ATB's £171k quest begins.... NOW!

atypicalblonde

A brief but super positive update from me - we have smashed this month's overpayment target!

Mortgage today stands at £168,000 exactly! I am so pleased! (if my smilies worked I would use them, unfortunately they don't for some reason). The rest of the month will be a little tight, but I am confident I can get us through to month end with just the cash in my purse (£80) and no need to use the debit card.

My new M&S card arrived, which I am going to use for stoozing purposes from the start of March.

I also have a call out to our mortgage adviser - I think we could perhaps get a better deal thereby reducing our interest rate and freeing up some more cash for overpayments. He really is a smashing chap and we don't pay a fee to him, he gets a fee from the mortgage company, so as far as we are concerned we get a free service from him.

We are with the Halifax on their SVR of 3.99% at the moment - I am certain we could get better with our current LTV of approximately 75%.

Keep at it peeps xx

atypicalblonde

New mortgage deal secured - 2.69% fix for two years. The only problem is that we are capped at 10% overpayments per annum, however we will meet that limit each year then stash the rest in savings to hopefully make a big enough overpayment at the end of the two years to bring us under £100k x

atypicalblonde

Happy Sunday everyone!


I hope everyone is doing well. We have today paid a £300 OP which will be our last OP for February. Nursery fees are due at the start of March which are always a crippler even though DS only goes 2 days a week.


I should get confirmation this week if our rate swap will take effect before our payment date on the 1st of the month. Once I have this I am going to put together my plan, bearing in mind that OPs will be capped at 10% per annum for two years from the date the new deal kicks in. The rest will be locked away in the best savings account we can find until the two years has expired, at which point we will make a big OP of the money we have been saving. Or so the theory goes.... wish me luck! x

Luckyinlife

Great job on OP you must have saved a lot in interest with that payment :]

I think its good you can save the rest and only pay 10% give you options at the end of the 2 years

I myself am charged at 3%/ 2% booo for the first 2 years so am going to wait 2 years and pay off as much as i can after that time which i think is the best way got an account called mortgage fund :]

atypicalblonde

Agggh I need advice guys.

The paperwork has been emailed over for us to sign for the new deal. Trouble is I'm really worried that the 10% per annum OP cap may thwart our plans.

The principle of meeting the 10% limit (which I know we can do) then saving everything else and making a big OP at the end of the two years sounds good, but will I be disciplined enough to save it and not touch it? So do I stay on 3.99% and make unlimited OPs (to meet our MFi5 target we need to pay off circa £3k a month) or sign up to the two year 2.69% fix and OP much less than that whilst theoretically stashing the rest to make a big OP in two years?

What would you do guys? X

wantabetterlife

Have you thought about reducing the term of your new mortgage deal. This would increase your normal monthly payments and still allow you 10% overpayments. A lot of people on this board do it...seems to be a bit of a loophole.

atypicalblonde

Thanks for your comment WABL. That would have been my ideal but as I have only been self employed for a short period of time, we would not get past their affordability checks as they need three years accounts and they do these checks as standard when you ask to reduce the term.

Any other thoughts guys? My gut tells me to stick with the higher rate and hammer at the OPs... Xx

ETA... Just checked online banking and a customer has paid me early so I've paid that straight off the mortgage - £400 down :-)

clippy_girl

Personally I would def switch mortgages- on your current rate you will pay about £6703 in interest in a year and new rate would be £4519 so a saving of over £2200 per year in interest. That is a quick calculation not taking into account payments made (I'm not that technical!)

Could you look at an account where you have to give a notice period of say at least 30 days (to make you really think about whether you want to spend it) or one with just a branch passbook?

kitjos

Id definitely get onto the lower rate. I know the 10% cap can be annoying but many of us are in the same position . Open up a savivings account or something with your chosen bank and put all the acsess money in there untill your fixed rate is up - will take will power not to touch it but im sure you will manage. Imagine the day you get to make that huge overpayment!! xx

atypicalblonde

Thank You both so much for commenting, a savings account with a passbook is an excellent idea. As I hate going into town I would be even less likely to take money out :rotfl:

Decision made, new rate it is, thanks guys xx