2020 vision. VoucherMan's MFW diary

VoucherMan

Up until now I thought I was going to have to make all my extra overpayments in the bank. All the searches I'd done suggested it couldn't be done on-line.

Had a bit of a look around at my on-line banking tonight while I was making a transfer to my ISA (need some money for some DIY in a couple of months. May as well get some interest on it) and found that I can change my recently set up standing order any time I want to make one off payments.

Then did another search and found curlygirl's comment which confirms it.

curlygirl1971 wrote: »

I quite like being able to make small ad-hoc OP's - it's addictive. Previously the Halifax system was quite restrictive but since it's migrated to the Lloyds system I'm able to go in and change the date and £ of the Standing Order really easily.

So now I can do it all from the comfort of the settee. No excuse for not meeting this years target.

VoucherMan

That first £200 OP seemed to take forever. That'll teach me to 'sign up' the day after pay-day.

Can't update the signature as the new balance isn't showing on the mortgage yet.

Managed to sell some stuff I don't want any more on Facebook. With a bit of luck that should help me beat this years target.

VoucherMan

Bit of a disappointment.

Usually just under half the regular mortgage payment goes in interest, the rest comes off the balance.
A £200 overpayment and it's only reduced the balance by £82. Hopefully there's a lot more interest with it being near to the end of the month, and next months payment will show a bigger drop.

Roll on June 3rd for next month's check-in. That's if the banks computers decide to update properly with it being a bank holiday weekend.

bargainbetty

Did you ask that the overpayment be applied to the capital? I'm with Santander and the £500 overpayment I made was applied directly to the bulk sum owed. I've opted not to reduce my payments to ensure that the capital debt drops as fast as possible. It might be worth calling the bank and seeing how they can apply the payments. Trust me, they'll do the one that works for them if you don't specify what you want!

VoucherMan

bargainbetty wrote: »

I've opted not to reduce my payments to ensure that the capital debt drops as fast as possible.

Hopefully got that covered (post #11)

VoucherMan

Well that's a relief.

Checked the mortgage balance after this months payment went through & it's come down by about £80 more than usual. That accounts for my previous thought (post #14).

So hopefully back on track again. Monthly figures seem to match up with those on Locoblade's calculator

I'll see if I can resist the urge to check the balance as soon as the OP goes through & just check it once a month when the regular payment clears.

VoucherMan

At last I've got a price for the building work I'm having done in a couple of months. Looks like I'll have about £400 or so spare when I've paid for it so it may as well make for an early overpayment. Don't want to leave myself short so I'll make it £300.

I've amended my standing order. Should transfer later this week. Just need to remember to put it back for the regular monthly o/p.

The mortgage calculator's updated. Only a small payment but it estimates the interest will be reduced by about £150 and the mortgage should be repaid a month earlier - August 2022. I'm not updating my signature yet though. That can wait until later in the year when all my 'extra' overpayments have been made.

VoucherMan

The online balance has been updated so it's looking a bit better. Looking forward to seeing the biggest monthly drop in my outstanding balance for a couple of years when the next payment clears. Unfortunately I doubt I'll be able to make any extra OPs until September, except for the regular £200 a month.

If this weather stays like it is though I may actually decide to clear out some more of my unwanted 'junk'. That could up the income a bit. Just can't seem to work up the enthusiasm.

VoucherMan

So much for a lazy evening watching TV. Spent most of it in the depths of the MFW forum. And all thanks to that 'Any single MFW's' thread!

Nice to know there are a few others like me. Well they're single & MFW's anyway.

I wasn't going to think about plans for future years op's until later in the year but reading some other diaries I couldn't help it.

So to have something to look back on and compare -

If I abandon, or rather postpone, the home improvement plans I could add an extra £4000 a year in op's to my existing £200 a month.
Do that for 4 years starting next year and it could knock off an extra £4000 of interest and finish the mortgage in about July '19.

Or leave it until the year after to start extra op's then I'd only save about an extra £3300, finishing about August '19.

Maybe even leave it a couple of years. Try and build up some more savings first. The same 4 years worth of op's would then pay the mortgage back by about September '19 with about £2600 extra saved on interest.

Whatever I go for it'll be on top of the £12000 or so I reckon I'll be saving with my regular £200 a month op.

Or.... the final idea for the night overpay an extra £2000 a year leave plenty for spending, or hopefully saving, and finish the mortgage January 2020. No need to change the thread title then:)


AND I REALLY MUST THINK ABOUT MAKING A WILL.

There. Can't forget about it now!

MotheroftheKid

Hi Voucherman - my Friday evening was exactly as yours - lazy evening in front of the tv planned, but ended up in and out of everybody's MFW diaries.

I too found "Any Single MWF's" thread and enjoyed reading that.

I do have a Will.

I look forward to keeping up to date with your diary with interest. The very best of luck. :beer: