Learning to walk before I run

Cheery_Daff

1.5 years off your mortgage is NOT insignificant ed!! 😮😃 Did you work out how much interest that will save?? 

I love my dehumidifier 🥰 We have a well under our kitchen, and our house is very exposed with a field encroaching part way up one wall so rather inclined towards dampness 🙄 Dehumidifier helps keep us this side of damp, although in drastic circumstances we still end up with some behind the odd big bit of furniture...

rtandon27

Definitely agree with Cheery! 

Every little step in the right direction has knock-on effects on everything else in life.

7000gbp reduces our mortgage by one year and saves almost 3500gbp in interest!  It's also one less year I need to worry about having to work past minimum retirement age.

newgirly

Hi Ed, I’ve only just spotted you are back!  lovely to see you again and hope you are recovering well now from your op 😊

Suffolk_lass

1.5 years is the first reduction in the term of your mortgage. You need to work out what you are saving with that. When finances allow, you might consider leaving it there when interest rates reduce, and/or increasing it by £100 with Mrs ed's promotion salary increase. It's that magic snowball thing, and a bit like tracking your net wealth, it becomes its own incentive to track and make progress. 

I hope you get some sleep

edinburgher

@Cheery_Daff - £16,330 - suspect that's because of our currently very high interest rate. Fingers crossed we actually save less over time because of reduced interest.

@rtandon27 - I also thing about my mortgage in terms of retirement. The plan is to go at 58, but it only works if we have a big enough AVC lump sum to pay off the balance, and/or make OPs. As I've just cut back on AVCs for cash flow reasons, it felt like I needed something to keep the show on the road.

@newgirly- Thank you for the welcome back. Surgery recovery is getting there, more uncomfortable than sore now, which I can live with.

@Suffolk_lass - I have a bit of a mental block when it comes to overpayments. I can visualise savings and investments growing and I've prioritised them accordingly to positive effect (retirement income even ignoring SIPP will already be 2+ state pensions worth for myself when I get there). OPs, on the other hand? I find it very difficult to commit to them, I'm not entirely sure why.

*Edit: Made an OP of £24.88, apparently that saves £130!

Suffolk_lass

edinburgher said:

@Cheery_Daff - £16,330 - suspect that's because of our currently very high interest rate. Fingers crossed we actually save less over time because of reduced interest.

@rtandon27 - I also thing about my mortgage in terms of retirement. The plan is to go at 58, but it only works if we have a big enough AVC lump sum to pay off the balance, and/or make OPs. As I've just cut back on AVCs for cash flow reasons, it felt like I needed something to keep the show on the road.

@newgirly- Thank you for the welcome back. Surgery recovery is getting there, more uncomfortable than sore now, which I can live with.

@Suffolk_lass - I have a bit of a mental block when it comes to overpayments. I can visualise savings and investments growing and I've prioritised them accordingly to positive effect (retirement income even ignoring SIPP will already be 2+ state pensions worth for myself when I get there). OPs, on the other hand? I find it very difficult to commit to them, I'm not entirely sure why.

*Edit: Made an OP of £24.88, apparently that saves £130!

Think about a little algorithm/formula for your spreadsheet to track it. Also you can model it, with or without compound interest. Actually Skippy the Yorkshire BS used to have one (here), with interest rates as a variable, term as a variable, and amount paid as a result - you can toggle the IR and the term to see what the payments need to be. I feel sure we can convert you. If your pension position is already projecting to be 2x SP, does it need much more? Take out the cost of directly supporting your children and your running costs will be less, probably...

Suffolk_lass

I've just spotted their overpayment calculator too

Watty1

OK, so 1.5 years saved is a significant amount of interest.   That is motivating. While I was paying off the mortgage (something I daily wish I had not) I had a rough drawing of a house and coloured in each brick extra as I found that motivating as I'm not really a spreadsheet girl for things like that.

LadyWithAPlan

I have a colour in boxes £500 each on my wall for  my deposit but stopped when it all got so irregular pay wise 

1.5 years is a lot of life you ain’t be paying a mortgage ! 

Have you tried tracking your daily interest rate go down as a motivation measure ?

edinburgher

@LadyWithAPlan - how would I do that?