Throwaway1 wrote: »
I would check first of all what your OP limits are. Are you allowed to OP £400 a month? And will you continue to be allowed to do so as your outstanding balance reduces?
Also, balancing the two becomes really easy as you just learn to live to your means. If you got a pay rise now that doubled your wage, in a year’s time you would wonder how you ever survived on this. Similarly, if you do manage to reduce your spending it will become the norm and not painful at all. It’s weird how it works.
fruitloop04 wrote: »
Thanks Throwaway1! We can overpay 10% so for this year £14,200. I doubt we will get anywhere near that! We can be a frivolous with our money, especially when we have days off together as they don't happen often. I have started saying to myself 'do I want this more than overpaying?' now and that is helping me switch my mindset. Although, we really want to go on a nice holiday next year just us two and found an amazing place in Greece but it would be a splurge....need to think about it!!
Throwaway1 wrote: »
If I was you, I'd try and forgo the holiday. I know it's good to treat yourself but a holiday to Greece is more than that. I blooming LOVE holidays and it's killing me but I am NOT going on one for a few years until our 10% OP levels means we can afford one on top of our OPs! (Our 10% allowance this year is £161,125 :eek: and will be similar to yours next year, reducing each year for 10 years). Just deciding that I wasn't going and not booking one gives me such an empowering feeling. If I can make that sacrifice, I can do anything. I decided that if I booked a holiday away then I wasn't taking this seriously, being mortgage free takes sacrifices, big sacrifices and I want to look back and feel proud that I had the willpower to do this. Instead, we had a staycation and went to Yorkshire Wildlife Park one day, out for waffles and ice-cream the next, etc.. We spent about £150-£200 over 5 days doing fun things together and it didn't affect our OP total so I don't feel any guilt about those treats. A £2000 - £3000 (incl. all associated costs) holiday would have meant that was not going into the mortgage this year so that made the not allowed pile. To me, spending all this time cutting a few quid off shopping each week and working hard at making tiny sacrifices each day and then using all that up, plus more, on a holiday seemed pointless.
kev2009 wrote: »
Will follow this with interest.
Until last year, i didn't' make any OP at all on my mortgage, last year I made a small OP and this year i'm planning to OP as much as i can. As only have 1 income, i took few years to build up some money and purchase various bits for property, before starting to OP.
Like you, I want to reduce the time to pay it off as at present I'm due to pay for it when i reach state retirement age and I want to get rid of it sooner so i can put more in pension etc.
I've basically set a figure in my head that I don't want my savings to go below for any reason as that is what I would need should I be made redundant or need any large repairs/expenses on property etc. I view then is whatever I can save above this, I can put towards OP. hats how i'm currently looking at it.
So yes, my savings account will increase then go back to what it started it and then repeat each year but on the plus side, my mortgage will be coming down so i'm hoping what i'd save in interest on mortgage will out weigh the 0 increase in bank balance effectively. I'm still trying to allow a bit for general use i.e to buy bits and pieces i'd like and not just literally through every penny at the mortgage as that's no fun not being able to buy things you'd like or go to somewhere you want to go to etc.
Main concern is job, as just me, if i loose job, that has a huge impact hence trying to counteract it by having a fixed sum of money set aside to tied me over. I'm fortunate in that I've been there a good number of years so i'm hoping *if* it ever happens, i get a reasonable redundancy that will help tied me over too.
I took my mortgage out on 5 year fixed, which is up next year so i'm currently expecting i'll fix it again for 5 years and my plan is to OP as much as i can from this year for next 6 years to end of next 5 year fixed and then, if that works out all ok, i'll then re-evaluate what I owe, what my monthly payments are and weather to continue or if monthly payments are low enough, maybe i'll just let that continue and start to put my money in pension or something else but at the moment, i want to get my mortgage down to a more manageable amount so it doesn't take so much of my money each month and therefore things are more flexible.
When i got my mortgage i added the fee onto my mortgage but when i renew, i think i'm going to go for the slightly higher interest rate but with £0 fee as if i worked it out correctly, the difference in interest rate, would equal the £999 fee they want to add to my mortgage which then increases my monthly interest So one to watch out for if you also fix.
I've not created a thread on here but looked for a while simply because i don't know how things will pan out so hard to say i'm in a good position and can be mortgage free by x date.
savingholmes wrote: »
Take it on the chin - climb back on the wagon - don't let it drift. You can do this...
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