Project Mortgage Neutral Begins

ajmoney

SandyShores said:

Hi AJ, did you know that the MSE mortgage overpayment calculator now enables you to compare to savings?  You just input all the rates etc and it will allow you to compare OPing and saving, so see which gives you the best savings. Its really useful.
Sandy

No I didn't, I will look later, thank you.  My mortgage rate is 1.34% so I reckon I know the answer!!!!

ajmoney

Getting stressed out trying to meal plan for over Christmas.  I have some company on Christmas this year so can't go with the flow as much as I would normally which I am not really looking forward to.  Other than this I am ready for Christmas.

Watty1

Is company staying?   I would opt for a fridge full of buffet style food and just plan an evening meal.  That is usually my preferred option when there people here.  Or I make a huge vat of soup for lunches and then any left over can be frozen.

ajmoney

Watty1 said:

Is company staying?   I would opt for a fridge full of buffet style food and just plan an evening meal.  That is usually my preferred option when there people here.  Or I make a huge vat of soup for lunches and then any left over can be frozen.

I did think about buffet food.  I have bought a small duck as I really like it, I will prep everything else in advance so I use it.  I might get some buffet style stuff in case and will definitely do that for new year's eve.

ajmoney

I am quite bored, I am really not very good at passing my time when I am on leave.

I have a list of things to do which shouldn't take too long so I am going to try and work through that today and then try my best to find something for tomorrow, maybe just a walk and some knitting.  I am out tomorrow night for a Christmas do and can't wait!

I have some days to myself next week which I am really looking forward to but know the same will happen when they arrive.  I think I am going to find something I can do each day, maybe somewhere to visit so I have a focus. 

Maybe this is something I can work on in 2023.  It makes sense why I used to love going on holiday for leave, I do things then and get out and about.

ajmoney

This morning I op'd an extra £100 for the month so my mortgage will be under £72k, it feels like a good achievement!!!! I have planned to only OP by £100 a month next year and save the rest in an account with higher interest and then OP in a year but I don't know if I will be able to cope not seeing the totals coming down as much!!!!

IAAM

Hi AJM

I'm the same as you in that I really want to see my mortgage balance dropping each month. However, my mortgage rate is only 1.64% and I've managed to get savings rates at 4.5%. I pay some OPs but the balance of my monthly savings go into a 12 month regular saver, which I'll use as an OP in a year.

To counteract not seeing my mortgage reduce as much, I have a spreadsheet where I reflect the reduced mortgage balance. That helps to remind me that the regular saver amounts ARE having an impact on the mortgage - I've just got to wait a year to see the figures reflected in my mortgage balance.

Watty1

One of the things that helped me at one point when I was overpaying was to draw a house and colour in bricks, so colour in one colour that was overpaid and therefore 'ours' and another colour for money in savings that was 'ringfenced' for overpaying so I had a visual of winning even if the total was  not dropping

ajmoney

Watty1 said:

One of the things that helped me at one point when I was overpaying was to draw a house and colour in bricks, so colour in one colour that was overpaid and therefore 'ours' and another colour for money in savings that was 'ringfenced' for overpaying so I had a visual of winning even if the total was  not dropping

I am going to play about with this tonight while I watch some tv.  It probably won't be house shaped as I don't think I have those skills but I will see what I can do.  Thank you Watty x

Edit: how did you reflect the op to savings as it won't reflect the daily interest...

ajmoney

Exciting, I have two sheets to my drawings.  One is just the morgage total and the savings I will be putting aside in 2023, the other (and the one I will probably use) shows my savings vs the mortgage so shows me how far I am from mortgage neutral.  The top of the house is yellow (savings) and the bottom is green (the amount already paid off), there are only 38 squares not coloured in.  I already have this information in number format in a different document but this is very pleasing to the eye!!!!!