Where to put the extra cash..?

cb4fwh

Did look into switching products early, but with the early repayment charges it doesn't work financially. With Santander, you can switch mortgage products upto 4 months before the end of your product term so I will start looking into this in early 2014.

Re. moving house, we are still aiming to do this in the summer of 2014, but decided to put it on the back burner temporarily as the other half decided that she wanted to go self-employed as she wasn't enjoying her work anymore.

Although she has made a good start, the decision has been made to give her another year or so to 'bed in' before taking on another 100k liability...

However, overpayments are still on plan...

cb4fwh

Another month, another overpayment of £998.

Looking forward to receiving my annual statement from Santander in January so I can actually see the overpayments in print & their effect on the mortgage balance!

My £2409 overpayment that I can make in January is also sitting there ready to go, so all in all, it has been a good 6 months! Only six & a half years or so to go!

cb4fwh

So my monthly update...

I've decided not to make the January overpayment on mortgage 2 of £2409. I've been engaged for a few years, and the other half has finally decided that she wants to get married in October of this year. I've already put a sum aside for the wedding, but have decided to hold back the £2409 as contingency. In the meantime, it remains in an ISA earning interest...

The £499 overpayments continue to come out for both mortgages.

It is now looking increasingly likely that we will move in spring / summer 2014, around the same time that the mortgage 1 fixed product ends. This will obviously be an ideal opportunity to overpay without restriction / save up the monies required for stamp duty, solicitors, estate agents fees etc. rather than add this to the mortgage.

The new target is therefore to decrease my mortgage balance to circa 170k by March 2014. This will then give me the flexibility to remortgage onto a 60% LTV product & buy a house upto the value of £500k. This target will be hit by continuing with the monthly overpayments between now & then.

cb4fwh

Updated targets:

Mortgage 1 (Repayment until July 2014, 4.79%) - Original Term: 20 years, Original End Date: December 2026

31/12/2006 - £216,574.01
31/12/2007 - £209,426.35
31/12/2008 - £202,429.96
31/12/2009 - £195,788.74
31/12/2010 - £188,014.75
31/12/2011 - £179,860.09
31/12/2012 - £169,478.49 (£2994.00 of overpayments)
31/12/2013 - £154,298.11 (£5988.00 of overpayments)
31/12/2014 - £138,826.14 (£5988.00 of overpayments)
31/12/2015 - £109,143.30 (£19371.61 of overpayments)
31/12/2016 - £81,555.86 (£16403.33 of overpayments)
31/12/2017 - £55,915.89 (£13644.59 of overpayments)
31/12/2018 - £32,085.92 (£11080.59 of overpayments)
30/04/2019 - £0.00 (£27676.04 of overpayments)

Mortgage Free Target Date, April 2019

***

Mortgage 2 (Repayment until March 2015, 4.99%) - Original Term: 20 years, Original End Date: March 2027

31/03/2010 - £30,110.74 (No overpayments)
31/12/2010 - £29,254.88 (No overpayments)
31/12/2011 - £28,056.36 (No overpayments)
31/12/2012 - £24,383.39 (£2994.00 of overpayments)
31/12/2013 - £16,809.58 (£5988.00 of overpayments)
31/12/2014 - £7,679.78 (£7105.12 of overpayments)
30/04/2015 - £0.00 (£6910.88 of overpayments)

Mortgage Free Target Date, April 2015

cb4fwh

Another month, another overpayment of £998.

Still haven't received my annual statement from Santander / A&L - am hoping that it arrives soon as I'm hoping seeing the overpayments in print will continue to drive me on!

Matt_The_Chippy

Great progress there.

Are you not able to see or set up online banking? I'm with Santander on the Offset mortgage. I can see the statement for the mortgage and savings pot any time I like. Saves you waiting around for the statement to drop through the letterbox. It also helps to motivate you when you see the difference OP's make to everything.

Good luck with the rest of your adventure.

cb4fwh

I currently have a 5 year fixed product. With Santander, you are only able to use the online mortgage account facility if you have an offset mortgage...

Ideally, I'll move to an offset mortgage when my fixed products come to an end next year...

Matt_The_Chippy

I didn't know it was only limited to the Offset account. Seems odd to limit it to just that one. I highly recommend their Offset, I've never saved before but am like a man possessed now! Its so easy to manage money with it. I know loads of people slate Santander but I've not encountered this.

cb4fwh

So, my aspiration had always been to pay off my mortgages by the age of 40. Currently, if I follow projected overpayments (& assuming that I remain in the same property!) this will happen a month after my 41st birthday so not too far off my target!

I've needed a new car for a while, and bought a good second hand reliable car last week which should now last me until I'm mortgage free fingers crossed!

I finally got the opportunity to calculate exactly what I need to save on a monthly basis between now & April 2015 - £700 monthly on top of my current monthly overpayment of £998. This is on top of my monthly mortgage payment of £1634, so £3332. This will allow me to pay off my smaller mortgage as planned by April 2015.

From May 2015 to March 2019, I will need to save £1000 monthly on top of my current monthly overpayment of £499. Assuming that I can switch my remaining mortgage to a 5 year fixed product at around 3.99% my standard monthly mortgage repayment will switch to around £1176, and overpay £499 monthly, so £2675.

So, if I can get over the hump of the next couple of years it should be downhill from there!

Mortgage statement arrived - quite satisying seeing the overpayments & their effect!

cb4fwh

Another month, another overpayment of £998.

I've also put the additional £700 aside as planned, however I'm slightly worried about this as I still need circa £7000 to pay for the remainder of my wedding and I unless a miracle happens this is going to have to be paid for from the overpayments pot. Not the end of the world, as I can probably pull this back later on...