Knocking years off the mortgage…that’s the goal!

Sammie_1985

Philliggi said:

Good morning Sammie. Just thought id pop in to say have you considered investments?

£600 is a fair chunk of money. I, like you have always believed in overpaying and while not being anywhere near able to afford £600,  I am currently sat at £6500 over paid. 

Ive made the decision to take all that out of overpayments and invest it into an ETF with a potential growth of 12%. If it underperforms i can probably expect 6% return. 

Of course there will be ups and down, and investments are probably a little more stressful than overpayments, but even with a pooly performing investment it outperforms returns on overpayments. 

Think of your overpayments as an investment returning 3.89%. That's basically the interest you are saving having paid that proportion of the loan back. 

So if you overpay £100, your gaining £3.89.
However if you invest that £100 your potentially earning between £6 and £12.

Don't think of it as playing the stock market. Im talking long term 10/15/20 year investments in ETF's. Im in a vanguard global isa (tax free) but another portfolio may work better for you. 

Just something to consider. It’s work goggling, or asking AI to explain. 

Thank you for commenting. Your advice is something I will definitely look into more. I currently have an isa which I transfer saving into each month and hubby has a few savings on the go….i think it’s premium bonds and isa but I’ll double check with him. We’ve always had separate bank accounts but the same mindset and that’s seemed to work for the last 21 years! Will speak to hubby this evening and double check then have a Google into your suggestion more. 

Popped into the local library with youngest today then grabbed a baguette and dishwasher tablets. Total spend - £5.48
chucking it down with rain now so no exciting plans for the rest of the day. 

Sammie_1985

Had a lovely Halloween picky tea. Full up now and don’t want to move from the sofa 😆 
put the dishwasher on but need to give the kitchen a quick wipe over. Out first thing for a dr’s appointment then nail appointment at 10.45am (£30) 
Tomorrows aims: 
- work out mortgage overpayment amount
- suitcases out of the loft
- pack for youngest’s school trip 
- pack for London 
- cook dinner rather than getting a takeaway! 

- sort through and clean fridge 
- all recycling out to bins (raining to hard now!) 

sunshineli

Just catching up on your diary. You have made such great progress already with consistently overpaying £100 per month. This is something I am aiming to do. With your larger overpayments you will have the mortgage cleared in no time! Good luck with it all

Sammie_1985

sunshineli said:

Just catching up on your diary. You have made such great progress already with consistently overpaying £100 per month. This is something I am aiming to do. With your larger overpayments you will have the mortgage cleared in no time! Good luck with it all

Thank you! It’s so good to see the capital come down even more. Good luck with your journey. 

Sammie_1985

Back from doctors and nail appointment. 

We have managed to make an overpayment of £750 today. Mortgage payment direct debit and extra £100 overpayment will come out on Monday so looking forward to all the payments showing up once they’re no longer pending. Managed to shave 2 months off the mortgage with the overpayment sent today 🙌🏼

beanielou

All good then. 

Sammie_1985

NSD today. 

Spent most of the day cleaning / washing bedding ready for going away tomorrow. 

Double checked packed suitcases and have a list of some bits I can’t pack until tomorrow. 

Hubby is cooking our last Gousto box for the week so going to bath youngest and make sure he’s super clean for his school trip! He’s going for 4 nights but luckily teachers will help him with his hygiene routine otherwise he’d come home with an unopened toiletries bag! 

Mortgage payment due tomorrow so once all cleared I can update with new balance. 

Sammie_1985

Back from London and legs feel broken! 🤣 
walked and walked but had an amazing time. 

Paid another £400 towards the mortgage and balance is now sitting at £191088.91, will try and pay the £88.91 to bring the balance to a nice even number next week. 

Manage to knock off 4 months of the mortgage this month with overpayments so very happy. 

Mortgage term remaining - 21yrs 9mths

Sammie_1985

Got up this morning and got on with the washing and catching up with house jobs, youngest is back from his school trip this afternoon….can not wait to pick him up! Missed him so much 😕 but I know he’s had a fab time. 

Sent hubby to A£di with a list and he spent £72.46. Lots of top up bits needed as obviously haven’t been here all week. Gou$to box ordered and will be delivered Sunday so next week’s meal plan is sorted. 

£300 sent across to savings account this morning too. 

Haven’t got much planned for the weekend so hopefully not much money is spent! 

Sammie_1985

Slow day so far today. 

I’ve been on a mission to use up toiletries/skincare etc before buying new stuff to try (I’m a sucker for a good review 🙄) elf cleanser will be used up by the end of the weekend but I’ve got a brand new Clinique take the day off cleanser I bought when we got the ferry to France in July, it’s a big pot so will last quite a while. I buy the large bottles of shampoo /conditioner so that always lasts a while too. Just need to get through my stash of body lotions. 

Think we are either having pizza from the fridge for dinner or having sandwiches, I’ll ask everyone what they’d prefer as not sure who’s in or out tonight! The joy of older children 🤣