Home Forever? Maybe Mortgage Forever? No Way!!

Lois_E

Have you come across the "Tilly tidy" OP yet? You'll see it on some people's diaries, often abbreviated to TT. Some MFWs transfer the odd pennies from their current account across to their mortgage at the end of every day. For them, £1 is a huge round number to OP.

FloppyDisk

Jackop wrote: »

Hi Lois. Thanks very much!

I couldn't leave it at £1 and threw another £9 in. Can't stand odd numbers!!

Oh I can see you're going to be very popular around here, that's the sort of rounding up we like to see! :j

Jackop

Hi Lois,

No i havent but Ill check it out, thanks!

Floppy, thats good to know. It was just sat there staring at me and I couldnt hack it, haha.

Im still struggling with overpayments, reduced term or payments? What does everyone else do? Assuming you have a choice that is!

Itsadogslife_2

I am with the Nationwide and like you am only allowed to overpay by £500.00 I would keep the monthly amount the same and reduce term personally. We can't overpay by any more than £500.00 per month or else we have to pay a redemption penalty, on our additional smaller mortgage with Nationwide we are only allowed to overpay by up to 10% of the same again, a redemption penalty.

What pests are on the basil do you know? Is it greenfly type stuff or slugs? If it is slugs, you can buy this copper tape that can go around the top of the pots to stop the slugs getting into your pots, I think I got some of mine off ebay.

Hurdler

I try and overpay at least half of my monthly mortgage amount as a single payment. One month if at all poss, and when I was fully employed and not fully freelancing, if I payed 3x the amount, it would trigger an automatic recalculation of the monthly amount.

Need to build up to those halcyon days!

Jackop

Itsadogslife wrote: »

What pests are on the basil do you know? Is it greenfly type stuff or slugs? If it is slugs, you can buy this copper tape that can go around the top of the pots to stop the slugs getting into your pots, I think I got some of mine off ebay.

I think its snails, i went outside last night and found one with his face stuck to one of the leaves! He was swiftly turfed. I just looked up copper tape, i think im going to use that. I also have a lot of old wires I could strip and tie together, do you think that would work for an MSE solution?

I think the reduced term is the best for now as it comes off straight away. To pay £500 would mean me saving up and then putting in, losing interest while im saving for it.

FloppyDisk

Do you have a Nationwide or Santander account, or even a First Direct? You could put the money in a current account and earn interest before you get to the £500 you need. Nationwide Flex Direct earns 5% before tax or First Direct regular saver is 6% but you can't access it for a year, so you could earn interest and chuck an even bigger lump sum at the mortgage?

Jackop

Hi Floppy,

I do have a first direct current account, I have enquired about the regular saver but im not a lover of the tied in accounts. Even though logically it makes sense. I might pay half into a regular saver to build up an emerncy pot then look again at that next year.

Also Nationwide will allow me to underpay what I have overpayed in the past (just incase).

Jackop

So last night I made a bit of a discovery...

I downloaded the mortgage spreadsheet from here and in went all my figures. Its nice to see how certain overpayments can affect the term. So I had a bit of a play and saw a nice (relatively) short term goal.

If I were to overpay by £160/m, by the end of the 3 year fix I would be above the 20% equity threshold. I went onto money supermarket
and input the figures as if the 3 year fix had ended today. My payments on a 22 year mortgage came down by £200!!

I know its folly to think that things will be the same in 3 years as they are today. But if they are ill know that we can save a shedload (by that I mean overpay even more!)

£160/m is doable, I think we should have anywhere between £400 - £500 spare every month. So the rest can go into savings as the wedding fund. Easy!

ixia

Welcome Jackop and good luck

Where did you find the mortgage spreadsheet? I have had a scout about and can't find it. I would like to download it so I can keep track. Thanks.