The Case of the Overwhelming Mortgage

AgathaSquirrel

Extension will be small. It’s just a small utility space and we’ll get the kitchen done at the same time. I think the first job though will be the garden.

South_coast

The garden could well get wrecked during the course of an extension. If it were me, I think I would be doing any construction work before the garden

AgathaSquirrel

The extension is on the side of the house. We won’t be doing any garden improvements there. It is the back of the garden needing work. The existing mono block won’t be touched.

AgathaSquirrel

Quotes coming in for garden. Higher end of our budget but we’re probably going to go ahead with it. We’ll postpone the car for a couple of years and hopefully get teenager 1 through driving test. Scary concept spending so much money but work needs done.

Still no pension statement. SPPA were supposed to have them all out by end of April.

Slow progress with mortgage. Have drastically lowered overpayment to £100 a month. Does not feel comfortable but we need to prioritise house improvements for a bit.

Teenager 1 is sitting Highers at the moment. All seems ok so far.

AgathaSquirrel

Landscaping booked for September.

Current SoA
Mortgage: £44000 (£100 overpayment)
landscaping: £11700/£15000 (£450 per month)
university savings: £13155/24000 (£170 per month) additional £50 to child tax trust fund
health related item: £3050/3550 (£150 per month)
holiday cottage £0/£500
main holiday: £4000/£4000
spending money: £1300/£1500 (£100 per month)
other savings: £6500 (£400 per month)
car: £0/£15000
Standard life pension: £19,230 (£48 per month)
NHS pension: (still waiting on statement)

Savings are currently healthy but planned expenditure is in the Autumn so most will go. Once health related item and holiday cottage are paid I’ll have a bit more money. Currently saving £450 a month to landscaping (rest will come from general savings). This will be diverted to car savings. Will need to divert some money from health related item to pay for holiday cottage. Pay rise due this month. Was bitten by tax last time so not sure how much it will be. Probably diverting to holiday cottage in first instance but longer term want to increase general savings to £500 per month. Mortgage fix ends next year so planning to reduce term and increase overpayments at that point. Based on current offers, aiming for a 5 year fix and pay off at the end. Focus for the next 10 years is getting the house to a reasonable standard, paying off mortgage and retirement funds.

AgathaSquirrel

Had the lightbulb moment earlier this week that younger teen’s child tax trust fund is likely to be £3000 more than eldest teen. I had thought I was going to have to find a way to save more for eldest when it occurred to me the reason youngest’s is more is because I put more in there when I thought hers would be smaller. The money is therefore from me and not my dad. We can use it for University meaning if all goes to plan we only need another £8000 to hit target not £11000.

Trying not to spend too much this month and can divert £100 to holiday cottage. 

Heard from SPPA will have statement by end of August. Will put pension planning on hold until then.

AgathaSquirrel

SPPA have been in contact again… statement now due by October 2025… or perhaps next year. Very frustrating. Just need to get DH to take some advice without an up to date statement from me.
DH has started Mounjaro. As well as the obvious health benefits, interested to see the impact on our food bill. 

It’s been a spendy month. Looks like I only have £20 to put towards the holiday cottage, instead of the £100 I’d hoped for. Pay day tomorrow and mortgage payment the day after. Should see mortgage tick down to £43000s. £10500 saved for garden now. Should have £12000 by the time the payment is due. Will need to take £1500 from general savings.

savingholmes

I think it makes sense to get the house like you want it sooner rather than later. As you say things will balance out long term. 

AgathaSquirrel

Bit of juggling money this morning. We now have £11000 towards the garden. Think we will have £12000 by end of September. 

Mulling over going back to overpaying the mortgage. We could clear it in 5 years from now which was the original plan. I do need to save up for a new car but I will need to finance it regardless. I just can’t save up enough. Toying with overpaying what we can to the mortgage, saving £200 a month for at least a year, longer if it keeps going, then bank loan for £200 a month. It will get us a second hand car. We can then clear the loan once the mortgage has gone. Tempting, desperate to see the mortgage gone but and there will be no option but to take out a loan. Think we can continue general savings during the 5 years to finish decorating the bedroom and hall. Kitchen will need to wait. University savings are in hand. Lots to ponder over.

AgathaSquirrel

Spent all day in the garden yesterday. Still lots to do but it looks better. We bought some cheap garden seats for the table as our old ones were literally falling apart (DH went through one). Had dinner outside last night and am currently sitting outside with a coffee this morning. Feel very lucky to live where I live.

Looking at the joint account this morning. Have made a real effort to cook with what we have in the house and not nip out to the local shop (or even M&S on some occasions) and that seems to have helped. Also no expensive birthdays this month. We had two in a row end of May and early June which was very spendy. Child benefit due next week and husband is paid the week after so hoping not to touch savings this month. Fly in the ointment is I’m on holiday which will involve day trips and car is booked in for service and MOT. It cost a small fortune last time so I’m hoping for little to no extra cost this time. It’s a 10 year old car so not holding my breath.

If I can keep to budget I might have enough to pay off the health related item and holiday cottage by the end of September.