FtbDreaming wants to clear £69,700 before Im 40 (2027)

FtbDreaming

Thanks @Freein45by45

I’ve just got my first letter off Halifax confirming the first payment of £349.32 on 1st September. It shows the interest from 14th August to 1st Sep as £80.21 

I think I wanna be overpaying at least the interest off each month then x amount of capital. I have just paid another £100 so that’s £150 paid off the mortgage now however none of my payments show up on the mortgage account on my online banking so I’m not sure when they update. 

Still no progress with the loft. I might just wait until I have a few grand saved up again then get some quotes off builders. It seems silly starting something when I don’t have a chunk of money if something goes wrong. I have about £3000 in credit cards and overdraft for an emergency but I really don’t want to go back to living in either of those. 

I said I was cutting down my hours in work when the mortgage goes through as what I pay in tax, ni, pension and student loan negates most of what I earn in my 2nd or 3rd shift anyway. I wish that wasn’t the way and I could earn what I want but unfortunately it just not the case. I might see if they want to book me on a regular weekly twilight (7pm-2am) so I’m going from 2 shifts to 1.5 and see what the take home is with that. 

MovingForwards

Any O/Ps you make comes off the capital, that then reduces the interest.

Fill this in and scroll down, it shows how the mortgage reduces each month, if it's a fixed O/P you make eg £100 each month.

https://www.themoneycalculator.com/mortgages/calculators/mortgage-overpayment-calculator/#!/dealfinder/mortgages/

For a loft conversion you will need minimum £30k, sadly they are not cheap if you want proper useable rooms rather than storage. Honestly, pop on to the in my home board with your drawings and the members will give you a starting point.

FtbDreaming

Yeah thanks. I prefer the halifax op calculator that one is a bit busy lol. 

Yeah the majority of the loft conversation will be diy (my oh is skilled and has the majority of tools) so hoping to be a lot less than £30k but still easily be 10-15k and there are a couple of trades that we will need along the way such as a structural engineer, gas safe person to move the boiler, electrician etc  so they all still add up. 

If it was March / April when I was hoping to have completed I would be going in full throttle but with it being late august the thought of the roof And house potentially being open to the elements in autumn/ winter is not so appealing. 

MovingForwards

Being kind saying it's a bit busy 🤭
Having your OH do most of it will help. Potentially your OH can work out a lot of the costings, then you only need to budget for the external people.
Find the highest interest rate account you can and start sinking money into it for the conversion, it all helps boost the funds.

FtbDreaming

Ooh my payments have shown up today on the mortgage account so now my balance is £69,550... I was gonna pay the odd £50 but could do with waiting till next Friday as I don’t want to accidentally end up in the dreaded overdraft. 

So I’ll pay the £50 Friday then the £349 on the 1st September and see what the balance is after the interest and pay whatever is required to bring the balance to £69,000 by the end of September. 

After that money is a bit tighter as I have 3 kids birthdays, Christmas and all sorts of outgoings at school between October and January. But I will be aiming for £67,700 for new year! 

FtbDreaming

Well today is payday but I can’t make an OP because the first regular payment goes out on Tuesday of £349 (slightly higher than normal as includes August interest) and I only got one days pay this week as we went in a caravan a few weeks ago. 

I was going to go down to one day regular but I can’t survive on £250 a week wages for a family of 5 and still be able to save up too. The only problem with me keeping up 2-3 shifts is I will no doubt be overpaid tax credits and owe them money next year. So everything is in one hand and out the other. I will definitely be having my 2 weeks off for xmas though. That’s my main benefit of being bank! 

Yesterday was my first NSD in a while so that was good. Today I’ve already parted with £55.50 for dd1 pe trainers socks and jumper. To be fair though I paid a lot less than I could have. I got the socks from sports direct for £2.50 rather than £5 from uniform shop so have made little savings. And the jumper was £13 in Next rather than £19 in uniform shop. I don’t know how they get away with charging stupidly inflated prices to be honest. 

Just need to get dd2 a coat then all sorted for school stuff. 

On the loft front I’ve had the first quote in for plans £777... that’s without BR fees at the council and structural surveyor would be extra. Ideally I wanna get 3-4 quotes at least and would prefer one company that provides everything. 

FtbDreaming

Today is first mortgage payment day!!! Ive had 11p interest rebate from the £150 overpayment I’ve already paid. Just waiting eagerly for the balance to update to see what I need to pay for the balance to be £69k by the end of the month. I think I’ll loosely take it £500 at a time so that way I know I’m within the 10% op threshold for the years although I could pay £6970 by December that won’t be happening I need to be realistic and I still have a family to upkeep too!

I ended up picking up extra shifts Saturday and Monday so that’s an extra £300 ish earnt towards the overpaying and loft conversion. 

2 more days until the kids are back in school!!! I can’t wait. I really need some time to myself without 4 other people demanding my attention 24/7 (3 kids and dp) 

Poppycat1

I found you.  Well done on getting your mortgage and the over payments already.  I'm in a similar situation to you with the tax credits, work needing doing on my home and job with the NHS.  

Do you get paid weekly for the bank shifts?  It's great if you have left yourself short, by shopping or overpaying the mortgage.

FtbDreaming

Hey @Poppycat1yeah I get paid weekly or twice weekly if you count the tax credits so I’m lucky in the sense I never really run out of money... just have a harder week now at the end of the month when all my pennies seem to disappear at once with all my direct debits but I pay most things weekly now. 

I can’t wait for the balance to update.. how sad is that lol! I guess we’re all the same on MFW though! 

Ive had a good tidying and sorting day today. Moved DD2 and DS into a room together and the 2 girls sharing was a nightmare all they done was fight. They can share till DD2 turns 10 so that gives me a deadline of 31/12/2021 to have my loft done by for the 4th bedroom. 

I need to look into savings accounts really because if I build up a good amount in my current account it always seems to get wiped out with a big purchase like a car or a holiday. It maybe less visible in savings. I do have 2 Isla’s both of which are empty. I should probably use the Halifax one as mortgage and wages are with Halifax too. 

FtbDreaming

£200.57 overplayed this morning! I haven’t been charged any interest yet so unsure when that will be added on then I will make a further payment to cover it for the rounded £69,000. I’m gonna start transferring money to my ISA too to build up a savings pot for the loft.