Progress is...

Baileys_Babe

The lump sum overpayment sounds like a great win, reducing both the term of your mortgage and the interest you will be paying 👏

Merlin's_Beard

That sounds like a great win in terms of term reduction

northAthenian

hi @rtandon27- good plans in place for the remortgage - those steady overpayments are a great habit to build.

do you have a wee pie drawing/dartboard/house of bricks template to mark off as you achieve a sector…?

I'm also commenting while i think of it on the topic of letter writing ..as a kid who moved countries a few times, I did once have a great habit for writing - over the years it has died off (I'm down to one regular correspondent and a few others i sporadically post notes/cards/witterings out to) .. but one of my promises to myself this year was to try a wee bit harder to write a little more.. inspired by an interesting website/project encouraging people to restart letter writing..it's called 'the Sunday Letter project' …will leave that there for those who fancy a peruse and head away again :)

Greying_Pilgrim

northAthenian - the company behind the Sunday Letter Project are also supportive of the From Me To You letter project that I mentioned. I think the Illustration company certainly help in some way to support with stationery if you're setting up a letter writing group for FMTY. Definitely a worthwhile endeavour, whether for leisure, pleasure or support - or a combination of those things; and the excuse to buy nice paper, and ink pens, and coloured inks, and blotting paper, and stickers and washi tape, and…….. 😉

Greying X

rtandon27

haha - or use up the stash bought on a whim (or two or three) - some of us try hard to cull our stationary addiction without much success!

Many of my colleagues & friends travel to Asia regularly and ask what I want - usually it is stationary - I have a collection of the nicest japanese pens & pencils - MUJI on steroids!

rtandon27

https://forums.moneysavingexpert.com/discussion/comment/81989742#Comment_81989742

First step of Project Mortgage Renewal complete - the 10000 lump sum has been paid off - saving me 51 pounds that would have otherwise gone to the tax man - lol - better in my pocket than his!

Started the online mortgage paperwork, only to realize that they were basing it on the amount pre-lump sum so will wait a few days to let this track through before redoing the application! - I force closed the page so it appears in the system as a technical glitch! Will start this again after the weekend.

ETA - found out that the number is provisional and will adjust to the actual on September 1st - hooray - back online to sort out the paperwork!

Next steps - figure out my AVC's and SIPP's - the less money the tax man gets out of me the better!

beanielou

Well done.

rtandon27

Happy Saturday!

I'm feeling rather pleased to see that the 10K overpayment is reflecting in my mortgage hub web page. The mortgage now stands at below 129K down from the 185K in Aug '21. New mortgage free date is Sep '38 rather than Sep '41 so 3 years knocked off the end date & also done before my official retirement age!

New tracker mortgage paperwork has been read and accepted and reflects the overpayment made yesterday, though I know they adjust for the actual balance, on Sep 11st, it's just nice to see in on paper.

So how does this hit my pocketbook now? With a 4.4% interest rate, the monthly payment has gone up from 933 to 963 - a 30 pound difference, which as I routinely round up to 1000 a month is not going to actually make a difference to what goes out.

I'll have to figure out if overpayments to cover the interest are worth it - currently circa 300 a month, or if that 300 is better off as an AVC - netting me 40% - so 500 in the future. I mentally know the answer to this, but emotionally will have to see the numbers on paper to justify having the money leave my pay packet first.

Being a grown up makes my head hurt!

teapot2

Well done but I agree, adulting is hard 🤯😵‍💫😕

rtandon27

I decided that the anti-dote to being an adult is to buy a lottery ticket for the 62Mil - and then spent an hour running the financial scenarios with my trusty AI for company! What it did do was cement how I want to spend my retirement years (half the year somewhere warm!) It's nice to have a plan and a dream.