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Cheer Leaders needed on the final stretch

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  • skye_blue
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    Some Xmas shopping today, lots of things not available, so came home and ordered online  - was trying to shop in store rather than online

    Mortgage now updated and stands at £53,713.19

    News warning of another interest rate rise this week - not much I can do just keep plodding on

    Stay warm everyone
  • skye_blue
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    Merry Christmas everybody - mine feels a bit flat this year - no real reason

    Bought too much food but will last Jan so no waste

    Bought few bits in sales but used a xmas voucher so not much spent.  Cleared the credit card for stuff bought online

    Got paid early together with a xmas bonus - nice 

    Not sent any money over to mortgage this week - think I'll start afresh in the new year
    Mortgage stands @£53,713 @1.69% had a letter to say it increases to 5.5% In Jan but online says 6.5% - 1 year 10 months remaining - I'll be happy if I can get to £35k before I finish work - wish me luck who knows whats ahead so no use worrying if I don't reach target

    Joined the £1 day for xmas 2023 challenge

    Have a separate account which I transfer any money made - surveys, sales, tilly tidies into - think im going to save this for a nice holiday for my fast approaching retirement, would like to get to £3k - watch this space (393.45) at moment

    Ok enjoy the rest of the holidays and stay healthy and warm x







  • silvercar
    silvercar Posts: 47,435 Ambassador
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    skye_blue said:
    I need some advice pls

    Ive paid my 10% allowance for the year.  Present rate 1.69%.  Fix ends on 31 December and am going on a variable rate then 

    Early repayment charges are an additional 3% - would it be better to carry on paying as much extra on the mortgage as I can between now and end of dec or carry on saving to pay it off at the beginning of Jan?

    Any thoughts
    Keep it aside and pay it as soon as you come of the fix, that way it is costing you 3% less.

    put another way, if you paid £100 off the mortgage now you would be charged £3 so your mortgage would only reduce by £97. Wait until the fix ends and it will reduce your mortgage by £100.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • silvercar
    silvercar Posts: 47,435 Ambassador
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    I think you should post on the mortgage board about whether you should take a fixed rate, that variable rate seems very high. If you took another fixed rate you would be paying a lot less. I know the term would need to be extended, but does that matter if it saves you money? You could open a savings account to squirrel away a mortgage pot, so when the time comes it is all there to pay off. Just something worth considering. Not saying whether it is right or not, but would hate you to be paying a variable rate of 6% when a fix of say 3% would cost you the same and be reducing your mortgage size.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • skye_blue
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    Hi

    Thanks for replying

    I did enquire about extending and they said over two years, but the rate offered was 4.99% at the time the variable was 5% so didn't seem worth it as with variable I could overpay as much without any ERC but the % has crept up again since then

  • Kat78MFW
    Kat78MFW Posts: 265 Forumite
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    Can you see if your mortgage provider has a tracker that's cheaper than the SVR? That's what we did ready for our 1.99% fix ending on 31st December. On our new tracker there are unlimited overpayments allowed and no ERC but it is about 2 percentage points cheaper than the SVR. 
    MFW since March 2019Mortgage-free 30th June 2023 My diary https://forums.moneysavingexpert.com/discussion/5974849/six-years-and-counting#latest
  • skye_blue
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    Waiting for my 1st Jan payment to go out and then I will know my new payment details

    Ive got some additional money set to one side but thanks to reading Kat's message (thank you) Im going to wait to pay it across to my mortgage account - I'm not looking forward to the new payment amount but just want to know so I can sort out my new year's targets!

    Happy New Year wishes to everyone x
  • skye_blue
    skye_blue Posts: 301 Forumite
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    Ok so my Jan mortgage payment has just been paid and the mortgage payment due next month has been updated - 6.25% and an additional £210 per month - WOW

    I can make this payment for now but it cuts down the amount I can overpay so Im going to phone the bank tomorrow and see if there is any else I can do - I don't want to extend the mortgage and Ive made my mind up to reduce my working days to 4 days from April and fully retire 12 months after.  

    Ive worked from home since just before the first lockdown and as I live alone Im really feeling it  - its taking its toll.  Miss the folks in the office and the daily banter but I can't make many changes to my personal life whilst sitting at a desk - but thats for the future

    So need to get my thinking cap on, watch this space

    All suggestions welcome










  • DrCarrie
    DrCarrie Posts: 889 Forumite
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    It's really tough working at home all the time. I don't really enjoy it. 

    That's a big hike on the mortgage payment, i don't have any wise words apart from, keep going, moving toward your goals and plans for retirement. 
    3 month emergency fund (Cash ISA): £2902 / £6,000
    Tart up the house and garden (Monzo pot): £952
    Overpayment on mortgage: £0
    Stocks and shares ISA: £1075.53
    Additional pension contributions: £0
    Premium bonds: £1,450

    Career and private practice development: £3,050 spent


    Big home renovation - is in the pipeline. £0
  • Moneyfordreams
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    god! that hike is high. I have another 18 months before renewal is due, but is scary ! Hope you get something sorted.
    Mortgage restart June 2018 £119950Re mortgage August 19 £110470, … Mortgage November 22 £85600 final 0% CC 3300Home renovations - £65000, mid 2018 - mid 2022
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