My Single-interest only-mortgage journey

ViolaLass

Monkeychops16 wrote: »

Ok well I have received some advice that completely contradicts what I thought.

A more adultier adult said that I should just continue paying the interest payment as I am. There is no point struggling and I need to enjoy the time with the children. In 16 years (when the mortgage ends) they will be 20 odd so shouldn't be living with me. The house should have increased in value and then I can buy a flat or something for myself.. I did state that in the 9 years I have lived here it has not gone up in value-but he seems to think in 16 years it will..

Clearly everyone on here disagrees and wants financial security.

I am confused???

Counting on the value of your home going up by enough to buy a flat is a bit dodgy, in my opinion. What if it doesn't? What if you would like somewhere bigger? (For the kids/grandkids to visit?)

Your plan is FAR better. That way, any increase in value is a bonus, rather than something you've been relying on.

Monkeychops16

Thanks for your insights. You are right, I don't know anyone else who sees the benefits of overpaying. Also, I did make over payments to my debts to clear them. I'm not very good at figures, my deposit was about 13%. At the current time, I doubt I would have any change but if it did increase in value hopefully there would be. I hope you can get your DH more motivated, it must frustrating but you must take pride in managing it all your self :-)

Monkeychops16

ViolaLass wrote: »

Counting on the value of your home going up by enough to buy a flat is a bit dodgy, in my opinion. What if it doesn't? What if you would like somewhere bigger? (For the kids/grandkids to visit?)

Your plan is FAR better. That way, any increase in value is a bonus, rather than something you've been relying on.

Ah thanks for replying, I agree there is no way I can count on it increasing. I will make an overpayment today-only a small one though! :money:

helibob

Monkeychops16 wrote: »

A more adultier adult said that I should just continue paying the interest payment as I am. There is no point struggling and I need to enjoy the time with the children. In 16 years (when the mortgage ends) they will be 20 odd so shouldn't be living with me. The house should have increased in value and then I can buy a flat or something for myself.. I did state that in the 9 years I have lived here it has not gone up in value-but he seems to think in 16 years it will..

I guess it depends how much you'd be struggling. If you can comfortably afford to overpay by reducing unnecessary expenditure, you can still sell the house when the kids move out, but you get to keep more of the money, so maybe can retire earlier, or help your kids out more. That's assuming your house value does go up.

If overpayments are going to put you on the breadline, then I may be more inclined to agree with your friend, but it sounds like you're able to make lifestyle adjustments which you're comfortable in order to overpay.

Re: laptop - if you're used to a 5 year old one, it may be worth thinking about getting a reconditioned one. It can still be an upgrade without being brand new. I replaced an 8 year old laptop with a 1 year old reconditioned one for about a quarter of the price, and because I wasn't used to the latest tech, it seemed shiny and new to me

Monkeychops16

Mph yes that sounds like a good idea sea about the laptop. I'll look into it. Thanks for the helpful ideas.

Overpaying small amounts will be manageable at the moment and still allow some fun. As it's been said then at least I will have made a small reduction for the future. I've been used to living frugally with my debt free wannabe antics so that's ok. But the children don't understand why they can't have toys and sweets in every shop we go to! 😆

ajmoney

Monkeychops16 wrote: »

But the children don't understand why they can't have toys and sweets in every shop we go to! 😆

Your way will give them a better understanding when they spend their own money when they are older. I know times have changed but we weren't really bought anything like that on a whim, it was either on a day out or what we got for birthdays etc was made to last. If you do things with your children then that is what they will remember, not how often you bought sweets.

ViolaLass

Monkeychops16 wrote: »

But the children don't understand why they can't have toys and sweets in every shop we go to! 😆

They're kids, that's what kids do. Doesn't mean we have to give in to their every request/demand. (as I'm sure you well know!)

Monkeychops16

Today I pulled out my original mortgage documents out and I have got my figures slightly wrong. I have borrowed £103700 so slightly more than I had written down here. On Friday I made a £50 over-payment to the mortgage.

SO that is a total of £155.14 since i started on 30th July. i'm sure I have overpaid £10.00 once years ago but the website only shows last 12 months so I will have to use the current figures now.

So amount borrowed £103,700-£155.14 gives new balance of £103, 544.86.

I'm off to read some more inspiring diaries to keep me motivated!

Monkeychops16

So I've been toying with making a large (for me) overpayment or buying the new laptop. Then I did some calculations and realised i have a lot of things to pay for in the next few months.

Christmas
Birthdays
Hen night
Spa day
Owe my children's savings (bad mummy)

Laptop

So after thinking about this it's unlikely I can make some overpayments or buy the lap top until January boooooo :-(

sarahevie1

I do understand your friends logic, its just too risky for me. It depends too much on house prices increasing. What if you don't want to go as small as a flat, downgrade area? Etc.

I think the key is balance. My parents were/are very frugal.
I went to Durham where a lot of students came from money, parents paid their rent, gave them an allowance, my parents could never afford it, but dad retired at 48, bought 4 houses outright by selling some farmland he owned, hes been lucky due to house price increases. So frugality and a bit of luck can give you options.

Does mum think they did the right thing? No, she says we had a wasted childhood as we never spent a penny. Mum is always telling me to enjoy it now, live for today not tomorrow. It's a tough one?