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  • VDOT47
    VDOT47 Posts: 277 Forumite
    Great work Dano.


    It may be too late to have much effect now, but with the interest rate so low on your mortgage have you considered whacking (at least some of) the £2125 per month into the best interest rate savings account instead? Or putting some of that amount each month into a pension?


    Until very recently I took the approach of trying to put everything in the mortgage, but have recently realised that a bit of a spread of savings, pensions, investments as well as overpayments seems to be the best plan, especially if the interest rate is very low.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (End 11/19) £226,790
    End Date November 2039 Original End Date February 2042
  • VDOT47 wrote: »
    Great work Dano.


    It may be too late to have much effect now, but with the interest rate so low on your mortgage have you considered whacking (at least some of) the £2125 per month into the best interest rate savings account instead? Or putting some of that amount each month into a pension?


    Until very recently I took the approach of trying to put everything in the mortgage, but have recently realised that a bit of a spread of savings, pensions, investments as well as overpayments seems to be the best plan, especially if the interest rate is very low.


    Thanks for the post, it includes many thoughts ive had over the past couple of years.


    We still manage to save a bit despite the large overpayments, and we have no unsecured debt currently


    My biggest pull of making overpayments is that the money is gone. It would be so easy to say save it instead of overpaying, but then would be also too easy to have access to it! We also have around £1,000 pm going into our pension funds already


    The way I see it is that we are both only 43, so if we can be mortgage free in 2.5 years, that will then give us enough time to bump up savings/investments and pension contributions
  • VDOT47
    VDOT47 Posts: 277 Forumite
    Fair enough, sounds like you've got all angles covered then and seem to be in a very good position!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (End 11/19) £226,790
    End Date November 2039 Original End Date February 2042
  • So Monday will see our 6th £2,000 monthly payment in a row. We ended up having a pretty quiet month in September and had a bit of money spare on yesterdays payday, so i've just sent over £293 as an additional overpayment.


    Bit of a random amount, but I can only pay 3 x the standard monthly payment with incurring charges...so £764.66 x 3 = £2,293


    Now if we could do that every month that would be amazing....CHALLENGE ACCEPTED!
  • dano17439
    dano17439 Posts: 366
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    Just reading other threads on this board, all great stuff and some really impressive stories along the way. Its got me thinking though on how people actually calculate their mortgage debt. One phrase that crops up a lot is "mortgage neutrality" I find this a really interesting concept...


    My current mortgage balance today is £60,986. However we have a bit tucked away in savings, and own 2 cars which are fully paid for. If I add these up, it totals approx. £36,000 so I guess technically if I offset these assets which we could sell tomorrow and pay towards my mortgage, my NET owed would be 25k? Is that how people look at it?


    It would be interesting to hear opinions....
  • beanielou
    beanielou Posts: 89,285
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    Not sure if people count the net worth of their cars.
    But most definatly savings.
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  • dano17439
    dano17439 Posts: 366
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    edited 2 October 2018 at 3:54PM
    beanielou wrote: »
    Not sure if people count the net worth of their cars.
    But most definatly savings.


    I agree, but do you think that this is because there is usually finance owed on the cars? I guess that we are in a fortunate position in that our cars are fully paid for, although i'm not sure how well it would go down with my wife if I suggested that she downsized her car for a cheaper one just so we could pay more off our mortgage ha ha


    I guess its knowing where to draw the line......ooooo I haven't worn that jumper in a while, so if I sell it on ebay I could pay down £5 from the mortgage etc etc
  • dano17439
    dano17439 Posts: 366
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    Another maximum payment of £2,293 paid this month. Mortgage calculator now says 1 year and 11 months!


    We are officially in the 50's now with the mortgage balance, but taking into account a small bit of cash savings we are close to creeping into the 40's! Aiming to get there in January, however I have a lads trip to Dubai at the end of the month and Christmas obviously. Quite expensive time as my office completely shuts down. This year we have from the 21st December and return on 2nd January. All very nice but that does mean a lot more socialising!
  • Slightly disappointed to not pay the full £2,293 this month. Only managed the standard £2,000.


    This is mainly due to a blow out in Dubai as mentioned - man what a place though! Party central. £12 a pint eeeeek. Luckily I stayed with my friend for 4 nights but still managed to spend £1,500 with just the flight and spending money. Expensive weekend! Still well worth it.


    With the next payment on the 2nd Jan, Mortgage balance plus savings will mean we will be in the 40s! Woop Woop another milestone ticked off
  • dano17439
    dano17439 Posts: 366
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    edited 3 January 2019 at 11:02AM
    Morning!


    Happy new year to anyone reading this. I hope you had a nice Christmas break?


    Maximum payment of £2,293 made yesterday so currently balance less our savings is £48,928. Potentially 21 more payments of this amount until we're freeeeeeeeeeeeeeee


    I had an interesting "discussion" with my wife over Christmas. I can see the financial sense in it but I couldn't convince her


    She owns a 2014 Mercedes A45 AMG. I estimate it to be worth approx. 22k and its fully paid off.


    I have a seen a cracking deal for a brand new A35 to lease for £412 per month over 2 years. The A35 is a slightly watered down version of the A45 but not by much


    I suggested to her that we sell her car, use the money to put towards the mortgage balance , meaning we would be mortgage free in approx. 12 months and that we lease her an A35. She flatly refused as she loves her car so much and doesn't want to change it yet.


    She wouldn't entertain that we could pay the house of in half the time, and that she would get a brand new car. For me it make total sense but she just wouldn't agree. Quite frustrating for me I must say, or am I just being to sensible?
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