Aiming to be mortgage free when I'm 40.

Sncjw

Sorted out the bill money to the joint account so it's ready to go out..

Third mortgage overpayment is ready to go. 

Also paid mum back for the remaining cost of the pipe repair. Husband said to leave it until next month or pay half the half remaining now. I said no I want it paid off so I know I don't owe her. 

The reason why he wanted to delay it is because we are due to go on holiday this month and need euros despite being all inclusive. We want to spend in the shops there. We decided to take a small amount of euros to get us going. We are taking my Barclaycard to withdraw cash from ATM sp that we are not carrying loads of cash and we don't get more than we need. Also .means we have a.mpntj and a bit to actually pay it too.

Paid just over the minimum payment for my credit card on 0 percent deal. When we get back next months we will be hammering down the credit card to make sure it's paid off before 0 percent deal ends. We could payore towards it but we like to have a healthy amount in our bank accounts to use of we need it during the month..

Also a few birthdays this month so spending about £20 for each person. Money to adult that I have no idea what to get. Also tonies for the child. 

Going to be a spendy month but got a plan in place. 

Also when we get back from holiday we are going to start working on getting back bedroom done out. 

northwalesd

How's your tooth?

Sncjw

northwalesd said:

How's your tooth?

Hi 

It got taken out and the area is healing good. Was worried about dry socket but I never got it. 

Sncjw

Third overpayment and contractual payment take out today. 

Will update numbers when I get that updated but don't think it will be today due to bank holiday. 

Then I wait for a letter to see what term is left as it says it will be effective the next month. 

Today we are cleaning up the house ready for holiday. It's so nice to come back to clean and tidy house as you will be focusing on washing your clothes from.holiday. 

Taxi was booked a month ago but husband rang yesterday to get it earlier as we know we can't just sit around and wait..plan is to go out and help a relative with their shopping. Go to a buffet to fill ourselves up so that we sleep better and then get up at half midnight to get sorted for last little bits and bobs so stuff we use each day. Then get taxi at 2am to airport. We like to be there for check in opening as we want more time in duty free and pub area..

Sncjw

Overpayment and contractual has cleared and updated my balance to 63,787.16. 

Will await letter to find out updated term as kt won't be affective until next month and online only shows the current term left. 

Sncjw

Just come back from a weeks holiday to find a letter from mortgage lender with update of balance and also term remaining. 

So as it doesn't update until a month after the payment my online account shows 16 years and 7 months left. 

The letter shows the term remaining affective from June to be 16 years and 4 months. 

Just by over paying what we have we have reduced it by another  3 months. 

I can't work out how many months we have reduced it by as we started overpayments on 1/3/23 but wouldn't take affect until April 2023. We completed on the purchase on 29th April 2020 and was a 20 year term. 

Can anyone help please? 

Sncjw

I don't even know if people are interested in this diary but anyways I will continue. 

So on holiday we made plans to get the back bedroom done. Going to look for wallpapers this weekend and also check out remnenets for carpets. We want to match the front bedroom carpet wise and also go for a neutral brick wall effect. The carpet will be light grey and brick wall effect. The rest of the room is already white wallpaper which my husband wants to keep. It's his project but I don't know how a grey carpet and brick wall will go. This is going to be his project. It will be a study/hobby room until a baby does come along if it does. We want to keep it so it's easy to change over if we have baby. So there will be at least a desk and chair in there. 

Next plan is the bathroom which will take us to having to save to get it done. We don't want to take any loans for this. We need to pay credit cards off first which we are hoping to have a massive chunk paid down when we get our bonuses. 

Then when we have saved up for bathroom which might take us to next year as I expect it will take us after Christmas to save for it. We will do bathrpom. 

Then next project will be kitchen although not sure what we can do in there was there's little bench space and little option to move stuff around. I'd love more bench space but option is to block the outside door and make french doors from dining room out but means knock down walls we have in dining room and out units so close to that wall. 

So plans there for improvement works but will take time. We will want to go on holiday next year and looking to just pay off by chipping away at it in instalments. We feel that we need time away to recharge so we will take mini breaks too. 

My mother is saying why don't we not have holidays or use bonus to improve house but to be fair we have only been here for three years and took her 30 years to get the house she is in the way she wants it now. Plus she had interest only mortgage when she was paying off her mortgage..so the rates be even lower. 

We will use credit cards only when we really need to. 

MatyMoo

Your diary is definitely being read with over 2,100 views, it’s a shame people aren’t interacting more with you!

I spent 10 years getting my last house how I wanted it and I am 7 years in on this one with lots still to do! Luckily no mortgage so I can save up for projects a bit easier 😃

Sncjw

MatyMoo said:

Your diary is definitely being read with over 2,100 views, it’s a shame people aren’t interacting more with you!

I spent 10 years getting my last house how I wanted it and I am 7 years in on this one with lots still to do! Luckily no mortgage so I can save up for projects a bit easier 😃

It's tough especially when I work full time to get things done in the house but I need to work to pay for it and for overpayments. 

Ita funny because when I moved in my mother did say that take time to get stuff done. Garden is another area that needs doing too. 

With the interest rate going up again it's more important to get the balance down ready for a new deal in 2025. 

I'm hoping by Jan of that year it should only have £44k left to pay. If we continue to do overpayments from now it's only another 5 years on the mortgage which will save 12 years 

Exodi

MatyMoo said:

Your diary is definitely being read with over 2,100 views, it’s a shame people aren’t interacting more with you!

I spent 10 years getting my last house how I wanted it and I am 7 years in on this one with lots still to do! Luckily no mortgage so I can save up for projects a bit easier 😃

Haha I've been reading it.

To offer some interaction - £83.5k for a house in 2020 is incredible. Down here in Kent, you wouldn't be able to even purchase the rights to live in a wheelie bin for that!

@Sncjw a few pages ago themadvix suggested putting the money in savings account instead of overpaying the mortgage, and you responded that you don't want to be tempted by it.

I think this is still something that you should seriously consider.

To provide some numbers: 

Overpaying £620 a month at 2.44% will save you £90.77 in interest over a year.

If you were, for example, to instead put the money in a regular savings account (which may disincentivize you for taking the money out):

£300 into First Direct Monthly Saver at 7.00% will give you £126.00 in interest over a year.
£250 into Lloyds Monthly Saver at 5.25% will give you £78.75 in interest over a year.
£70 into Tandem Easy Access Saver at 3.50% will give you £14.70 in interest over a year.

So a total of £219.35 vs £90.77 (2.4x the interest), and these aren't even the 'best-in-class' accounts - If you have a Club Lloyds account, they let you put in up to £400 at 6.25% (increasing your total possible interest to £246). The reason I included a small amount in an easy access account was to give you a backup plan for your 0% credit cards which expire in 2024 (since it sounds like a bit of unplanned spending has fallen onto to them).

Unfortunately it just doesn't make much financial sense overpaying a low interest rate mortgage while savings interest rates are at all time highs.