2008 MFW newbies

SuiDreams

Mortgage Overpayments only £108/£500 so far this year. I've just got the haifax 10% regular saver, so thinking of reducing this years over payment target and increasing my savings target by the same amount. Then split amount saved after twelve months between an ISA and Mortgage over payments.

snax0

Hi there,

Count me in! - I'm a new MFW?

My goal is make/save as much cash pain freely and pop it into the the old bricks and mortar monster.

What my number please?

Do I have to do anything else - ie. put the details on my signature?

zavarony

Hi Snax,
if you pm bellsbells she will be able to add you to the list. just send her your target for the year - you can see that there is some great motivation on this thread, so its definatley the place to be if you want to overpay.
Good luck and welcome

Zav

PsychoPrincess

I am new, and would like to join in!

I found out yesterday that the maximum I am allowed to overpay by for this year is a bit over £5,900.

I have no idea if I will get anywhere close to that, but it is my 'dream' target for this year!

tro127

Checked my mortgage balance and was able to round it down to £119k with an overpayment of £272.21. I seem to be getting obsessed with checking my balance event though I know its not going to change overnight! Can see the benefits of my 2 OP so far which should spur me on.

torbrex

I live alone so nobody really to ‘bounce’ this off so here goes.

I have been off work recently with my wrist in plaster after a fall while on holiday. I have been on reduced income for a month (SSP) and have had to have a good look at my finances to ensure that I could keep up with my overpayment schedule and ultimate target of full pay-off in Feb 2009.
I have managed to sort something out by using my surplus holiday fund to tide me over until my next full pay (which should be this month now that the plaster is off).

To get to the point of my tale, I have discovered that, all being well, by the middle of August I will actually have more in my various instant access (not ISA’s) accounts than will be outstanding on my mortgage.
I knew the money was there but had not looked at it from that point of view before.

Should I pay off the remains of my mortgage (£9800) in August and save what will amount to about £385 interest and leave myself with less than a months wages available in the bank (a position which I hate) involving the closure of all but one of my 'regular savers' or do I stick to my original plan?

Snazzy

torbrex wrote: »

I live alone so nobody really to ‘bounce’ this off so here goes.

Should I pay off the remains of my mortgage (£9800) in August and save what will amount to about £385 interest and leave myself with less than a months wages available in the bank (a position which I hate) involving the closure of all but one of my 'regular savers' or do I stick to my original plan?

You should never leave yourself without enough cash for an emergency especially if work only pays SSP. Could you compromise and pay off half the remaining mortgage?

torbrex

Snazzy wrote: »

You should never leave yourself without enough cash for an emergency especially if work only pays SSP. Could you compromise and pay off half the remaining mortgage?

I had thought about that but there are interest penalties on my regular savers that would mean I would actually lose out on income by leaving money in them, it is something that I have been looking more closely at since I posted my question.
Thanks.

moneysavingwannabe

I'm used to having savings as a back up, but as we have had lots of work done on the house and are getting married soon so we are suddenly in debt!

Have you thought about applying for a 0% credit card say Halifax for 10 months? IF any emergencies came up you could put them on the cc and it would give you time to get sorted?? Just an idea so your mortgage would be taken care of and you could put all your money into building your savings up again. (the emergency might not happen hopefully!)

torbrex

moneysavingwannabe wrote: »

I'm used to having savings as a back up, but as we have had lots of work done on the house and are getting married soon so we are suddenly in debt!

Have you thought about applying for a 0% credit card say Halifax for 10 months? IF any emergencies came up you could put them on the cc and it would give you time to get sorted?? Just an idea so your mortgage would be taken care of and you could put all your money into building your savings up again. (the emergency might not happen hopefully!)

I know a lot of people do this kind of thing but it is not for me.
I was just so surprised when I realised that it might be possible to clear the mortgage quicker than I had planned, I have my ISA if anything major turned up but obviously I dont want to touch that and if push came to shove I could get a loan but again I want to avoid that.
If I do pay off the mortgage it will free up £250/month that I am currently paying and with the £450/month that I save elswhere my savings will build up quick enough, it is just the though of having so little in savings for a couple of months that is holding me back.
I will keep rumbling the figures around for a while and do the sums again after my next wage goes in.