Countdown to Freedom

lulabelle1

Hi Tilly - I'm doing the thing with all of the different pots now. I had a few before this forum and then I took your advice and then added even more pots. I will have loads of them by the time I've finished adding them all on my internet banking! Anyways, it's only been a few weeks, but it works well. I've always been one for spreadsheets which is just as well as this ensures that I don't lose track......
There's a little bit if juggling but it should help us to keep a bit more on top of where the money actually goes.
Great news re FD, thats a great rate!

Tilly_MFW_in_6_YRS

Hi Lb1, I don't know how I would manage without my buckets now. The knowledge that the money is there ahead of the bills coming in, makes life much more peaceful and one thing I am not is peaceful, so I find it helps. Good luck and hope you are sleeping better without the B2L worry but I am sure you will find the right time for this venture.

Best wishes Tilly

originalmiscellany

Tilly - brilliant news for you! I always go on about FD mortgages, and we too overpay a similar amount to you, although our mortgage is now a fraction of yours.
I love receiving the letter from First Direct that tells me each month we're paying a pound less every month thanks to overpaying. It's great, and also means we have a pound more to overpay. A win-win it's called.

Tilly_MFW_in_6_YRS

Hi OM, I didn't realise that they would write to us with updates, that's excellent news. I agree with your thinking, every reduction in capital results in a lower interest rate charge, thus allowing OP to be increased. I am so looking forward to March although we have Xmas just around the corner and I LOVE Xmas - not sure I ever grew up really.

Thanks for your support, it has been a real inspiration 'meeting' so many like minded people - where are they all in the real world as I don't know many at all.

Best wishes, Tilly

Imelda

I am OBSESSED with paying less interest each month to FD. We are really fortunate that we can overpay around £4,500 per month and any extra cash we also throw at the mortgage.

It has been the best mortgage for us, seeing our "rent" to the bank reducing each month has been a real motivator, especially to DH who I am sure would love to get a new car/ latest gadget but paying the mortgage off has become a real priority.

Tilly_MFW_in_6_YRS

Thanks Imelda for your support and encouragement. I laughed when I read your comments about a new car. That was the final step in the 'getting DH' on board. When this has gone he will have a humongous payrise and can buy the car of his choice.........providing he doesn't go too mad but don't tell him I said that !

Hi DH, when you read this stop thinking Aston Martin and start thinking a few rungs below xxxxxxx

onwards and upwards all,
Tilly

lulabelle1

Thanks Tilly, yes, I'm pleased I left the b2l idea for the time being. With all of the horror stories about the economy at the moment I don't think I would be sleeping at all if I'd made the commitment.

I agree, this forum is fab, so good to chat to like minded people with the same goal....

sweetdaisy

Congratulations on getting you new mortgage . With overpaying £2,500 a month you will reduce your term in no time - bet the bank loves you :rotfl:!

I used to have a number of savings accounts so that I had different 'savings pots' but as we have an Offset mortgage we now do things a little differently.

Not sure about your Offset mortgage and what accounts you can link to it but with our Natwest Offset Mortgage we can link up to 3 First Reserve Savings Accounts and one Current Account, however as they are used to Offset against the mortgage they don't earn any money. So in our household . . .

We call our Current Account the 'Direct Debit' account so all bills and credit card balance in full are paid from this and all money in this account is offset against the mortgage.

We also have what we call a 'Spending Account' which is another joint current account which is used for our weekly spend on bits and bobs and activities for the children etc. (This account is not offset against the mortgage and I transfer money into this weekly from the 'Direct Debit' account so that we make the most of offsetting).

We then have one main savings account and each of our two children have a savings account too where all balances are used to offset against the mortgage , however with the children's accounts on a monthly basis I add to their accounts what they would have earned in interest so that they are not missing out .

Tilly_MFW_in_6_YRS

Hi SD, your set up looks very logical to me. I have to make some decisions nearer the switch over regarding the linking of saving accounts to the off set etc. I have said in a previous post that I struggle in my head with the aspect of capital repayment and off setting. I don't mean that in a negative way, simply that I want to kill the capital yet am aware that I want the security of knowing my money is available to me when I need it.

We did have an offset account many years ago, which is pretty much how we cleared sufficient mortgage to buy our dream home abroad. So I can speak with confidence on the positive impact it has on reducing the mortgage.

Interestingly when on the phone today, the person asked whether we wanted to overpay off the capital or just Offset our savings and I said £2.5k OP then the rest would be offset and she 'twiddled with the programme' and said we would clear it in 5 years'. Good to know as that was what I worked out but was glad to have it verified.

Not sure how the rest of the MfW brigade are feeling but I am quite bushed now. The big decision is made, we can now settle back and follow the plan - I so love a plan.:j

Off to have a well deserved glass of wine, put my feet up and watch a little TV.

Night all.
Tilly

sweetdaisy

Tilly_MFW_in_6_YRS wrote: »

Hi SD, your set up looks very logical to me. I have to make some decisions nearer the switch over regarding the linking of saving accounts to the off set etc. I have said in a previous post that I struggle in my head with the aspect of capital repayment and off setting. I don't mean that in a negative way, simply that I want to kill the capital yet am aware that I want the security of knowing my money is available to me when I need it.

We did have an offset account many years ago, which is pretty much how we cleared sufficient mortgage to buy our dream home abroad. So I can speak with confidence on the positive impact it has on reducing the mortgage.

Interestingly when on the phone today, the person asked whether we wanted to overpay off the capital or just Offset our savings and I said £2.5k OP then the rest would be offset and she 'twiddled with the programme' and said we would clear it in 5 years'. Good to know as that was what I worked out but was glad to have it verified.

Not sure how the rest of the MfW brigade are feeling but I am quite bushed now. The big decision is made, we can now settle back and follow the plan - I so love a plan.:j

Off to have a well deserved glass of wine, put my feet up and watch a little TV.

Night all.
Tilly

With our mortgage we can have any Overpayments that we have made paid back to us and this is transferred to our current account on the day it is requested. It is a good safety net to have if there are real emergencies.