!!My time to be mortgage free!!

jimjames

Just seen your sig. Does that mean you have cash in savings account at £33k and mortgage at £45k? If so it might be worth checking if your mortgage allows overpayments to be taken out again as the rate on your savings is likely to be much less than the rate on your mortgage so would allow you to get the maximum benefit from those savings.

powerspowers

Well done on the savings  in August! And good luck on the no take away challenge, I’ve found that having a weekly fakeaway from the supermarket helps 

LadyWithAPlan

Great focus..  Somehow money is appearing to keep on savings so you obviously doing well on your budget.

Glad you looking as well to cover that SAHM pension gap after MF, so many don't or can't and it makes it difficult in later life. Very unfair of the govt 

happymum37

jimjames said:

Just seen your sig. Does that mean you have cash in savings account at £33k and mortgage at £45k? If so it might be worth checking if your mortgage allows overpayments to be taken out again as the rate on your savings is likely to be much less than the rate on your mortgage so would allow you to get the maximum benefit from those savings.

Yes that's right. We will need to replace a car this year and that's going to take a decent chunk as we want a big car with a bike rack that would tow a caravan. 

We are allowed unlimited overpayment.  We are currently just ' sitting' on this money until we know what's happening with a possible house move /extension

 We also have horrific pensions so are currently overpaying into them per month while our mortgage is only 0.85% interest.   We plan on having a big conflab hubby and I with the financial advisor come March to decide what is best long term

happymum37

powerspowers said:

Well done on the savings  in August! And good luck on the no take away challenge, I’ve found that having a weekly fakeaway from the supermarket helps 

That's what we are doing. Good old asda curry box meals and so on

happymum37

LadyWithAPlan said:

Great focus..  Somehow money is appearing to keep on savings so you obviously doing well on your budget.

Glad you looking as well to cover that SAHM pension gap after MF, so many don't or can't and it makes it difficult in later life. Very unfair of the govt 

Thank you.  That's why our savings are quite high. We are planning on overpaying the pensions and keeping more cash to allow retirement. At the moment with a 0.85 mortgage rate we figure That's best

LadyWithAPlan

happymum37 said:

LadyWithAPlan said:

Great focus..  Somehow money is appearing to keep on savings so you obviously doing well on your budget.

Glad you looking as well to cover that SAHM pension gap after MF, so many don't or can't and it makes it difficult in later life. Very unfair of the govt 

Thank you.  That's why our savings are quite high. We are planning on overpaying the pensions and keeping more cash to allow retirement. At the moment with a 0.85 mortgage rate we figure That's best

Makes sense. I am just focusing on increasing my house deposit to get into my home so keeping sipp contributions low this year. Then once in my home I am also planning to ramp up my Sipp hard  as well as some  nice but not too crazy OP.
Also thinking I may reduce monthly payments instead of the term initially as well to cover me as i am single so to be safe. 

It's a ever evolving balance that i think that needs a constant review as life happens 😊

jimjames

happymum37 said:

jimjames said:

Just seen your sig. Does that mean you have cash in savings account at £33k and mortgage at £45k? If so it might be worth checking if your mortgage allows overpayments to be taken out again as the rate on your savings is likely to be much less than the rate on your mortgage so would allow you to get the maximum benefit from those savings.

Yes that's right. We will need to replace a car this year and that's going to take a decent chunk as we want a big car with a bike rack that would tow a caravan. 

We are allowed unlimited overpayment.  We are currently just ' sitting' on this money until we know what's happening with a possible house move /extension

Definitely worth looking at whether you can pay at least a big chunk of that money into the mortgage and then withdraw it again if needed. One of my Nationwide mortgages allows it but the others don't so it will depend which bank/product you have but will be far better rates that any savings account.

happymum37

LadyWithAPlan said:

happymum37 said:

LadyWithAPlan said:

Great focus..  Somehow money is appearing to keep on savings so you obviously doing well on your budget.

Glad you looking as well to cover that SAHM pension gap after MF, so many don't or can't and it makes it difficult in later life. Very unfair of the govt 

Thank you.  That's why our savings are quite high. We are planning on overpaying the pensions and keeping more cash to allow retirement. At the moment with a 0.85 mortgage rate we figure That's best

Makes sense. I am just focusing on increasing my house deposit to get into my home so keeping sipp contributions low this year. Then once in my home I am also planning to ramp up my Sipp hard  as well as some  nice but not too crazy OP.
Also thinking I may reduce monthly payments instead of the term initially as well to cover me as i am single so to be safe. 

It's a ever evolving balance that i think that needs a constant review as life happens 😊

That's a brilliant idea.  Take it off the monthly amount then if you want to overpay just keep going.
My hubby is so so desperate to retire at 60...his pension is terrible so we will definitely re examine next year our plan but after lockdown we also want to do a dream holiday with the kids.  Then we can save / overpay/ whatever x

happymum37

jimjames said:

happymum37 said:

jimjames said:

Just seen your sig. Does that mean you have cash in savings account at £33k and mortgage at £45k? If so it might be worth checking if your mortgage allows overpayments to be taken out again as the rate on your savings is likely to be much less than the rate on your mortgage so would allow you to get the maximum benefit from those savings.

Yes that's right. We will need to replace a car this year and that's going to take a decent chunk as we want a big car with a bike rack that would tow a caravan. 

We are allowed unlimited overpayment.  We are currently just ' sitting' on this money until we know what's happening with a possible house move /extension

Definitely worth looking at whether you can pay at least a big chunk of that money into the mortgage and then withdraw it again if needed. One of my Nationwide mortgages allows it but the others don't so it will depend which bank/product you have but will be far better rates that any savings account.

I darent even mention this to my hubby.  He would never let us take it back out so for now in keeping schtum!!!

We will definitely form a better plan next year.  For now we won't do anything - I was just dreaming about a "dream" holiday with the kids so we are going to spend a decent chunk anyway plus the car. With the mortgage only being 0.85% it's not urgent to pay it off anyway at this moment x