I'm paying how much interest a year??!!

MFWannabe

What is the interest rate? 

£400 per month interest it must be huge? 

here_for_the_tips

@MFWannabe SVR at 8.2%, I know, I know. There's a 5% fix for 2 years on offer based on circumstances but I want to hammer the capital this year with overpayments. Tried to save a lump sum last year with the savings rate hikes for an overpayment December 2024 and completely failed. Tried in previous years as well before and just don't feel the urgency to do it. Need to see the numbers falling as the motivation. I acknowledge its not the most conventional (or best?) approach but its going to work for me! Will revisit end of the year.

Hoenir

here_for_the_tips said:

 SVR at 8.2%, I know, I know. There's a 5% fix for 2 years on offer 

Worth doing the sums. 

here_for_the_tips

Hoenir said:

here_for_the_tips said:

 As such I'm going to ride the SVR storm 

How does interest rate compare to what's available as a fixed or tracker rate? 

Its better of course, got a 5% offer on the table, but I do that I'm just going to end up walking the same road I have the last 8 years and 18 years time I'm paying off the remaining  balance with some of the pension lump sum. Need to try something different this year!

here_for_the_tips

@Hoenir I'm going against the sums and the logic, I know that but I've been the problem here. Need to try the change up.

MFWannabe

here_for_the_tips said:

@MFWannabe SVR at 8.2%, I know, I know. There's a 5% fix for 2 years on offer based on circumstances but I want to hammer the capital this year with overpayments. Tried to save a lump sum last year with the savings rate hikes for an overpayment December 2024 and completely failed. Tried in previous years as well before and just don't feel the urgency to do it. Need to see the numbers falling as the motivation. I acknowledge it’s not the most conventional (or best?) approach but its going to work for me! Will revisit end of the year.

This doesn’t make sense tbh 

Very simple maths 5% over 2 years with no overpayments you pay less overall compared to 8% over 1 year 

MFWannabe

8% over 1 year: 

here_for_the_tips

History, well my story, tells me I'll do nothing but let the direct debit come off the account and the rest just vanishes. Trying something different this year.

South_coast

Hey, you do you! If this works better for you, then go for it 👍

LadyWithAPlan

You might want to track more than one metric for motivation eg  daily interest charged  … as that will at least come down in pence but you can see it moving with every OP 

Good luck ! I have not bought as my daily interest will be between £38-40 per day (!) London based … however my plan is when I do buy that metric of daily interest is getting its own art work in my new home