mortgage free in 4 years hopefully...

Savingdad

Well the next step is in place, just applied to withdraw 1\3 of my premium bonds, that will top up my 2 TSB accounts to collect the maximum interest and clear my overdraft.
I like bonds, I do reasonably well with them with £125 won last year but this will give me £10 a month from both TSB accounts and save me the £15 overdraft fees, a payout of just over £400 a year plus my Halifax reward £5 has me nudging a free £500 a year for going nothing so that will get repaid after the February draw and I can look at increasing my monthly payments another £50.
Soon be all gone this pesky morgage.

Miss_Moneysaver

Sounds like you are doing really well. Don't work too hard though and keep making memories.


I LOVE your bricks colouring in idea! I must do that myself. I may get my 6 year old daughter to draw our house and I will put £1000 bricks in it :-)

Savingdad

Well monthly interest for Feb was £94.53 so that's that one done lol.
Next one is consistently in double didgit but I reckon that's a few months off now in reality.

Savingdad

Tesco current account opened and funded this month, swept my interest from the TSB accounts and my Halifax reward into it as well as the overdraft charges I had been paying every month for the last couple of years so that's a bit more earning some interest.
More bricks coloured on my house, nearly on the 3rd course of them now so progress is defiantly showing.

Savingdad

Time to change tactics I think.
I'm going to cut my payments back to the minimum and channel the overpayments to some high rate accounts.
Bringing down the capital does bring down the interest and I could save on compound interest but as I have the means to repay in 3 years the compound interest is less of a worry.
My cash can earn me more at the moment than it saves me so I'm changing my tactics on this one, I should be able to stash close to 15k in the next 3 years plus interest earned.

Savingdad

Just checked my account and the monthly interest is under £100 which was my aim.
By spreading some cash around my high interest accounts I am earning £20 a month and saving £25 ôverdraft fees.
The interest I am paying is reducing by about £1.20 per month so if I can earn more than that by saving the overpayments I will be better off in the end I hope.

Jay1403

The monitory system in England is so great that in todays working class society the core investors have little choice but to spend the majority of their lives paying for that so called privilege of forced re-investment subsequently generating a self purpose in life to actually free themselves from their initial investment. !!!!!!.....

Dobbibill

Reviewing everything every couple of months is a good idea - do and re-do that number crunching so everything is balanced :T
you have to make sure everything is working for your wallet and your life.

It's a fine line to tread but you are doing well :j

keep up the good work - wishing you all the best

DB

Savingdad

Thanks everyone, when I started out I didn't know about multiple high rate current accounts and compound interest but as I have earned £40 interest in the last 3 months and saved about an extra £6 off my interest bill in the last year its clear its time to stop overpayments and funnel as much as possible into a Santander 123 and switch bill to get cash back as well.
I pay £100 a month interest on the morgage and with overpayments it reduces about £1.20 a month, if I cut my payments in half it will still go down 50p or so and so I am only saving a few quid a year.
As the plan is to use a maturing endowment to pay off the morgage completely in 3 years it makes more money getting 3%, 4% or even 5% than overpaying a 2% morgage I feel.

Savingdad

Ok, odd one her that I think will need a call to my morgage provider.
Just got my annual statement through and ran the base figures through the overpayment calculator.
Put in my balance and remaining term and my interest rate of 2.5 % and it said my minimum payments should be £312, but my statement says £361.....
Put my balance and term in and used £361 in the repayment box and that gives me an interest rate of 4.6%...
I know its only a guide but that's a hell of a difference in cost\% to explain away...
Hopefully I will find they didn't change me off of the higher interest rate when my fixed term ended and there are years of extra interest and compound interest to be skimmed off my morgage.