Statement of intent

StuartGMC

Just received the latest summary of offset savings. We saved £171.42 in interest from December to March (remember we only paid £57.62 interest in this period, so the saving is 3X the interest actually charged :j).

Apparently we have saved £1625 since offsetting from June 2006, which is 5% of the mortgage we took out when moving to NatWest, does make you think when you put it in context. :cool:

Wish offsets had been around in the 1990s, just think of the savings we could have made then, but we didn't have as much money available in savings at that time. I am sure it will however be benefiting many of you now.

george_jetson

StuartGMC wrote: »

Wish offsets had been around in the 1990s, just think of the savings we could have made then, but we didn't have as much money available in savings at that time. I am sure it will however be benefiting many of you now.

The (as it was then) Virgin One Account was launched in the late 90s just before I got my mortgage. It seemed radical then and I wish I'd gone for it.

As soon as I saw the light I got myself a fd offset and can't speak highly enough of the whole concept - I think it originated in Australia? I think for those serious about becoming mf, offset is the way to go.

chunky79

Hi Stuart

Here i am getting my motivation back into tip top shape. I have just read your DW hasn't been well. I have no idea how i missed this as i do lurk when i get the chance. Hope your DW is feeling fit again soon.

Almost got my head around your spreadsheet, its blooming good. I am very pleased i kept alot of my tesco reciepts, so far i have made fairly good progress. Thanks again.

I know what you mean about offset mortgages i wish i had paid more attention when my fixed rate ended, we live and learn i suppose. Luckily, its not too bad though, we are on an SVR with interest guaranteed to be no higher than 1% of the BOE base rate, so i cannot complain.

Take care x

StuartGMC

chunky79 wrote: »

Almost got my head around your spreadsheet, its blooming good. I am very pleased i kept alot of my tesco reciepts, so far i have made fairly good progress. Thanks again.

You're very welcome. It's good to get feedback on this spreadsheet as it grew "like Topsy" but the iterations make it worth overcoming the initial "shock" on opening it. Maybe I should provide a health warning in that respect? :rotfl:

Once set up you can choose to alter ranges for things like average fuel costs to account for periods of significant change plus the 2p Duty per litre is being added tomorrow which I had forgotten!

I know what you mean about offset mortgages i wish i had paid more attention when my fixed rate ended, we live and learn i suppose. Luckily, its not too bad though, we are on an SVR with interest guaranteed to be no higher than 1% of the BOE base rate, so i cannot complain.

Take care x

That's a great SVR you have there. The big question is of course, what's your prediction for inflation and hence interest rates from mid-2010 onwards? Some people with say, 5 or mores left on the mortgage I think are considering fixing because the rates are historically low now when you look back. If you don't fix, what scenarios are you running for the interest rate from late 2010 onwards for 5 yrs; 5, 8, 13% or are you leaning to deflation and hence interest rates remaining flat?

chunky79

StuartGMC wrote: »

That's a great SVR you have there. The big question is of course, what's your prediction for inflation and hence interest rates from mid-2010 onwards? Some people with say, 5 or mores left on the mortgage I think are considering fixing because the rates are historically low now when you look back. If you don't fix, what scenarios are you running for the interest rate from late 2010 onwards for 5 yrs; 5, 8, 13% or are you leaning to deflation and hence interest rates remaining flat?

How strange i have been discussing this just today with my friend and OH. Personally i think the minute the market starts to pick up so will the interest rates, money is going to have to be clawed back. Where OH works they are predicting quite fast increase in the rates but i suppose no one can be sure.
If OH has secured this next contract (it look like he has, with a rate increase in too:T ) then i am seriously thinking of throwing a minimum of 1.2k per month plus the normal payment making it £1600 p/m or maybe even more will have to see as we still need money to sit on for when contract is over. I have now got to get serious and plug away at the figure this weekend. Hopefully squiggles won't start puking this weekend.
Blooming eck! That will be my mortgage off in 3 years, well thats if i have just worked it out right and all depending on the rates too.

I also think i need to revise the wedding plans although i was planning a budget wedding cos i am a tight nut anyway. I may wait until next year and just bog off to do it:rolleyes: . No hassle. OH has no opinion on this other than, if you want, we can, so book it:rotfl:

I yacked on a bit there, better stop before i put you all to sleep!

StuartGMC

Chunky
Do try to balance with some caution to keep that reserve you may need to call upon though.

Well made the usual mortgage payment+OP plus the additional OP yesterday, so this means that the mortgage is now £17359.86 with equivalent interest rate of 0.20%.

My expenses for last week's hotel in Atlanta were submitted on Tuesday and processed so just over £1200 will be added to my current account tomorrow. This is nice because it offsets until the credit card bill needs paying around 12 May and I've earned some more points on my NatWest card.

More importantly our offset accounts will exceed the mortgage owed for the first time, and with the markets up at the moment, the S&S ISAs are doing well too :j:j:j

However, just noted the Sheraton didn't credit me with any points on their loyalty scheme so will try to claim back online. Annoyingly hotel booked via conference and the loyalty details entered but I failed to check they had them on check-in - that's the problem when shattered after trans-Atlantic and an early start to the day. I did however get points from Delta for my Continental frequent flyer.

Looking like a trip to Houston and possibly Denver next month, so that'll be a few more points on my Continental card too. Whilst I only get economy, as I haven't "wasted" the points in upgrades (where these would be allowed, usually can't as it is a "really" cheap ticket! :mad:) and the points last all the time, I have over many years accumulated a lot, so hope to get the family over the Atlantic and back for free sometime in the next year or two :j

george_jetson

StuartGMC wrote: »

More importantly our offset accounts will exceed the mortgage owed for the first time,

So at the moment you're 'technically' mf?!

Well, that's quite a milestone! Congratulations!

StuartGMC

george_jetson wrote: »

So at the moment you're 'technically' mf?!

Well, that's quite a milestone! Congratulations!

George - thanks for pointing me at that! As the current account will drop I suppose I had not fully thought that one through, but technically for a short while we are :T

We'll have to pay the bulk of the holiday costs in May which will obviously hit our financial situation in July (we'll pay on credit card as the small fee is worthwhile for the additional protection). However, hoping very much that my calculations are right that we'll be able to drop to a low cash reserve in October to hit the 10yr saving on the mortgage which is the driver for this date.

george_jetson

I won't forget checking my accounts online when some expenses came through and seeing that this had nudged me into an overall credit balance. Although everyday living soon took me back down again it was quite a thrill and confirmation that I was on the 'final straight'.

setmefree2

getting those points back