The Case of the Overwhelming Mortgage

AgathaSquirrel

Random day off today and it’s sunny 🌞. Have been out for a 5k run and spent most of the rest of the day in the garden. Needs a lot more work but significantly better than it was on Saturday. Due to pour tomorrow so making the most of it today. Just about to start my book. Discovered Martin Lewis’ podcasts today so they kept me company in the garden. Now more informed re: pensions and student loans.

savingholmes

Sounds like a really productive day. Glad you got some sun too. Share it next time

AgathaSquirrel

Stupid car costing us a fortune. Will need to dial back how much to overspend on mortgage.

LadyWithAPlan

How annoying ! Still at least you are moving forward on all goals 

AgathaSquirrel

Probate hasn’t cleared and we’re going to need to put some of my inheritance towards a new car. We won’t be able to pay off the small mortgage as planned 😢.

So new plan: 

£10000 in savings for new car. Going to run current cars as long as we can as have spent so much on them recently.

£10000 savings buffer. We have some savings but mainly for teens future. Our emergency savings has pretty much gone on cars. Will feel much happier knowing this is there. 

£10000 to the mortgage. Will continue current overpayments. May not be able to pay in immediately so looking for 2 year fix and high interest savings account to put this and the car money.

AgathaSquirrel

Some research this morning. It benefits us to stay with Nationwide. We can overpay by £14000 (10% of original loan). It’s also the easiest thing to do.

 I’m holding off switching for a week to see if there is any impact from BoE announcement and to allow me to do one final overpayment. Our monthly payment will go up around £10 - could be much worse. 

In other news got my cholesterol checked- it’s all good 😊

savingholmes

Great news on cholesterol. 

Shame about your mortgage plan changing but good you have the flexibility to adapt.  You are doing amazing regardless. 

AgathaSquirrel

Bit the bullet and have fixed with Nationwide for 13 years. Had hoped to reduce term but with higher interest rates and no probate it would increase the mortgage unnecessarily. I can overpay the £10000 when I get it and continue overpayments over the next year without going over the limit. Realistically we’ve still got about 6 years to go but if possible I’d like to get that to 5 years.

Husband’s car is now costing us money. Looking into salary sacrifice scheme at his work. It might be the cheapest way to go. I think owning 2 cars is becoming too expensive for us now.

Youngest isn’t entitled to NHS braces. Working on a plan to fund this.

Back running and at gym. Going to do a nutrition challenge at the gym to see if it helps my energy levels.

Had planned to catch up on some studying today but too tired. Will try and pick it up during the week.

savingholmes

Could you buy a few year old car instead of leasing? Otherwise you are paying all the depreciation on the car with no real long term benefit?

Well done on fixing. At least you have predictability.

AgathaSquirrel

No, unfortunately we don’t have the money to buy a car.