Get a grip woman!

Suffolk_lass

From when I retired, Feb 19 this tracks the impact of the interest against overpayments:

Start of interest when I retired £60.55 per month (pm) £2543.10 total over life of mortgage (42 months left)
8 Feb 19 £39.42 (new pm) new total £1655.64
(£887.46 interest reduction as a result of the lump sum of £20,000.00)
12 Feb 19 £38.45 (new pm) new total £1614.90
(£40.74 interest reduction as a result of the lump sum of £923.00)

Total reduction of interest is £928.20 so far

Karmacat

That last post is a bit of a numbers blur for me, I'm sorry, I'm not good at following those kind of posts in detail :o:o


But ... 42 months left, instead of 54? I got that :j:j:j

enthusiasticsaver

I think I got that SuffolkLass. Are you calculating the impact on interest (reduction obviously) due to overpayments? So if you let the mortgage run its course over the next 42 months until repayment it would have cost you £2543.10 in interest and due to lump sum overpayments it will now only cost you £1614.90?

enthusiasticsaver

Has it reduced the term from 54 months to 42 months without any further overpayments or have you not calculated that?

Rita_Sandrunner

Hello Suffolk lass,

Thank you for sharing your diary, I am finding it really interesting. 42 is not only the meaning of life, the universe and everything - but a significantly nicer number than 54!

Best wishes,
Rita

beanielou

Good news on less months than you thought

Suffolk_lass

enthusiasticsaver wrote: »

I think I got that SuffolkLass. Are you calculating the impact on interest (reduction obviously) due to overpayments? So if you let the mortgage run its course over the next 42 months until repayment it would have cost you £2543.10 in interest and due to lump sum overpayments it will now only cost you £1614.90?

Yes that is it. The reduction in months was because I was in 2018 not 2019 in my head when I first posted, so totally my !!!! up.

The reduction in months wasn't my aim because we are interest only on our mortgage (at this stage).

Suffolk_lass

Thanks Rita, and welcome. I'm not sure how much longer we will let the mortgage run but having set up 3 regular savers from Bank Accounts all at 5%, the interest is per annum, the actual interest is half of the 5% because they are a year in duration - so for each £3000 saved we will receive approx £81 in interest. We are overpaying (regular £500 instead of the interest only, and anything lumpy in the instant saver where my Tilly Tidies go) each month but we might use DH's TFLS from his Teachers pension come September (when he will retire), to take most of the remaining out, and then it might be too tempting to just clear it.

So although my aim is to reduce interest, the reduction in months was me counting wrong, not part of my aim on here, to be honest.

Suffolk_lass

We had a lovely time yesterday, browsing at an auction of bygone objects (ranging from rusty looking objects to classic cars - we bought nothing but do have one or two things of interest in the general sale tomorrow - I might go. Then we drove over to the neighbouring county to collect a FB Marketplace object that does not quite fall into the "need" category but certainly satisfies a "want".

My attempts to be frugal are failing miserably as I also bought the inner tent for the Tipi I bought DH for his motorcycle tours. He is perfectly happy with it without, but once he is used to being able to stand up to get dressed I anticipate we will both use it and I will definitely need the inner tent (last year's model, on clearance, half the price it was last year) - are my excuses working? :rotfl:

Suffolk_lass

Feeling relieved that I have not planted out yet - the forecast is for frost overnight and over here in the East, cold, spring is normal. So I am still not planted (though potatoes are chitting. Onion sets at the ready too, and all but broad bean seeds. I am off out for a few hours but must must must get out in the garden today.

I have also been reading various people's contributions to savings threads and I fear some are comparing the headline interest rates rather than the cost of their borrowing. To illustrate:

On a £200,000 (IO) mortgage at 2% interest, £4000 a year interest (without compounding) - this equates to an awful lot of savings accounts at 5% (especially where we can only pay in £250 a month - the rate is actually much closer to 2.5% over a year against £3000), interest paid annually or just under £82 each needs 50 accounts to make the same. Am I being thick here?