Project Mortgage Neutral Begins

ajmoney

When we had a cleaner in the last house we didn't do much between visits, wiping around the kitchen and bathroom and vacuuming if needed. That is what I do here regularly but don't dust every week. I have really enjoyed having a pretty clean house over the last week but until I have decorated I don't think it is going to smell completely clean/fresh. I am prone to OCD when it comes to cleaning and I am keen not to reignite that so need to stick to a basic level of dusting and vacuuming and not feel like I have to clean every inch of the room. I didn't do any cleaning yesterday, Tuesdays have become quite a busy work day so by the time I was done and had eaten I didn't want to start.
Last day of the month tomorrow, I am lucky to still have a bit of money in my account. Buying vouchers for local beauty place, what I would have spent this month on the appointments that were cancelled to keep them going, then save the rest.

savingholmes

Sounds positive. Glad that you are not going to go overboard on cleaning. I know our family need to improve but there's definitely a balance.

ajmoney

A few jobs to do today but I am also going to take it easy, it is my nana's funeral this afternoon so I need to make sure I give myself time and don't power through the day.
I got a letter from the bank yesterday saying that one of my mortgage products comes out of the initial term in July. I thought the 2 year period was going to end at the same time as the other one in a year but looking back at the original paperwork this is correct. I can only assume they carried it on from when Mr AJM and I mortgaged in 2018 although some of the wording is confusing. I am going to do some research to see what options are open to me as this throws things a little. I had intended to get rid of the smallest mortgage before the remortgage date came up and reduce the term again but I don't think I can do this unless I move all the dates. I will need to speak to them at some point but I am sure they will still be fairly busy helping people out.
I have some other paperwork on my coffee table so I will focus on paperwork today.

ajmoney

It looks like that portion of my mortgage will go up by about £10 a month because the base rate reduction will come off, the downside is I will be subject to every base rate increase on that portion of the mortgage and let's face it, they can't go any lower

I had a RS account that matured at the beginning of the year and I had intended on OPing it to bring the mortgage down but in the end sat on it for a bit and paid for my electrics and gardening with it and have £1.5k left.  The thing is I still have the proceeds of the sale of the house last year (£4653) for that so I kind of have the money saved twice.  I am contemplating OPing the left over £1.5k as that was the original plan.  I know a lot of people have changed their plans in the current climate but I am lucky enough that I am still able to work and get paid and the interest on any savings isn't worth the paper it is written on.  Mr AJM and I were discussing OPing lump sums yesterday and I can't see a reason why I shouldn't.

A_Frayed_Knot

Sorry to hear about your nana, terrible times for a lot of people atm.

You have touched on a subject that I am very passionate about.  Going out of deal and o/ping.

Depending on how long you have left and how much you still owe, I would go for the o/p.  

I actually went out of deal, payments increased, but knew I wouldn't take another 2 years to be MF.  The new deal would have restricted me far too much, and would not have been able to o/p as much as it was a low balance.

I decided to "rob" one of my "pots" to be MF as soon as I could, (Thus saving the interest charged on my SVR mortgage)  and then what I would have been paying for my mortgage, I replenished my "robbed" pot.  Thus saving the interest charged on my SVR mortgage.  Once I had done that, that's when I decided to go part time.

Like yourself, I'm in a job that I will work through (health allowing) and get paid.

Sounds like you already have a plan.  Good Luck.

Suffolk_lass

I must say, if it is coming to the end of the offer period and there is no early redemption penalty, I would be paying it off and in your circumstances, increasing the amount you are paying on the main mortgage by the amount it is taking per month on that smaller mortgage. If you don't feel happy OPing the main mortgage you could delay that and put the money into a pot for later, but definitely clear that mortgage.

As the saying goes, it is a monkey off your back (draining the swamp and killing the crocodiles, rather than carrying the monkey with you all the time). 

ajmoney

I have £6037.83 left on the smaller mortgage that I am intending on making the large OP on.  Officially it is due to run until 2039 but I plan for it to be gone by this time next year at the latest but the end of the year if possible.  Savings account closed and money about to be OP'd!

I am likely to confuse the bank as I sent that OP today and tomorrow will make my May one, I probably should have done them both at the same time to save on their letter writing!

A_Frayed_Knot

If thats the case, then I would avoid taking out another 2 year deal, far too restrictive for overpaying.

Are both your mortgages the same interest rate?  I would then be overpaying the smaller one just to get rid, then as SL states, what you were paying to smaller mortgage, move to larger mortgage.

Well done, o/p - you don't hang about, lol, as they say - that's £xxxx you will not be paying interest on anymore.

You must be feeling fantastic, I know I did, when got to the last hurdle and didn't take on another 2 year deal.  Freedom !!

Spurred me on to overpay as much as I could, hope it does with you too, just keep rounding that end figure down to 00.00 then it will be  -  gone     

ajmoney

I only ever take out tracker mortgages that allow unlimited OPs so I am not too worried about taking on another deal. The smallest mortgage has the highest interest rate which is why I am paying this down first. This is actually a lie, my third mortgage is the highest but it is a great deal that you can't get anymore and each time I mortgage the advisor and I agree I should keep it. I have had it since 2007 and while it is 2.68% I can sit through lots of interest rate rises before the monthly payment will increase because of the collar attached to it. Once the smallest mortgage is gone I will turn my attention to the largest one which will have the lower interest rate but higher monthly payment. Whatever happens when I mortgage, once the smaller mortgage has gone I will be OP'ing the monthly payment and OP amount which will be around £600 a month.

ajmoney

I have just played about with my spreadsheet.  I am currently due to be MF in April 2041, my original MF date when I took out my first mortgage in 2005 was Feb 2030.  Based on current interest rates (which they obviously aren't going to stay at) if I continue with my planned OPs and when each mortgage has gone use that money to OP too I should be mortgage free in Jan 2029 which will be a month before by 50th birthday.  Considering my first mortgage was for £56k, I then bought my marital home with Mr AJM and increased the mortgage amount to be around £178k and then went it alone with a mortgage of £107500 last year, if I manage to pay my mortgage off before the original date I will be really happy.  I know nothing stays the same so this might not be achievable but I think mortgage free at 50 seems like a great plan.  I just need to hope I can stay in my current job until 48 rather than 43 and it will make this so much easier to target. 

Once this situation blows over and I know what my immediate work future holds I am thinking of advertising to teach private instrumental lessons which might help towards my goal.