The impossible dream

TallGirl

Amazing progress well done you and happy new year. 

savingholmes

Fantastic progress. So pleased that you got your building work done know that was a struggle. Great news on the mortgage payments. Your retirement date is becoming more achievable.

savingholmes

Happy New Year!

Tahlullah.H

And a Happy New Year to you too Savings!

So, here we are again, another year over and a new one just begun...
I start the New Year with the same plan I have had forever, which is to clear my mortgage, whilst still living my life.  Living life includes going on holidays and re-starting swimming when the temperature gets warmer.

My plan, which I do not believe is attainable, is to clear the whole lot in one year.  But, forever the realist, I know that I cannot do this as I do not have enough disposable income.  Perhaps that should be a goal?  Find a higher paying job.

I have made my first payment of the year, and currently owe £24,900.  If I manage to maintain the same payment schedule as last year, by 31 December 2023 I should owe £7,900 maximum.

Things that will conspire against me - 

Fuel costs spiralling out of control, be that Gas or Electricity - smaller concern as under control at present
The cost of diesel - slowly coming down, but will never return to what it was
The cost of food - constantly going up
The mortgage payments as my Fixe Rate ends - should I pay a lump sum just to fix at a high rate or should I risk the SVR

I envisage that most of my spare money - not that I really have any as every £ has a job - will have to go into the mortgage payments which I anticipate will triple.  So, I can try to find that extra money or I can reduce the amount of overpayment.  Not sure what to do as yet, I need to watch to see what the Banks do going forward.  I have 2 months to ruminate on this dilemma.

If possible, I would like to reduce that £7,900 to around £5000.  That would be a nice figure to enter 2024 owing, so this will be may be my other aim for the year.  My aim is to repay the mortgage by £20,900k.  Is it possible?  I don't know.  Last year, I managed to reduce it by £21,250, so I guess with a bit of determination, I might get there.

How I will do this, I have no idea.  Last year, I made the effort to try and bring in small sums when I could, which means less spending in other areas.  So, I will re-start this.  I will also try to sell some things, but I find this tedious beyond belief.  Buying less food is on the cards - the Christmas food is still in the freezer and cupboards, so food shopping should be minimal for a while.  Controlling the heating by using the open fire is a given and continuing to use the Air Fryer when possible - the oven was used a lot over Christmas!

Other than that, save the pennies, collect the coins, think before opening my purse and pray for the Premium Bonds to do something spectacular.  Hopefully, this time next year, I will be looking to pay my final £5k.

Bring it on!

savingholmes

Happy New Year! Great goals. Will read with interest 

TallGirl

Sounds like a plan I’m sure you can do it but worry about the rising cost and the mortgage rate change. Good luck 

greent

Happy new year! You're so close now 👏👏 I'd go for SVR with such a low balance/ short time frame due to the flexibility it gives - but that's just me x

TallGirl

Yes well done for getting so close id agree on such a low balance you don’t want ties or set up fees not worth it. You can do this 

LeighofMar

Terrific goals, Tahllulah. I will be cheering you on as our mortgage balances and desired end dates are very similar. I hope you can reach them. 

Tahlullah.H

Thank you everyone for the kind words and vote of confidence.  I agree with your assessment of the situation, and have decided to go with the SVR.  After all, what is the worst that can happen?  The best thing I can do is aim to bring the capital owed down as low as possible over as short a time period as I can.  So, my aim is to get the amount owed down to £22k by the beginning of March.  I am not sure where I will find the money, but one thing I have learnt on this site, where there is a will, there is a way.

I have very little in my PB's having spent it all on the house renovations.  Perhaps the remaining money should be re-directed into the mortgage?  I am only talking £1k of emergency fund.  But I currently feel I have enough access to money if an emergency presented itself.  Naïve I know, but maybe redirecting this money will make a bigger impact in the mortgage than the vague off chance Ernie will pick my numbers?  I will cogitate further but somehow, I just feel the money is better utilised clearing the mortgage.

To facilitate this, I have taken a step towards finding a higher paid job.  Admittedly not something I was considering a month ago, but needs must.  A lot of people are re-entering the jobs market, so competition will be fierce for any job I apply for, so I will not beat myself up about this if I am unsuccessful.  I have a  great job that is relatively easy and stress free, where I work from home most of the time.  The loss of not getting a new job is the pay increase, but I am ok at present.  I should count my blessings that I do not need to find a new job, I can look and apply if I want to, not need to.

I really should make an effort to find things to sell around the house.  Maybe that should be another task.  Sell one thing a month, however small.

Right, off to look to see if I have any other small pots of money I can redirect!