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

here_for_the_tips

MoT and service charge a really nice surprise, much less then I had expected and had put aside for. Taking the win but not wasting the opportunity. So budgeted for the next week (kids off) and the month, made another overpayment this morning to take it to over £4k for the year and that will bring it to £58k and something for certain at the start of May with the regular payment to come off as well. Becoming a little obsession to see the number come down each month, keeping it to healthy though. Appreciate the advice.

Put the £50 nationwide thank you payment towards this as well, if a dividend is paid this year same as last will do that as well. Creeping up to £5k paid off for the year altogether, still hoping for the projected 3 x interest rate cuts as well with the potential to bring £70 off the regular payment to add into the OP mix as well.

Holiday weekend coming up so will be splashing out on a lamb roast and a few bottles of wine. Had to bite the bullet and buy a new pair of Karimors yesterday, previous pair has lasted 2.5 years but looked at them yesterday and realised there is a genuine hole in the left sole all the way through. £50 all in but I wear them non-stop, at that price and longevity its a bargain. Home made curry this evening with a couple of Tigers already chilling in the fridge. Sun is shining still, washing is out and my mood is positive - happy days.

here_for_the_tips

Just realised we took out a £75k mortgage on this house at the start, paid off £11.7k by the end of 2024. On track to pay off more in 12 months then we did the last 8 years. Why did I not sit down and read these forums / articles sooner? I've still never had to calculate the area of a cone since leaving school but I could have done with some MSE style education instead.

ladysummerisle

Now that you’ve got into the habit of overpaying, is now the time to switch to a lower rate? Rough calcs: if £400 interest at 8%, 5% would be £250. An extra £150 would be paid off the capital each month. Perhaps schedule a standing order for a reasonable overpayment but then set a reminder for pay day to zero the account. Certainly paying less interest would allow for the odd ice cream and bring you closer to the finish line!

here_for_the_tips

I don't believe I'm fully in the habit just yet tbh, really worried I'll slip into old habits in the summer without the press of the interest on me. Ridiculous as I read what I have typed for a person in their 40's but I'm reversing habits I've built up over the last 25 years so cutting myself some slack. I've set a calendar reminder for mid May to see what happens with 2 year fixes and will take a decision then but I don't disagree it makes perfect sense - it just might not be for me.

here_for_the_tips

So quick look at the app this morning and down at £58.5k left to pay, around 3.5 -4 years off the term already. Daily interest down to £12.81, calculating at the present interest rate that’s £1 a day down from the start of the year and even more if I use the original rate. Well pleased with that. Someone mentioned a while back this would be a good metric to track as well so will keep an eye on it going forward and keep making sure the savings plus more go back into the OP’s. Wondering if I can push to a 20% over payment this year based on the opening amount? Apart from my historic inability to put cash to one side for an OP would give me another motivation for sticking on the SVR for now (though still waiting to see what May brings on the back of that drop in inflation last month).

here_for_the_tips

So a little bit short of £4.5k overpaid as we await the 1/5 update and crucially the interest rate decision. The MOT joy of April is about to be replaced by the insurance certainty of June. Normally pay this as a lump sum as but this will impact the OP's for the next 2 months. Wondering if a 0% credit card for purchases for a year or so and pay it up that way would be a better option here? Will see what the comparison sites come up with.

here_for_the_tips

So the May total is in and over £5k off the mortgage so far this year, daily interest down to a still daft £12.73 a day, £1.20 a day down from start of the year though and that's another near enough £300 to go into OP the rest of the year just now and it's only going to increase.

4 months and I have shaved 4 years off the mortgage repayment date according to the sites calculator. This is 100% not a method that would be recommended by any expert / normal person but it is working for me and that's all that matters! Unless rates rocket again I think I'm sticking with SVR for the year.

Next target: can I reach 10% overpayment of £6,321.50 by the end of May? Would really make the 20% OP aim by the end of the year seem so much more possible.

here_for_the_tips

So I've crept over the £5k OP mark with the bills paid this month, safety net left in the account to cover eventualities and we'll see what's left after the May bank holiday. With daily interest being what it is considering getting bolder with the start of the month OP and dip into the savings account that's not paying as much as the others if needed. Mrs Tips has a great safety net of quick access cash reserves as well so not really a risk but mentally seeing my account down at near enough zero might cause me sleepless nights.

Ironically one to sleep on for me

Cornish_mum

Hello
I just wanted to drop you a note to say great progress.

 If you haven’t already I would seriously look into bank switching (using a specific switching account - mine just has two charity direct debits coming out of it). If you can devote 30 minutes a week to it and are good with admin; in my experience it’s the most lucrative way to make quick extra income. When I tried surveys I couldn’t make enough to justify the time. The other way I boosted income was work related side projects but I appreciate that’s not available to everyone.

I now stooze too but you need to be exceptionally careful with it, especially if you are not a natural saver, as it can very easily go wrong. (when I stooze I already have the cash saved in a high interest account I plan to offset at 0%).

Best of luck CM

here_for_the_tips

Thank you, great idea on the switching. Alas I am with Natwest just now as my main 30 years plus held current account and took advantage of Frist Direct years ago. Will wait until the Nationwide dividend is announced plus I'm 8 months into a 8% RS (now down to 6.5%) so will keep an eye out for offers in the Summer.