Massive Wannabe

78SH

I have been on MSE for yonks but always lurking around in the background.  I spent several years on a DMP, eventually managing to clear the lot (was around £60k) which is probably the hardest thing I have ever done and one of my proudest achievements!  

I bought my house four and a half years ago now and my mortgage renewal is coming up - eeeeew!  I overpay by £85ish each month anyway as I rounded up the payment to the next hundred but the outstanding amount is still overwhelming.  I am in my 40s and don't want to be paying it off for another 22 years.

I have some spare money in my budget from next month after finishing paying for my car.  I can't decide whether it's best to use that to ramp up my emergency savings to £15k and then start overpaying the mortgage each month or to do half and half while my interest late is lower.  

I love a good spreadsheet and am used to having a budget and tracking what is going where but I feel like I am wasting a fair amount of money these days.  Slightly obsessed with Vinted but need to start selling things as well as buying them!

I live on my own (+ dog) which I LOOOOOVE but losing my job and not being able to support myself also fills me with fear (hence the £15k savings I want to build up).  

I think I live a pretty quiet life, I am happy in my own company and can spend a whole weekend reading in the garden with my little dog next to me.  I got in to the habit of not going on holiday when I was paying off my debt and it doesn't really bother me now, I am happy spending a week at home just pottering, going away when you are single is so expensive! That said, I'd love a camper van!

I have a gym membership and need to start using that more often - it just seems a shame to be indoors when the weather is as lovely as it has been recently.  My dog gets a walk most days but she is pretty old and can't walk far (or at a normal walking pace).  I like running but am always a bit scared of being murdered while I'm doing it (?!)

I'll apologise in advance for my waffling and dithering.  Any advice or suggestions will be gladly received!

South_coast

78SH said:

I like running but am always a bit scared of being murdered while I'm doing it (?!)

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

Either way, welcome, and good luck with your plans 😀!

Exodi

What is the interest rate on your mortgage?

It sounds like it's fixed at a low rate, so if it's 2% (for example), it doesn't make sense overpaying £100 so you can save £2 a year in interest, compared to putting it in a savings account paying 5% (for example) generating £5 a year in interest.

You mentioned that your mortgage is up for renewal soon, so I appreciate you're likely going to get hiked up to 4.5% or something in the next six months, but there are regular savers (which fit your saving pattern of monthly contributions) that pay more (First Direct pays 7% on up to £300 per month for example).

Note - the above also depends on your tax position, if you exceed your personal savings allowance and have to pay tax on the interest, then it changes the calculations.

I think people often misinterpret the above advice as 'never overpay your mortgage' which scares them off. I'm not saying don't overpay it, just do it at a time that makes financial sense - if your mortgage is charging you more in interest than you are getting from your savings, then absolutely transfer your savings in and pivot. Likewise, if that doesn't happen and you amass a large amount in savings after many years and you see value in getting rid of the mortgage (particularly the security/emotional aspect) then pay it off.

From a numbers standpoint, it has made very little sense for most people to overpay a mortgage for a few years now.

78SH

South_coast said:

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

I think I'm still a bit slow for a running club, but if I could find a running club that also stops to pet every dog they come across then I would 100% be in! 

I'm £14k away and it will take me about two years.

Exodi said:

What is the interest rate on your mortgage?

It is 2.4% at the moment.  Thanks for your message too, I hadn't really considered that there was another option.  When you remortgage can you pay off a lump sum without a penalty?  I feel like I should already know the answer to this! 

I was in the office today (sob), genuinely don't know how I ever managed five days.  Haven't spent anything though and get an expenses payment tomorrow of £75ish.  I have a pile of "stuff" in the spare room to list on Vinted, I've promised myself that I will list ten items at the weekend.  

Working_Mum

78SH said:

South_coast said:

How about a running club? That way you've got a good chance of them getting someone else first 🤷‍♀️🤣

How far away are you from the £15k EF target, and how long would it take you to get there if you were to put everything to it first before turning to OP'ing? That could sway the decision on whether to prioritise this first. 

I think I'm still a bit slow for a running club, but if I could find a running club that also stops to pet every dog they come across then I would 100% be in! 

My new to running friend swears by ParkRun - lots of people who are at all different ages and abilities and are very encouraging. Worth a check out??

Good luck with your journey - I have subscribed!

78SH

Thanks @Working_Mum! I have done a few park runs and that's a really good shout actually!  I'm going to put it in my diary for the 31st and do exactly that!  I have a food shop delivery coming this Saturday morning and my niece will be here the Saturday after.

I listed five items on Vinted at lunchtime and one of them has sold already so pleased with that!
I ordered some embroidery thread to make friendship bracelets with the niece when she comes to stay, I used to spend hours making them when I was a kid so hopefully the small spend will be worthwhile and she'll enjoy it!
I've done an online food shop, I hate paying the delivery charge but I always end up overspending massively if I go in to a physical shop.  I eat the same things most days so it's pretty straightforward to just order from my favourites list.  Also means I don't waste much food and only buy what I need.
I also dropped two Amazon returns off on my way to the gym earlier so feel like I have had a pretty productive day!

It has been a bit chillier here today but still got a load of washing dry outside.  I have just watered the garden and filled up the window bird feeder, we had a starling riot taking place out there earlier!