SLLM (Single Lady Large Mortgage)

Sistergold

slm6002 said:

I am sure which ever way you go you will make a good amount of progress - as you now have with the mortgage.  I am very much like you in should i sell or stay, upgrade or move.  I am hopefully going to fully own my house by the end of March  (XH off the deeds yay), and at that point i really want to move, but because of benefits and debt history etc its down to if i can get a mortgage or not. Moneywise i know i can afford it but its if they think i can that will be the issue.  I am currently making the house nice just in case i can sell, but if not i will do the house up and start paying every single penny towards the loan i will have (family member paying mortgage off for me and i will be paying him back).  I am thinking positively though - i will move

Yay XH off the deeds that will be a great achievement! Good to make house “nice” anyway as you can enjoy the house for now even if you don’t sell! 

 

slm6002

Thanks - yes that in itself will be fabulous   Solicitor is hoping to get money tfr to her by the weekend and very soon after tfr to XH, so looking very likely to be done sooner rather than later.

HelloB

@slm6002 Early congratulations on having XH off the deeds!  From personal experience, it's liberating and scary at the same time.  But in the end, you will have full autonomy!  

@Sistergold Well done on the mortgage overpayment.  What an achievement! If overpayment on mortgage is the primary focus, then I'd go with a mortgage product with no penalty/limit on overpayment.  I have often wished I had the foresight to do so!  But with your strategy, it works to OP as much as possible before switching product. Then whip any savings above the £1k OP limit into your building fund.  That will accelerate your savings to decide whether to extend the house or buy an investment property. OP on one's residential home is more psychologically rewarding, although financially less sound.  i.e. Why overpay on a mortgage which attracts a low interest rate, when you can work your money to gain a better return?  

I used to have the same indecision on staying put (memories), move house (new environment but lose amazing neighbours), pick up another property (hassle) or dip my toes into investing in shares/FX trading (little knowledge).  All these ideas whirling around and I spent a tremendous amount of time researching. In the end, I settled for staying put and OP on my residential mortgage. In fact I made the 10% max mortgage OP last month. This week I was told I was eligible for a bonus and LTIA which I wasn't expecting. So my quandary now is whether to wipe my entire bonus into pension or take it as cash?  I have an emergency fund, job is relatively secure and able to save every month.  I've hardly paid anything into my pension, so I'm leaning on doing 100% bonus sacrifice since my pension pot is virtually non existent. What would you ladies do?

Sistergold

Hello @HelloB, Wow well done for smashing your 10% OP on your mortgage! 🎉🥳🧹

Thank you, with regards to the OP, it was a nice feeling moving from £45sK to £44sK. I have never had a mortgage which has restrictions to overpaying but it looks like this time for the first time in my adult life I will take one with OP limits. I also never choose a fixed rate product as I like to track the base rate up or down I don’t mind. Another thing is I always take a 2year product unless it can be a life time tracker. I am not a person who believes in so much certainties. 

Either way the interest rate is okay and like you said @HelloB I will just save anything above the £1k monthly OP limit into building fund. The charges/fees involved with moving mortgage are really not worth it for me so no need to move just for the sake of OP.  Money is always good to keep on the side? Looking back in the past 2years I have had no limits on OPs I have not even paid in close to £12k per year so the OP restrictions is probably not going to be an issue this early in the game as I need to use money in other areas like I NEED A NEW KITCHEN! 

@HelloB, You have the same dilemmas as me with regards to shares/FX trading, ie little knowledge and so best just to stay clear in as much as soooo MUCH is said about how much money one can make. If ever I do it, it will never be to the point where I will have confidence to put all I have into stocks this late in the game! After the costly mistake of poor choice of marriage partner I just want to stick to areas I know so make safer mistakes in a way. 

So my safe mistakes at present are, saving but not earning much interest! The good thing is the money is building up where I can see, but not giving much interest, ouch but hey 🤷‍♀️

Another so called mistake by those who are good at trading in shares is the fact that I am overpaying on my mortgage which is supposedly not wise financially as interest rates are at an all time low! 🤷‍♀️🤪 Well again I am playing it safe(or not playing at all) as I can see where my money is going! 

Another so called mistake I am likely going to make at some not so distant future is buy a property to rent out. 👵🏽 Again it’s a minefield of problems on its own and a lot of tax implications but hey! Again I need to make the kind of mistakes I can see where the money went! 

All in all even with the so called mistakes I am likely to come out a little on top or recover most of my money or be in the same financial position. Basically I feel if I lost money in the above strategies it will not be a total loss! 

If I went into stocks and shares I would likely need to seek advice which I have kind of done. I will also then need to give the money to someone else to invest it for me(as I have decided I can not really get my head round how to go into it profitably) and that person will then handle it for me? 🤔 Well to me that all sounds like the day I give money to someone else to handle I would have just kissed it good bye?! 🙄🐒 Now this is one area I can not risk at this point in my life where I am just starting when I was hoping to be looking at early retirement! 

@HelloB well done for staying put! Yes I know if you have memories sometimes we feel we must move but it might end up costing us more! I also discovered moving might not mean life feels better as such! I moved but I was still plugged with memories as they are just in our heads. One thing for sure the memories do fade with time whether we move or not! I almost threw away sofas and other good quality furniture from marital home just to get rid of memories!🙀 Thank God I did not as I would have needed thousands to buy new ones just to get rid of memories! Now I look at the sofas and don't feel a thing they are now just sofas, the pain associated with where they came from is gone! I will still want new sofas but I can get them when the time is right and not to get rid of a memory! All in all the children actually bring me more memories of my X, also because of them I have to communicate with him all the time! I have had to learn to think of the good times and try to let go of the bad! 

@HelloB it sounds like you love this house despite the fact that you have some sad memories as you lived in there with MrX? Keeping the house will be good while you process the sad memories and when and if you move you will be better prepared and it will be for the right reasons, so money will be spent if and where necessary! Good neighbours are so important to house enjoyment! If the Neighborhood is good that’s the best place to stay! Just fall in love with your house @HelloB as it really sounds ideal! 

Mmmmm bonus into retirement fund? That sounds like a good place to put your money as you mention you have not been putting much into it? Tell use what you decide to do with your bonus @HelloB! 😘

HelloB

Happy Friday ladies! 

@Sistergold How has your week been?  Firmed up decision on switching mortgage product/savings strategy yet?   Totally agree that even if BTL property didn't go as well as hoped, there is still a tangible property at the end of it, as opposed to investments in stocks and shares being worthless if a company goes bust.   Early retirement sounds such an attractive proposition, keep it going and it will come to fruition!  In fact I've recently been dreaming about early retirement in a warm country with good medical facilities. Literally been trawling Youtube on the best places to retire. Not sure whether anyone else may consider similar, but my approach is to pay off the mortgage on my home and when I retire I rent it out and move to a cheaper country.   Must stop dreaming for now, as it's too far away and I've not done enough research.  Although your new kitchen idea is going to immediately improve your wellbeing.  How exciting! I still recall your plan to have a jacuzzi at some point, that's definitely something to look forward to. 

Thanks for the pep talk on memories. You've definitely made a good decision not to throw away expensive furniture.  I'm slowly redecorating, the energy of my home has definitely started to shift. 

Also decided to move my cash bonus entirely into pension. Payroll contacted me to double check whether I had misunderstood the bonus waiver form. Apparently mainly people closer to retirement age opt to do this, as they can access the cash sooner. I immediately doubted whether I've done the right thing. But then thought I need some sort of alternative pension plan to the government one, by the time we're eligible there might not be a state pension available any more! Plus I do not have children to "look after" me in my old age. 

Sistergold

Hello @HelloB, my week was okay and time does fly. Good to hear that you made a good decision with regards to your bonus and it’s good that you have chosen to invest in your retirement! At least that’s a step closer to a better fund when you need it! 

Well done on the redecorating as that will mean a nicer house during summer where it’s always nicer if the house is all done up! 

I have not done much on the house since the pandemic, just couldn’t be bothered. Once this crises is over I will need to do some work as it can not wait forever. 

Have a lovely week ladies! 😘

Sistergold

Hello dear friends 
I hope you are all okay? I hope you are doing great in your bids to save and in your overpayments? 

Mortgage progress overview and recap
In May of 2019 I got my offer and my mortgage repayment was £2202.69. Now with interest reductions and overpayments my mortgage payment is down to £2076. 

Few weeks ago as you know I have been talking of switching products as I am approaching end of my product term and the initial offer was for repayment of £2043 due to some overpayments and lower interest rate. I did not accept that offer and went on to overpay over £6k and as of yesterday the monthly repayment was taken and now my balance has gone down to £445869! Yey! 🥰🎉🥳 
I have gone online and processed a new mortgage switch with my provider and my repayment for the new offer will now be £2013.65 instead of £2043, this is because of the OP. I am so happy that my repayment is almost at £2000 per month from the initial £2202 when I started🧹! I am so happy as I feel this is good progress in the right direction done in 2years. 

So for my new product I will be paying £63 less per month than that I am currently paying! 

The new offer is a discounted product for 2years at 1.39% and early repayment charge of not more than 1%. I have now accepted the new offer and it will start 01/04/2021! All done and decided now.

Have a wonderful week dear friends! 🥰

HelloB

Wonderful news @Sistergold!  1.39% is an amazing rate and the repayment charge is relatively small!  To see the numbers written down is quite something, isn't it?  From monthly repayment of £2.2k to £2k is a great motivator in overpaying the mortgage where one can.  Congratulations!

slm6002

Great news Sistergold.  It makes it all worthwhile doesn't it.  Fingers crossed you are soon at the £2000 per month mark

Sistergold

Thank you @HelloB and @slm6002. I am so happy at how the mortgage payment has gone down. It’s really motivating to look at where I started and where I am now. I am still waiting for that day when the repayment can be officially below £2k! The below £2k figure does not seem too far now!