Sweetdaisy's aim to be mortgage-free

sweetdaisy

There was no school today for DS1 today and no work for me as my manager advised that I take the day off work as the roads were treacherous and part of the Motorway was closed. So, along with DS2 we built a Snowman and had fun on the snow sledge. DS1 also wanted a Snow Dog, but that was too adventurous :rotfl:.

I also had a good sort out of the food cupboards and hopefully will be able to do a food shop tomorrow. I made a big batch of Leek & Potato soup last weekend, so froze 3 portions for work lunches. I plan to make Stew this weekend and do the same as it saves me from popping to the shop during my lunch break.

DH has worked 4 days this week for the agency and received his first full week's pay today (for last week's work). He had an interview on Tuesday for a large industrial company, but not heard anything yet (wasn't given a time frame) and it looks like the place where he is currently working as an agency temp are looking to take on staff, so he will see their HR next week.

southerndave

Sounds like the job front is hopeful, fingers crossed something will come out of it.

sweetdaisy

I have moved some money around as it's the end of the week and have decided that I have been over complicating things by having a mortgage overpayment 'pot' in my savings account. Instead, I am making things a little easier - all extra money coming in will be divided 50/50 into Savings and Mortgage Overpayments.

This means that I get to see my savings balance increase and the mortgage balance decrease .

I have paid the money that was in the mortgage overpayment 'pot' into the mortgage: the balance is now £75,484 and the term has decreased by 1 month, not a huge reduction but I am now on target to repay mortgage 1 year and 10 months earlier than the original term.

I have set myself a target this year of getting the mortgage balance down to £69,999 by December 31st and according to my spreadsheet I am set to reach this by February 2014 (not taking account of any further overpayments). So it looks like this target is going to be achieved.

Made a large Beef Stew yesterday and have frozen two portions for work. I have spectacularly fallen off the 'healthy eating/living' wagon. I have no excuses just eaten more and done less exercise last week. So I'll be jumping back onto the band wagon tomorrow .

megela

Hi Sweetdaisy,

Did you know you can have up to 3 savings accounts linked to your Natw£st offset mortgage? Might help with all your 'pots'?

Megela

sweetdaisy

megela wrote: »

Hi Sweetdaisy,

Did you know you can have up to 3 savings accounts linked to your Natw£st offset mortgage? Might help with all your 'pots'?

Megela

Thanks Megela . I already have 3 savings accounts linked to the mortgage (our main savings account and one each for DS1 and DS2). I had set a 'mortgage overpayment pot' within my main savings account which I was going to build up and make a large overpayment with it, but as it is all offset anyway, I may as well just divide any extra money between Savings and making direct mortgage overpayments.

megela

Yes I make direct mortgage OPs as if I stuck it in offset I'd be afraid the temptation would be there to spend it. If it's gone it's gone.
I also have 3 savings accounts with are labelled short (days out, xmas etc), medium (house renovations) & long term (rainy day) savings - makes sense to me!

sweetdaisy

megela wrote: »

Yes I make direct mortgage OPs as if I stuck it in offset I'd be afraid the temptation would be there to spend it. If it's gone it's gone.
I also have 3 savings accounts with are labelled short (days out, xmas etc), medium (house renovations) & long term (rainy day) savings - makes sense to me!

Hi Megela

Do you have an offset mortgage with Natwest too? I find their mortage statements are not accurate as they only base their calculations of my mortgage end date on the monthly mortgage direct debit of £700 which I pay. It is not based on any additional overpayments I make throughout the month (which I do online) or includes any money in the offset accounts.

sweetdaisy

Received my credit card statement this week and over the year have earned £111 cashback. This will be deducted from my bill in February and as I pay the balance in full each month, I already have the money in the current account and will use the £111 as 50% overpayment and 50% savings.

Monthly interest was added to the mortgage today: £186. It is up £11 from last month, but at the end of December we were dipping into DH's redundancy money as he was out of work, so have reduced savings a little - hence the rise in mortgage interest.

My employers provide Health Insurance, so claimed back £50 for dental costs. This was paid into my account today - £25 put into savings and £25 mortgage overpayment made.

Total overpayments made for January is currently at £498.

QB_Wolf

sweetdaisy wrote: »

Total overpayments made for January is currently at £498.

Wow that's amazing.:T

sweetdaisy

QB_Wolf wrote: »

Wow that's amazing.:T

Thanks QB Wolf. I had £386 saved up which I was going to build on, but decided to pay it towards the mortgage earlier than planned.

February is an expensive month for us: 2 lots of car insurances, house and contents insurance and a service on DH's car, so overpayments next month are going to be a lot less!