SLLM (Single Lady Large Mortgage)

Sistergold

Good morning dear friends! 

I hope you have had a good week despite the cold change in weather? It did snow in London! It hardly snows here so it would have been a bit worse up north? Scotland how did you ladies do? 

On the finances I managed to add more money to the building fund, moving balance from £80500 to £82500 so £18k to go 🥳🎉.

On the mortgage, interest has been added. Balance after mortgage payment 👇🏾

New Balance after interest was added 👇🏾

£495.44 being interest added. 

Just 2 more payments and my mortgage balance will be under £400k, let the good times begin! 

What are you doing laddies this weekend? 

Friday1989

I paid another £1500 off my mortgage. If I overpay £500 a month (and my interest rate stays as low as it is, which is almost certainly won't ) I'd pay off my mortgage 8 years early, so in 12 years! I'd be 44 which would be fantastic.

I'm aiming to overpay £500/month but right now I'm letting myself be a bit frivolous because I've not really been able to socialise throughout the pandemic. £300/month should be doable which would knock off 5 years 8 months. 

The important thing for me is to be able to remortgage on my own in three years because I got a joint borrower, sole proprietor mortgage (stepmother on the mortgage due to my income, but not on the title deed). My wage has increased and I've been overpaying so my mortgage is down to less than four times my income. Knowing that is a huge relief because she's retiring this year! 

I went out out at the weekend. It took days to recover (very out of practice!!!) It was nice seeing people who know me from years ago when I was a bit of a mess and being able to say I have a good job and own my own flat now. 

Sistergold

Oh wow @Friday1989, £1500 OP Is a huge dent in your mortgage! Well done! Sounds like you have a good plan there regards bringing balance down ready for remortgage! Everything is really looking bright and you are right to be spending on yourself as we were all stuck during lockdowns! 

Sistergold

Good morning laddies
i hope your week is going well so far? Mine has been okay. I forgot to send my gas and electric  meter reading at end of month so as not to get charged for old usage at new rate. Oopsie daisy 😩
Financial update, managed to add £1700 to building fund and increasing balance to £84163 meaning £15837 to find. Fingers crossed I can reach my goal by end of year so I can look at setting new goals. 🥳🎉

Enjoy the rest of the week and lest continue to save and OP where we can. Xx

SuseOrm

 I’m guessing that when people say they’re paying down their mortgage,  are they actually putting the money into ISA’s  ready to put the lump sum towards the mortgage when the fixed period ends ?  That’s my thought process my ISA made me 15% profit last year but my mortgage rate is 1.19 so it seems ludicrous to literally give Santander their money back.  

On another note I’m thinking of borrowing against the BTL property to do up the kitchen and bathroom in the new one that I’m gonna live in …. only because if the worst came to the absolute worst I could always rent out the new one and move in to the BTL with my daughter and save an absolute fortune where is if the kitchen in the bathroom isn’t done I think we might struggle to rent it out although to be fair it’s been rented in the past in its current state.  Still mulling that one over.  

Sistergold

@SuseOrm, believe it or not, many times when one says they are “paying off their mortgage” “they are indeed just handing over the money to the bank despite the low interest of 1%” or whatever the interest rate is. Me included. I do have a set amount at any one point that I do just handover to the bank towards bringing down my mortgage. Does not make financial sense we know. 

lantanna

Well done Friday! You’ve done really well and just right to treat yourself. I had a little spurge as well, bought some new toiletries in Boots nothing major just a few feel good bits. I also spent £100 on some new clothes. I’ve been saving for my deposit for over two years and I’m nearly there. Long hard slog. 

Amazing what a new shower gel can do for the soul!

I’m thinking new house, new me! 

For all those overpayers here’s a question. I’m confused.

if I overpay random bits off my mortgage and it comes off the monthly amount does it decrease the mortgage term in the same way if I keep my monthly payments the same as the original amount and overpay. My mortgage is with Nat west. 

134 days thereabout until I have a mortgage 

Friday1989

@SuseOrm I don't even know how someone gets that kind of interest rate! Stocks and shares ISAs? I'm very risk averse so stocks and shares scare me. I like overpaying because seeing the numbers decrease helps motivate me to actually put the money aside each month

SuseOrm

Friday1989 said:

@SuseOrm I don't even know how someone gets that kind of interest rate! Stocks and shares ISAs? I'm very risk averse so stocks and shares scare me. I like overpaying because seeing the numbers decrease helps motivate me to actually put the money aside each month

It is stocks and shares,  £1700 for free last year,  thats 2 weeks post tax salary for me.
i have decided to change tact though.
Rather than over pay im going to put the maximum into my pension. 

Overpaying the mortgage would have me mortgage free around the same time as i can take out 25% tax free.  If theres anything left on the mortgage ill clear it then,  but even with interest rates rising to 10% over a ten year period it would be more tax efficient to stack up the pension. 

Obviously ill keep reviewing this strategy but for now thats the newly created plan.   

Sistergold

@lantana with OP either the overpayment reduces monthly payment and keep mortgage term the same or you keep same monthly payment and reduce term. Either way once balance becomes zero the mortgage comes to an end.