Back to basics with pavlovs_dog: the £6k sprint

skint_spice

Here's one of mine...


Sorry not sure how too shrink them!

pavlovs_dog

that sky *swoon* gorgeous shot skinty

skint_spice

It was a special place, like a different world.

zootie

Lovely reading through your diary Pavlovs_dog. A fellow teacher here married to another teacher. You are doing so well with the OPs. I shall be subscribing to your diary for inspiration!

pavlovs_dog

L&C finally called back today. Our adviser was very upfront about the fact that he could not beat the FD direct 10 year fix at 2.89% (3.14 was the closest he could do). A speculative call to FD confirmed that we meet their initial lending criteria so I've completed the online application and will get a call back in 48 hours or so.

watch this space...

pavlovs_dog

just updated OP tally for the year. Our recalculated mortgage payment took affect from last month, meaning that our built in OP is now £155 a month. We'll be able to double this if we are approved for the FD mortgage.

All being equal, we'll need to find about £200 between now and the end of December to hit our £3000 OP target - the rest will come from built in OPs.

(Our mortgage payment has always been £812/month. Our contractual payment has fallen each year as the debt has reduced, but we've kept our DD the same. It is money we had mentally committed to servicing the mortgage debt, so it is essentially a 'free' overpayment').

CathT

That does sound like a good deal from FD, our 5 year fix as 2.99 with £499 fees IIRC. Their customer service is fantastic too so fingers crossed it goes through smoothly. Will that new fix reduce your payments and increase built in OP's?

pavlovs_dog

Yes Cath. We want to take it back up to 25 years, which will make our contractual repayment £500/month. We'll be able to double our built in OPs. Without OPs, we'd finish the 10 years owing £70k. Depending on what happens with sproglets in that time, we hope to finish the term with a balance of £30-50k.

Exciting to think about the major dent this would allow us to make in the debt, without scrabbling around for extra pennies like we had to for our first OPs. Ain't compound interest a marvellous thing

pavlovs_dog

well FD don't hang around... had a phone call from a very nice Scots bloke to take some extra details. He's hoping to get me an agreement in principle by the end of the day.

pavlovs_dog

we have our AIP, we've paid the fee to secure the mortgage rate and I've got a list of supporting documents to collect.

They don't want a valuation, so that's almost £200 saved.

Very impressed with the service received so far :j