Gazella's diary

Gazella77

Hi,

Up to now I've been just lurking and asking some questions but I've decided it's high time to start a diary, which will hopefully keep me motivated through the financially tough period which is in front of me (having a baby, maternity pay only).

So to summarise:

I've taken my mortgage of 116555.66 in December 2006 (25 years)

This is a stepped mortgage with C&G fixed for 3 years:
1st year: 5.09
2nd year: 5.59
3rd year: 5.90

I have been overpaying as much as possible during 2007 and I managed to overpay by 5670.97:T

My new balance at 31.12.07 was 108013.74
So still far, far to go:eek:

Anyway, I hope I will keep overpaying this year (though can't afford such substantial payments due to a life changing situation;)

In January and February I managed to put extra £260:j

Thanks for all the support and advice you've given me up to the point:A

setmefree2

Hi Gazella,

It's always great to see another diary. Good Luck.:money:

Gazella77

Thanks a lot!

I forgot to add that my target for this year is £2 000 (unfortunately I need to be realistic about my budget :-(

Gazella77

I have just looked at ISAs and they seem not to be as promising as my last year's one (8.2% A&L), the best ones around 6.25% for the coming year. But my mortgage interest is 5.99% at the mo, so probably it's still worth paying into ISA first then overpaying my mortgage, if I am correct (?).
I have 2 000 on a normal saving account which I will transfer to ISA but as 3600 is allowed for this coming year, maybe I should not be paying in my 200/monthly into the mortgage which I planned for the time being. It is unlikely I will fill in the ISA as my income will down drastically from May, when I am on my maternity leave.

What do you think guys?

angelavdavis

Do you have an A & L account? They were advertising the higher rate to account holders when I last logged online.

Trying_to_be_good

You have to open a new current account to get the A&L high interest cash ISA, but there is one around at 6.5% (not fixed) with one of the new overseas-style banks - check the ISA thread for a fab list that's kept up-to-date. I always put the first £3,000 (£3,600 from April) into an ISA, before I overpay, though I have the money ready to transfer this year.

Make sure you have accessible savings as you're going through a life changing time and less income - don't lock it away in fixed rates/overpayments just in case.

Good luck - I look forward to reading your story!

Gazella77

Yes, I looked into ISAs but will wait till last moment (maybe something else will come up?) .
What I have overpaid is still available to me as I can use it up as payment holidays, just in case I need it, which is really good.
The saving account allows me to pay in only 250 monthly so I thought whatever I've got left I'll be putting in the mortgage. April comes I will transfer the saving account money into ISA, which should come to 2250 and this I can always access as well.

I still would like to try and attempt my 2 000 challenge