I feel I shouldn't have all this money.

curlytop12

well done on SOA. OH needs to find out figures!
is that right about your mortgage- you managed to borrow approx £79000 on a house valued at £83500 ?
the bills you have paid for ,for the year- divide what they cost by 12 and put that into a savings account, then next year when they are due again, you already have the money
you do have life, buildings and contents insurance?
good luck.

Sncjw

Yes I have contents and building insurance been paid for the year. 
Trying to find life insurance as I couldn't get it through the mortgage provider due to my conditions. 

We borrowed 75, 150 sorry the figures are slightly wrong. We have 74,875 left to pay as interest is £5 a day.  We paid 8,350 for the deposit so I'm going off value of the total amount paid for the house.

curlytop12

look into the life insurance asap, I believe, but may be wrong, that most mortgages are only valid with the insurance in place. As in, the lender needs to know how the money would be paid back if something happened to you...
people on the mortgage board could tell you properly

Sncjw

The lender didn't say that I had to have it but just suggested its a good idea. Didnt say anything in the offer that I had to have that in place just house insurance. 

Was looking at the extra money we would have we could over pay by 200 a month reduce the term.. Currently on a fixed deal for 5 years but if I can get around the same rate after 5 years means the term be ending in 13 years. Obviously things might change and we might want to move from here. Not sure if I can have kids though so currently spare room is hobby room. 

enthusiasticsaver

Covid has meant underspending for many of us so I would not take the last few months as typical but it shows that you could have a substantial amount each month to save or overpay your mortgage/ debt. The debt is ok considering you have savings and more than enough income to service it so no rush to clear it if it is 0%.  Just make sure you make a note of when it is due to expire.  I would set the direct debit to an amount that will clear the card within the deal period. 
If you have medical conditions I would say having a savings buffer is a good idea although you have a fairly high level of benefits considering you have no children so make sure that the savings do not exclude you from those benefits if they go too high.  Is it PIP? 

Sncjw

Yes it's pip but I gave a review on it in two years. 

katsu

curlytop12 said:

look into the life insurance asap, I believe, but may be wrong, that most mortgages are only valid with the insurance in place. As in, the lender needs to know how the money would be paid back if something happened to you...
people on the mortgage board could tell you properly

We were never required to have separate life insurance policies as part of our mortgages.  The only cover we had was death in service cover from our employers (can be with your pension or separate).  We weren't asked to provide details of that cover for our last couple of mortgage switches (I can't remember if the first mortgage needed details of this).
I think the OP is right and it's recommended not required.  

kimwp

Looks like you are in a really good position financially. I am a bit confused as to why you are not including the bills you have paid for the year when you are trying to understand your financial situation, particularly into the future. Excess money is money in minus money out over a period of time. Even if you are starting the current period after paying those bills, then they will fall into the end of the period when you pay them next year. 

kimwp

(Also), your SOA shows your excess per month to be approx £1100, but you talk about overpaying your mortgage by £200 per month. Unless you have other plans for the £900 difference, why not put more of it into overpaying your mortgage?  Check how much you can overpay without a penalty, but if it's the usual 10%, then why not aim for more like £600 a month overpayment? This would be after building up your emergency sum of 3-6 months and covering the costs of the carpets etc, but you could clear the mortgage a lot faster than 13 years if you did this.