The Case of the Overwhelming Mortgage

AgathaSquirrel

Other parent is cancer free! Operation was a success. Annual check up and medication but no other treatment required. Initial reaction was relief but then I spent the next day crying. I think in retrospect it was delayed grief for the parent that died as I have been functioning over the past few months and not grieving.

Christmas budget has been blown by new phones for teens. Fortunately I’d saved quite a bit this year so cutting back in other areas now.

No sign of inheritance. Executor has signed off their bits and solicitor paid. As far as we know there are a couple of charity bequests to be paid and then us. Just need to be patient.

savingholmes

So pleased for you. What a relief. Not surprised delayed grief then hit you. 

AgathaSquirrel

Thank you. Here’s hoping we get through 2025 with no cancer. 

Still no inheritance so plugging away with overpayments. Currently have a mortgage of £64000.

Looking up an old pension of husband’s yesterday. The same company has his life insurance and critical illness linked to our old house and mortgage. It’s now £37000. So if we had never made any overpayments and never moved this is what we would still owe. So we currently owe £27000 more than we would if we did nothing but have a much bigger house as a result. Once we get my inheritance we will pay off a chunk of our mortgage. This will leave us with a mortgage of approximately £45000 and only £8000 worse off than if we’d done nothing. Overall I’m comfortable we’ve made the right decisions.

The other interesting fact is the policy will run until November 2030. This must have been the end date for our previous mortgage. It’s hard to know but I’m hopeful we can pay off our current mortgage within the same time period.

savingholmes

You are doing well despite difficult circumstances - keep plodding

AgathaSquirrel

Still no inheritance. 13 months when it was one ISA to be split between 4 people seems a long time. The lawyers are apparently recalculating their fees at the moment and we’ll be told soon what we’re getting.

Anyway, we’re plodding away and current mortgage is in the £63000s. Getting there. Household savings aren’t great at the moment but we have a big payment due on something over the next year and I’m focusing on that. I think I’ll have the money by the summer and can then divert funds back to household savings.

We’ve booked a holiday but the inheritance will cover most of that.

Still saving a fair amount for the teenagers. We now have £12000 for teenager 1. This will top up the student loan. We will need to give more than this presuming she stays away from home but pleased to have reached this milestone. She also now has a Saturday job and has set up a savings account. She’s saving a proportion of her wages for university. We’ve also talked about driving lessons. We’ll pay for a set amount for her birthday but once those are used we’ll share the costs. The teens are fortunate my dad saved for them too so they have this money too. I hope to persuade them to lock some in a LISA and some in high interest savings and have a smaller amount available for access during the uni years but I can only advise. Think the eldest will listen to me. Not so sure about the youngest.

Still thinking I’ll pay off the smallest mortgage with the inheritance. Currently at £18000 and will need to pay £300 early penalty fee. The rest we’ll split between savings for a new car and household although once the holiday is paid for there will only be a couple of thousand left for household savings. The current small mortgage payment will be diverted to car savings. We’ll continue the current overpayment into the larger mortgage. 

There does feel like there is light at the end of the very long tunnel of mortgage payments. Also seeing plans for teens, car savings and holiday savings coming together is helpful.

AgathaSquirrel

Finally have an inheritance figure. Still have some paperwork to deal with but expect to see the money in my account in the next couple of weeks.

I think my dad would be pleased with my plans:
1 Pay off small mortgage 
2 Start savings for a new car (£8000)
3 Holiday (£4000)
4 Savings (£4000)
5 Organise power of attorney 
6 Piece of jewellery for me in memory of my dad (£600)


I’ve set up a new cash Isa for the car savings. The £200 that is currently spent on the small mortgage will be used to build this up. We spent quite a lot in repairs on our current car in the past year so hoping to run it for a while yet but I feel happier knowing we have a fund set aside for when we need it.

Later in the year when I’ve finished saving for health related expense I’ll have a bit more for joint savings and mortgage.

With our current overpayments we will pay off the mortgage in 2030 ish. I hope to bring this down but have no set plans as yet.

Pensions are an ongoing concern but too many competing priorities for cash. Not sure there will be much in the way of a pay rise for either of us this year but will try and divert some funds if possible.

savingholmes

Glad things are back on track. I think the jewellery idea is lovely. 

AgathaSquirrel

It’s the one thing my dad wouldn’t have approved of… but it will bring my joy.

Actually, just thinking about it, he bought something quite frivolous with an inheritance. Perhaps he would have approved more than I think!

SandyShores

I too think the jewellery idea is lovely.  If I ever get any spare cash I am heading to my local jewellery store where they sell lots of beautiful pre-loved things.

AgathaSquirrel

We have a very good local jeweller and I have my eye on a dress ring for my right hand. It has a feature which reminds me of my dad.

Been to the gym.

Have been pondering other life/financial goals. 

I’ll return to this once the inheritance is in the bank to update but this is the current situation.

Retirement age: 58 reduce to part time hours; 60 retire and return; 62 retire

Mortgage: pay off in 5 years or less (age 54)

Emergency fund: £5000/£10000

University savings: 12407/24000

Health related item: £2407/3570

House maintenance/ general savings: £300 per month

Christmas/ birthday: £150 per month

Holiday Spending money: £700/1500

Car: £0/£10000