i held my ground and made her write a note on the account, that under no circ should the op reduce the monthly repayment but it should reduce the term. I will also make sure I include that fact on the letter which will accompany our cheque!!!

Overall, a really good month so far. I have been eagerly reading all the threads to get more ideas and tips, so keep them coming guys! xxx

kiran83

oh, forgot to add that i have been making pack lunches for hubby and me and its not been as much of an a hassle that i thought it would be!

gizmo111

kiran83 wrote: »

oh, forgot to add that i have been making pack lunches for hubby and me and its not been as much of an a hassle that i thought it would be!

Its strange how once you start it kind of turns in to an obsession - my 17 yr old decided last sept that she was not going to spend more than £10 per month on lunch at college and work - so far she has spent £45 including her work xmas meal!:T

themull1

If you can get the £8000 off the cousin with a months notice, why doesn't the cousin just give you it back? then you can use it for your mortgage.