LJ's Mortgage free road to early retirement

Nessa56

firesidemaid wrote: »

nessa, have you made any provision already to pay off your mortgage?

if not ask your lender if you can make capital payments. or when you next remortgage turn it into a repayment one but increase the term (years) so it is a level you feel comfortable with.

No real provision no, I do have a couple of pensions which will hopefully give me some of the money, as for the rest I am saving as hard as I can, trying to put in as high interest rate saving account as I can and I thought I might bring it down by about £5,000.00 next august when I am ready to re-mortgate, The total mortgage at the moment is £65,000.

I will have to look at the capital payment thing to be honest I don't know what that is, maybe I would save more that way than in savings account?

thanks for the ideas

v
x

firesidemaid

nessa, what is the interest rate on your mortgage and what is the interest rate on your tax-free cash isa?

if the isa is higher than carry on with that for now - if your mortgage rate is higher then consider paying some off your mortgage.

seriously consider moving to a repayment mortgage next year - i'm sure any payrises you have had in the meantime will cover the difference x

LouiseJ

Hiya peeps who follow:wave:

Feeling a bit Meh today so havent really though much about my mortgage reduction other than to plan our meals for the week and get the food shopping done............I will keep to budget.

Bought 2 part baked baguettes from Aldi for 39p and cooked them in the MOZ cooker then cut in half and topped with ham and cheese then back in oven for 5 mins.......fed OH and 2 lads no problem.

I had a salmon steak with salad as I am "food optimising" Slimming world plan for those not in the know:D

I want to reduce my mortgage and my waist line;)

Other than that I have been grumbling about how cold and draughty the house is. Off to the neighbours soon for a free drink and free heat:D

LouiseJ

Woke up really early for some reason, had a long chat with OH about mortgage overpayments and whether we would be better off maxing out our ISAs and overpaying in chunks as the ISA has a higher interest rate than the mortgage is.

But, we know ourselves too well and know that despite the gain in a little interest for us it isnt the best idea:rolleyes:

We know that if we have a nice healthy savings pot then we will be tempted to dip in for things like holidays, home improvements etc.

I know that this may raise a few eyebrows but we would rather move all temptation away from us and if we pay straight into the mortgage account psycholocially we will see that money as being "paid off a debt" hence not ours anymore IYSWIM.

We will keep our savings as savings and our overpayments as overpayments:D

On another note I managed to bag 2 more mystery shops for Tuesday so I have 3 scheduled for next week on my day off totalling £35:j ..........off to see if there is also a lunch one available for the day I am out so that will be free too;)

skint_spice

Hi Lou,
Glad you managed to get back into the overpayments again. I know you would get more interest maxing out the ISA but only if the money stayed there! I think you are doing the right thing limiting your opportunities to spend it, if worst came to worst could you get a payment holiday?

firesidemaid

i know what you mean re. isa savings vs overpayments - i do the same.

also, in my own little way i think paying extra off the mortgage monthly or as and when reduces interest that bit more than waiting for the annual interest on the isa?! and as you say it is so much more motivating that way.

the money i have in my isas is stoozed and therefore the only reason i keep it there as i may need to get it 'back' at some time. we are in the process of applying for a offset mortgage which i am dead excited about:rolleyes:.

LouiseJ

Hi Skinty and Firesidemaid:j

Its nice for me to have others opinions on this as I dont discuss my financial matters with my family or friends IRL. Its too complicted and I know they wont understand our reasons for overpayments and how we are happy to live moderately to achieve our goal.

I am sure we are percieved as being "tight" or "greedy":rolleyes:

Nice to come on here and indulge with likeminded people:rotfl:

LouiseJ

skint_spice wrote: »

Hi Lou,
Glad you managed to get back into the overpayments again. I know you would get more interest maxing out the ISA but only if the money stayed there! I think you are doing the right thing limiting your opportunities to spend it, if worst came to worst could you get a payment holiday?

I couldnt get a payment holiday as such but any overpayments can be taken back which is nice to know in case of emergency.........and I mean a real emergency not us fancying another holiday in Florida:rotfl:

Which reminds me, I was supposed to look for ferry prices to France as we are off there next year I have budgeted £1200 for a family holiday including all travelling expenses.

LouiseJ

Well it looks like Brittany is totally out of the question with ferries at £360 for the cheapest crossings in July. OH has to take the most expensive fortnight of the year as his place of work closes down:mad:

I have found a lovely site near Paris which means that we could have a day in Paris and a day at Park Asterix, which little DS has been dying for us to go to since he went there with the school.

It works out at £600 for a week in a gite and Dover to Calais is about £70 return so well under the £1200 budget I reckon about £150 needed for fuel though and we might have to stay overnight at the port as its a 6 hour drive for us to Dover.........Need to run it past the rest of the family but I am getting excited already, I love having a holiday to look forward to.:D

skint_spice

Parc Asterix is on the tesco clubcard deals so might save even more money there Louise.

I was suggesting the payment holiday might be needed if OH lost his job BTW not if you fancied going back to Florida! I love having a holiday to look forward to too though.