£142,000 over 23 years....OR NOT!!

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  • fruitloop04fruitloop04 Forumite
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    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.

    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!!
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • edited 8 August 2019 at 11:54AM
    Throwaway1Throwaway1 Forumite
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    edited 8 August 2019 at 11:54AM
    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!!


    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.
    MFW - OP 10% each year to clear mortgage in 10 years!
    2019: £16,125/£16,125
    2020: £14,172.64/£14,172.64
    2021: £12,333.62/£12,333.62
    2022: £3,313.28/£10,626.55
  • kev2009kev2009 Forumite
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    Hi,

    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.

    Kev
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
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    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.

    Wow I have just looked at your signature and that's amazing that you have overpaid over £10k!! That makes sense about trying to knock the small stuff then splurging on a holiday. The issue will be convincing my boyfriend to not go on holiday....he has already found an apartment...we do have a holiday budget that we pay in to each month so it would be calculated but we definitely would not have hit our max overpayment threshold for the year. I am torn because I would like to overpay but also don't want to put everything on hold til we have!! Decisions decisions!!
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
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    kev2009 wrote: »
    Hi,

    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.

    Kev

    Hi Kev, thanks for stopping by :) We have had our house for 5 years and have just re-mortgaged in May this year. We used a mortgage broker and they advised the same - go for a slightly higher rate without a fee. They said on average it is only worth paying the fee for mortgages over £250k. I am with you on having savings. We are currently building these up at the same time as overpaying. I am currently putting £500 a month a way in savings (my other halves job was rumoured to be made redundant, but is currently not at risk but this may change at any time...). When I get to £10k saved I am going to still save £250 but throw the extra £250 on the mortgage. I think it's good to have some easily accessible cash :)
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
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    So I guess I have been avoiding coming on here....as I have to admit going a bit mad in the sales. I go on holiday (booked right at the beginning of the year) in a few weeks so thought I would get a few bits...well. I jeans, pjs, dresses, swim suit later...I have bought good brands though that were heavily reduced so they should last. Justifications....

    Anyway the upshot of this is that there are no more mortgage payments for this month or the next most likely as I am going to have to throw it at clearing the credit card before I get charged for it.
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • savingholmessavingholmes Forumite
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    Take it on the chin - climb back on the wagon - don't let it drift. You can do this...
    Target 1) Clear CC debt - £1644 to go (but debt neutral) @ 0% Target 2) Lose weight & get fit 3) Write regularly 38113/70000 words Book 2 4) Develop passive income streams 5) Get to £3K EF 6) Declutter 7) MFW starting at £201999 Nov 21 with 264 262 payments to go. Now £200720. 8) Mortgage neutral progress (via private pension starting value c£3643 Nov 21) extra payments £187 including tax relief
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
    ✭✭
    Take it on the chin - climb back on the wagon - don't let it drift. You can do this...

    Thanks savingholmes. I feel like I am back on it after my blip :)
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
    ✭✭
    Hi everyone, hope you are all keeping okay :)

    So as expected, I am not going to be able to make any OP out of my account this month due to sale shopping! I will say though that I have completely overhauled my wardrobe so I shouldn't need to buy anything for a while. I have lost quite a lot of weight and didn't buy any clothes until I was at a weight I am happy at and I am there now :)

    Overpayment wise...I emptied my pennies jar and took in to the bank to their coin counter (doesn't charge anything!) and put it towards to mortgage so £15.73 extra paid off. Think I will do this every few months.

    Also, the regular overpayment from our joint account went out so that's another £208 extra off :j

    I also really thought about my spending (or lack of it!!!) today! We have a trolley that comes round at work and I usually grab a can of something fizzy but abstained today, thinking it's not necessary. I have free water and coffee :beer: Also really fancied some chocolate and usually pop into the local garage on my way home but kept my pennies in my pocket, knowing that I have chocolate at home and if I waited an extra 15 minutes then I could have a NSD...and I was successful!! I figure I have lunch for tomorrow too so I should definitely have another NSD :T

    I am definitely trying to be more mindful (I also have no money spare this month as it's all gone on paying off the CC!) and asking myself do I genuinely need this?

    Hope everyone has a money saving week!
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
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    Hi Everyone, I paid £50 out of the joint account off the mortgage yesterday. This is the food shopping money that we have managed to not spend! Updated signature :)
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
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