Follow the Yellow Brick Road 2023

SandyShores

After a morning of browsing MSE, updating spreadsheets and other things, I had a productive afternoon doing some decluttering, tidying and cleaning.

Moved some clutter from the bedroom to the sewing room. 
Moved the chair from the sewing room to bedroom (under the dressing table).
Washed a couple of loads of laundry
Put some dry laundry away
Cleaned the bathroom and declogged the basin
Gifted a couple of items to friends.
Emptied the dishwasher
Put the food delivery away

Now to work on a spreadsheet for calculating mortgage payments. 

KajiKita

< sits down and waits to see what clever things Sandy does with her spreadsheet …. > 😊😉

KK

SandyShores

KajiKita said:

< sits down and waits to see what clever things Sandy does with her spreadsheet …. > 😊😉

KK

Lol, nothing clever I'm afraid.  I've taken the spreadsheet you mentioned from Locoblade and added in my details - current rate is 1.84%, and I've estimated 4% interest in 2025 (fingers crossed).  I've added in all my OPs c.£15k and it says that has saved us £5.7k in interest - woohoo.  Thanks Kajikita, that's nice to know.

It has reminded me that I am meant to start putting the OPs into a regular saver for the next 18 months, which together with my penison lump sum should pay off our H2B (depending on house price rises - or falls ) and so we'll be left with around £170k mortgage at that point.   

It still means our mortgage is set to end a few years after the required date, so I will start using those smaller amounts (that I can save or make) as OPs.  On the second tab of the spreadsheet I hard copied the current interest savings.  Then added a simple formula to subtract the 'Interest saved by all overpayments' cell.  So each time I manually add an overpayment I can see how much interest that will save me e.g. £10 OP saves £3.  And I'll also be able to keep an eye on that end date.

Thanks Kajita, this has done the trick.  Now to go off and find some regular savers. :)

*it looks like the savers will need a bit of investigating.  Current I've found a B@rcs rewards saver c.5% for £5k.  So that could do for 5 months.  Then I need to find places to put £1k a month for another year.  It looks like S@antander, and N@tionwide for around £450 so will have a look at those and see if I can have more than one / or look at other accounts.

savingholmes

Nationw has an 8% one, Llds a 6.2% and San a 5%. Barcs have a 5.2% isa.

How lovely that you can get a pension unreduced next year. I can get one unreduced at 60 - but the other would be majorly reduced by around 27% if I go then.

SandyShores

Thanks savingholmes, yes I'm pleased its working out like this - I wish I could say it was planned

I did a bit more decluttering and tidying today - with another item gifted away.  Its only small things, but its making a big difference.  I also have a bagful to go to the charity shop soon.  I made a list of furniture I'd like - I'm planning to swap a tall four drawer chest of drawers with a slightly wider three drawer one.  Not sure how 4 will go into 3 yet, so probably more decluttering to do.  

SandyShores

Okay, regular savings, so far these are going to be opened ready for next months £1k savings Mar24 - Feb25:

Nationw £200 per month - I have a NW a/c so will Open that on 1st March x 12 months x 8%

Santand £200 per month - I have SR a/c so will Open that on on 1st March x 12 months x 5%

Barcs Rainy Day Saver - £5k max gets you 5.2% - I'll need to join the Rewards programme which I think is £5 a month, requires two dds, but pays you back 

Barcs Blue Rwards Saver - 3.5% if you don't make any withdrawals (1.15% if make withdrawal).

I have Barcs accounts, so just need to join the rewards and make sure I have 2 dds to get the £5 fee back, and pay in £800 pmth - which I already do.

Savings and lump sum will then pay off the H2B next year, meaning our mortgage re-mortgage should be around £170k and approx. 13 years left - but I'll be focussing on reducing these as much as poss.

SandyShores

I watched the MSE video last night on whether house prices will fall in the near future.  It got me thinking about us taking H2B and how much it would cost us in the end.   According to the calculator, that amount on the mortgage  would be £5,280 in interest over the 5 years.  An estimate of the additional repayment figure atm is £8300 - so a cost of about £3k more.  That doesn't take into account that having H2B got us a lower interest rate anyway, so if that is the final outcome, I'd be happy with that.

SandyShores

ISA S&S bonus has arrived, so I've updated my signature.  It doesn't say what the rate is, but I've worked it out at about 2.5% which isn't great so I won't be adding any of our savings to that pot.  But its okay as its a savings pot I have 'locked away' in case I need a new car in future.  Mine will be 12 years old this year, and I've seen many similar models at least 6 years older still looking presentable.   I know they don't go on forever so sticking £30 in a pot each month will go some way to a replacement when needed.  I ought to think about doing what savingholmes suggested and perhaps put some of the NI money into the pot to build it up a bit faster.

Mortgage payment has gone out today and I've checked the interest which is now £9.45 a day.  Its good to see that come down, will be sad times when the fixed rate ends next year but it will probably give me a huge incentive to pay off the mortgage quicker.

SandyShores

Letter received from mortgage company yesterday to say that another month knocked off the mortgage, 14 years left in total.  There might not be many more letters for the next 18 months as I'll be saving the regular monthly OPs until then - so I'll need to think of other ways to OP as I want to cut the time left in half.  I need to start getting serious about this now

Interest for yesterday was £9.39 for the day - I've just multiplied that by 365 days and it totals £3427.35 gulp.  I definitely need to start getting serious about paying this off.

Just check PBs - no luck this time.

LadyWithAPlan

Lots of good maths going on over here - I love that locoblade s/sheet

I have a Barc but havent paid for the rewards as I dont have any dd's through it - I could switch over I guess. I have a regular saver with Cov - I thought it was 7% £250pm max - but looking now they have all 5%+ ones only on various amounts per month - one up to £500pm if you have the room.

Love the months off the mortgage - I am definitely planning to buy - will start looking again next week then I can too play the OP game