Purchase on first home completed - Time to start making a dent in the mortgage!

Merlin's_Beard

That's incredible! Well done - nice to see your hard work showing up in print

savingholmes

Brilliant result 

madhatter83

Thank you both:) the physical paper statement makes it feel more real, I like it! 

We have decided to mark years left milestones as we go, each yearly milestone we get a takeaway delivered, each five years we go for a nice meal out, for a decade of the mortgage its a weekend away, and when we clear the mortgage we will celebrate with a weeks holiday somewhere nice!

(we will still have these things from time to time anyway, certainly a weeks holiday each year - but I think its nice to mark milestones with extra treats!) 

savingholmes

How lovely... a celebration plan is great reinforcement

L9XSS

I like your “milestones”. Supporting you in your progress, keep it going. The paper statement definitely makes it more tangible.

FlacosFloozie

I love the idea of your milestone celebrations! Great way to keep motivaited. I may have to pinch it to see if I can motivate Mr F. He's happy for me to overpay but doesn't have the same excitement about it that I do

madhatter83

Little update, due to interest rates currently being significantly higher than our mortgage fix we have swapped to making savings into a fixed term ISA at 4% interest. Current savings 8.3k This is our emergency fund too.

It would seem if our fix is 2.59% and 4% is available in an ISA then overpayments don't make to much sense for us at this time, we are saving hard though and watching the situation. Ready to make a nice big overpayment when the time is right, but that isnt now for us personally. 

Merlin's_Beard

madhatter83 said:

Little update, due to interest rates currently being significantly higher than our mortgage fix we have swapped to making savings into a fixed term ISA at 4% interest. Current savings 8.3k This is our emergency fund too.

It would seem if our fix is 2.59% and 4% is available in an ISA then overpayments don't make to much sense for us at this time, we are saving hard though and watching the situation. Ready to make a nice big overpayment when the time is right, but that isnt now for us personally. 

My thoughts exactly. I think it will make sense to overpay either when my fix is up to help the LTV or when interest rates drop.

But until then  why throw away interest?

Cornish_mum

Hi Madhatter, we are doing the same and saving in fixed rate accounts instead of overpaying, as we were lucky to secure a low rate fix before the rates went up; best of luck on your journey CM

madhatter83

Our thoughts too, the only thing we have considered is we want to pay the mortgage of way before the term, and totally neglecting the overpayments could make that impossible without incurring some overpayment fees (for us anything over 10% of the original loan per year incurs fees) 

For now the added flexibility and greater interest makes it a pretty easy choice for this year at least:)