Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • try harder
    • By try harder 3rd Dec 19, 10:48 AM
    • 872Posts
    • 3,452Thanks
    try harder
    134000 in 6 years
    • #1
    • 3rd Dec 19, 10:48 AM
    134000 in 6 years 3rd Dec 19 at 10:48 AM
    A new year is coming and a fresh start is needed ..After being completely rubbish at keeping up with my old diary I thought i must try again .
    I now owe 134,000 or at least i will do by the first of January so new calculations to be made .I must now try to find around 430 a week ,huge ask but as my mortgage is interest only i have no choice but to try .
    Starting in Jan i shall be dividing up the money each week three ways , my Isa ,Premium Bonds and an overpayment to the mortgage will all get a share , im going to try that for a while and see how it goes.
    My main priority is to try and post on here much more regularly ,i just don't know where the time goes
Page 1
    • Want2BeFree
    • By Want2BeFree 3rd Dec 19, 7:13 PM
    • 13 Posts
    • 10 Thanks
    Want2BeFree
    • #2
    • 3rd Dec 19, 7:13 PM
    • #2
    • 3rd Dec 19, 7:13 PM
    Good luck; what is the interest on your mortgage?

    Mathematically you should put all your money to the highest return; either the savings from the mortgage or what you can get in a savings account rather than splitting it up. However this is very commitative and you will need to manage your budget to ensure you have liquidity to pay the larger bills throughout the year.
    • try harder
    • By try harder 4th Dec 19, 8:03 PM
    • 872 Posts
    • 3,452 Thanks
    try harder
    • #3
    • 4th Dec 19, 8:03 PM
    • #3
    • 4th Dec 19, 8:03 PM
    Thank you ..Im not sure now , I think its just under 3%..Im hoping that by dividing the money three ways im covering myself slightly just in case my Isa has lost money
    • Socajam
    • By Socajam 4th Dec 19, 9:17 PM
    • 643 Posts
    • 915 Thanks
    Socajam
    • #4
    • 4th Dec 19, 9:17 PM
    • #4
    • 4th Dec 19, 9:17 PM
    As interest rate is low, how about changing your interest only mortgage to repayment, get a fix rate and keep the endowment?
    You can still make overpayment on the mortgage and get some money back when the endowment matures.
    I followed this route: mortgage was 60,000 interest only, changed to repayment and overpaid.
    Kept endowment and was able to have 50,000 when it matured.
    My mortgage was taken out in 1989. I became mortgage free over 5 years ago.
    • try harder
    • By try harder 12th Dec 19, 10:30 AM
    • 872 Posts
    • 3,452 Thanks
    try harder
    • #5
    • 12th Dec 19, 10:30 AM
    • #5
    • 12th Dec 19, 10:30 AM
    Thank you socajam for your advice . Unfortunately we don't have an endowment .We took out an interest only mortgage as that was all we could afford at the time and now it would make our mortgage payment around 3 times what we pay on an interest only and if something happened and we couldn't find the mortgage money we would lose our home so a repayment mortgage is not really an option for us
    • phillw
    • By phillw 12th Dec 19, 10:39 AM
    • 3,159 Posts
    • 2,616 Thanks
    phillw
    • #6
    • 12th Dec 19, 10:39 AM
    • #6
    • 12th Dec 19, 10:39 AM
    Premium bonds average return is 1.4%, you are effectively borrowing money at just under 3% to invest it at 1.4%

    The way you talk about losing money on your ISA is that it's stocks and shares, I wouldn't consider anything that risky when you have such a large outstanding mortgage and the reason for not taking a repayment mortgage is in case you lose your job. I watched my s&s every month looking at the return when I had to deal with my finances seven years ago, I pulled it out when there was a bounce.

    I'd store some emergency cash at the highest rate you can and pay everything else off the mortgage (as long as there is no repayment penalty). As a couple I think you should be able to open three TSB accounts and store 1500 in there at 3% for example (one each of your own name and one joint account).
    Last edited by phillw; 12-12-2019 at 10:48 AM.
    • try harder
    • By try harder 12th Dec 19, 12:47 PM
    • 872 Posts
    • 3,452 Thanks
    try harder
    • #7
    • 12th Dec 19, 12:47 PM
    • #7
    • 12th Dec 19, 12:47 PM
    Thank you phillw ..I completely agree with everything you suggest ,I am just too nervous to put all our money into the mortgage in case something does go wrong, there is only one wage earner and if anything was to happen to him and he was unable to work we would be in a muddle but next year he will be working more hours so possibly I could change some of the percentages I want to pay to each with more going into savings risk free .Thank you again
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,138Posts Today

6,724Users online

Martin's Twitter