Mortgage free & able to live the dream!

IndiJonesi

I've done this month what you did last month @SWSEGirl and overpaid a bit too much, so we'll be running an extremely tight ship for the next four weeks to try and get by!  Gotta love a challenge and a frugal February for us too.  
@Bargainhunter30 I can second what you're stating about the DWP; I went through a treatment plan a few years ago and, during that, met one woman who was successful in her claim and another who wasn't, and we were all being treated for the exact same thing.  Perseverance, diligence with detail and determination seemed to be the key factors for successful claims.  
Well done on your large mortgage payment this month also...a step closer to moving back home.

SWSEGirl

Thank you @Bargainhunter30 - I really think the media like to focus on and demonise those who abuse the system, when in reality the real story is people who deserve the money being turned down. I consider myself lucky that I can cope, but some days are a real struggle and we are desperate to access more support - not necessarily financially.
@IndiJonesi - I feel your pain on having to run a tight ship - although I think enforced frugality can be quite a good thing sometimes! 
I'm now looking toward remortgage (in September) - I really want to hit a £228,000 balance - 60% LTV (as long as it holds it's value!) I also want to look at deals which potentially allow us to repay more than 10% per year, and if there are deals that don't have an early repayment fee, that's even better - as we do still hope to sell and move.

SWSEGirl

Well - I'm a step closer to solving the pension issue (essentially payroll have only been making deductions based on my weekly rate, as opposed to my monthly rate, they will resolve it, but it does mean that all pension deductions that should have been taken from the past 18 months, will be taken in one hit this month - gulp. It will be painful, but I know I need make the most of the employers' contribution over the period, and my pension really needs building up. I'll have to subsidise myself from savings. Short term pain for long term gain I guess!

SWSEGirl

Another chat with my employer today about the future - she did tell me the long term aim would be for me to be made staff, which would be fantastic, I love the company. Without sounding grasping - I would also love to be part of a proper pension plan, and because we would like another baby in the future this would offer the stability and maternity benefit to be able to do that.
No other news - I need to arrange a mandatory reconsideration of our DLA application. I spent 40 mins on hold yesterday to the DWP before the line went dead. Onwards & upwards!

SWSEGirl

Well - it's that very lean time of the month before my pay hits my account. 
My husband and I opened a stock & shares ISA yesterday - we're going to put in £1,000 a month up to our £20k limit. The risk does frighten me a bit, but hopefully it's a good decision. Our savings are doing absolutely nothing where they are sitting at the moment.
I keep reading other forums suggesting that overpaying the mortgage is not as good idea as it appears, since the debt is so 'cheap' at the moment, and that it would be better to invest. I'm not sure how I feel about this to be honest - I'm generally very risk averse - and this is probably not the best approach to making our money grow. If any one has any good advice I'd love to hear it!
 I still intend to keep throwing money at the mortgage for the time being - until our repayments are such that they become a very small proportion of our outgoings, maybe then I'll rethink.

IndiJonesi

I have absolutely no evidence to provide re investing versus overpaying the mortgage and weighing one against the other to reach the best possible financial outcome.  DH and I work on the premise that keeping a roof over our heads is the single most important thing over everything else and to do that means getting rid of our mortgage as soon as we possibly can.  Our dream home, at the moment, is an asset that belongs to, and makes money for, Coventry Building Society.  This means that our dream home is currently a liability for us due to having the mortgage on it, as it is a debt.  So everything we have we chuck at the mortgage so we can remove our home from the clutches of somebody who has the power to remove it from us if we failed to make our repayments.  Once that's done, there will be a huge sigh of relief, a bit of a celebration and then we'll look at what to do investment wise.  It's just personal preference at the end of the day and depends on what you deem to be priority.  We have an offset mortgage so we save a fair bit on mortgage interest which is handy.
How's your Mum getting on now and I hope she's feeling a bit better within herself?  Are you getting somewhere with the DWP and the DLA?  That definitely requires perseverance and determination to be able to withstand being on hold for interminably long spells!
Good news too on the long term plan of your employer making you staff and with a bit of luck sooner rather than later.

SWSEGirl

Thank you @IndiJonesi - that is really insightful, and has really spoken to me. I would still love to be rid of the mortgage, for the very reasons you outline - what freedom it would bring us. By coincidence our home currently makes money for the Coventry Building Society too!
Our savings remain 'inactive' - and so I think we'll invest anything above £40k, and see what happens.
My Mum is still in hospital - but seems brighter, I'm just trying to work out when I can see her once restrictions are lifted. 
I spoke to the DWP yesterday and requested a mandatory reconsideration, I had to reiterate on the phone why we should be entitled to the money - which I hated doing, it felt grasping somehow. I ended up being a bit tearful and telling the operator that I really didn't want to be in the position of pursuing this and that I wished we weren't entitled to DLA, because it would mean my little boy will develop normally, be able to attend a mainstream school and won't struggle in the way which he may do now. Thank you @IndiJonesi for taking a interest in our lives.

IndiJonesi

That's all excellent news @SWSEGirl and especially the bit about your Mum being a bit brighter.  Hopefully, with the vax programme being well underway, it won't be too long now before you can visit her and give her big hugs.
It will be a relief when the DWP is sorted too and it sounds like you have a very good and sensible plan investing anything above 40k.  

SWSEGirl

My pay finally hit my account yesterday.
Unfortunately this month I haven't been able to commit to the £2k OP I normally would, so I have sent £1.5k instead - just to allow myself enough to cover additional expenses this month - if I have anything spare I'll shuffle it over.
I also opened a Hargreaves Lansdown S&S ISA as planned, anything above £40k savings I'm shuffling into this - so far it has lost £20 - but hopefully this will improve!
The short term aim remains to hit 60% LTV by September - which involves taking another £15,434 off our balance. It's ambitious, but hopefully do-able. Looking at mortgage deals I think it would save us around £40 a month - which is far more than we could make on savings.
My pension is still a work in progress - I'm sending an additional £100 a month to it by direct debit, but I don't know what this means in terms of tax implications - do I just declare this on my next tax return?

 

SWSEGirl

I have one other question for anyone in the know - how do I work out how much interest I am paying per month? I seem to have a block when it comes to this calculation!
We are currently paying £936 per month and the interest rate is 1.49%. We made a capital repayment at the end of last year - but I'm not sure exactly what term we are on now. Any help much appreciated!