Back to basics with pavlovs_dog: the £6k sprint

Alchemilla

Good news!

CathT

pavlovs_dog wrote: »

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

Ah yes, I remember reading that now! last time we remortgaged we exptended term back to 25 years as I was retraining but continued to pay what the mortgage should have been. We are well on track to end before our first mortgage which we took out early 2003. We would do the same if we moved too, extend term to what was needed and overpay as much as possible.

pavlovs_dog wrote: »

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

Their service really is fab, makes it a little less stressful. Great security from that 10 year fix too, well done! Maybe you won't need to remortgage when that ends

BookWorm

Hi pavlovs_dog :hello:

I've been having a read of your diary today and didn't want to 'read & run'

I'm due to remortgage early next year and so I'm interested hearing about those who are going through the same process. I hope it carries on as smoothly for you as it seems to be going so far

Enjoy the rest of the weekend

BW

pavlovs_dog

Hi BW,

in many ways the process is proving to be identical to securing a first mortgage. Make sure that your credit rating is in good shape, and that your paperwork is organised. You'll need 3 months proof of this and that as well as the usual proof of ID. Check out what your LTV is. If you are close to the next bracket, it can be worth OPing to access better rates. Ours is currently about 62% - were we keeping the mortgage over 20 years, it would have made sense to scrabble together the money to drop us into the 60% LTV category, as rates become most competitive there.

Depending on your circumstances, it can be worth considering changing the length of your term if you remortgage. Shortening the term can have a similar end result to lengthening the term if you have the discipline to regularly OP the difference when on a longer term. The major sticking point is that shortening the term means you are contractually obligated to the higher payment each month. Lengthening the term frees up cash to OP but your contractual outgoing is lower, ideal if your circumstances were to change and you needed to free up some £ss in your budget.

A visual example...

£107k over 25years, fixed at 2.89% for 10 years.
Monthly payment £501 - balance after 10 years £73,151.
OP £311 each month - balance after 10 years £29, 835.

Assuming interest rates and our payments stayed the same(!), we'd clear the mortgage in full 3 years later (ie 13 years).

£107k over 13 years fixed at 2.89 for 10 years
Monthly repayment £824 a month - balance after 10 years £28, 368.

One thing that I hadn't thought of is that we would need to amend our life assurance to reflect the change in mortgage term. We have a decreasing term policy which would have 20 years left to run when the mortgage will still (officially) have 25.

Depending on how much spare cash you have at your disposal, I'd recommend slowly squirrelling away money to help with any potential product fees, valuation fees and the legal fees you'll have to pay. I was aiming for £2k to be safe. Product fees have cost us £950. We'll also need to pay legal fees and an exit fee to leave our current provider. I'm anticipating final bill to be around £1500. As we're taking the long term view, this seems a fair bill.

Obsessively checking best buy tables and running snowball style calculations of how to expedite your final MF date are entirely optional but wholeheartedly encouraged and sympathised with

pavlovs_dog

Trying to get things done today.

Alternating 15 minutes of marking with 15 minutes of ironing has cleared a set of yr10 mock exams and virtually emptied the ironing basket.

Text a shopping list to OH so he is shopping on his way home from work. Just a top up shop as we have plenty in that can be used up.

Sprayed bathroom cleaner over the downstairs loo sink whilst I did my workout (that's right, I've started working out. Bikini body, here I come ). Left it to work whilst I did my thing and then just wiped it down when I had finished and bleached the loo. Smells much fresher in there.

Now to mark a set of books, plan tomorrow's lessons and make my packed lunch. The next 6 weeks are going to be hellish and I need to be on the ball.

Alchemilla

Well done on the marking Pavlovs.
We have INSECT day tomorrow.

pavlovs_dog

Alchemilla wrote: »

Well done on the marking Pavlovs.
We have INSECT day tomorrow.

once upon a time I used to prefer INSET to starting back on a full timetable. It felt like easing myself back in gently. The way INSET has gone in our place over the past few years, I think I'd rather start my week with bottom set Year 8.

Alchemilla

Absolutely ditto.

CathT

pavlovs_dog wrote: »

Trying to get things done today.

Alternating 15 minutes of marking with 15 minutes of ironing has cleared a set of yr10 mock exams and virtually emptied the ironing basket.

Text a shopping list to OH so he is shopping on his way home from work. Just a top up shop as we have plenty in that can be used up.

Sprayed bathroom cleaner over the downstairs loo sink whilst I did my workout (that's right, I've started working out. Bikini body, here I come ). Left it to work whilst I did my thing and then just wiped it down when I had finished and bleached the loo. Smells much fresher in there.

Now to mark a set of books, plan tomorrow's lessons and make my packed lunch. The next 6 weeks are going to be hellish and I need to be on the ball.

What workout is it PD? A few of us seem to have this fitness bug. Great multi tasking, I usually clean the bathroom when the children are in the bath, just finish off once they have got out. Not enough hours in the day to do anything other than multitask!

pavlovs_dog

mix of allsorts to be honest Cath. Bodyweight pilates style exercises (following plans from blogilates) to improve core and joint strength and then a pick and mix of youtube videos to build up cardiovascular fitness and endurance. TBH I'm starting out from a low point. I was very ill as a child, so my base level of fitness has never been that good. I want to start my 30s in better shape than I started my 20s, which will be easily achievable with consistent effort.

I'm looking forward to walking more once I get rid of the exam classes and have more than a few minutes a day to myself. It will be nice to take advantage of the lighter evenings and spend some quality time with OH. We're so blessed where we live - the coast is a 20 minute stroll from our front door, open countryside is just a 20 minute drive and we can be in the mountains within an hour.

I feel like I'm surviving day to day at the mo. OH being an absolute superstar in making sure that I'm fed and watered and the housework ticks over.

working through a HUGE to do list today so I don't feel totally overwhelmed come Monday. I have 4 days of GCSE examining to look forward to this week. Need to leave cover work for all the classes I'll miss in the process - talk about double duty!