Forever home... not a forever mortgage

willowparrett

Hi folks, just a quick update as things have now settled in to a new 'normal' here.  My little cottage is now on a BTL mortgage of 1.74% - really pleased to have squeaked that in before the rates started to rise.  I decided to lump all the early repayment charges, solicitors and arrangements fees etc. into the new balance (I know, I know) - together that all rounded up to £110,000 - so that's new new starting figure as of July 2022.  

The monthy payment is £60 less, even though I went for a shorter term.  I was originally planning on OPing the difference, BUT, my easy access saver with Virgin money is currently paying 1.7%, and another account is on 1.5% and tracking the BofE base rate so should be going up again soon.  So, I think I might start regular saving rather than OPing - it feels a bit odd to be saying that as I'm such an advocate for OPs... but as soon as the savers tip above 1.74% then I'd be worse off by over paying.  And if I keep my spreadsheet up to date and ear-mark a particular pot to OP either when rates fall, or at the end of my fix in 5 years - it'll sort of be the same?!    

So, playing with some calculators for a new goal in five years time, the detailed mortgage payments tells me that on 01/07/2027 I'll owe £89,500.  An OP of £300 a month would bring that down to c.£70,000.  So, my new goal... to save a pot of £19,500 over the next five years, or £3,600 a year, assuming compound interest of 1.7% or above.      

LadyWithAPlan

Well done on your rate!  Great goals and doable figures as well. 

willowparrett

Thanks @LadyWithAPlan!  It feels sort of comfortable after a few months of uncertainty. 

Decided to go with Zopa for now with the OP savings - I like their ‘pots’ system.  Test £50 and first payment of £300 made, so I’ll update my footer with a new counter!

How’s everyone faring with the cost of energy?  And has it impacted your plans?  We had a good discussion about it last night.  We’re fortunate in that we think (think!) we should be able to absorb the cost rises that are forecast, but it does definitely reduce our discretionary spending and saving capabilities.  Our plan at the moment is to be more conscious of saving energy where we can, and reduce spending in the weekly shop by dropping a brand level on everything that’s straightforward to do.  And we’ll see where that leaves us in terms of income left over.  As I say, we’re incredibly fortunate to hopefully get away with just a bit of belt tightening - I can’t imagine how worrying it must be for people who’s income simply won’t stretch. 

Right, I had better start work - need to finish off my invoicing today!  Wishing everyone a NSD. WPx

willowparrett

Well there we go - savings interest now at 2.25%, so officially better off saving than OPing (1.74%).  Though it's endlessley frustrating how quickly the mortgage rates rise, and how slowly the savings rates rise *eyeroll*.  Standing order of £300 into the OP savings pot is now working, and I'm transferring odds and sods of other savings interest/prolific earnings into the same pot for now too, as it's my highest interest.  So £405 transferred in last month. 

Prolific has been particularly... prolific recently.  Though they took a long time to approve, I've had a few surveys >£5, which has been a nice addition to the balance. 

Anyway, I'd better get going with my day - wishing everyone a NSD. WPx

willowparrett

Morning all, just a quick update to keep myself accountable on the OP savings pot.  Standing order and a little bit of prolific earnings into there this morning, so total now at: £1366.   It's frustrating not to be able to see a current figure for my mortgage, but based on my latest credit report it's something like £108,400, so with the offset savings, it's just over £107,000... the target balance of £70,000 in five years' time feels like a long way off!!  Nevermind, small chunks, eating the elephant etc. etc.  Next month should be better as one of my savings accounts pays interest quarterly, and I'll transfer that straight in.

It's really turned cold now these last couple of days.  We've actually followed Martin's advice and knocked the termostat down a degree - and it isn't awful.  I WFH so am in the house all day, so we really do get through a lot of gas - but now it tends not to come on during the day, and I use a hot waterbottle and wear slippers and am quite comfortable.  My other half laughs that I'm acting like a penniless pensioner trying to stay warm, but it's a very small effort and I don't mind at all - I'd rather we had the money than pay it to the energy providers *shrug*.  

Other MSE thoughts - the veg garden is wrapping up for the winter now, and I'm slowly getting around to clearing all the beds.  We're eating our way through the squashes and potatoes with most meals, and adding our onions and garlic where we can.  Carrots are finished, and I'm about to lift the last of the parsnips.  I always have visions of having some for christmas, but never quite get the timing right.  Those we have are ENORMOUS come Christmas time, and very difficult to lift and prepare - so this year we'll enjoy them now and just buy some for Christmas dinner.  Next year I must remember to sow some a bit later in the spring.  There's still rainbow chard (if ever there was a vegetable that exceeded expectations!) coming through, and the winter brassicas are looking happy, with some small calabrese heads forming (I think these have been confused by the mild weather until now; I'm not sure if they'll survive the winter).   

Later this week I'll dig out my stash of Christmas presents that I buy throughout the year, and work out what's left to buy.  And I'm hoping to make this year's Christmas cards, so I'll check my supplies and aim to make a start on those this weekend.  

Right, back to work. Wishing you all a NSD.  WPx

willowparrett

Happy New Year!  But what a dreich day today.  I hope the festive period was kind to everyone.  We had some ups and downs with family illnesses (which I expect everyone did) but overall I feel like it was a good break from everything, and found myself looking forward to a fresh start this morning.  I managed to make all our Christmas cards, and they were very well received (though I've just received a thank you text for one that was posted on 9th Dec, and arrived this morning, an hour up the road!  Oh well). 

Christmas dinner was 80% home grown veg (I failed with sprouts this year), and my trick of present buying throughout the year meant that we spent less than £100 on family gifts in the run up to Christmas.  So overall it hasn't felt too spendy.  I think we'll have family over next year, but decided that whenever it is next just the two of us on Christmas Day, we'll just cook a chicken and pretend it's a turkey!  The cost of a turkey crown, even though it did us for circa. 5 meals, was really quite shocking. 

Other spendy news, I've ordered all the seeds I need for the veg garden for next year (sadly a mouse got in to my main seed storage box over winter and has made a right mess).  Took a bit of time shop around, and I was horrified to see my normal December seed order had more than doubled in price from the company I've used for years.  I really rated them, so it's a shame to move away, but they were two-three times more expensive than other suppliers, and my loyalty will only go so far...  Otherwise I've been eyeing up the sales (must click 'unsubscribe' more - those pesky emails) but having stern words with myself that I don't actually NEED anything at the moment, and so far have resisted.       

In work news, one of my biggest invoices last year was paid early, and it was one that I was expecting to have to chase up in the new year, so that has made the beginning of the year less stressful and will cover all outgoings and my salary for a few months.

I've joined MFW 2023 with a target of £3600.  Should be okay, barring any major disasters, and will see me on track to OP £19,500 at the end of my fix in 2027, and allow me to remortgage with less than £70k owing.  Quarterly savings interest of c. £128 arrived at the end of December (it feels so good to receive meaningful interest on savings again), so that went straight across, and the £300 standing order will go across towards the end of this month, tipping the whole pot above £2,000, which feels nice.
  
I also finally got round to transferring my pension into a more active Vanguard SIPP, and setting up a monthly direct debit into that (it has just been languishing in a fee-heavy HL SIPP for a few years).  It's only small (I think about £18k) as I'm planning to mainly rely on rental income/selling my little house if needed, and 15 years' final salary contributions as my main retirement income.  Still, it won't hurt to have a second pot on the go (and I know it's better than property tax-wise). 

I'd better get back to work.  Though Christmas holidays are the best in my view, as everyone one is off - so there's never an enormous pile of emails waiting on your return (like there is for summer/easter holidays).  Hurray!

WPx

willowparrett

Afternoon all, January normally drags like anything (I love Brian Bilston's mnemonic poem: Thirty days has September, April, June and November. Unless a leap year is its fate, February has twenty-eight. All the rest have three days more, excepting January, which has six thousand, one hundred and eighty-four.  ), but I can't believe it's February this week. 

I'm behind on the garden, though finally got some sweet peas sown the other day.  And will hopefully find time to sow a couple of pots of leeks this week.  Life's been a bit work-heavy otherwise.  Good to be busy as ever, but I struggle to time-manage effectively sometimes; and I resent it when I end up working in the evenings. 

Saving in lieu of OPs going to plan - £300 transfer went across today, and with interest, main pot now stands at £2,103, which I think is comfortably on track to be £3600 or thereabouts by July.  Mortgage balance with offset OP savings now £105,800.  

Sun's out so off out into the garden for lunch I think.  

Happy Monday all!  WPx

willowparrett

Goodness, how was it January when I last posted!  A lot has happened I suppose.  Mainly, I've got a high-paying job, which is both exciting and a bit unnerving.  It's a shame to move away from the flexibility of self-employment, but I've decided that even if I just do it for a few years to save up a decent chunk of money then I can perhaps drop back again.  It leaves me with some serious OP options, (or saving options at the moment while savings rates are nice and high and fixed mortgages are low).  And I'm DETERMINED not to get all spendy - so hopefully in the coming months I should start to be able to make some serious dents on the balances. 

Mortgage balance with offset savings now circa. £103,300.   

Need to go and update the MFW 2023 board (quite behind!), and then some lunch at last!

Take care all WPx 

South_coast

Ooh, congratulations on the new role!

willowparrett

A brief check in as, all assumptions being correct, my mortgage total with offset savings has just tipped down below £100,000!  It’s tricky to tell exactly without an exact mortgage figure, but it’s definitely there or thereabouts.  I’ve been here once before, but shouldn’t now need to be here again which is a lovely feeling.  Still thanking my lucky stars that my low rate is fixed until 2027 - the current buy to let rates are a good incentive to get the balance way down.

Hope alls well out in the MFW ether.  Enjoying a bit of a catch up on others’ diaries.  

Take care all 

WPx