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  • FIRST POST
    • RichyRich
    • By RichyRich 2nd Sep 17, 7:44 AM
    • 1,848Posts
    • 2,261Thanks
    RichyRich
    Balancing multiple goals
    • #1
    • 2nd Sep 17, 7:44 AM
    Balancing multiple goals 2nd Sep 17 at 7:44 AM
    I've been lurking on this board for some time and thought it about time I set up my own diary to maintain commitment and measure against my objectives.

    A bit about me: I'm 31 and so is my wife. We live in east London and have lived in our flat since 2010 which we bought on a shared ownership basis. In 2014 we staircased to 100% ownership which landed us with a 30 year mortgage of around £240,000. Our monthly payment was around £960 with an interest rate of 2.49%. In May this year we switched deals and our new rate is 1.19% which reduced the monthly payment to approx £810.

    We both earn reasonable salaries and my wife works in the public sector with a defined benefit pension. I work in finance and have a defined contribution pension to which I contribute 10% of my salary and my employer contributes 6%. My goal is to retire at 55 but I understand that the minimum age at which I'll be able to draw my company pension is going to rise soon to 57, and track the state retirement age by 10 years thereafter, which irritates me a bit, so outside of this I've opened a S&S ISA in the hope that this will be able to "tide me over" between the age I want to retire and the age at which I can draw my pension. Or at least give me the option to. Currently there is only £100 per month going in but I would hope to increase that.

    The lower mortgage payments have enabled us to make reasonably large overpayments since May of north of £700 per month. Our strategy for this is simple. We each get paid our salaries into our own single accounts and contribute £1000 per month each into our joint account, from which all the household bills are paid. Whatever is left in that account at the end of the month is transferred into the mortgage. Any unexpected "windfalls" (e.g. I got a cheque for student loan overpayments last month) are paid straight off the mortgage. Our current balance is £220,000 plus a hundred or two. I'm addicted to checking it.

    Assumptions are a huge thing, but assuming no change in interest rate (unlikely), overpaying the mortgage by this amount could bring the unexpired term down from 27 years to 13. The thought of still paying the mortgage at 57 fills me with fear.

    I have savings of approx £20,000 In cash, spread across highish interest bank accounts including a FD Regular Saver, a Nationwide Regular Saver, a Ford Regular Saver (Yes, I got one!), Tesco, TSB and Bank of Scotland, which I've predominantly built up over the last two years. While i could in theory at least put this straight towards the mortgage I want to keep some reserve for emergencies (worst case scenario would be a job loss and ideally I'd like this figure to be £10k higher to feel more secure.)

    Where i suppose I struggle is determining what proportions to apply to the various goals. I want to pay the mortgage, I want to retire early, and I want an emergency fund big enough to tide me over if an unfortunate event happens. I could build up my emergency reserve by not overpaying the mortgage (but lose out on the ability to overpay by so much due to the low rate), I could increase my pension contributions by paying less into my emergency fund (but lose the security of having cash), or I could increase my overpayments by paying less into the pension or emergency fund (but lose the tax/NI relief on my contributions). As for the actual percentages applied, I just guess!

    My wife is not interested in finance at all and if I said let's both add an extra hundred to the joint account each month for the mortgage she'd trust me and do it. The £1,000 each and overpay what's left was just plucked from the air. It could just as easily have been any other number that's higher than our monthly outgoings. My 10% to pension was plucked out of the air. Why not 9 or 11? Why not 15?

    In the more immediate term, I'd like my mortgage to be under £200,000 by the end of the two year fixed term (May 2019) and I'd like my cash pot to be at £30k by then too. At current levels of contribution the value of my pension pot should be around £90k by then. So it's a nice position to be in; I'm just not sure that I'm optimising it in anything approaching a scientific way.

    Anyone else in a similar quandary?
    Last edited by RichyRich; 02-09-2017 at 9:09 AM. Reason: Correct typos
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
Page 2
    • RichyRich
    • By RichyRich 29th Apr 18, 8:31 AM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Yes, I upped my pension contributions this year to 12% of my salary. With each pound paid in costing less than 60p (I contribute by salary sacrifice) it's very tempting to do that rather than overpay the mortgage or save in an ISA/savings account. The only reservation I have is that I won't be able to touch it until I'm 55 (or whatever age a future govt might decide) which is what stopped me upping it by any more.
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 5th Jun 18, 10:13 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Milestones seem so far away! Today's mortgage balance is £207,175.15 which includes June's contractual payment but not the overpayment which I've yet to make - I'll make it a little later in the month as some direct debit amounts are changing and I don't want to go overdrawn by overpaying the wrong amount.

    We've not upped the overpayment amount yet as we've had a fairly spendy few months which have been a mixture of unavoidable and indulgent. I keep telling myself that things will settle down and then we start looking at what we want to do for holidays next year

    Overpayments continue at around the £700 per month mark and, despite spending more than we should, haven't been compromised on. We're still on track to be below £200k by Christmas but, my word, £200k is a lot of money. I'm not even sure that getting to that level will make me feel better as it seems like such an insurmountable sum.

    All that is keeping me going is the thought that with every overpayment more of the next payment goes toward the principal so we should see increasing rates of return going forward.

    We are playing a long game and I know that in the long run it will be worth it, but right now it feels like such a grind - I think I'll go and play with the overpayment calculator to see if I can find a milestone to look forward to

    Keep up the good work all. Here's hoping I'll be in a happier place for the next update!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • VDOT47
    • By VDOT47 6th Jun 18, 10:52 AM
    • 256 Posts
    • 717 Thanks
    VDOT47
    Rich - your numbers are different, but your situation sounds quite similar to ours. I constantly switch from thinking the priority is to pay as much as possible off the mortgage, to then thinking I should put more into savings and then thinking I should increase pension contributions! I think that the approach suggested above of working on all three at whatever level seems the most sensible at the time is the best advice!


    Good luck, and keep chipping away!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (04/06/19) £232,238
    End Date January 2040 Original End Date February 2042
    • RichyRich
    • By RichyRich 25th Nov 18, 7:56 AM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    BIG milestone today.

    I've been making monthly overpayments of £700+ religiously since March 2017 and, today, the overpayment I made yesterday is showing on my account.

    Current balance: £199,600.73.

    I have breached the £200k barrier!

    It's not been without its challenges: not least an unreasonable service charge increase and unexpected legal fees, but I've finally got to a milestone that feels tangible (well, as much as any arbitrary target can be tangible!)

    There is still work to be done, of course, but I wanted to be sub £200k by the end of the year and I have done it with a month to spare. It's a double celebration too as I start a new job tomorrow.

    My fixed rate finishes in March so I'll start looking at the market over December. I'm really hoping that my current lender has some good retention deals, to avoid the hassle of remortgaging, but que cera cera. If we have to move we will move, but the truth is that I'm happy with Nationwide so I do hope they remain competitive.

    Cheers!
    Rich
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • Mortgage Minimiser
    • By Mortgage Minimiser 25th Nov 18, 9:59 AM
    • 176 Posts
    • 732 Thanks
    Mortgage Minimiser
    HI,

    I'm with Nationwide as well, and I love the ease with which you can overpay, no minimum amount and always 10% of the original loan. I think it's worth a little more tbh.

    I remortgaged 2 weeks ago on 1.99 for a five year fix and my mortgage balance is similar to yours @ 191k. I can still OP 24,375 though, which is 10% of my original mortgage.

    I always find it better to go in and speak to them.

    Good luck with the remortgage!

    MM
    x
    2016 MFW#46 O'Pd- £3641.26; 2017 MFW OP'd £7779.28 ; 2018 MFW OP'd £11,515.16
    MFiT-T4 # 59 - reduce mtg to £195,000; MFit-T5 - reduce mtg to £140,000
    Mortgage at start (01/2/2015) - £243,750. @31/12/15 - £235,906.71. @31/12/16 - £224,120.98. @31/12/17 - £210,224.06. @31/12/18 - £190,821.21
    Mortgage today £182,814
    • RichyRich
    • By RichyRich 25th Nov 18, 2:20 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Hi MM

    I agree - the 10% being calculated by reference to the original balance is a boon and something I'd lose if I switched away. When we last did a product switch we did it by video link in one of the branches and it worked really well tbh - but I'd already found that Nationwide was the most competitive before I went down. I wouldn't necessarily just go down next time - I'd always do my research as to w hats on the market first.

    Here's to being mortgage free (one day!)

    Cheers
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • glass_half_full
    • By glass_half_full 25th Nov 18, 6:24 PM
    • 356 Posts
    • 835 Thanks
    glass_half_full
    Hi RR,
    Congrats on getting under £200k!
    The title of you diary caught my eye. I can relate to the challenge of balancing the various goals. I go round them (pension, mortgage, savings etc) and then decide to balance across them. Plus trying not to sacrifice today too much for tomorrow. I think one of the challenges is that sometimes the goals are so far away they donít feel real. However, one thing I will say, and that is your future self will thank you for what you are doing now. I am 52 and so retirement is now within an imaginable time frame, and I am so glad I started with AVCs 25 years ago when I couldnít imagine ever reaching retirement!
    Good luck with your plans.
    • lippy1923
    • By lippy1923 25th Nov 18, 7:53 PM
    • 1,277 Posts
    • 3,547 Thanks
    lippy1923
    Congrats on breaking the £200k mark.

    I feel your struggle with finding the right balance. For me I have now found the right balance is to overpay and save at the same rate. So I always aim to OP at least £500 per month which means my savings should ideally increase by this much.
    Pension is quite far from my mind tbh. My employer pays 8% and I pay only 5% but I am not overly fussed as I have the same concerns mentioned about actually being able to draw my pensions. I'm still in my 20's so I will probs be in my 60's before I'm allowed to take my own money. Way into my 70's for state pension.... if that even exists then at all!
    Total Mortgage OP £30,500
    House Value £290,000 Mortgage £70,200
    Emergency Fund £35,000
    Spend Fund £1200

    • RichyRich
    • By RichyRich 28th Nov 18, 9:29 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Lippy, that's one of my concerns too. On the one hand I'm desperate to put money into my pension because I'm saving tax at 40%, but I'm so reluctant to do it because the age at which I will be able to withdraw is at the whim of this and future governments. I am OK with 55, but less OK with "55 now but maybe older later". I need certainty, hence the parallel ISA.
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 28th Nov 18, 9:30 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    I'm 33, FWIW.
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • lippy1923
    • By lippy1923 29th Nov 18, 3:49 PM
    • 1,277 Posts
    • 3,547 Thanks
    lippy1923
    You still sound like you're putting in a good % but there's def more incentive to topping up the pension if you're in the 40% tax bracket.

    I don't think it really matters too much what you decide to do (pension, overpay mortgage, savings, investments) as its not set in stone and you can always swap and change to suit.

    It's a nice problem to have. At least you are not throwing your money down the drain or getting into debt. Keep us updated whatever you do, its always motivating to keep track on here
    Total Mortgage OP £30,500
    House Value £290,000 Mortgage £70,200
    Emergency Fund £35,000
    Spend Fund £1200

    • kev2009
    • By kev2009 29th Nov 18, 4:49 PM
    • 395 Posts
    • 557 Thanks
    kev2009
    In similar position also, i'm in early 40s, bought place in 2015, first property. I've got mortgage over 30 years, currently on a 5 year fixed ending in 2020. I've not overpaid to date as due to expenses etc, not had the money to do it and have been working on building up a emergency fund like yourself incase the worst happens as i'm single so no other income to help if the worst did happen.

    I've been using a spreadsheet and I've decided to start making overpayments. Due to potential interest rate increases, i'm planning to keep the term the same and overpay a small amount this year and then each year up to 2020 pay as much as i can. Then will likely get another 5 year fixed rate and then continue to over pay as much as i can each of those 5 years but keep my monthly payments the same and reduce the term. Reason being simply if interest rates do go up before i re-fix in 2020, i want the longer term to hopefully have lesser impact on monthly payment rises. Once I've fixed, i'm hoping to pay as much as i can off which will hopefully lead to a good reduction in my mortgage by 2025 and therefore will be in a much better position with a smaller mortgage to then re-evaluate what to do then i.e fix for 2 years, 5 years, go variable etc.

    I'm not overpaying each month, i'm basically going to save the money in an account and subject to not needing it, then over pay towards the end of each year as my mortgage allows a 10% over payment each calendar year based on the over payment figure calculated in Jan of each year. SO after this year, i'm looking at trying to save as much as i can over the next 2 years initially to overpay the mortgage and then continue that for another 5 years if i can without anything unexpected happening. If this works out, i'm hoping to be a much better position with the mortgage and will be easier to manage, lower monthly payments etc.

    Any small savings i make each month will get routed the the annual overpayment so in some ways will help get a little bit more to pay off the capital.

    Kev
    • kev2009
    • By kev2009 29th Nov 18, 4:58 PM
    • 395 Posts
    • 557 Thanks
    kev2009
    Forgot to say, i'm also paying into company pension, i pay in 10%, company 8% and i'm not in the high tax bracket, not even close.

    I have considering paying more into the pension but i'm also thinking best to get mortgage lower/cleared first and then look to maybe double pension contributions. I'd really like to get the mortgage sorted by 2030 but that may just be a pipe dream, will have to see how things go and if its possible. I know maybe i should of started overpaying sooner but needed a bit of security first to know i could at least pay the mortgage bills for x period of time without the thoughts of "how will i pay that next month" etc. Due to my salary, i couldn't get my mortgage over 25 years so i had to get it over 30 years (bit of a nuisance but it did mean my monthly payments were lower) so in a way that has helped albeit the 30 year takes me right up to retirement age for me or very close as i think there is plans to move my retirement age up to 68 before 2030, think it was in 2028 they plan to increase it.

    Kev
    • RichyRich
    • By RichyRich 29th Nov 18, 8:59 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Kev, thanks for dropping by! I'm not a financial advisor and that's probably at least partially why I am struggling to balance all my goals in a way that pleases me - but for what it is worth I agree with your sentiment about building up an emergency fund. It's important, in my opinion, to have enough easily accessible money on hand should something happen that means you need it - how much tax you might have saved by doing x, y or z is irrelevant if when it comes to using the money you can't get to it!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • kev2009
    • By kev2009 30th Nov 18, 11:11 AM
    • 395 Posts
    • 557 Thanks
    kev2009
    Same here RichyRich, i'm no financial expert so am just trying to do what i can, however i do wonder at times if its the right thing or not. I think for now, emergency fund is totally worth doing as you never know when things will change. But then as far as should i pay off mortgage, put more money in pension, put it in ISA, stock and shares - no clue. I started a pension a little before i was 25, but i paid in a fixed amount and sadly never increased it, it was a private pension as i worked via a agency so no company pension back then and i paid in a few years of the same amount.

    I then got a perm job and company paid into pension, i didn't need to but could if wanted to but i didn't, i thought, i'm new, let just see how the job goes etc. Anyway few years passed and i then moved private pension to company pension scheme as private one was only projected a 4-5k pension per yer. Company one was projecting more but even now, i'm only projected to get approx 9.5k per year (assuming retire 65 and no 50% to partner etc as i'm single at present, and includes a 3% rise per year). This does assume i take 25% tax free of my fund and then buy annuity which tbh for the % going in, seems a bit low. At present i thin annuity is best for me as single and once retired wont have another source of income and if markets crash etc, could loose a lot whereas annuity may give me less but that figure is set for life and can factor in a % increase to hopefully help with the annual increases in bills etc, at the end of the day, i'm hoping to have an affordable, comfortable retirement whereby i can have the heating on if needed and not have to worry about how will i pay for it. Would like to have some holidays, not extravagant big holidays, probably just to places within the UK, may long weekends or maybe a week or so here and there. Hopefully afford to replace my car every 3-5 years fingers crossed.

    I realise i'm a fair way off from retirement yet so the predictions are almost meaningless as i believe until you get closer, around 10 years away, is when the numbers actually become more realistic to what you might get.

    As i have no cue, I've left it in the default plan at work. I don't have funds yet to start a iSA etc, think like yourself whilst interest rates are relatively low compared to what they could be, best to pay off what i can now to avoid a potential hike in repayments or the potential of needing to see as wont be able to afford it if they went up very high. Once mortgage is down much lower then i can take it a bit easy and maybe priorities ISA, pension more but that is at least 7 years away before than is even a remote possibility assuming i stick to paying of what i can each year from mortgage. I realise 'd save hopefully a fair bit in interest by doing that as my interest rate is over 2% atm but its not like they give me a cheque for the money back so to speak so its just not having to pay it for 30 years, hopefully i can do within 15 years meaning i save myself 15 years of payments, unless i decide to move etc, which i would like to potentially but due to age, and potentially getting a mortgage for only 10 years for example. At present the type of place i'd like is worth about 100 - 140k more than the estimated value of my place and i'm assuming i'd own it by then.

    Kev
    • RichyRich
    • By RichyRich 31st Jan 19, 7:12 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Took another step towards mortgage freedom today. My lovely 2 year 1.19% fixed rate comes to an end on 30 April, and Nationwide released the rates to commence on 01 May today so I've plumped for a 5 year fix at 1.89% (£999 fee). In these times of uncertainty I think a longer term fix is worthwhile. Spoke to the wife and we are going to "up" our contributions to the degree that by the end of the five years, during which we can still overpay by up to £24k a year, we should be within spitting distance (well, two years or thereabouts) of paying off the mortgage altogether. Needless to say I'm feeling a lot more positive about the situation now that the plan is a lot more concrete and I can actually visualise the journey. To freedom!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 3rd Feb 19, 9:12 AM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Tracking update.

    Mortgage balance as at 1/1/2018: £214,663

    Mortgage balance as at 1/1/2019: £198,257

    Other goals reached: cash savings pot at £15k, an amount at which I'm comfortable for it to stand as an emergency fund. Sitting in a Marcus account.

    I started a new job in November and have set my pension investment at 15%. My employer will contribute 11.5% to this giving an overall contribution of 26.5%. I took a pay rise so I am hoping that I will not "miss" this money, however, it's taken a few months for them to arrange the deduction. My overall take home will still be slightly more than in my old job which will enable me to contribute a bit more to my S&S ISA this year (which was woeful last year at around £4k predominantly due to topping up cash savings).

    New contractual monthly mortgage payment from May will be £860. We are planning on overpaying this by around £1300 per month with a view to driving a big hole in it by the time the fixed rate ends. This larger ongoing monthly overpayment (current overpayments are between £700 and £800) might not start until March or April, though.

    This is because the budget has taken a massive tumble on grounds of several large items of expenditure. Three of these are purely indulgant. We like to be organised (Not that we're very good at It!) so have booked my annual leave for the year up in advance. We've booked our easter, summer and October holidays which mean that I've paid the Easter one and the deposits on the other two. Needless to say this is a bit spendy. I've also had to pay the best part of a grand to secure out new mortgage deal which was paid from my credit card - I could have delayed booking the mortgage rate for a few months but there would be no guarantee that the rate would be available and I could have added it on to the mortgage but I would have missed out on nearly 2,000 Hilton points by doing that. The joys of renewing home insurance next!

    So a few months for things to "settle down" (how many times do we say that!?!) but I'm hoping for a strong year in terms of bringing down the mortgage and upping the S&S ISA.

    Happy 2019!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 19th Feb 19, 7:55 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    February overpayment made yesterday and another milestone: down another five grand to the sub-£195k mark with the balance standing today at £194,818.

    Both my wife and I have increased our monthly payments into the joint account with a view to making a serious hole into the mortgage over the course of our five year fix. Expected monthly payments around the £2k mark of which £860 ish will be the CMI meaning overpayments of about £1,100 per month - which means that if we stick to our plan we will pay £66k off the mortgage in overpayments alone over the five year term (plus whatever the contractual payments knock off the capital). This is still well within our 10% allowance and I have every confidence we will stick to it as we have the past few years.

    It's also quite a good "safety net" because Nationwide puts the overpayments into a reserve which can then be called upon in an emergency so if the worse happened we could stop payments for a decent period of time (as we currently have £20k in the reserve) while we get back on our feet. Obviously that's not what I want to do, as it would "undo" the good work of overpaying more quickly, but it's good to know it's there.

    Emergency fund wise I'm stocked up, so as far as the balancing of multiple goals goes, I am taking 15% from salary at source to my pension (plus employer contribs) and any excess going to the S&S ISA. I'm nowhere near the £20k max for this year but hope to get closer to it in 2019/20. All in all I'm pretty happy with the balance right now but let's see how that goes.

    See you at the next milestone, if not before!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 9th Apr 19, 6:23 PM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    Well I'm becoming a bit obsessed with this now. I got a letter through on Saturday confirming that our 5 year fixed rate of 1.89% starts on 01 May.

    We've both already "upped" our contributions to the joint account by £100 each which should mean another £200 (ish) towards the mortgage. Why ish? Well, some bills are going up, so it might be a bit less.

    Not quite at the next £5k milestone on the mortgage yet, but I'm feeling fairly positive about the multiple goals. I got my full isa allowance invested last year and since starting my new job I've been maintaining 15% payments into my pension (plus employer contribs). It might not be perfect but I'm broadly happy with the balance for now.

    Until the next time!
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
    This is the secret message.
    • RichyRich
    • By RichyRich 19th May 19, 11:43 AM
    • 1,848 Posts
    • 2,261 Thanks
    RichyRich
    I got paid on Friday which means it was time for the May overpayment, which was a bit higher than usual due to receiving an extra £100 into the joint account for renewing the mortgage with Nationwide and the leftover electricity credit we had from our old supplier which was returned to us. The upshot of all this is that we have hit another £5k milestone with the total mortgage balance now sitting comfortably under £190k.

    The "multiple goals" segment is not doing too badly - obviously pension payments are continuing apace due to being deducted directly from payroll but I'm struggling to see that I'll be in a position to maximise my ISA this year (though, really, we are only just into the new tax year by just over a month so things might change).

    I do however have £9k sitting in cash in my ISA which I haven't invested yet. I'm dithering on this, because the value of my investments has spiked, and while I know you can't really time the market its a lot to put in in one go especially when the valuation seems high. Who knows I might kick myself one day but for now I'm going to ride it out where it is and remain poised to move it over if the market drops.

    Until next time.
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30
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