Mountainlioness' diary: the MFi3 journey

cazmanian_minx

mountainlioness wrote: »

ooh thanx CM - that's a great idea! Presumably the snowball calculator can do that?? Or is there an easier way? The mortgage we're overpaying on is currently at 6.09%

(we did £495 as that was our usual £300 plus the rent money so I can't claim any credit really!)

Sorry, only just seen this!

Someone else might want to check my maths, but I *think* that £1 over 20 years at 6.09% is £3.26.

Caz

setmefree2

hee hee hee :rotfl:£3.26 how MSE is that:money:

mountainlioness

heh heh, thanks CM, look after the pennies as they say!

I'll deal quickly with the hols as was a bit of a disaster money-wise and TBH we'd have been better off going for a package... even tho DH got himself injured so we saved a bit on the lift passes at the end of the week we needed another £300 plus the cost of the lessons :eek: And we weren't extravagant at all... really disappointed that my MSE DIY holiday plans went so wrong

Anyway, the main reason for this post was to ask a question of all you clevel MFWers...

We currently have 3 mortgages, as each time we've moved to a more expensive house, Nationwide have just set up the extra borrowing as a new mortgage (a total pain - 3 different rates)

2 of them (around £45k at 5.84% - our most expensive so where all the o/payments have been going and around £78k at 5.37%, the cheapest) are coming to the end of their tracker periods in the autumn and we were planning to remortgage the 2 together into one product.

My question is - how will the overpayments on one of the products affect the combined re-mortgage?

Will we have to match the new shorter term of the one we've been overpaying on to ensure we don't lose all the benefits in terms of interest saved? That will have implications for monthly payments,which given our plans for the year, isn't ideal...

Or am I being dim?! Should we just stick with the existing term of all three mortgages (all the same) and accept the lower capital amount due to the overpayments on one - then just start overpaying on the new product??

Any light that can be shed on this gratefully received!!!

ML

taka

I don't know about remortgaging them to 1 mortgage (not sure you can easily) but I'm pretty sure you can pay only 1 fee (if appropriate to the product you choose) to cover both mortgages to get the tracker or whatever you want. I have 1 mortgage with them and was looking to take out a further advance (which would be treated as a separate mortgage) and fix my rate at the same time and 1 fee would cover both. I was asked if I wanted to change the term at this point too. I think that you can do this if they have around 3 months before the fixed/tracker/whatever rate ends.

If you keep all 3 mortgages you will be able to overpay £500/month to each mortgage ie £1500/month.

HTH

mountainlioness

Thanks Taka...

ah the dream of overpaying £1500/month! We're aiming for £300 a month, £500 is the absolute maximum we can manage. Luckily, DH has had a good couple of months so we have, for the first time, been able to do £500 twice :j but we'll be back to normal service after then... Especially as I have now given in on his getting a Sonos system for the house with his next bonus for a quiet life!

It's only when you overpay the max £500 that it triggers a reduction in term, so we've split the 2 £500 overpayments between the 2 mortgages we plan to consolidate in the hope that the reduced terms will 'line up' before we remortgage later in the year. With any luck interest rates will have come down again before then (though Nationwide have upped the cost of all their new and re-mortgages as you might have seen in the news )

We hope to get another lodger in for a few weeks later in the year, which will all go off the mortgage - though the building work I mentioned is going to cost about £2500 (will add £15k to the value), which we need to save up for once we've paid for the safari of course! It's all go but am still feeling excited about all our projects

ML

setmefree2

Well done on the overpayments:j

BACKFRMTHEEDGE

Grreat thread:D

mountainlioness

Just tried to update my sig with the latest stats but have now had to slash n burn it to the bare minimum... something about BB code? Any idea what the deal is?!

Anyway, am proud of the new stats!

Just got £47 from Quidco, thanks to 2x £20 cshback on National Trust memberships (nice recommendation from the Freebies board). Have stashed that in our E-pig account to top up the next overpayment.

Anyway, better go... on dinner duty!

mountainlioness

Cor blimey it's been a while - got down as far as page 10 due to my neglect.

Ah well.

Just paid another £122 off our most expensive mortgage (5.59% BoE +0.34% - how tasty that looks now!:rolleyes: ) by transferring all the little bits of annual interest accrued on our e-savings accounts (we have 6 - I like different pots for different purposes!) into the mortgage account. OK it's not a lot really but (ignoring inflation of course) I can choose to see it as "extra" money so spare for virtual mortgage-pigging :A

We've been keeping up with a min of £300 overpayments a month, just wondering now how to split up our spare cash as we want to build up a cash reserve for our various projects, not lease enough for us to survive while I'm (hopefully) on maternity leave next year

Am also getting a bit worried about re-mortgaging half of our total mortgage value (see my new thread) so everything just seems that bit more uncertain and unclear than it did a few months ago - same for many people I suppose

But we're still in the ring so here's hoping everything works out. We have a list of "to dos" to keep our outgoings low - this weekend it's switch the broadband and mobile. Hubby's 3 claims (2 not his fault) in 06 is making renewing the car insurance a bit pricier than I hoped but every penny we knock off our expenditure will go towarda the mortgage or our reserve. Have been saving for annual expenses such as insurance since the beginning of the MFW quest so hopefully we won't have to dig into our salaries.

'bout all from me for now - would def welcome anyone's ideas on our re-mortgage dilemma!

Cheers

ML

mountainlioness

yay! just saved £20/month by switching my mobile phone tariff! Was about to switch provider but my network came up with a better deal - £10/month! One task ticked off and it's not even the weekend yet...

The money saved will be added to our mortgage/reserve stash as we shouldn't miss it.

Next stop broadband!