Mortgage free wannabe part 2

V3cash

South_coast said:

Good luck 🤞

Thanks , it went better than expected and the outcome was positive.

V3cash

£805 left of budget and 9 days left.
petrol is going down quickly and i have a few miles to cover today.
hopefully it will last til Saturday.
couple of shops to do and a massage booked.
i am lucky she does it at her house so it’s really reasonable ££ and she’s brilliant. I feel I’ve been pummelled and knotts released after.

not sure what to do with any excess, throw it all at mortgage or just op small amounts as I’ve only got £900 ish left to pay til next May as I’ve nearly paid 10% allowed.

i think I’ll wait see what bill is for daughters car before using all of excess left.
just do usual op to round down numbers.

South_coast

What's the penalty if you exceed your OP allowance, and how much more would you pay in interest if you didn't? You may find you're better off overall paying the fee but then paying less interest on a smaller balance. It's worth crunching the numbers, especially if you're regularly going to have large amounts available

LadyWithAPlan

South_coast said:

What's the penalty if you exceed your OP allowance, and how much more would you pay in interest if you didn't? You may find you're better off overall paying the fee but then paying less interest on a smaller balance. It's worth crunching the numbers, especially if you're regularly going to have large amounts available

Indeed 
and also compare if you put the excess OPs into a cash isa and the extra interest u earn there - mse has a load of top isa /savings 

do you have a mortgage pay off goal date ? When does your current mortgage run out as maybe you can aim to pay a chunk then 

V3cash

South_coast said:

What's the penalty if you exceed your OP allowance, and how much more would you pay in interest if you didn't? You may find you're better off overall paying the fee but then paying less interest on a smaller balance. It's worth crunching the numbers, especially if you're regularly going to have large amounts available

So my redemption is approx £1300
which is too much for my liking as the difference in interest is unlikely to offset that.
my interest rate is 2.79.
so presently my money is better off in my interest account.

@ladywithaplan
my final date for payment is June 2027 as redemption ends and I had hoped to have enough saved to pay mortgage off in full.

we also have half of a property, this is currently for sale, however this may take time. The sale has fallen through already.

I’m planning on paying off mortgage without that factored in.
i personally would rent it but it has too much sentiment for my husband to cope with strangers trashing it.

however, that may all be a bit moot as my husband heard today that everyone he works with is being made redundant in a couple of weeks 😢
 so we may need savings and I might not be able to op until he gets a new job.

He is hoping to get a new job today as a company he works closely with has phoned and asked for a meeting as they had heard about his company going into administration.

fingers crossed he has good news today and he is offered something.
im really glad we have saved a contingency plan and he has a house for rental if it gets to that.
persuading his sister might be an issue but you like to think she would help her brother out???
Anyway I will be on tender hooks this morning waiting for news!!

South_coast

Oh my, that's some big news! Definitely agree with sitting on all available cash for now. Hope hubby has a good discussion today x

V3cash

I think it’s good news, the other company have offered him a job, just depends on terms now.
He should know later today 

ladysummerisle

If all goes well, he could just have redundancy money as a bonus and start elsewhere straight away! Fingers crossed 

V3cash

ladysummerisle said:

If all goes well, he could just have redundancy money as a bonus and start elsewhere straight away! Fingers crossed 

It looks like that might well be the case so we are very lucky it’s worked out as it has.
Does make you think though how important it is to have a contingency plan though as you just never know what’s around the corner 🧐

V3cash

Had to recalculate budget.
not sure if hubby will be paid this month due to company problems.
therefore will take £2000 out of contingency £

if he does get paid on 25th will recalculate.
had groceries and petrol too so £646 left for the next 6 days.
groceries Friday, massage and hubby’s petrol yet to be taken so may not have a lot left.
i may get a bit more pay as i think my motor expenses went in ok 👍 
most of what’s left will go back into the contingency fund
redundancy £ can be used to top up contingency fund