MFi4: Renewed commitment!

zekepes

Having only just become a mortgage free wannabe, we nearly had a serious wobble. Namely, but an extra £50K on the mortgage for a loft conversion and some knocking about downstairs. Definately not needed space.....it would just be nice.

I have just put the figures in a spreadsheet with projected monthly overpayments and lump sums over the next few years. The upshot is that having that £50K now on the mortgage would mean mortgage free day would go from Jun 11 to Aug 12 and cost us £19K in interest. I think that having the work done with no mortgage, for cash, in just under five years is much sweeter than having it done now and it costing us an additional 19K!

This spreadsheet has REALLY focused my mind - especially seeing the monthly interest add on fall (the calculators were not good for us really as our overpayment and we will be able to put in few lumps sums at various time).

I am going to print this out and put in on the fridge!!

I have cautiously not put in any overpayment before Christmas (have already commited money for shutters, a holiday, pressies etc) but I am sure that I can make some savings somewhere and make an overpayment, even if it is tiny it will be worth it.

Totally recommend a spreadsheet for motivation!

setmefree2

I know what you mean. I sometimes think it would be nice to do an extension to our dining room and kitchen. This would cost at the least £50k (probably more) PLUS all that interest. So, we're focusing on POTM. Once that's done the money will mount up for an extension quickly. The way I am as well - once I have an extension I'll be lusting affter something else anyway:rolleyes:. I can always think of things to spend money on:rotfl:

GOOD LUCK

zekepes

setmefree2 wrote: »

I know what you mean. I sometimes think it would be nice to do an extension to our dining room and kitchen. This would cost at the least £50k (probably more) PLUS all that interest. So, we're focusing on POTM. Once that's done the money will mount up for an extension quickly. The way I am as well - once I have an extension I'll be lusting affter something else anyway:rolleyes:. I can always think of things to spend money on:rotfl:

GOOD LUCK

Too true! It was less than two years ago that we had an extension & conservatory put on our home - that definately was worth paying the interest for as, although it wasn't REALLY needed space, it has made a massive difference to our lifestyle. It also stopped us moving house and maxing out the mortgage with no hope of paying it off much earlier!

This latest little 'dream' however is not worth the interest. We would still like it done but it definately falls into the luxury category and we must EARN it! After that there will be absolutely no scope for any building work on our home, thank goodness. Then, of course, it is just resisting the lure of the estate agents window....which, thankfully, seems to be losing its appeal as I become wiser to the realities.

Maybe I will get slimmer, too? Paying 50p for a chocolate bar, far too often, has miraculously lost its appeal as well as those mags I flick through in 15 mins. One can only hope that level of money saving motivation continues!

Good luck in your MF journey, too, and thanks for your reply!

setmefree2

Ah yes the lure of the estate agents window- must think about all that stamp duty:p

zekepes

setmefree2 wrote: »

Ah yes the lure of the estate agents window- must think about all that stamp duty:p

Too true! We 'forgot' about stamp duty when we looking at houses just before we had the extension done. The shock of that pushed us to the extension. At the time we cursed the stamp duty but actually I think it saved us from struggling with a house, garden and mortgage that were really too big for us. All the houses were had bought before were in the 0% or 1% bracket - and the latter was bad enough to swallow. But 4%?! No way!