Mortgage free in Forever Home :-)

KajiKita

LadyWithAPlan said:

Liking your 50% LTV target and with your OPs it seems inevitable you will get there. If you both have steady jobs then I would  get yourself to a OK savings amount and then be OPing as much as possible so you in the best position possible to remortgage 

Oh my word …. It’s LwaP!! I’m in 2021 on your diary (you are seriously getting into batch cooking and about to buy a freezer) - it’s like having a celebrity commenting on my muddly little thread! 😊❤️👏

KK

KajiKita

Hi All    My Man-Flu is receding slightly and I am feeling a bit more awake!

I have had the £51.24 come through on TCB for my curtain purchases from T3rrys   Normally I would turn these cashbacks into Tesco vouchers for the extra 3% value that gives me, but I am thinking I would be better off using that as another OP, as across the lifetime of the mortgage (currently at 17 years 1 month, 2.17% - it's amazing how these bits of data get engraved in your brain after a while ....) that would actually net more 'value'.

Am I thinking correctly on this? 

Also, a question I have been pondering for a while .....

I currently have £5672 on my Virgin C/Cd at 0% (had to pay a fee up front to set it up but I was in a bit of a pickle at the time and it bought me some breathing space to get my finances in some kind of order). Currently I am paying 1% of the balance off each month, interest kicks in next March. I am wondering if I should take the hit on my 'savings' (which are now really at £3908) and not have that additional money in my savings account and instead loosen up my cashflow to turn the C/Cd payment each month (of c. £60) into an OP off the 'House Increased Ownership Project'? Am I making sense?

KK  

badmemory

I think one thing to think about is how much interest you will be paying after March. At only 10% you will pay almost £50 just in interest.  Different people seem to consider things in different orders but it is always worth thinking about.

KajiKita

badmemory said:

I think one thing to think about is how much interest you will be paying after March. At only 10% you will pay almost £50 just in interest.  Different people seem to consider things in different orders but it is always worth thinking about.

Sorry BM - I'm confused. I am not paying any interest on the C/Cd debt - it's on 0% until March next year. I have the money in my savings account to clear it (I didn't when I first took out the C/Cd).

KK 

badmemory

What I meant was that if you only pay off £60 (I think that's what you said) then when the interest does become chargable that is the extra what is left will cost at only 10% - likely more.  It needs to be weighed up against other things.  Have I misunderstood what you wrote?  Always a possiblilty.

cafelady

Hi Kajikita. Re: the vouchers…when I get a voucher or coupon for any retailer etc, I use it then I take the cash equivalent from my account and put it in savings. So you could get your T***o vouchers from TCB, spend them, then use the equivalent amount of cash as your OP or for savings. 

Works for me but please ignore if you don’t think it would work for you. 

KajiKita

badmemory said:

What I meant was that if you only pay off £60 (I think that's what you said) then when the interest does become chargable that is the extra what is left will cost at only 10% - likely more.  It needs to be weighed up against other things.  Have I misunderstood what you wrote?  Always a possiblilty.

Ah, do you mean when the 0% deal ends my c/cd balance will cost “lots” of interest? Yes it will. My original thought was to pay it off from my ‘savings account’ (I was hoping to have a reasonable amount of real savings by then) or find another 0% deal.

KK

KajiKita

cafelady said:

Hi Kajikita. Re: the vouchers…when I get a voucher or coupon for any retailer etc, I use it then I take the cash equivalent from my account and put it in savings. So you could get your T***o vouchers from TCB, spend them, then use the equivalent amount of cash as your OP or for savings. 

Works for me but please ignore if you don’t think it would work for you. 

Thanks CL, I will have a cogitate on this …. 🤔 

KK

badmemory

Exactly.  A thing only you can decide.  If you find another 0% deal then great. I am afraid things may be getting tighter & cause a problem with this.  That is why I question.  On the theory that if anything can go wrong it will.  I am sutre there is a name for that.

redofromstart

An idea I picked up from the threads was a visual chart, with bricks to colour in for the years target.  Didn't have the takeaway? Money goes as an OP and we colour a brick in. 

Started off aiming for 1%, on the 1% thread.  

Ours was/is daily interest, they don't reduce the payments because you OP, and you can see the impact instantly. I used to round it down to the nearest whole number regularly - nearest £10 in tight months, nearest £100 in good months.  It all adds up