Hope is not an Effective Financial Strategy

ourcornercottage

Great targets you will be in a fab position at the remortgage.

Dont forget to factor in the fees too when you consider 2,3,5 year options

hiddenshadow

debtfreeoneday wrote: »

The decision on length of fix is soo hard.. we went for 5 years as we just wanted the security of knowing the repayment figure month in month out

Very true - plus it's like booking holiday flights. I obsess over when the best time to buy is, but once I've bought I stop looking at prices. It doesn't really matter if I could have gotten flights for £50 cheaper a month after I bought the tickets, so why torture myself with that info?

If we'd fixed this month rather than a few months ago, our rate would be 0.2% less than what we fixed at. Over the 5 years, that's a difference of £2,325, but that doesn't factor in OPs which should make up the difference. All we can do is go with what makes sense at the time and try not to second-guess later when there's nothing that can be done anyway.

Ali-OK

hiddenshadow wrote: »

If we'd fixed this month rather than a few months ago, our rate would be 0.2% less than what we fixed at. Over the 5 years, that's a difference of £2,325, but that doesn't factor in OPs which should make up the difference. All we can do is go with what makes sense at the time and try not to second-guess later when there's nothing that can be done anyway.

I think this is a really important point and I'm still torturing myself as to whether I did the right thing paying the ERC for a lower rate..or should I have used that money and paid it off the capital?! It's done now, so all about pushing forward and not looking back (apart from to see how far we've come )

SJ - great plan for Year 2 and just love your enthusiasm

Lynplatinum

Evening all

And yes, I am going to bed in a mo!! Keep on saying I ll stick to midnight but it is just so interesting on here!

I am moving house at the moment and have gone with Te!pilo. So far all I can say is that there level of service and accessability are far in advance of any Estate Agent I have delt with whereas their fees are considerably lower!!

my finances a bit as have done well on the Tilly Tidies this week! Happy Stash = £3.91 and grocery etc +£3.51!! (out of £10 each) DS2 is coming home next week so the saved cash will go towards extra protien to feed him - although I already have 2 meals from YS deals hiding in the freezer! (Its like feeding a small horse!!)

Excellent planning SJ!! I wish you well with your targets - I wish I had been as savvy as you are (and known all the MSE stuff) years ago!!!
Still better late than never! :rotfl:
Nite all

EatingTheElephant

I look forward to seeing you smash your new ambitious goals SJ

shangaijimmy

Thanks gang. Working last night and it was difficult hearing my phone 'ping' in my pocket but couldn't read and reply!

There's one thing for sure on the whole remortgage next year - I ain't paying anymore fees! I've paid too many fees in the early days when we had to, and now we're in a strong position I'm not! With our current quest and obsession with money I do think I'll struggle to commit to a 5 yr fix as it takes away my opportunity to fiddle quite so much, and takes away a significant short term goal setting factor. If we can continue like this 2 x 3yr fixes would probably finish us off, so that us something to consider.

2 major decision factors are unlimited OP's and no fees, and I won't budge on this!

Anyway £1 TT'd this morning and 56 items ending in eBay, of which 1 will definitely sell. Mrs SJ's pile of items has yet to emerge for listing (anyone would think she's busy with a 6wk old...)!

Sport toddler thing for DS2 this morning, dog walks and snoozes are the order of the day. Bathroom also needs a good clean but that'll be depend on how items 2&3 go!

A_Frayed_Knot

shangaijimmy wrote: »

I regularly lighten Mrs SJ's purse for her, but at least the small change goes to our "pay off mortgage charity". Anyway I have to snaffle it before it lands in DS1's avengers money tin! That little pest never spends it!

:eek::eek::eek: :rotfl::rotfl::rotfl: This made me laugh, can just imagine it.

Ali-OK wrote: »

I think this is a really important point and I'm still torturing myself as to whether I did the right thing paying the ERC for a lower rate..or should I have used that money and paid it off the capital?! It's done now, so all about pushing forward and not looking back (apart from to see how far we've come )


SJ - great plan for Year 2 and just love your enthusiasm

If we only had a crystal ball. I too have tortured myself - Have I done the right thing, Am I doing the right thing, its not easy doing this on your own, no matter how easy we :rotfl:(and others) make it look:A

My answer is; You have to do with what you feel comfortable with at the time, what if you didn't do what you felt was right at the time, then 1 year down the line - wished you had acted on your intuition (my scenario:o)

You done Good, don't have any doubts. YOU DONE GOOD :T:T:T

debtfreeoneday

Enjoy your Saturday and maybe time for a word with Mrs SJ about her commitment?? Having a newborn is no excuse! :rotfl:

shangaijimmy

DFOD - Can i leave you that task?!?!?

As for looking back and questioning decisions i'm firmly in the camp of you make the decisions based on circumstances and what is currently best for your situation. If you've properly prepped, considered and not rushed a decision then you should be confident its the right option for you. Yes, things change (hopefully for the better) in all our circumstances over time, and i therefore try to plan enough flexibility so i can react to those changes.

People say hindsight is a wonderful thing but more often than not it isn't, its just a phrase to lessen the blow so to speak. So, don't look back other than to learn and analyse. Regret is a wasted emotion!

Wow, that's a bit much for a Saturday morning!

Dog walk number one done. Now at toddler thing with DS2. Secretly hoping DS1 forgets asking about going swimming today! Its a dry, sunny day here so i'd rather we head out on bikes and scooters.

hiddenshadow

shangaijimmy wrote: »

2 major decision factors are unlimited OP's and no fees, and I won't budge on this!

Not to try scupper this goal...make sure with the fee vs no fee thing that you analyse the entire cost of the mortgage fix. We had the option of fee-free with FD but when you did the sums on the interest rate (0.4% higher, I believe), it would have cost an extra £600 or so more than going with the one with the fee. Assuming you have the cash on hand to pay the fee (rather than tacking it on to the mortgage amount), it could be better for you to pay the fee if it means a lower rate.

Assuming 60% LTV on £150,000 and a 2-year fix, going off of FD's current numbers...

(Payments = 24 payments of minimum amount, interest is total paid over 24 months, interest + fee includes FD's fee, balance is at the end of 24 months)

Rate   Payments      Interest       Fee     Interest+Fee        Balance
1.84   £32,856      £4,590.36           £0        £4,590.36     £95,652.86
1.74   £32,712      £4,338.78           £0        £4,338.78     £95,545.28
1.39   £32,160      £3,460.82       £950        £4,410.82     £95,219.32
1.05   £31,608      £2,610.63    £1,450        £4,060.63     £94,921.13

Paying the higher fee you're actually better off by £350.19. Of course if you didn't pay a fee and earned 5% on that £1,450 you'd get £145, but even taking that into account you're still better off by over £200.

That doesn't take into account any OPs, of course, but those will help you regardless of the rate you're paying.