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esthomizzy

Excellent. It's brilliant you've got it all planned out even before you got the keys. Best of Luck.

Esthomizzy

whitewing

Must remember when I change my address with the bank, to downgrade my current account so I no longer have to pay the monthly fee. Every little helps.

Vendor is such a nice guy; he'd already moved out the desk that he decided yesterday to offer me. Today mr wing went down to drop some stuff off at the house and the desk and its swivel chair were sitting on the doorstep. How kind is that? It makes it feel that it will be such a happy house.

Things to ponder...

I can't really get my head around how to specify our goals because I don't really get how to work out the effect of the interest. Our mortgage is £122K plus int, as repayment. I've looked at overpayment calculators but how do I know if I pick the right one?

On some of my mortgage paperwork it said that for every £1 I borrow it costs me £2.49 (we had to go self-cert with 5 year fixed, due to family circumstances and I'm happy with it). I was trying to rationalise it to myself that £10 overpayment is £24.90, but mr wing has got cross with me when I tried to cut out the Saturday Times on the basis that that today's (£1.40) equates to £3.49 in MFW terms

He has agreed to cut out Mon-Fri and del though! He knows my enthusiasm will wear off at some point!

Note to myself...it's only overpaying when I actually transfer the money over, not when I just talk about it.

Our skimping on removal costs didn't really work out very well today as we hardly got anything moved. So much tat and none of it ebayable...or is it? (she says with a gleam in her eye). I'm too shattered from work to do much tonight & it feels neverending. Family aren't being too helpful as they seem a little upset that we're going. Close family members have passed away recently and it feels to the rest of them that everything they know is falling apart.

But I know they are pleased for us really. Change is never easy.

Kaz2904

The best way that I have found to do it is to go to www.whatsthecost.com/snowball.aspx and enter your details.
Once you have saved your snowball you can then play around with it and see what sort of effect any savings will have.

You need to find out the actual rate but I think it is probably 8.86% if you have a 25 year term.
If this is the case and you applied a £6.10 monthly overpayment (a rough guess £1.40*52 weeks/12 months=£6.10)
This would take approx 5 months off the mortgage. Saving you around £3250.
And that is just for £6.10 a month.
My advice is to set up online banking if you don't already have it.
Then get your paying in details from the mortgage company and do your first transfer. Once you have done this it is set up for good. Then every time you make any saving you just apply it straight to the mortgage. That way you don't forget and it is gone out of your account before you can change your mind.
I have to say that with an interest rate like yours you may be recommended to keep all your savings in the mortgage too if you can draw back overpayments because it is a whopping rate and I don't think you could beat it with a savings account.

whitewing

Hi Kaz,

Thanks for the reply. I did read it on Sunday but had to go to work so didn't get a chance to log on properly.

Our mortgage is 30 year term. In a rare moment of financial planning, I decided to keep repayments as low as I could in case anything happens to mr wing, then at least I know I can meet them. (He works part time for me). If anything happens to me then there is a small payout from my own part-time job. So at the mo, we have decided against mortgage protection, but will review that next year when we are more settled.

Fixed at 6.39% until end Dec 2012. Can make overpymnts 10% of loan amount per year. In reality we're unlikely to get near that in the first two or three years at least. But we're aiming to do what we can.

After fixed term ends, we have no early redemption penalties.

Anyway, I'm off to get some info from the mortgage company on how to overpay.

Will only be logging on intermittently until next week as having a delay
transferring my tel no across.

Thank you to everyone who has posted so far. I have clicked all your thanks buttons but it's not working. Won't let me edit either - well, it'll let me edit but then won't let me save. I'll sort that out next week too.