Five Year Fix, Five Year Plan

BookmobileBadGirl

Excellent year end review, 

I see you are also tracking your student loan, I loved overpaying that and paying it off so that I had a few extra hundred pounds a month to do what I wanted with (mortgage overpayments normally) Beau has always just ignored his but now the interest rates are climbing he is barely paying off the interest each month. Once his house purchase has gone through I will be persuading him to address that

badmemory

In the way that being married to a prat makes lying a necessity.  Lying for self preservation is definitely not a sign of moral weakness.  We all lie to protect ourselves & our loved ones.  Who hasn't said - I'm sure it's nothing but see a doctor anyway.  When we really mean how soon are you seeing one.  They do tend to talk from their ivory towers.

Merlin's_Beard

BookmobileBadGirl said:

Excellent year end review, 

I see you are also tracking your student loan, I loved overpaying that and paying it off so that I had a few extra hundred pounds a month to do what I wanted with (mortgage overpayments normally) Beau has always just ignored his but now the interest rates are climbing he is barely paying off the interest each month. Once his house purchase has gone through I will be persuading him to address that

Definitely double check he'll be better off OPing a student loan before he does anything - if he's never going to pay it off it might be better to leave it. I'm only addressing mine because I know I'm going to pay it off whatever I do.

I'm not sure what I'll do with the extra money once it happens - if it's close to mortgage renewal time it might just get swallowed up by increased rate (I'll be coming off a 2.28% so there's no way it's not going up), or some might go to OPs, or some might get diverted to getting the house sorted.

savingholmes

How much longer do you have on your deal Merlin?

Merlin's_Beard

savingholmes said:

How much longer do you have on your deal Merlin?

Mortgage renewal August 2027 so plenty of time yet. Student loan possible payback date end of 2027 without overpaying, early 2026 with overpaying, based on the current interest/repayments/salary....but the repayment threshold for mandatory payback out my wages changes every year, and the interest rate is literally changing every month right now so it's hard to make any definite plans (I hate that uncertainty, like standing on shifting sands, but there's nothing I can do about it, so)

savingholmes

If you get the student loan gone - how much will that free up towards the mortgage a month?

I did a 5 year fix when I got this mortgage but really wishing it had be 10 years now!!

Merlin's_Beard

Ha! Same! I thought 5 year was a lengthy fix but it's not feeling like it at the minute.

At the minute the mandatory student loan payment is £335 a month out my wages (post tax), and I'm putting £250 of OPs towards it now as well. So in theory I could throw nearly £600 a month OPs towards the mortgage for about a year to 18 months before needing to re-fix, or build up/rebuild savings towards other things (I'm very aware that my car is 12 and not immortal and I might be forced into a decision about it before then).

savingholmes

I feel you on the car. Mine is just 7 but I am noticing all the extra little noises and hoping it doesn't result in a big bill any time soon.

Sounds positive on the SL side of things. You are making a dent - and it will then free that money up in time. Suggests you should be able to cope with mortgage increases too. You can work out what your mortgage is due to be at the time your rate runs out by plugging your payments into the OP calculator. You can then run that revised number with a new interest rate to model the likely impacts.

BookmobileBadGirl

Merlin's_Beard said:

BookmobileBadGirl said:

Excellent year end review, 

I see you are also tracking your student loan, I loved overpaying that and paying it off so that I had a few extra hundred pounds a month to do what I wanted with (mortgage overpayments normally) Beau has always just ignored his but now the interest rates are climbing he is barely paying off the interest each month. Once his house purchase has gone through I will be persuading him to address that

Definitely double check he'll be better off OPing a student loan before he does anything - if he's never going to pay it off it might be better to leave it. I'm only addressing mine because I know I'm going to pay it off whatever I do.

Fear not, I live my life by financial spreadsheets and multiple scenarios. Overpaying is the right thing for Beau (unless he is struck down in the next couple of years)

Merlin's_Beard

BookmobileBadGirl said:

Merlin's_Beard said:

BookmobileBadGirl said:

Excellent year end review, 

I see you are also tracking your student loan, I loved overpaying that and paying it off so that I had a few extra hundred pounds a month to do what I wanted with (mortgage overpayments normally) Beau has always just ignored his but now the interest rates are climbing he is barely paying off the interest each month. Once his house purchase has gone through I will be persuading him to address that

Definitely double check he'll be better off OPing a student loan before he does anything - if he's never going to pay it off it might be better to leave it. I'm only addressing mine because I know I'm going to pay it off whatever I do.

Fear not, I live my life by financial spreadsheets and multiple scenarios. Overpaying is the right thing for Beau (unless he is struck down in the next couple of years)

My kind of person! Fingers crossed that Beau is not hit by a freak meteor in the next few years.