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

here_for_the_tips

So scraped over the £1k OP mark this month, been a bit of a struggle with the Car Insurance (manged to get that for £195.18) but cut back on a few things including travel into work this month which saved £50 or so. Full time work from home was such a money saver but you do miss the team interaction in person. 

£5.5k OP in total for the year, with £815.96 needed and based on the YTD pattern looks like 10% of the balance to be paid off by the 30 June is on and anything after that is my internal justification for riding out the SVR this year at least. £100 Nationwide Fairer share to come in as well and that's straight onto the OP as well as the difference between this months payment and last months.

Interest rates have dropped on the regular savers so there will be a little less coming from them into the OP pot, annoying but we've had a good run. They're still at 5.5% and I need to keep some funds liquid just in case of emergencies etc so we'll persevere for now. If they crash they might be going into the OP instead as Mrs Tips has saving as well.

Encouraging how much I can save when I tie it up in something, I am wondering about scaling back a little on OP's next year and look to start a stocks and shares ISA as a bit of FIRE planning. Checked my pension forecast the other day and it got me thinking more about this but still the main focus next 7 months is the mortgage! Determined to stay on track with this and aiming for 20% overpayment this year. £12,643 the dream OP number, set myself a £10k target on the challenge this year, stay on target and see what happens! 

South_coast

You're ahead of schedule at the moment on the OP dream target 😀 Keep going!

here_for_the_tips

So 1 June total is a useful £57,055.79 remaining, 5 years off the mortgage repayment date based on current interest rate. Daily interest creeping down at a daft £12.09 a day. Interest rate cuts have helped as well but that's over £2 a day now less based on the starting rate, great motivating metric this.

As is the monthly total, gutted not to get under £57k especially as my first funds remaining from the previous month and interest paid on savings came off on Tuesday to take me under the mark but gonna play by my rules, it is what it was showing on Monday morning. 10% OP target to reach by the end of the month! 

beanielou

I would have to pay the 79p! 

here_for_the_tips

 it will be gone soon enough to be replaced by another random 2 digit number. Just made the larger start of the month OP after the bills are all paid so under the £57k mark we go and creeping up to the 10% OP target!

here_for_the_tips

So £56,387 remaining as per this morning should be on course to see £55k at the front come the start of next month but then the summer holidays hit and they day trips and camps start to add up. Committed to going into the office a little more with no pick up responsibilities so commute costs are going to increase as well, Still on track for the original OP target, 20% OP still possible this calendar year as well but a couple more interest rate drops this year would be appreciated.

Daily interest milestone at current rate as well, under £12 a day at present, from today that's around £380 saving rest of the year if I do nothing else on the OP side. Still sky high but happy to see it creeping towards single figures. Would need to reach £47k at current rate to achieve that this year. Don't see that as achievable though without a cash injection from somewhere (maybe a DC pay out on car finance?) but 0.5% off the interest rate would achieve this by the end of the year at current OP rates as well. One to keep an eye on.

here_for_the_tips

So a wee trip to a Whisky distillery booked for tomorrow, Christmas gift from Mrs Tips for myself and her 2 brothers so that's going to be fun. Heat wave forced my hand and had to update the Summer wardrobe with some cargo shorts for pottering around in. Been very inactive the last couple of years so new size required, that's going to have to be a focus this summer. No point getting the mortgage paid off before early if I'm not around to gloat about it!

here_for_the_tips

Done it! £6.5k overpayment for 10% plus this year in 6 months. Determined to keep this going into the second half of the year. Using the current interest rate not the original that's 7.5 years knocked off the mortgage already.  Now starting to think of that as 7.5 years of interest saved from the original balance / interest rate and a chance to ramp up FIRE payments much sooner then planned.

Daily interest down to £11.85, recognise its still insanely high but fingers crossed for another couple of rate cuts this year. If I (no we) can drop the balance to under £50k by the end of December might consider a fixed term deal and try and be a bit more disciplined with the savings and do a lump payment just after it ends before moving to another deal but we'll see.

Interest rates have dropped on the savings accounts so a little less coming from them to the OP's sadly but expecting a small salary bump from 1/8 so will look to get that into the OP pot as well. Still aiming for a 20% OP target of £12,643 by the end of the year. Achievable if we (got to start referencing Mrs Tips more here, she's onboard for the journey after all as well, team effort) stick to the plan and don't have any expenditure that the emergency funds can't cover.

carboot_karaoke

here_for_the_tips said:

Done it! £6.5k overpayment for 10% plus this year in 6 months. Determined to keep this going into the second half of the year. Using the current interest rate not the original that's 7.5 years knocked off the mortgage already.  Now starting to think of that as 7.5 years of interest saved from the original balance / interest rate and a chance to ramp up FIRE payments much sooner then planned.

Daily interest down to £11.85, recognise its still insanely high but fingers crossed for another couple of rate cuts this year. If I (no we) can drop the balance to under £50k by the end of December might consider a fixed term deal and try and be a bit more disciplined with the savings and do a lump payment just after it ends before moving to another deal but we'll see.

Interest rates have dropped on the savings accounts so a little less coming from them to the OP's sadly but expecting a small salary bump from 1/8 so will look to get that into the OP pot as well. Still aiming for a 20% OP target of £12,643 by the end of the year. Achievable if we (got to start referencing Mrs Tips more here, she's onboard for the journey after all as well, team effort) stick to the plan and don't have any expenditure that the emergency funds can't cover.

You've reduced your mortgage by 7.5 years in 6 months !!!! Wow, if that's not motivating l don't know what is

Congratulations to you and Mrs Tips

here_for_the_tips

Honestly starting to think we can have this paid off by the time I turn 50 in April 2029 barring any major essential expenditure that comes up. Got a PCP car decision to make May / June 2027 that will be around £3k if we keep it that needs factoring in but if nothing else hits could cover that with current cash reserves and still have the 6 month emergency fund intact. Would be a massive boost to FIRE plans if we can focus 7 years of payments into the pot. Taking £1k as the number saved (mortgage payment plus a fraction of the current OP amount) and that's an extra £84k in the S&S ISA, might even need to open up a second in Mrs Tips name if I max out the allowance in the current one, now that would be a nice problem to have.

Really wish I'd started this years ago!