Moving forward and upwards

MovingForwards

Thanks RL

I'm still not working Friday's at the moment, although I've yet to book the next batch off, and I'm back to normal FT from next month.

savingwannabe

Brill news on credit score, the scope for re-mortgaging and clearing your house payments in 10 years like Martin's Early Payment Programme on the tv.  Then you can plan for retirement.  

So sorry about the ongoing work farce please try to rest this weekend. 

MovingForwards

Thanks SW

The mortgage term was 23 years, now it stands at 19 years 10 months due to the monthly contractual and overpayments. 

Based on my current lender / mortgage:

If I keep paying the £300pm O/P it will be cleared June 2030.
If I bump it to £350pm O/P it will be cleared Sept 2029.
If I could pay £400pm extra it would be cleared in Feb 2029.
If I could pay £550pm extra it would be cleared in Sept 2027; I can do it, but it would mean no savings for a few years. Having a flat and running a car means it's not viable and too risky.

Just tweaked the interest rate on the calculator and it saves an extra few months, using the same O/P figures.

However, the main differences are the total amount paid per month is a lot less and not much more than my current contractual payment, the total interest is loads less.

Therefore, paying ERCs to remortgage early would take less than 9 months to pay back into savings and retiring early really would be possible.

It's too early to carry on with this maths and brain dump, I'm having (decaf) coffee!

savingwannabe

OMG this is brilliant. I have 3 years to go and will have paid it off in 18 years but i have really struggled as salary was always cut and the house was sooo expensive as Im in the deep south. 

MovingForwards

Thanks SW

I couldn't have mentally coped if I borrowed more. There really wouldn't have been much room to make noticeable O/Ps, I would have had to do the full 23 year term and had to stay in FT work until retirement.

I've done the weeding today and then had a nap, not got loads of energy at the moment.

I going to try and get the hall and lounge finished tomorrow, just a bit of painting to do.

I would like to get the kitchen makeover done this year. 
- I can paint the carcasses white, try painting the doors and if that doesn't work buy high gloss turquoise or light blue doors and drawer facings (as previously suggested to me).
-- While it means I won't get to change the layout, I can keep costs right down and make it look a lot nicer.

savingwannabe

That is brilliant. Right you have inspired me. I will garden tomorrow and put lots of my spare plants in. 

Skint_yet_Again

Well done on the overpayments. Personally I would pay the amount that would allow you to still have savings and also a good quality of life now. Hopefully you can remortgage soon. Kitchen plans sound good 

MovingForwards

Thanks SW and Skinty

We all encourage each other and slowly achieve what we want. It seems to set a pattern off in the diaries 😃

I'm not really gaining anything by paying £400pm off, therefore seeing it written down was a good thing. £550 was probably unrealistic, but I'm keeping that option open depending on how my job goes eg work and some gardening or work and a full life outside of it. The former means next to no spending or adventures as no energy to do it.

When I do get to remortgage the contractual plus O/Ps will be about £550pm, freeing up nearly £200pm extra to go into savings.

When the mortgage is cleared I can save about £1k per month.

If I get this right, I will only be working for a few years after the mortgage is paid off. Each month after I can save £1k. Potentially I'm retiring at 58, only 13 years away.
- Without commute costs and mortgage, I only need £500pm to cover outgoings.  

Time for my (decaf) coffee as it's enough of a brain dump for a Sunday.

savingwannabe

Smart work! I have calculated my  minimum costs too without mortgage and it is £600 as my housebills are quite high.I all of our ultimate goal is that we are aiming to retire early. Please let us be able to do this. It is so good that we all cheer each other along. I have 3.5 years left on my mortgage then i will try to save for retirement. 

MovingForwards

Thanks SW

Hopefully you've been paying into your work pension over the years. They should give you an annual statement so you know how much that will pay.
Don't forget to check your state pension record, see if you're on track to getting a full one. Read everything and not the headline figure.

I've another 8 years of NI payments before I'm entitled to full pension on retirement, unless they change it again; that more than pays the outgoings.