£170000 in 10 years

try_harder

I thought after speaking to you ch4rly2002 i would look back over all my posts and see what has changed over the last 22 months .The first thing i noticed was that i forgot to say that at Christmas 2016 my children who were travelling and whom i thought i would not see both came home ,this was the best part of the last 22 months.
I can also see that i chop and change quite a lot ,i had initially intended to overpay my mortgage but now save with the intention to overpay at the end and hopefully pay in full this also gives me the security if i need a lump sum for something that i have it available.
Over the 22 months i have bought a new sofa for the kitchen ,a car ,a second hand second woodburner .new fascias and guttering a cheap holiday ,money to spend on various jobs to both cars and lots of money spent above the budget saved on Birthdays and Christmas so quite a lot of things came out of the savings .
My food budget has changed too , it has been low and high and im sure will yo yo a lot in the future but overall i am very happy with it .
My savings are going well but my dreams of overpayments is not so good in fact its just that a dream i definitely do not seem to have any more money so i am just going to concentrate on the savings for now with the aim being £1500 a month x 96 months but i will be happy with £1000 a month but will also continue to work on my new clothing business and My Millionaire Challenge so plenty to get on with for now.

ch4rly2002

Brilliant summary - it's good to see where you started, what's changed and where you stand now. When you list all the things you've paid out for together in one post it really shows what you have achieved to be able to cover it all comfortably from savings. I'm glad the kids made it home as well, that must have lovely

I've been thinking about your interest rate and savings etc. I think it might be worth you considering talking to a mortgage broker as I believe they have more success in getting mortgages through (maybe because they can better match people to the most likely to be accepted or maybe because the bank think they will have already checked them out reasonably well). If you don't have an exit fee to leave your current mortgage, I would wholeheartedly recommend London and Country. They're free to use with no obligation (Martin raves about them all the time) and I found them very good at finding the right solution. If you mention that you want a better interest rate but you also want savings they might be able to find a better deal for you. I think an offset mortgage might be good for you as you don't pay mortgage interest on the money you have in your savings but the interest tends to be a little higher - but with your interest as it is it might not be too different to what you're on. I know you said you're wanting to save for the long term but I thought if you have an offset you could keep some in that for security and risk some in the high interest ISA so that you have the best of both worlds - some investment and some security. They can probably also find a way to work with the whole self employed aspect without you being at a disadvantage. Anyway, just a thought, that might not even be what you want but if you're tempted it costs nothing to find out

try_harder

Morning ch4rly2002. That was so very kind of you to think of me and for your great advice .I have tried going down that route but my husbands wage is thousands short of what we would need to borrow ,he is self employed and works between forty and seventy hours a week but only charges a low hourly rate so we would only be able to borrow a much smaller amount .Im afraid we will have to wait for a few years until we can pay quite a lot off before we could get a mortgage and we will probably be too old by then .Thank you though .for thinking of me.

ch4rly2002

Ah, I'm sorry. I think it's rubbish that the bank won't let you switch to a cheaper mortgage rate now and are telling you to get to a lower LTV before they'll change it. I guess just keep doing what you're doing then as it's working brilliantly

themadvix

If you can't switch mortgage deal TH, is there a reason you're not OPing at least some of your savings? (There might well be, I just can't remember it!)

try_harder

Morning ch4rly2002 and themadvix . I am hanging on to my savings for two reasons one is that they are earning a much higher interest rate than the interest rate on my mortgage and also because of the security of having ready money if its needed rather than borrowing it on my credit card .Even if we got our mortgage level to a required level we still would not pass the affordability requirements sadly but i definitely would like to make some very small overpayments thats for sure especially to my Sub Account 2 which currently stands at around £10,500 and is on a repayment i might start chipping away at that with very small amounts as i can afford to do so.

try_harder

Weekly round up .
£18,643.21 savings.
£258.70 free money
£800 in Millionaire Challenge pot
£19,701.91 total
It looks like i might make the £20,000 target in January if i include all three pots Busy Mee1.

I have spent quite a lot of money on food this month but have stocked up for two or three weeks on basics ,i have £128.72 left for the rest of the month and £97 left for diesel for two cars mine is still quite full.

Ebax sales going well and i am meeting my £10 a day target in fact i have exceeded it so far but hoping for lots more sales so more listing to do this week.

daisy_1571

Hi TH, I can understand you trying to keep your savings cos it's lovely to see them build up but I wonder if there has been an occasion in the past where you suddenly needed £20,000 in a hurry ? I only ask as I know my mum is on her own now and is awfully worried about money and scared to spend any in case she needs it. That is what I was asking her the other day to try to allay her worries. Even if you paid off your sub account you would very quickly have a nest egg of £10,000 again at the rate you manage to save at, which is a huge amount plus you would have a bit more money each month as you would no longer be paying that bit off.

Just a thought, we are all different and even though it makes mathematical sense to keep your savings at a higher rate I know I would rather pay off bits of the mortgage to get rid of it.
Loving your journey, you have changed your mindset so much and are a real inspiration

Daisy xx

try_harder

Hi Daisy .I completely understand where you are coming from .Maybe once i have reached a slightly higher figure i would feel happier at parting with the money to the Sub Account ,it certainly would make me feel happier to know that instead of a payment of £653 a month it would be around £500 and i could still overpay or save the difference but would be good if more interest rates appear .I will definitely bear it in mind and thank you for your advice ,funnily enough i did make a very tiny payment to the SA this morning i will try to make some even very small payments then see how things are maybe in six months to a year.Thank you Daisy

try_harder

I have just looked it up and i pay just over £135 a month on that small mortgage so £1626 per year and i could save £1875 in interest paying it off early so does actually look quite enticing .I will wait until i have saved up a bit more as i said maybe i could make a goal of £25,000 then pay it off and still be left with £15,000 i feel comfortable with that .Thanks again.